With a recent slip experiences in existing-home sales and reported improvement in the remodeling industry, it is possible an increasing number of consumers are choosing to remain in their houses and invest in their properties.
With the release of its Remodeling Business Pulse (RBP) report for the first quarter of 2013, the National Association of the Remodeling Industry (NARI) announced considerable gains had recently been experienced across the housing market. As the spring and summer months approach - traditionally the busiest times for remodeling professionals - a steady improvement of business conditions has already been observed, with the current rating registering at 5.97. This figure is up from the reading of 5.59 noted during March 2012.
Tom O'Grady, chairman of NARI's Strategic Planning & Research Committee, said the latest numbers and public property records accurately depict conditions which are "worlds away" from those exhibited this time last year, and suggested the housing recovery is beginning to gain speed.
"Homeowners are tired of waiting to make improvements - many have chosen to stay put - and better financial positioning has them actively approaching professionals to get work done and enhance long-term livability of the home," said O'Grady. "Remodelers nationwide are not only experiencing increased activity right now, but many have a backlog of projects well into the fall."
NARI's RBP featured a number of positive growth indicators observed in the first three months of this year, including a nearly 5 percent jump in the number of inquires, a more than 5 percent hike in requests for bids and a rise in bid conversions to jobs of more than 1 percent. These factors, coupled with increased housing values and heightened consumer confidence, led to current business conditions to appreciate 1 percent quarter-over-quarter.
Existing-home sales see slight slip in March
Possibly due to the fact more homeowners are choosing to stay in their houses, national inventory levels have sustained substantial drops in recent months, and sales of existing-homes saw declines last month.
The National Association of Realtors recently announced a 0.6 percent decrease in transactions including such houses was recorded during March, moving the seasonally adjusted annual rate to 4.92 million, down from the 4.95 million finalized sales in February. The amount was up more than 10 percent year-over-year, however, as 4.46 million units were sold in March 2012.
If mortgage records continue to show low rates which favor consumers looking to purchase property or current homeowners looking to refinance, both home sales and remodeling requests may see further increase in the coming months.