Solid growth is expected in the Lake Minnetonka home remodeling market this year, but momentum should begin to moderate in the fourth quarter, according to the Leading Indicator of Remodeling Activity index released recently by the Joint Center for Housing Studies at Harvard University.
Researchers say the housing recovery has temporarily lost some of its momentum and sluggish home sales may result in lower Lake Minnetonka home remodeling spending by year's end.
Nationwide, home remodeling spending is expected to reach $153.1 billion by the close of 2014, up from $139.9 billion in the fourth quarter of last year, a 9.4 percent gain, the survey said. But compared to the projected spending in the third quarter this year of $158.9, spending is expected to drop by 3.6 percent by the end of 2014.
Lake Minnetonka Home Remodeling Continues to Recover
Lake Minnetonka home remodeling spending has already recovered a significant share of its losses from the downturn. Kermit Baker, director of the Remodeling Futures Program at the Joint Center said in a statement, “As spending moves into the next phase, we expect to see recent double-digit growth tail off to its longer-term average in the mid-single-digit range.”
While Lake Minnetonka home remodeling growth is expected to be solid, housing starts are expected to continue on slow growth pattern over the rest of the year. Privately owned housing starts in March grew by 2.8 percent, according to the U.S. Census Bureau, but at a slower rate than last year.
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