Rising Home Equity
With rising home equity and home sales prompted home owners to renovate as they prepare to move or undertake upgrades that they put off during tough times,” says Bill Shaw of the NAHB.
Home remodeling saw greater demand in the third quarter as a growth in home equity and home sales prompted more home owners to tackle renovation projects.
The remodeling market index moved higher in the third quarter rising two points to 57 — the highest reading since the first quarter of 2004. A reading above 50 indicates that more remodelers are reporting market activity is higher than lower.
In addition to existing home sales, which support remodeling activity as owners fix up their homes before and after a move, remodeling has benefited from rising home values,” says NAHB Chief Economist David Crowe. “This boosts home equity that owners can tap to finance remodeling projects. We expect existing home sales and house prices to increase, but at a slower rate over the next year, so the demand for remodeling services should also increase, but more gradually over that period.”
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Source: NAR
