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Home improvement activity, which nationwide is the construction category closest to recovering from the downturn, appears to have gotten off to another routine start in the Albuquerque metro area.

As an indicator of home- improvement activity, the city of Albuquerque issued 221 building permits for single-family alterations and additions in the first quarter, the same number as in the first quarter of 2013 and within a half-dozen permits of 2012 and 2011.

The permit level of the last four first quarters is running 14 percent below the 15-year average of 256 permits for the quarter.

The metro is lagging behind the national trend of a surge in remodeling activity, driven in part by a broad recovery of sale volumes and prices in single-family housing across the country.

In my view, the remodeling market is directly related to home values and consumer confidence, said Larry Chavez, president of Albuquerque-based Dreamstyle Remodeling. If they are on the rise, remodeling activity improves.

Home prices in the metro have improved at a comparatively mild pace over the past two years. As of the fourth quarter, for example, the median sale price in the metro rose 3.3 percent from a year earlier, compared with 10.1 percent nationwide, according to the National Association of Realtors.

The metro continues to lose jobs: a 1.2 percent year-over-year job loss as of February, compared with 1.5 percent job growth nationwide. Continued job losses are symptomatic of a persistent economic malaise that does not lend itself to strong consumer confidence at the local level, Chavez said.

Chavez is on the steering committee of the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, whose Leading Indicator of Remodeling Activity forecasts consumer spending on home improvements will increase by double-digit percentages into the third quarter.

Spending will drop off in the fourth quarter but remain at an elevated level, as the housing recovery nationwide loses some of its momentum.

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ABQ remodeling off to a moderate start

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DES PLAINES, IL -- The National Association of the Remodeling Industry's (NARI) first-quarter 2014 Remodeling Business Pulse (RBP) data of current and future remodeling business conditions show current condition ratings fell significantly in March.

Business conditions during the first three months of 2014 dropped to 6.07, down from 6.41 in December. There was a decline in all but one of the sub-components that drive the overall current rating. Conversion of bids and sales value of jobs had the largest dip.

However, strength of sales in this three month period increased to 6.51, from the 6.41 reported during the fourth quarter of 2013.

"The harsh winter seemed to have played a role in the decline of our numbers this quarter," says Tom O'Grady, CR, CKBR, chairman of NARI's Strategic Planning Committee.

However, despite the low ratings for current business conditions, remodelers are more optimistic about the future, heading into their busy season. The outlook for business three months out reached a new all-time high of 6.51, from 6.41 in December 2013.

Growth indicators in the first quarter of 2014 are as follows (rating is from 1 to 9, where 1 is much worse than a year ago and 9 is much better; 5 is about the same as last year):

--Current business conditions fell to 6.07 (from 6.51 last quarter) --Number of inquiries remained flat at 6.24. --Requests for bids had a slight drop to 6.16 (down from 6.22 last quarter) --Conversion of bids fell significantly from 6.03 to 5.71. --Sales value of jobs sold declined to 5.84 (down from 6.27 from last quarter).

"Postponed home maintenance issues continue to be a large driver for projects," O'Grady says. "However, homeowners remain slow to make the decision to move ahead with higher-priced projects, which is still the biggest barrier to growth."

When asked about what is driving growth, remodelers had responses similar to those seen in the last few quarters. Activity is being driven by several factors:

Postponed projects continue to be the No. 1 factor in remodeling business growth, at 81 percent, up from 75 percent in December.

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Current Remodeling Conditions Survey Sees Pullback in March, According to NARI

Homeowners spend more money on kitchen remodeling than on any other home improvement project. And with good reason: Kitchens are the hub of home life and a source of pride.

Related: Timeless Kitchens

A significant portion of kitchen remodeling costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 to $60,000 range recoup about 74% of the initial project cost at the homes resale, according to recent data from Remodeling Magazines Cost vs. Value Report.

A minor kitchen remodel of about $19,000 does even better, returning more than 82% of your investment.

To maximize your return on investment, follow these seven strategies to keep you on budget and help you make smart choices.

1. Plan, Plan, Plan

Planning your kitchen remodel should take more time than the actual construction. If you plan well, the amount of time youre inconvenienced by construction mayhem will be minimized. Plus, youre more likely to stay on budget.

How much time should you spend planning? TheNational Kitchen and Bath Association recommends at least six months. That way, you wont be tempted to change your mind during construction and create change orders, which will inflate construction costs and hurt your return on investment.

Some tips on planning:

Study your existing kitchen: How wide is the doorway into your kitchen? Its a common mistake many homeowners make: Buying the extra-large fridge only to find they cant get it in the doorway. To avoid mistakes like this, create a drawing of your kitchen with measurements for doorways, walkways, counters, etc. And dont forget height, too.

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Plan Kitchen Remodel | HouseLogic Kitchen Remodeling Tips

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