Contractors and hardware stores may not be very busy this Spring. Experts predict that the decline in home equity lines of credit (HELOCs) means fewer home improvement projects around the nation.

USA Today reports:

“Spring is typically the big season for home remodeling, but this year’s falloff will be felt across many kinds of related businesses, including contractors and architects, home furnishings stores and home designers.

Spending on home improvement projects is expected to decline at an annual rate of 12.1% by the third quarter…

The drop-off is being blamed on several trends. Fewer homes selling means fewer remodeling jobs. Home-equity lines of credit, which many homeowners used to tap to finance their projects, are harder to get because of the battering that lenders have taken from loan delinquencies.”

On the bright side, this means that fewer homeowners will be maxing out their HELOCs for unnecessary expenses, possibly resulting in fewer foreclosures in the future.

photo credit: Hendricks Photos

See Also:

HELOC Foreclosure

Is a HELOC Right for You?

Tags | Heloc, home equity line of credit