Remodelers Experiencing an Upturn in Growth as Bigger Projects Rebound
NARI releases 2nd Quarter Remodeling Business Pulse Survey
Des Plaines, Ill. – August 27, 2015 – (RealEstateRama) — Conducted in late June, the second-quarter 2015 NARI Remodeling Business Pulse (RBP) data of current and future remodeling business conditions found a sharp upturn in remodelers’ ratings for current business conditions.
On a 1–9 scale, the average rating was a 6.48 (above 5 indicates growth). This was a statistically significant upturn versus the 6.11 recorded in March. A meaningful portion of that growth came from remodelers reporting the very highest current business rating of ‘9: Much better than last year.’ About 1 in 6 remodelers gave that top end rating versus less than 1 in 100 that gave the lowest rating of ‘1: Much worse than last year.’ In fact only 14% of remodelers reported any level of decline while 69% reported growth.
Looking at the subcomponents of the current conditions shows all with gains versus the prior quarter. One of the changes was statistically significant, ‘Value of jobs sold.’ This measure hit an all-time high in the June study, a sign that bigger dollar projects are becoming more common.
Number of inquiries was at 6.31, up 2.9%
Requests for bids came in at 6.30, up 1.3%
Conversion of bids to jobs was 5.81, up 0.9%
Value of jobs was 6.43, a 4.7% growth
Altogether, this data points to a strong environment for remodeling projects.
“The results mirror well what I see in my business,” said David Merrick, MCR, UDCP, of Merrick Design & Build and chairman of the NARI Strategic Planning & Research Committee. “The remodeling environment continues to improve. While we are not back to 2008, we continue to get stronger and I like that it is happening in very small increments. With banks being careful on what loans they approve and general customer caution, we are seeing a very sustainable rate of growth.”
Looking at the expectations for business three months from now, a large majority (68%) see some level of growth, while only 8% are anticipating any declines. The average rating of 6.29 was only slightly behind last year’s 6.32.
Growth drivers continue to be led by ‘postponed projects’ which was mentioned by 76% of remodelers, a small uptick from the prior quarter.
Contact: Steve Carasso
Director of Marketing & Communications