In a “telling sign” he's not the only homeowner considering such projects, he said many of the contractors he contacted in April already were too busy to squeeze in additional work this year. That's because more Americans are renovating their homes, and many are choosing to hire outside help instead of doing the projects themselves.
This is shaping up to be a “strong year” for home-improvement spending, according to Mike Englund, chief economist at Action Economics LLC in Boulder, Colorado . Seasonally-adjusted annualized expenditures totaled about $136 billion in June and have “bounced back” from a recent trough of almost $105 billion in November 2012, Englund said, citing his own calculations using Census Bureau data.
Forty-three percent of U.S. homeowners surveyed last month by the website RemodelOrMove.com said they will renovate their residences this year, up from 41 percent in February and a five-year average of 33 percent. Among respondents, 74 percent plan to hire a general contractor for some or all of the work, compared with 73 percent in the previous survey.
Eoin Treacy's view The ability to refinance close to record low interest rates combined with a weak housing market has created demand for home improvement supplies .Since people have been spending longer in their homes, the sector has been among the better performers since 2009. However, the question remains whether it will continue to thrive as the pace of new building improves. .
Home Depot remains in a relatively steep uptrend and a break in the three-year progression of higher reaction lows would be required to question the consistency of the advance. Lowe's has a relatively similar pattern.
Bed, Bath & Beyond experienced an abrupt decline in June 2012, which delayed the uptrend for a year. It moved to a new high in July and while somewhat overextended relative to the 200-day MA, a sustained move below it, currently near $67, would be required to question the consistency of the overall uptrend.