Stock prices up for remodeling industry

The recession has hit homeowners hard the past five years. According to Forbes Magazine, "home prices fell, on average, 25% from 2007 through the first two quarters of 2012." With the loss of so much equity, homeowners today are choosing to stay longer in their homes and are amping up their remodeling projects to fit their changing lifestyle and family needs.

Remodeling industry worth $500 billion

As a result of this shift, the remodeling industry is booming. Forbes Magazine reports that it will exceed $500 billion in 2013. This is how much Apple was worth at the beginning of 2013, and equal to "the annual prescription drug sales in the U.S., the . . . entire aircraft carrier fleet, retail sale of electricity in the U.S., or the entire coffee industry." As you can see, this is no little number.

Stocks on the rise for home improvement companies

With remodeling projects on the rise, stocks are up for home improvement companies, including Sherwin Williams, Home Depot, Lowe’s, Caesar stone, Lumber Liquidators, Masco, and Fortune Brands. And as homeowners work to remodel or update their homes, they are rewarded with higher equity. On average, homes have appreciated 7.3% in price.

Healthy economy will ensure future growth of remodeling industry

The Joint Center for Housing studies at Harvard University predicts, "The long-term expansion of the remodeling market is an unmistakable trend, and a relatively healthy economy will assure future growth in the industry." And as with any trend, improvements in one aspect of the housing market will positively influence other aspects so that eventually, the entire market is benefited.

Interior Decorating and Remodeling News Brought to You by EZSnapCovers.com

Source: http://www.forbes.com/sites/darcytravlos/2013/02/27/the-new-cycle-the-remodeling-industry/

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