$107.6 billion

Projected annual spending on home improvement by the second quarter of 2010, an 8.9 percent decline from a year earlier, according to the latest Leading Indicator of Remodeling Activity index from Harvard University's Joint Center for Housing Studies.

While the projected home-improvement spending for 2010 is down $38.6 billion from what U.S. consumes spent three years ago, it might mark the beginning of an upturn in the remodeling market, according the JCHS: The second-quarter projected annual spending is up from the $105 billion and $105.5 billion projections for the fourth quarter of 2009 and the first quarter of 2010, respectively. (The chart shows the trend line since 2007, merging actual spending data from the U.S. Census Bureau with LIRA projections.)

"Remodeling spending by homeowners shows early signs of stabilization. While the housing recovery has been erratic, a strengthening economy could produce spending increases on home-improvement projects by the second quarter of next year," said JCHS Director Nicolas P. Retsinas in a release.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: If you're planning a remodel, use our Home Improvement Guide, a room-by-room interactive with information on appliances and other home products, and our Kitchen-Planning Guide. And before you buy new appliances, check out our FAQ about the $300 million cash for clunkers for appliances rebate program.