Spending on home improvements will remain volatile and weak over the next several quarters after having shown some life.
The Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University projects annual remodeling spending through the first quarter of 2012 will be down 4 percent. The Census Bureau’s improvements spending series was recently revised downwards as well.
“What looked to be a promising upturn in home improvement spending earlier this year has begun to stall,” says Kermit Baker, director of the Remodeling Futures Program at the center. “Housing starts, existing home sales, and house prices have all been disappointing lately, which has dimmed prospects for home improvement spending gains this year.”
Eric S. Belsky, managing director of the center, said "Falling consumer confidence levels have undermined interest in discretionary remodeling projects.”
--Christopher Quinn
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