The latest Leading Indicator of Remodeling Activity (LIRA), released this week by Harvard University's Joint Center for Housing Studies, projects a strong 2012 for the industry. “Sales of existing homes have been increasing in recent months, offering more opportunities for home improvement projects,” said program director Kermit Baker, in the news release. “As lending institutions become less fearful of the real estate sector, financing will become more readily available to owners looking to undertake remodeling.”

If you're planning a remodel, now is the time to get your finances in order and start talking to professionals, assuming the scale of the project is beyond DIY. In general, anytime you're knocking down walls and moving around water and electrical lines, it pays to hire a contractor. Simple spruce ups, such as painting and upgrading appliances, are usually DIY-friendly. Replacing countertops and refinishing cabinets require more time and effort, but you may be able to manage them depending on your skill level.

Whether you do the work or hire it out, take advantage of our Ratings to find the best products and materials. Our Home Remodeling & Improvement Guide includes a room-by-room interactive, with detailed information on appliances, countertops, flooring materials, paints and more.