According to BuildFax, the number of households opting to stay in their home and remodel, rather than enter the housing market as buyers, increased at the end of 2011.

The real estate data firm's Residential Remodeling Index rose to the highest level in December since the company started keeping track in 2004, after surging 22.8 percent to 127.4. Last year at this time, the index settled at 103.7.

However, on a month-over-month basis, BuildFax vice president of research and development Joe Emison stated "remodeling activity slowed from November to December 2011 as it did in 2010 - an expected change seen in previous years around the holidays."

Regionally, as homeowners chose to stay put rather than pursue closing options on new property, the report showed that remodeling activity increased the most in the West on an annual basis by 32 percent, while rising nearly 10 percent in the Midwest.

Meanwhile, activity surged in the South by 5 percent, while the Northeast recorded a dip of 3 percent in December 2011.