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“People are remodeling instead of moving” according to David Crowe, chief economist of the National Association of Home Builders.

The key to this are the huge number of current homeowners who either are unable to sell their currents homes, or if they do, no longer will qualify for a new mortgage, or lack a 15-25% down payment for another purchase in order to move.

During Q3 2011, homeowners took out $5.3 billion in home equity/refinancing. That has been driving some of these renovations.

Regardless, housing will remain a dark spot in the economy for an extended time.