The National Association of the Remodeling Industry’s (NARI) third-quarter Remodeling Business Pulse data of current and future remodeling business conditions is positive overall with mixed sentiment about the future. New weather-related developments are assumed to impact the remodeling industry on the East coast next quarter as homeowners start to rebuild.
Research gathered in September shows remodelers are currently experiencing a positive business climate up by 2.5 percent since last quarter. “Overall, NARI members are experiencing an upswing; however, the future paints a more mixed picture,” said Tom O’Grady, CR, CKBR, chairman of NARI’s strategic planning & research committee and president of O’Grady Builders in Drexel Hill, PA. “Hurricane Sandy’s destruction will likely spur more activity on the East coast.”
National results placed predictions in the next three months at their weakest point this year, dropping 6.3 percent since the second quarter. This quarter’s data attributes future declines to the following factors including high uncertainty, unemployment, and difficulty in acquiring loans.
“Those benefiting from positive economic and housing trends are wary of whether this growth will sustain under changes in the near future in regards to the election and economy,” said O’Grady.
In the overall business conditions data, a majority of NARI members are feeling positive about all four indication areas including inquiries, requests for bids, bid conversions and value of jobs sold. “Pent-up demand continues to be a huge contributor to home improvement activity, particularly in those who are choosing to stay in homes longer term,” said O’Grady. This long-term mentality is driving an expanding market in universal design and energy-efficient projects, but also shrinking a project’s size and cost.
Additionally, increases in housing prices, affordability and low interest rates are sparking some activity in the home sales market, which often leads to remodeling projects. This trend is in position to become a possible significant driver in 2013.
