The real estate market in 2013 was one of the most remarkable years that we have ever experienced. Not just here in the Bay State, but also across much of the country, most markets realized superb boosts in prices, sales volume, construction starts, and record times for getting a property to the closing table after it has been active on the market. Now, a recent study from Harvard University has concluded that because of the above factors, the nations home remodeling market is also primed for success in this calendar year.
Authored by Harvards Joint Center for Housing Studies, this latest survey has proven that the thriving platform of 2013 has set up 2014 to realize a massive increase in home improvement projects. This year, estimates have reached upwards of $153.8 Billion that homeowners will be spending in the Third Quarter of 2014 alone. This significant number would result in an impressive 9.9% increase from the $139.9 Billion homeowners spent on home renovations during the Third Quarter of 2013.
Eric Belsky, the Managing Director of the Joint Center for Housing Studies at Harvard, noted in a prepared statement that, As owners gain more confidence in the housing market, they are likely to undertake home improvements that they have deferred. Home sales across the country skyrocketed by an expected rate of 18% in 2013, however the official tally is set to be announced later this month. Moreover, while Decembers numbers have yet to be entirely collected, Novembers median price for an existing home reached $196,300 in the nation, up by 9.4% from the same corresponding month from a year ago.
Looking to Massachusetts in particular, Massachusetts saw a 6% rise in home sales on a November year-over-year basis. This accounted for 45,979 closed transactions during November of 2013, compared to 43,222 during the same period in 2012. Regarding prices, median prices for a single-family home in the State rose by 4% to $307,000 during the past November from the $295,000 figure recorded back in November from 2012.
Overall, the Fourth Quarter of 2013 saw homeowner improvements rise to $140.4 Billion
The First Quarter of 2014 should see this number bump up to $144.7 Billion
Q2 of this year is estimated to go up to $147.6 Billion
- The Third Quarter, as mentioned above, should get to $153.8 Billion, while the Fourth Quarter predictions were not yet defined by the Joint Center for Housing Studies of Harvard University
More Information: Boston Business Journal