Architects and Contractors who specialize in residential remodels should note and take heart in the following.
The Joint Center For Housing Studies (JCFHS) of Harvard University forecasts remodeling activity to start increasing 3.1% in the 4th quarter, with a larger jump of 11.8% to follow in the 2nd quarter of 2011 as people start spending on home improvements. Among other factors, currently there are many homes that have foreclosed that are being picked up and having major remodels.
The JCFHS measures improvements with such items as additions and kitchen and bath remodels. Contractors are more optimistic as well with the low interest rates fueling spending on big-ticket upgrades. These forecasted improvements are a breath of fresh air after a 3 year decline.
As we wrote last September in our blog post “A Great Time to Remodel” there are many factors that would lend itself to remodeling at this time. Construction costs have dropped, those interested in selling are upgrading so their home is a standout among the others, tax incentives for energy efficiency are still available and more. Now is an ideal time to rethink and begin the remodel you have been postponing.
Annie Hendricks, contributing author. Annie received a B.A. In Economics and has worked as a trader and portfolio manager both in New York City and Seattle.
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