RALEIGH -- The Triangle's home-remodeling industry rebounded in the early part of 2002 after a sluggish close to 2001.

Local building permit filings point to a slight improvement for the first quarter over the same period in 2001. In addition, Wake County issued 213 remodeling permits during the first four months of this year -- work valued at an estimated $6.6 million. That was up by $1 million from the same period of 2001.

The figure does not include Raleigh and other municipalities. The number of permits was up 17 percent from 1999, while values rose 83 percent.

Escalating land prices in the Triangle's hottest neighborhoods are feeding a renewed demand for remodeling, says Jim Wahlbrink, executive officer for the Home Builders Association of Raleigh-Wake County.

"We've seen an increase here in whole-house remodeling, especially inside the Beltline," says Casanave.

In contrast, preliminary data from the U.S. Census Bureau show that overall spending on remodeling fell by 9 percent in the second half of 2001.

"The market here was noticeably slower," says Cary builder and remodeler Jon Rufty of Rufty Homes. "The last quarter of 2001 was very, very bad."

Rufty's company built nine new homes in the Triangle and handled four major remodeling jobs last year. While the pace was average, the company saw its typical backlog of remodeling contracts dwindle.

The remodeling sector typically draws more interest from homeowners during a down economy.

Consumers are more apt to choose renovating as a option to hanging a for-sale shingle and shopping for new digs.

"The cost of new lots continues to rise, and the locations are not as convenient as what some people want," Rufty says. "There's a strong desire to stay where they are."

As for home-building companies, they see remodeling as a way to keep crews busy between projects, says Mike Carpenter, executive vice president of the North Carolina Home Builders Association.

Still, the impact of a bad 2001 has been felt.

Raleigh-based Sigmon Construction has pruned half its staff after business declined by about 60 percent since fall. The commercial and residential builder and remodeler dropped from 65 employees to 37, says owner Hardin Sigmon.

Sigmon says he began to notice a marginal improvement in April. The company's home renovations typically range in cost from $250,000 to $1.5 million, but Sigmon also handles smaller projects, such as bathroom and kitchen remodeling.

"At this point, we're taking whatever we can get our hands on," he says.

Eddie Casanave's 12-person remodeling business, Casanave Construction Co., generated $2 million in sales last year. Late 2001 "was actually our busiest time," Casanave says. "The slowdown in leads that happened the last quarter of last year is just now showing up."

Nationally, remodeling has become a $160 billion business, according to U.S. Census data. The only remodeling category showing significant lift was maintenance and repairs, which increased by 14 percent to $48.1 billion.

Additions and alterations hovered at $78 billion, while spending on major replacements held steady at $33 billion.