Earlier this year, we saw a climb in home prices and now we are excited that the Remodeling Industry as a whole is improving as well.
Quarter-over-quarter increases are being seen across all sub-components measuring the remodeling industry according to the first-quarter Remodeling Business Pulse (RBP) data, collected by the National Association of the Remodeling Industry (NARI). The overall current business conditions have shown steady increases since March of 2012, reaching a statistically significant 5.97 rating.
Growth indicators in the first quarter of 2013 have included sharp increases in the amount of inquiries and requests for bids that directly reflect an increase in consumer confidence. Also, 76 percent of remodelers believe there will be growth in the next three months, compared to two-thirds of remodelers forecasting growth in December 2012. Other growth indicators reported in the RBP include:
- Current business conditions up 1.0 percent since last quarter
- The number of inquiries up 4.9 percent since last quarter
- Requests for bids up 5.2 percent since last quarter
- Conversion of bids to jobs up 1.1 percent since last quarter
- Value of jobs sold is up 0.2 percent since last quarter
Tom O’Grady, CR, CKBR, chairman of NARI’s Strategic Planning & Research Committee and president of O’Grady Builders reports how, “Remodelers nationwide are not only experiencing increased activity right now, but many have a backlog of projects well into the fall. This current condition is worlds away from March of last year and suggests that the recovery is beginning to gain speed.”
Drivers of remodeling activity include improvements needed due to postponement of projects (83 percent reported this as a driver) and rising home prices, with 59 percent reporting, which is an 8 percent jump from fourth quarter data.
O’Grady also adds that, “Homeowners are tired of waiting to make improvements—many have chosen to stay put—and better financial positioning has them actively approaching professionals to get work done and enhance long-term livability of the home.”
With the improvement of the Remodeling Industry, the economy overall reflects a brighter outlook for the future. “We knew that several things had to turn around in order for business to get better, and NARI members are finally feeling a holistic economic recovery outside and inside the housing market,” O’Grady says.