Remodelers Forecast Positive Outlook on BusinessJuly 27th, 2012 | Category: Industry News
The National Association of the Remodeling Industry (NARI) announced some positive news in its Second Quarterly Business Review. According t0 NARI, the second-quarter research, which measures remodeler’s assessment of business conditions, shows its members believe the current business climate is slightly more positive than the same time last year.
“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,” says Kevin Anundson, CR, CKBR, NARI national secretary and president of owner Assisted Remodeling based in Elm Grove, Wis.
According to the announcement, data shows that NARI members forecast stronger sales growth in the next three months, based on three key factors: postponement of projects (80 percent), growth due to low interest rates (50 percent) and 35 percent believe improving home prices are also a significant factor.
Remodelers say 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 says. “Many homeowners have made the decision to remain in their home[s] 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.”
According to the announcement, this is supported by a homeowner poll conducted on NARI’s website in May, which showed that 28 percent of homeowners planned on staying in their homes up to five years longer because of the economy.
Additional findings related to the overall business conditions include:
• 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; and
• Sales value of jobs sold has increased since last year.