High Prices to Cause Higher Spending on U.S. Home Upgrades in 2018

a modern living roomAmericans plan to take advantage of high home prices by spending more this year to upgrade their residential properties, according to the Leading Indicator of Remodeling Activity (LIRA) model.
Harvard University’s Joint Center for Housing Studies released the LIRA report, which forecasts spending to increase nearly 8 percent to $333 billion by September.

Home Development Spending

Aside from high home prices, home builders and renovators will notice an increase in development activity due to recent economic growth, according to Joint Center for Housing Studies managing director Chris Herbert.

Americans in disaster-stricken states last year such as Texas will particularly seek to renovate their houses, according to the report. Abbe Will, the center’s research associate, expects “stronger growth” in 2019 since more people will pursue major repairs.

For homeowners with pools on their property, it’s a good time to get the backyard feature checked. Custom pool builder, Gold Medal Pools says that a service could include testing the water quality and cleaning to restore its sparkling look.

The North Texas Market

Hurricane Harvey’s impact last year failed to dampen the momentum of home sales in North Texas in January when transactions comprised 6,246 existing properties. The Real Estate Center at Texas A&M and the North Texas Real Estate Information Systems said that real estate agents sold 12 percent more homes last month.

The median sales prices also increased, although at a slower rate of 5 percent. Still, the number of existing homes that changed possession set a new record in January. If you intend to sell your house in the coming months, finding a buyer will be relatively easy. A tight supply of homes on the market has caused buyers to place bids as quickly as supply increases.

An increase in home remodeling activity bodes well for the business of home builders and renovators in the near future. For homeowners, planning a renovation project seems a worthwhile investment while prices remain high.