Renovation Solutions: 2014 expected to be a good year for remodeling

The fireplace becomes a nice focal point for this remodeling great room, a common remodeling project for Utah clients.

Trina Knudsen

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With housing prices remaining steady, interest rates low and contractors back in full swing, this is a prime time for home remodeling.

The remodeling market is confident, and the economy is holding. The experts in the market analysis world say 2014 is a good year for the remodeling industry.

According to the Leading Indicator of Remodeling Activity, a report by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, 2014 already has had a good start and that momentum is expected to carry on throughout the year.

The projection shows double-digit gains this year over last year for the first quarter, and gains of just under 10 percent by the third quarter are expected. The study leaders attribute the growth to homeowners confidence in the housing market, which results from growth in home prices, housing starts and existing home sales. With that increased confidence, homeowners are now more likely to undertake home improvements they deferred during the Great Recession.

Housing experts project a slight slowing of the market by midyear because borrowing costs will start to creep back up. Right now, however, interest rates are still low and banks are loosening up funds. If you want to remodel, now is the time.

The National Association of Home Builders also reports increases from last year and predicts a good year for 2014. The Remodeling Market Index shows the highest reading since the first quarter of 2004 in remodelers activity and confidence in the market.

The experts at Remodeling Magazine agree and have another report to prove it. Every year, the magazine puts out its "Cost vs. Value" report assessing remodeling projects and determining the return on investment. For 2014, all 35 projects on the list added more value this year than last year, and this is the second consecutive year of increases after years of decline. This is another sign the housing and remodeling markets are on the mend. It feels good to see some good news about the remodeling industry!

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Renovation Solutions: 2014 expected to be a good year for remodeling