In the June Home Improvement Research Institute (HIRI) Pulse of the Industry Webinar, the growth areas have officially outpaced the declining areas. If remodelers were still holding on to cautious optimism, they won’t any longer based on these key market indicators.
HIRI’s Home Improvement Products Market forecasts for solid growth. Product sales increased 5.4 percent in 2012, and the 2013 forecast shows a 4.3 percent increase in sales in 2013, landing at $287.3 billion dollars.
Second-quarter data from the HIRI Sentiment Tracking Study, which tracks consumer (homeowners/renters) project planning and agreement ratings with key attitudes, shows 75.5% of U.S. homeowners were planning one or more projects in the next three months. Of that, homeowners in the Northeast outpace the other regions with 77.9% of homeowners.
Of those total homeowners and renters planning projects:
- 53.4% of all respondents indicated they are planning a lawn and garden project.
- 27.7% of all respondents indicated they are planning a living room, dining or family room project.
- 24.5% of all respondents indicated they are planning to do an exterior project.
- 22.7% of all respondents indicated they are planning a bedroom project.
The study also measured attitude agreement ratings on a scale of 1 to 9, where 9 represents complete agreement and 1 represents complete disagreement, 5 is the midpoint. The statements generating the highest agreement ratings among homeowners/renters include:
- Finding ways to save energy is important (7.3)
- Having a home that is attractive is important(7.0)
- Money spent on improving a home will show a good return (6.8)
The statement that posted the highest increase in the second-quarter study: “This is a good time to sell a home in my area (4.2).”
Those planning the highest number of projects—6 or more in the next three months—were more likely to be a male married homeowner, aged 18 to 39, from the Midwest, with some college or more and an income of at least $50,000 or more.
Housing is gaining strength, according to the National Association of Realtors, when comparing April of 2012 to April 2013:
- New home sales are up 29%
- Existing home sales are up by 9%
- Housing supply has decreased by 18.5%
- Pending home sales have increased by 10.3%
- Mortgage rates have decrease by 0.46.
- U.S. foreclosure filings decreased by 23%
The strengthening housing market makes now, a perfect time for remodeling. Homeowners buying or selling homes are focused on curb appeal or updating new spaces.
NARI members interested in taking advantage of this should reach out to local Realtors by offering to speak about remodeling topics at their offices, or to join their open houses to help buyers envision the home’s potential. Also, additional advertising this summer in the real estate section of a local newspaper could be a good lead generator.
Tell us how you’re capitalizing on the positive housing trend at email@example.com.