The third-quarter 2007 release of the Leading Indicator for Remodeling Activity (LIRA) brings more doom and gloom. The annual rate of consumer spending on remodeling, having fallen each of the past two quarters, is expected to continue to drop for the next four quarters.
Citing slow home sales and sinking home values for the remodeling downturn, JCHS officials were cautiously optimistic, however, that even though the industry had yet to hit bottom, it wouldn't be that bad once it did. Kermit Baker, director of the Remodeling Futures program at JCHS, said, “Absent a more serious national downturn, remodeling activity is expected to see only modest declines in 2008.”
2007 YEAR-END BAD NEWS RECAP EDITION
Amount by which foreclosures increased in 2007 over 2006; more than 1% of all U.S. households were in some state of foreclosure last year
New-home sales in 2007, down from 1.05 million in 2006; the 26% drop is the biggest since 1963, when the government began keeping records of this data
Source: U.S. Census Bureau
Median price of all homes sold in 2007, a drop of 1.3% — the first price decrease on record
Source: National Association of Realtors