Good news on the remodeling front

Remodeling contractors are feeling much more positive about future home improvement activity, according to Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University.

“Low financing costs and a wave of previously foreclosed homes coming back on the market and in need of renovation are expected to generate healthy growth over the next several quarters,” he said.

After a three-year decline, the Leading Indicator of Remodeling Activity chart expects a double-digit increase through the first half of 2011—though spending is forecast to remain below its 2007 peak.