The home improvement industry is booming, and that trend will continue into the next decade.
But one company is warning about the next wave of house price increases.
The Home Improvement Association of America (HIAA) says the next home improvement wave will be as disruptive to the economy as the first was, and is hoping to put an end to the trend.HIAAs president, Robert L. Buehner said it’s a matter of time before new houses are going for $100,000 or more.
But even those who do buy will pay for the home with a down payment that’s lower than they would with a traditional mortgage, according to the association.
“When you think about the impact of new construction on the economy, the real estate market in the United States is much smaller than what we see in other developed countries,” Bueker said.
“If you look at the real value of a house versus the value of the home it is much more in the middle.”
That’s because the price of a home will rise at a faster rate than the value.
“The average home price is $120,000 to $140,000, which is about where we are right now,” Bueshner said.
“But you also have people that buy a house for $200,000.
So if you look in that area, they’re not really getting a return on their investment.”
In fact, the HIAA said new home sales were down 5.5 percent in March and April compared to the same period in 2016.
That was the lowest pace in four years.
But if we look at all the other housing sectors, home prices in the first quarter were down 9.9 percent compared to a year ago.
Buehner noted the housing sector is in the midst of a resurgence, and the real-estate market in that country is recovering.
But he noted that even though prices are down, prices for condos and townhouses are up.
“We’ve got people buying more than condos,” Buedhner said, “but condos and towns are up.”HIA as well as the National Association of Realtors have predicted a housing market recovery.
The NAR estimates that by 2020 the U.S. economy will be in better shape than it was during the Great Recession.
The economy is expected to grow by 2.6 percent, which would be its highest rate in more than three decades, according the NAR.
The association says it’s encouraging the government to implement policies that will help keep pace with demand and keep pace, including:The U.N. Sustainable Development Goals include housing as one of the key components of the goals.
But in recent years, policymakers have been pushing to reduce the number of new housing units and focus on the supply side.
In April, Congress passed a bill that would have made it easier for developers to build new housing projects in the U, but the measure was vetoed by President Donald Trump.