Remodelers' business outlook is positive
NARI members attribute growth to project postponement, interest rates and home values
Home Accents Today Staff -- Home Accents Today, 7/24/2012 9:42:27 AM
DES PLAINES, Ill. - The National Association of the Remodeling Industry's second quarter review indicates a more positive business climate exists than did a year ago.
"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 Wisconsin-based Owner Assisted Remodeling, in a report released by the association.
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 improving home prices (35%).
Remodelers said 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 said. "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."
A homeowner poll conducted on NARI's website in May 2012 revealed 28% of homeowners planned on staying in their home up to five years longer because of the economy.
NARI members are keeping a conservative outlook on business conditions, however, and are working hard to maintain the tighter and more efficient systems implemented during the past several years, according to the release.
Additional findings related to the overall business conditions:
- Number of inquiries has increased since last year
- Requests for bids has increased since last year
- Conversion of bids to jobs has increased since last year
- Sales value of jobs sold has increased since last year
The National Association of the Remodeling Industry is the only trade association dedicated solely to the remodeling industry. The association represents 7,000 member companies, comprised of 63,000 remodeling contractors. For more information on the association or the second quarter report, visit www.NARI.org.
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