In January 2015, the National Association of the Remodeling Industry’s (NARI) released its fourth-quarter Remodeling Business Pulse (RBP) data of current and future remodeling business conditions that continue to point to growth.
While rating of current conditions all remain positive, all but one measure is lower than it was in September. Overall current conditions decreased directionally in December at 6.31, down from 6.41 in September. Most of the subcomponents of current conditions were softer.
This easing comes after two quarters of growth. While the ratings of current conditions all remain positive, marginal decreases in three of the four sub-components reflect lower growth rates. The exception was for ‘sales value of jobs sold’ which had a small increase.
This is part of a longer term trend in sales value, an indication that larger projects are making a comeback.
“Consumers are feeling that the economy will be good for the foreseeable future,” says Tom O’Grady, CR, CKBR, chairman of NARI’s Strategic Planning & Research Committee and president of O’Grady Builders, based in Drexel Hill, Pa.
While postponed projects remain the top reason at 70% for growth, moving into the number two position is consumer’s feelings of more certainty about the future. This driver spiked to 63% in the current survey, up from 43% recorded in September. Economic growth was seen as a driver by 62%, up five percent from last quarter, while improving home prices remained unchanged at 50%.
The increased response level in this wave of the study allowed for some comparisons across regions. The West has the strongest rating for current business conditions, while the Northeast lags, although none of the regions are statically significantly higher than another.
“This is indicative of the slow, steady recovery of the remodeling industry,” says O’Grady. Currently 67 percent of remodelers nationwide are seeing and are confident that the market is improving which is in line with market indicators.
One respondent captured his feelings of an improving environment in the following statement, “We are surprisingly busy for this time of year with larger size jobs than would be typical.”