A revised model for forecasting home-remodeling spending is predicting that such activity will increase by 8.6 percent annually by year's end and rise to 9.7 percent year-over-year growth in the first quarter of 2017.

The Remodeling Future Program at the Joint Center for Housing Studies of Harvard University released the report as part of an announcement that it is "re-benchmarking" its Leading Indicator of Remodeling Activity.

"Ongoing gains in home prices and sales are encouraging more homeowners to pursue larger-scale improvement projects this year compared to last with permitted projects climbing at a good pace," said Chris Herbert, managing director of the Joint Center, in a statement. "On the strength of these gains, the level of annual spending for remodeling and repairs is expected to reach nearly $325 billion nationally by early next year."

The revised LIRA forecast calls for national home remodeling spending to rise from $299.8 million in the current quarter, which is about flat from a year ago, to $309.9 million (an 8.6 percent year-over-year gain) in the fourth quarter and $323.3 million in the first quarter of 2017 (up 9.7 percent).

"Our freshly recalibrated indicator now forecasts a broader segment of the national residential remodeling market that includes both improvement and repair activity to the owner-occupied housing stock," said Abbe Will, a research analyst in the Remodeling Futures Program at the Joint Center, in a statement.