We’ve all heard about it and feared it – the inevitable slowing of the housing market. A recent article featured on CNNMoney.com confirmed our worries when suggesting we’ve entered a period of the “weakest home sales in four years”.
So, where does this leave us – those vested in the housing market? And how could any of this be good news for the industry? I say we focus our thoughts instead on the strength and optimism of a flourishing remodeling market. This is the recent stance we are taking with our clients’ marketing opportunities.
The remodeling industry will continue to maintain its residual growth as those homeowners who purchased homes during the housing boom are incessantly upgrading and investing in their homes, specifically their kitchens and baths, as those two rooms hold the power for the highest return on investment. NARI suggests that existing home sales aid in the remodeling market, because after the purchase of a home, the pattern seems that it gets remodeled within two years of the purchase date. Meaning? That remodeling will be a strong force over the next few years while the housing boom takes a backseat.
A new study sponsored by The Home Depot surveyed 30,000 consumers from the Baby Boomer generation and older and found that these individuals are planning to remain in their homes and plan remodels during this time. Why? Certain factors come into play here like the birth of a grandchild, caring for an elderly parent or just wanting to enjoy the time spent at home with family and friends. Of those surveyed, 60 percent expect to stay in their homes for the next five years or more while 65 percent plan to improve their homes in the near future. And it’s not just the older generation that’s the driving force behind the strength of the remodeling market. According to a Harvard University’s Joint Center for Housing Studies, the younger generation, Generation X, is and will continue to play a vital role in the remodeling industry. Watch out for this group as they will be the ones driving the future trends in both the remodeling and housing markets.
So, although new home construction maybe taking a breather we remain confident that the remodeling market will become increasingly important for those involved in the housing industry.