Remodeling experienced impressive growth throughout 2016, and that momentum is expected to continue into 2017, according to the Leading Indicator of Remodeling Activity.
As more people begin to put money and work into their homes, it's important that they have the financial means to do so. Offering your customers financing plans for their home improvement projects will keep your business competitive by helping people complete important upgrades to their houses.
The report, published by the Joint Center For Housing Studies of Harvard University, shows that remodeling spending reached $303.7 billion in the first three quarters of the year and is expected to grow to $304.9 billion in Q4. In comparison, the total for the year of 2015 was $285.5 billion.
LIRA predicts that the first three quarters of 2017 will amount to $326.5 billion. This could be sparked by rising home prices that dissuade people from entering the homebuying market. Additionally, as inventories remain low, those who are considering a home purchase may run into difficulties finding a suitable house in their preferred community.
"At $327 billion annually, the homeowner improvement and repair market will surpass its previous inflation-adjusted peak from 2006," Abbe Will, a research analyst in the Remodeling Futures Program at the Joint Center, explained in a press release.
The National Association of Home Builders also predicts that 2017 will see positive growth in the remodeling market. Although Americans across the country are beginning to invest in their homes, some will still encounter obstacles related to credit and funding for the projects.
"While the economic recovery has brought about a surge of remodeling activity for second homes in our market, access to credit continues to hamper the remodeling market's full potential locally," Jeff Grantham, a Michigan-based remodeler, commented in a press release from NAHB.
Even though much of the country has recovered from the Great Recession and the hit the housing market took a few years ago, many still find even small home upgrades to be a financial challenge. Less-than-excellent credit scores make getting a loan difficult. And savings accounts lacking in funds can keep a family from making necessary home improvements.
But it's not just those who are still struggling to save or improve credit scores might be hesitant to spend their hard-earned money all at once. Many people realize the importance of having cash available to use in emergencies or unexpected events.
Aqua Finance has a unique approach to credit approvals allowing you to offer financing to customers with a variety of credit grades. Don't lose a sale because your customer underwent financial hardship and is working to recover. Offering your customers financing can help to ease their concerns when putting money in their home. By spacing out payments, they will be able to keep their funds liquid while still making important upgrades.