All perfect praise be to Allaah, the Lord of the worlds. I testify that there is none worthy of worship except Allaah and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
We believe that there is no harm in doing that as long as this act does not involve excessiveness, that it does not become a custom, and that it is not believed to be an act of worship. However, we would like to point out that the early Muslims did not decorate their houses to celebrate the pilgrims' return.
Allaah Knows best.