Spring remodel demand cools
Sales of previously occupied U.S. homes fell in March to the slowest pace in nine months, and builders reported softer demand—35% saw sales declines and incentives climbed to 24%—a backdrop that is tamping down a broad spring renovation surge. (apnews.com) (housingwire.com) (rismedia.com)
The spring home-improvement rush is losing steam as fewer Americans are buying homes and builders are seeing less buyer traffic. (nar.realtor) (housingwire.com) Sales of previously owned homes fell 3.6% in March from February to a seasonally adjusted annual rate of 4.02 million, the National Association of Realtors said April 13. That was the slowest sales pace in nine months, and March sales were also 6.3% below a year earlier. (nar.realtor) (rismedia.com) Small and midsized builders reported the same slowdown. A BTIG and HomeSphere survey cited by HousingWire found 35% of builders posted month-over-month sales declines in March, up from 30% in February, while the share raising incentives climbed to 24% from 19%. (housingwire.com) Remodeling tends to rise when owners buy older homes and start fixing kitchens, bathrooms, roofs, or heating systems soon after closing. When sales slow, that handoff from purchase to renovation also slows. (houzz.com) (nar.realtor) Mortgage costs are still part of the drag. Freddie Mac said the average 30-year fixed mortgage rate was 6.37% on April 9, and the National Association of Realtors said lower consumer confidence and softer job growth were holding back buyers in March. (freddiemac.com) (nar.realtor) Inventory is improving, but not enough to produce a broad rebound. The National Association of Realtors said unsold housing inventory rose 8.1% in March from February to 1.33 million homes, equal to a 4.0-month supply, while RISMedia described supply as still constrained. (nar.realtor) (rismedia.com) Builders are also still leaning on discounts even as sentiment has steadied. The National Association of Home Builders said 64% of builders used sales incentives in March, the 12th straight month above 60%, which shows how much effort it still takes to move new homes. (nahb.org) That leaves the renovation market with mixed signals instead of a clean spring surge. Houzz said homeowners’ median renovation spending fell to $20,000 in 2024 from $24,000 in 2023, and the March housing data suggests 2026 is opening with the same cautious mood. (houzz.com) (housingwire.com)
