Home remodeling market will stay strong into 2014

REMODELING SURGE: Small companies involved in the home remodeling industry should see their business stay strong the rest of this year and into 2014, according to a study by Harvard University's Joint Center for Housing Studies. The center's quarterly Leading Indicator of Remodeling Activity forecasts a 15.9 percent increase in spending on home renovations this quarter, compared with the final three months of 2012. It predicts a 17.3 percent gain in the first quarter of next year.

SOFT SPOT AHEAD?: The index, which is based in part on housing market data, points to a slowing of growth in the 2014 second quarter, the result of a slower pace of homebuilding in recent months. Spending on home repairs and improvement is closely tied to the housing market, because many homeowners fix up homes after purchasing them. The remodeling index forecasts a 15.2 percent gain in spending in the second quarter of 2014.

BUT NOT TO WORRY: Even if growth slows, the remodeling market remains very healthy, says Eric Belsky, managing director of the Joint Center for Housing Studies.

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