News


Remodeling market continues upward trend

NARI reports highest overall ratings on business conditions

The home remodeling business showed continued growth in the last quarter of 2013 with more work in the pipeline for this year, too, a trade association reported this week.

The National Association of the Remodeling Industry's (NARI) fourth-quarter Remodeling Business Pulse (RBP) data of current and future conditions many remodelers starting the year with more work than they've had in several years.

"That backlog has given remodelers confidence that the overall business conditions will remain positive," said Tom O'Grady, chairman of NARI's Strategic Planning & Research Committee and president of O'Grady Builders in Drexel Hill, Pa.

NARI's growth indicators rate prospective business from a low of 1 to a high of 9, concluding that 2014 should start at 6.41 when compared to last year.

However, conversion of bids to jobs continues to be the weakest measure when compared to the same time last year, coming in at a flat rating of 6.03 from last year.

Yet, the projected strength of sales in the last three months of 2013 had a significant increase to 6.41 from the 6.12 recorded in September.

"The fourth quarter of this year was very strong for many remodelers," O'Grady said. "Average sale prices continue to rise, and consumers are more comfortable spending money on projects that will increase the value of their homes."

Other significant contributors to better expected activity this year, according to O'Grady:

• People needing to do projects that had been postponed was selected by 75% (down from 85% last quarter)

• Improving home prices came in second, at 60% of respondents (down from 72% in September).

• Improved economic growth continued at the No. 3 spot, at 52% (an increase of 6% from last quarter).

"The outlook forecasts that favorable business conditions will remain strong across all regions of the U.S.," O'Grady said. "Consumer confidence is up, which translates into more homeowners feeling safe investing in their homes."

Comments

There are no comments yet. Please share yours below.

Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: *

Choose a category: *

Since this is the first comment on this story a new topic will also be started in Town Square! Please choose a category that best describes this story.

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields

‘Much Ado’ or is it Adios for ObamaCare?
By Tom Cushing | 36 comments | 1,163 views

Political posturing about water
By Tim Hunt | 7 comments | 839 views

Backpacked with care is back
By Roz Rogoff | 2 comments | 524 views