Remodelers are back on top.

Two-thirds of home remodeling firms have reported 2015 year-to-date revenues and profits to be at or above pre-recession levels, with one in five firms reporting revenues and profits to be significantly higher, according to the Q2 2015 Houzz Renovation Barometer.

As Told By Houzz

The barometer reflects steady optimism in market growth among professionals, with high index scores of 69 or higher in market confidence across all company types, in line with Q1 readings (71 or higher). Specialty building/renovation report somewhat higher confidence relative to the start of the year (five to eight percent increase), while architecture firms report a slightly weaker outlook (four percent decrease). Market conditions are expected to remain strong into Q3, with scores of 69 or higher for all sectors.

The Houzz report also found that year-over-year gains are continuing, with confidence in market growth continuing in Q2 2015, relative to the same period in 2014. The Barometer posted high year-over-year readings of 75-83, a notch above the year-over-year scores for the previous quarter (74-79).

Widespread quarter-over-quarter new business gains are being made as well. All industry groups reported strong quarter-over-quarter improvement in new business activity in Q2, as indicated by high index scores for new inquiries (72 or higher), number of new projects (72 or higher) and new project size (64 or higher). Professionals are similarly optimistic about the continued influx of new business in Q3 (66 or higher), pointing to the continued strengthening of the overall market.

Outdoor, renovation specialty firms and general contractors in the Northeast are reporting an acceleration of new business activity following a harsh winter, with quarter-over-quarter index scores of 91, 78 and 77 respectively (a 34, 23 and 10 percent gain over Q1 scores). When it comes to year-over-year improvements, Western architects are especially confident (80 versus Southern architects at 69), as are Southern specialty firms (82 versus Midwest specialty firms at 73).

The full Houzz report can be found here.

NAHB Report Concurs

Another report from the National Association of Home Builders confirms remodelers are feeling positive again.

Its recently released Remodeling Market Index (RMI) had remodeler’s confidence at 59 in the second quarter of 2015, with an RMI above 50 indicating that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower.

The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity. The RMI was 59 in the Northeast, 61 in the Midwest, 57 in the South and 61 in the West.

“The confidence in the remodeling industry has been in positive territory for nine quarters in a row as the entire housing industry’s situation continues to improve,” says NAHB remodelers chair Robert Criner. “With an increase in existing home sales, remodelers received more signed contracts and calls for pricing.”

Major additions gained steam in the second quarter of 2015, rising to 57 from 54. Rising from 56 in the previous quarter to 61, smaller remodeling jobs continued to show strength. Overall, the current market conditions of the RMI rose one point to 59 this quarter.

“The rebound in remodeler confidence tracks the overall arc of the housing industry as it gains strength through new and existing home sales,” says NAHB chief economist David Crowe. “Gains in the RMI are tempered by ongoing labor shortages for work on remodeling projects.”

More information about the NAHB remodelers’ report can be found here.

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