The Department of Commerce classifies official home improvements as projects that pertain to additions, remodels and replacements. Those include, but are not limited to, home interiors, exteriors, basements and attics.
Jupiter, Fla. (PRWEB) October 26, 2012
Now that home sales – and home values – are on the rise in South Florida and beyond, home-remodeling projects are growing ever-more popular.
According to recent research by the Harvard Joint Center for Housing Studies, home-remodeling projects will experience significant growth during the rest of 2012 and well into 2013. Such strong gains in the residential-remodeling industry are a direct result of the overall housing-market comeback, the center’s Leading Indicator of Remodeling Activity measuring tool reported.
Remodeling business nationwide is on target to jump 5.9 percent, to $120.7 billion, by the end of the year. Then, it is expected to rise 12.1 percent, to $128.8 billion, in the first quarter of next year. By the end of the second quarter of 2013, remodeling activity will have peaked 16.6 percent to more than $134 billion.
The Department of Commerce classifies official home improvements as projects that pertain to additions, remodels and replacements. Those include, but are not limited to, home interiors, exteriors, basements and attics. Painting, landscaping and regular maintenance are not home improvements, according to the department.
Kermit Baker, director of the center’s Remodeling Futures Program, said the uptick in the home-improvement industry is an offshoot of an improving housing market that not only has seen homes sales and home values increase, but also housing starts. Baker said the turn of events gives him and the rest of the center a “favorable outlook” of things to come.
Within Waterfront Properties and Club Communities’ real-estate territory of northern Palm Beach County, home-remodeling projects are ubiquitous. Admiral’s Cove in Jupiter is undergoing renovations, as is Lost Tree Village in North Palm Beach and several other communities.
Another key factor in the home-remodeling boom is low interest rates – especially on 15-year, fixed-rate home mortgages. The rate hit a new low in October of 2.66 percent, according to data provided by Freddie Mac.
The traditional, 30-year mortgage most recently was recorded at 3.39 percent – a near-all-time low.