Homeowners Continue to Renovate, Despite National Retail Slump

With the prices of homes, retail goods, and renovation services down, many homeowners continue to take advantage of the struggling economy, placing their money into their number-one investment: their home.

The new year continues to provide great renovation opportunities for homeowners, even as the real estate market continues to struggle. Major retailers are still faced with store closures and layoffs, some of them major. Home Depot just announced its plan to close its Expo Center franchise, which includes 34 stores and 7,000 employees nationwide.

Retailers nationwide are facing an overall decline in 2009, which means that the entire year could be great for home renovation. The National Federation of Retailers predicted an overall 0.5 percent drop for the year, versus the (low) 1.4 percent increase of 2008. Every homeowner must manage his or her own budget, but one thing is clear: people are still renovating.

Renovation Slump Thwarted by Home Prices
In the post-holiday season, when home renovation historically slumps, the industry is witnessing a big increase this year in the US and Canada. Some homeowners are using the cash they have and investing it in home improvements. New homeowners who enjoyed good prices on homes, including foreclosures and auctions, are using that savings to renovate those homes.

The real estate market is not dead. Home sales actually rose 6.5 percent in December, which is the largest jump in years, according to the National Association of Realtors.

What does this mean for you and your home? If you have put off any home improvements due to the economy, think again. Now could be the best time to take advantage of discounts, and make that change you've always dreamt about.

Sources
Associated Press, Retail sales forecast to fall in 2009, by Anne D'Innocenzio
Gather News, Home Depot Closing All Expo Design Center Stores and Laying Off 7,000
International Herald Tribune, U.S. home price index fell again in November, by Jack Healy
The Windsor Star, Renovations big business in bad times: Lowe's joins crowded market, by Dave Hall and Don Lajoie