Remodeling Market Continues to Show Growth
The National Association of the Remodeling Industry’s (NARI) third quarter Remodeling Business Pulse (RBP) data of current and future remodeling business reports that conditions continue to soar. Quarter-over-quarter increases are evident in nearly all sub-components measuring remodeling activity.
Entering into the holiday season, which has been a slower season in recent years, remodelers are reporting the highest overall rating on business conditions at 6.41, up from 6.31 reported during the second quarter. This rating has steadily increased in the six quarters NARI has been tracking.
“From the comments on the Remodeling Business Pulse survey, pent-up demand continues to drive the current remodeling market,” said Tom O’Grady, CR, CKBR, chairman of NARI’s Strategic Planning & Research Committee and president of O’Grady Builders in Drexel Hill, Pa. “The general sense is that consumers are tired of waiting and feel more secure about spending money, which is also reflected in the higher values in jobs sold.”
“As we enter the holiday season, inquiries about projects don’t slow, but the conversion rate inquiries to sales tends to, which has been reflected in the last two third quarter Remodeling Business Pulse surveys,” said O’Grady. “It’s hard to judge for sure, after consumers spend money during the holidays, how serious they will be in the new year to get that remodeling project under way.”
Postponed projects continue to be the key factor in remodeling business growth, at 85%. Improving home prices came in second, at 72% of respondents (up from 65% last quarter). Certainty about the future moved into the third spot, at 48% (edging out economic growth, which came in third in the second quarter).
For more information, visit www.nari.org.