Home Interaction

A long-awaited jump in home remodeling spending doesn’t appear to have been part of a recent boom in American Express cardmember spending. But five closely watched forecasts show brighter days ahead as spring sales heat up.

The latest American Express Savings Tracker, which surveyed 2,045 adults in March, found that 64 percent of respondents plan renovation projects this year. According to that poll, planned expenditures for 2011 averaged just $3,400 in 2011—down from $6,200 in 2010. But other data suggest finding a parking spot at your local home center isn’t likely to get any easier:

• The Census Bureau estimates a 7.1-percent increase compared with last year’s first-quarter results at building material and garden equipment and supply dealers, although some of that includes non-home items like farm equipment.

• The Home Improvement Research Institute (HIRI) is projecting a 4.4-percent boost in spending across a wide swath of products over last year’s first quarter. “Unlike the Census Bureau figures, our survey looks only at spending on products that stay in a person’s home,” Fred Miller, HIRI’s managing director, told Consumer Reports.

• There’s more good news from Home Depot: Its latest earnings report showed same-store up rose 4.8 percent from the same quarter a year earlier—the highest in five years. Transactions under $50 were up 1.8 percent, while sales above $900 soared 9.6 percent, led by demand for appliances, millwork and windows.

• Still other home-appliance data look promising: Shipments of major appliances in North America climbed 5.6 percent in March, the Association of Home Appliance Manufacturers reported earlier this week. The “Big Six” appliance categories—washers, dryers, dishwashers, refrigerators, freezers, and ranges and ovens—saw shipments rise to 4.26 million from 4.04 million units in March 2010. And March shipments were up a whopping 55 percent over February.

• Even mowers and trimmers are part of the trend: U.S. residential and professional landscaper demand for outdoor power equipment saw declines during the recession, but is forecast to increase 6.4 percent annually to $11 billion in 2015, according to a new report from Freedonia Group.

The Amex folks did see fair weather ahead for green renovations: Nearly one-third of homeowners planning renovations are looking to invest in green improvements this year. Many are choosing to spend on energy saving measures because of the long-term, cost-saving benefits (31 percent). Energy-efficient windows and doors (16 percent) top homeowners’ lists, followed by insulation (12 percent), roofing (11 percent), and heating/ventilation/air-conditioning systems (10 percent). And see the video below for ways to spot energy drains in your home:

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