Des Plaines, IL — The National Association of the Remodeling Industry’s (NARI) third-quarter Remodeling Business Pulse (RBP) data of current and future remodeling business conditions indicated strong growth in the third quarter of 2014 with a rating of 6.41. Quarter-over-quarter increases are evident in all sub-components measuring remodeling activity. This is the second quarter of growth in 2014, coming on top of June’s strong increase over the 6.07 recorded in March.
All of the sub-components in the 3rd quarter increased, with ‘conversion from bids to jobs’, showing the strongest gain by three percent. (Rating is from 1 to 9, where 1 is much worse than a year ago and 9 is much better; 5 is about the same as last year):
Current business conditions increased to 6.41 (from 6.29 last quarter)
Number of inquiries increased to 6.51 (up from 6.38 last quarter)
Requests for bids rose to 6.41 (from 6.29 last quarter)
Conversion of bids increased 6.01 (from 5.83 last quarter).
Sales value of jobs improved to 6.27 (up from 6.20 last quarter).
Economic growth had a 10 percent increase this quarter rising to 57 percent—up from June’s rating of 47 percent moving it to the number two position. Postponed projects remain the top driver at 74 percent, although it is down six percent from the 2nd quarter of 2014.
“This is indicative of the slow, steady recovery of the remodeling industry,” says Tom O’Grady, CR, CKBR, chairman of NARI’s Strategic Planning Committee. “Currently 67 percent of remodelers are seeing growth, and are confident that the market is improving which is in line with market indicators.”
The three-month outlook for business declined slightly in June to 6.32 from the previous high posted in March of 6.51. Looking back over history, there is a pattern of declines in September as remodelers think ahead to the colder months.
The survey also explored homeowner financing of projects which fell between neutral to difficult in obtaining the funds. The biggest barrier to financing, at 38 percent, was the financing company being overly cautious, followed by the project being too expensive relative to the home’s value at 27 percent. Poor credit history was only selected as an issue by 11 percent. A bank or credit union was the main source for financing at 72 percent if cash or check was not used. Credit card, the number 2 choice, was utilized at only 20 percent.
NARI is the source for homeowners seeking to hire a professional remodeling contractor. Members are full-time, dedicated remodelers who follow a strict code of ethics with high standards of honesty, integrity and responsibility.
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