The added value owners put into their homes could help boost their properties' selling prices if they decide to sell their homes in an improving housing market.
Chicago, IL (PRWEB) January 24, 2015
With the economy seeing gains in consumer wealth and job growth, The Federal Savings Bank, a Midwest based lender, thinks homeowners are likely more confident in taking on remodeling and home improvement projects to add value into their houses in 2015. As a result, builders are confident hiring and bids in the remodeling sector could increase following expansion in the final quarter of 2014. The National Association of Home Builders said the measure of remodelers' positive outlook in the market rose to a record high in the fourth quarter of 2014. The NAHB Remodeling Market Index reached 60, up 2 points from the previous quarter, as all components of the RMI increased.
"The recent pace and volume of business has been a boon to our remodeler members' confidence in the recovery of the housing market," Paul Sullivan, NAHB Remodelers chair, said in a statement. "The upward trajectory of the RMI results over the past year has shown that home owners are ready, willing and deciding to remodel."
Another measure of demand for remodeling, the Leading Indicator of Remodeling Activity, predicted home improvement spending will increase 6.3 percent in the first quarter of 2015, according to the Harvard University's Joint Center for Housing Studies. The analysts forecasted the LIRA will slow in growth later in the year, projecting 1.6 percent for the third quarter. Despite the researchers expecting gains in home improvement spending to decrease in the second half of the quarter, the housing market will remain strong.
"House price gains are moderating but still strong and home sales appear to be turning a corner now, all of which bodes well for continued, if more moderate, home improvement gains for 2015," Abbe Will, research analyst in the Remodeling Futures Program at the Joint Center, said in a statement.
Furthermore, the added value owners put into their homes could help boost their properties' selling prices if they decide to sell their homes in an improving housing market.
Homeowners should contact the Federal Savings Bank, a veteran owned bank, to learn more about applying for a mortgage before they choose to sell their homes.