Remodeling market continues to show growth
Current and future remodeling business conditions continues to improve, according to third-quarter data compiled by the National Association of the Remodeling Industry.
Quarter-over-quarter increases are evident in nearly all subcomponents 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 the group has been tracking.
“From the comments on the Remodeling Business Pulse survey, pent-up demand continues to drive the current remodeling market,” association strategic planning and research committee chairman Tom O’Grady said in a statement. “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.”
Growth indicators in the third quarter of 2013 are as follows (rating is from 1 to 9, where 1 is much worse than a year ago and 9 is much better; 5 is about the same as last year):
• Current business conditions was rated 6.41 (from 6.31 last quarter)
• Number of inquiries up was rated 6.55 (from 6.50 from last quarter)
• Requests for bids remained the same as last quarter, at 6.45
• Conversion of bids to jobs was rated 6.00 (from 5.91 last quarter)
• Value of jobs sold was rated 6.31 (from 6.12 from last quarter)
“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,” O’Grady said. “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.”
Other significant contributors to overall activity:
• Postponed projects continue to be the key factor in remodeling business growth at 85 percent
• Improving home prices came in at the secondary at 72 percent of respondents (up from 65 percent last quarter)
• Certainty about the future moved into the No. 3 spot at 48 percent (edging out economic growth, which came in at No. 3 in the second quarter).