Upsurge in Home Improvement and Remodeling Markets Bring Encouragement

Published by nora | Filed under Buyer / Seller Tips, Communities, Market Trends, Miscellaneous, Real Estate

Both the house remodeling and home improvement products sectors are reporting upticks in their activities, bringing encouragement to the generally struggling housing market.

According to the National Association of Home Builders, its Remodeling Market Index rose to 46.5 in the first three months of this year, up from 41.5 in the previous quarter.

Although the RMI score is still below 50, the increase is encouraging because it reached a level higher than any other score since the last quarter of 2006. The remodeling index is calculated using reports of work and appointments from remodelers.

All types of remodeling jobs experienced an increase in the first quarter, as shown by the following increase in indicators:

• Major additions to the home – increase from 48.6 to 50.3
• Minor additions to the home – increase from 43.9 to 48
• Repair and maintenance – increase from 37 to 39.5

Across the U.S., remodeling jobs surged, except in the Midwest were remodeling slowed down from 54.3 to 47.1.

• Northeast – increase from 38.8 to 46.1
• West – increase from 39.7 to 46.1
• South – increase from 45.8 to 46.1

Transactions that indicate future developments in the remodeling market are also good reasons for optimism.

• Requests for remodeling bids increased from an index of 47.2 to 53.1
• Appointments for proposals rose from 43.1 to 52.4
• Backlog of remodeling jobs increased from 42.6 to 49.7
• Commitment for remodeling for the next three months stepped up from 25.9 to 32.1

A surge in sales of home improvement products is also a positive indicator for the housing industry. Home improvement projects can mean increased confidence in the economy, stabilization of jobs, increase in income, purchase of new homes, or the return of do-it-yourselfers.

According to the country’s two largest home improvement retailers Home Depot Inc. and Lowe’s Cos., their seasonal hiring and sales volumes increased in 2010 and in the first months of 2011.

The number of seasonal employees at Lowe’s rose by 15 percent in the spring of this year as more homeowners tackled improvement projects. Similarly, Home Depot reported that it hit in February its first yearly sales increase since 2006. Menard, a regional chain in the Midwest, showed a stronger proof of growth by announcing its plan to build and launch 12 stores this year.

Although there are still a lot holding off on their home improvement or  remodeling projects because of various reasons such as lack of financing, loss of home equity or reluctance in spending, the positive changes in remodeling and improvement indexes are affirmations for continued optimism in the residential real estate industry.

In many new homes in Tampa, home improvement or remodeling projects are not needed. Buyers can enjoy the properties as they move in. To look at these homes, contact the real estate professionals of Tampa4U.com.