CHICAGO, IL -- Improved U.S. housing turnover and strong home price appreciation in 2013 will lead to a more robust rate of growth for spending on home remodeling this year, according to Fitch Ratings in a new report.
Fitch is projecting a 6% increase in home improvement spending for both this year and 2015. This comes despite a rather volatile rate of housing turnover throughout this year, according to Director Robert Rulla.
'Existing home sales fell nearly 6% through August while both new home sales and single-family starts increased slightly,' said Rulla. 'Nevertheless, the improving economy and employment picture coupled with more moderate but steady price inflation ahead should help boost home improvement spending through next year.'
That said, constrained credit availability will continue to keep spending on big-ticket remodeling projects in check compared to the overall improvement in the remodeling sector. Nevertheless, 'there are some indications that homeowners, though still cautious, are beginning to undertake larger discretionary projects and purchases,' said Rulla.
Fitch's latest 'The Tale of the "Measuring" Tape - U.S. Home Improvement Industry' is available at: http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=785348