According to a report that was released by the National Association of the Remodeling Industry (NARI) in January, the home remodeling industry is likely to experience significant growth this year. The data that was obtained of future and current remodeling business conditions showed that 67 percent of remodelers had experienced growth whereas 15 percent had reported declines.
Some of the indicators that showed a small increase include the ‘sales value of jobs sold’. However, some components have reflected lower growth rates such as the decrease in current condition ratings from 6.41 to 6.31 last September. There have also been marginal decreases in three out of four sub components which simply reflect lower growth rates.
Analysts also claim that the increase in sales value may signify that larger home improvement projects will soon be making a comeback. “Consumers or home owners are going to invest more in remodeling their properties because they feel like the economy will improve in the foreseeable future and the projects will increase the value of their home,” explains Ihab Barrawi, President and CEO of BuyRailings.com, a Danbury, Connecticut manufacturer of architectural and commercial railings.
One of the main reasons for growth in the home remodeling industry is the way consumers feel about the future. Consumers are more certain that the economy will be good and also there has been an increase in postponed projects in this last quarter. The report also showed that economic growth has driven the home remodeling industry by 62%. However, the home prices have remained the same from last quarter at 50 percent.
There was also a slight reduction in the number of inquiries from 6.51 a year ago to 6.11. The request for bids also declined from 6.41 to 6.04. Note that the ratings are given from 1 to 9, where ‘9’ represents a better condition compared to 1. Conversion of bids also declined from 6.01 to 5.84. But the sales value of jobs remained almost constant at 6.30 compared to the rating given in September of 6.27.
The data given by NARI indicated that the home remodeling industry is slowly recovering this year. Most of the remodelers are optimistic that there’s going to be growth in the coming months. Take note that there had been a downward trend in the outlook for business in the last two quarters. But this year, 73 percent of remodelers anticipate increased business in the industry.
It’s also important to note that the report indicated that the West had stronger ratings on sub components of current conditions compared to other regions of the country. The survey also showed that 80 percent of home remodelers discussed energy efficient upgrades with their customers. It showed that most homeowners were looking to reduce cost, save more and wanted to find out the financial advantages of investing in energy efficient upgrades to their home.