According to some media reports, optimism is finally taking hold in the U. S. home remodeling business and contractors are hoping it's not a "false blip."

David Lupberger, a home improvement expert with ServiceMagic. com of Golden, Colo, said, "There's a lot of pent-up demand. People who couldn't sell their homes are now starting to ask for these projects."

With the economy picking up the trend for small jobs like kitchen counter replacement or cabinet re-facing have morphed into full-blown remodeling jobs, Lupberger, who was in Chicago for the Kitchen & Bath Industry Show earlier this month, says.

Lupberger further said, "Let's hope this isn't a false blip. What the economy means is consumers' level of confidence -- it's a fragile thing. What we're seeing is people saying, 'I'm not going to hold back anymore.'"

He may be right. The most recent Commerce Department report showed housing starts for March up 1.6 percent from February and a whopping 20.2 percent above March 2009, with new home sales up 27 percent. Permits were up 34.1 percent from last year. And the National Association of Realtors reported sales of existing homes rose 6.8 percent.

It was also found by a Gallup poll that 72 percent of Americans think housing prices have stabilized or are rising, making it a good time to buy.

Lupberger said that before the recession hit 18 months ago and the real estate bubble burst, the home remodeling industry was approaching $200 billion a year, bigger than the new-home building industry.

He further estimates that with the recession, the industry shrank about 25 percent and, made consumers much more savvy in choosing a contractor, often seeking four or five estimates. (With Inputs from Agencies)