Remodeling Index Posts Increases in Fourth QuarterJanuary 10th, 2013 | Category: Industry News
The National Association of the Remodeling Industry’s (NARI) fourth-quarter Remodeling Business Pulse data of current and future remodeling business conditions has experienced significant growth across all indicators, with forecasting in the next three months hitting its all-time highest level.
The significantly positive results have a lot to do with homeowner security, remodelers say.
Growth indicators in the last quarter of 2012 are as follows:
• Current business conditions up 2.1 percent since last quarter.
• Number of inquiries up 3.9 percent since last quarter.
• Requests for bids up 3.7 percent since last quarter.
• Conversion of bids to jobs up 3.5 percent since last quarter.
• Value of jobs sold is up 4.3 percent since last quarter.
Throughout 2012, the Remodeling Business Pulse produced less statistically significant increases and decreases; however, the fourth-quarter data shows movement in highly important business areas such as conversion rates and value of jobs, according to the report.
Although they provide positive marks, NARI members are realistic about the reasoning, saying many consumers are spending on remodeling out of necessity.
As one NARI member put it: “Homeowners are still concerned about spending money but will do so because they cannot postpone any longer. They are spending more conservatively than they did prior to the crash.”
Still, according to the data, expectations for 2013 are even brighter. Two-thirds of remodelers forecasted the next three months positively, and the rating jumped 13.1percent from last quarter.
Drivers of this positive outlook continue to be postponement of projects (81 percent reporting) and the improvement of home prices (51 percent reporting).