As a significant number of current households continue to be saddled with negative equity, making it difficult to purchase new homes, remodeling activity in on the rise as the marketplace enters its peak season.
A recent survey from Principia indicates that during the course of 2012, homeowners expect to invest more money into home improvement projects that the previous year.
The survey found that 38 percent of homeowners anticipate to spend "somewhat more" or "a lot more" than they did in 2011 on making wanted changes to their properties. In contrast, 32 percent claimed they would be spending less, while 30 percent said they would spend the same amount.
During the course of 2011, real estate data indicates that the average American homeowner completed 1.4 home improvements jobs. As a majority of households prepare to make changes in 2012 and 2013, this average is expected to be pushed higher to 1.7 jobs.
When it comes to the specific remodeling activity homeowners plan to engage in, 8 percent said they plan to upgrade their flooring by installing new hardwood or carpeting, while 11 percent plan to update the exterior of their homes by repainting their siding.
As future remodeling activity looks promising, a recent report from BuildFax that demand in the sector was strong in February, as homeowners made updates to improve their properties' value as the marketplace enters its peak buying season.
Overall remodeling activity in February rose 3 percent from the previous month, while surging 23 percent from a year earlier. As a result, there were an estimated 2.89 million projects underway in all four regions of the country during the month.
"February 2012 is the first month over the past twelve to show significant increases in residential remodeling activity across all U.S. regions," said BuildFax president of research and development Joe Emison.
Regionally, the report found that remodeling activity increased the most in the Northeast, spiking 24 percent on a month-over-month basis, while increasing 33 percent from February 2011. Meanwhile, remodeling in the South's marketplace rose 3 percent from January, while surging 25 percent from a year earlier. In addition, the Midwest reported a 4 and 22 percent increase on a monthly and annual basis, respectively, while the West experienced a 9 percent rise in activity from a month earlier.