Most homeowners are planning on spending an average of $6,200 on home improvement projects this year and most believe a seller’s market is at least two years away, according to the latest Spending & Saving Tracker survey by American Express.
Consumer sentiment on the housing market was mostly on the positive side in the survey of 2,003 U.S. adults.
A majority of homeowners, 52 percent, said they are not confident of getting their asking price at this time if they were to put their homes on the market.
Virtually the same percentage felt the real estate market will provide the best opportunity to sell in two or more years, “yet investing in their current home remains a priority,” AmEx said.
Sixty-two percent said they will initiate a home improvement project. Of those, 68 percent will spend the average $6,200 in cash, check or savings, while 28 percent will use a credit card with the intent of paying of the balance in full, American Express said.
The majority – 53 percent – of the projects involve indoor remodeling, with cosmetic work (36 percent), re-doing a room (25 percent), and installing new flooring (14 percent) topping the list.
“It’s clear from this month’s survey findings that Americans’ most prized possessions are their homes and they are committed to continuing to enhance its appearance and value in spite of the softer real estate market,” said Pamela Codispoti, American Express senior vice president and general manager, Cardmember Services.
She added that homeowners are doing so responsibly by funding the projects “within their financial means.”
