The remodeling industry is on the up, showing slightly more positive numbers than the same time last year, according to the second quarterly business review from the National Association of the Remodeling Industry (NARI). The second-quarter research measures remodeler’s assessment of business conditions.
“There are clear indications that some of our NARI members believe that they have weathered the storm, and expect consumer confidence to return in a more consistent pace going forward,” said Kevin Anundson, CR, CKBR, NARI national secretary and president of owner assisted remodeling based in Elm Grove, Wis.
In fact, data shows that NARI members forecast stronger sales growth in the next three months, based on three key factors: Postponement of projects (80%), growth due to low interest rates (50%) and 35% believe improving home prices are also a significant factor.
Remodelers say consumer confidence has a different tone this time around. “People are aware that that their home values may not be as high as they once were, yet that only affects those that are forced to sell,” Anundson says. “Many homeowners have made the decision to remain in their home and are choosing to make improvements and increase their comfort and long-term living accommodations.
This thought process allows them to be much less concerned about returns on investment and resale values.” This is supported by a homeowner poll conducted on NARI’s website in May 2012, which showed that 28% of homeowners planned on staying in their home up to five years longer because of the economy. (Read “Homeowners personalize their home rather than move.”)
Additional findings related to the overall business conditions:
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