There were concerns about a tax credit hangover in the replacement and remodeling market as the year began, but according to Scott Berman President of Florida Window and Door “business has continued to improve thru the first quarter of 2011.”
On the positive side, NAHB’s Remodeling Market Index is at its highest level in four years. BuildFax, which recently launched its own index of remodeling activity, said February 2011 was 20 percent stronger than February 2010. It was also the 20th straight month of improving numbers.
Harvard’s Joint Center for Housing Studies pulled back on its projections for growth in remodeling spending, however. “Given all the economic uncertainty that we’re seeing nationally, the home improvement recovery is expected to be rocky,” said Eric S. Belsky, managing director, in the center’s latest release. Hanley Wood also joined in recently with a less than rosy report that remodeling activity declined for the first quarter of 2011.
“Slow job growth, Depressed home values, and the lack of financing in addition to the reduction in tax credits continue to effect our industry as whole, on the positive side purchases of short sales, foreclosures and the inability to relocate along with a better economy should foster growth as a whole” says Berman.