Remodeling market strengthening, says NARI

The National Association of the Remodeling Industry (NARI) says its third-quarter Remodeling Business Pulse (RBP) data of current and future remodeling business conditions indicates strong growth occurred in the third quarter of 2014, with a rating of 6.41.

 

The Des Plaines, Illinois-based groups says quarter-over-quarter increases are evident in all subcomponents measuring remodeling activity. It marked the second quarter of growth in 2014, coming on top of June’s strong increase over the 6.07 index figure recorded in March.

 

All of the subcomponents in the third quarter increased, with “conversion from bids to jobs” showing the strongest gain by 3 percent. (Ratings are 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). The average scores in the survey’s subcomponents were:
 

 

Economic growth had a 10 percent increase in the third quarter, rising to 57 percent and up from June’s rating of 47 percent. 

 

“This is indicative of the slow, steady recovery of the remodeling industry,” says Tom O’Grady, chairman of NARI’s Strategic Planning Committee. “Currently, 67 percent of remodelers are seeing growth and are confident that the market is improving, which is in line with market indicators.”

 

The three-month outlook for business declined slightly in June to 6.32 from the previous high posted in March of 6.51. Historically, there is a pattern of declines in September as remodelers think ahead to the colder months, says NARI.

 

The survey also explored homeowner financing of projects, which fell between neutral and difficult in obtaining the funds. The biggest barrier to financing, at 38 percent, was the financing company being overly cautious, followed by the project being too expensive relative to the home’s value (27 percent). Poor credit history was only selected as an issue by 11 percent of respondents. A bank or credit union was the main source for financing at 72 percent if cash or a check was not used, while credit card, the No. 2 choice, was used for 20 percent of projects.