Projects in the Pipeline
Monday, September 19, 2016
Posted by: Matthew Craig
Homeowners are doing more projects today than they have in the recent past. According to our most recent release of our Project Sentiment Tracking Study, 72% of homeowners are planning a project in the third quarter, with more than 16% classified as “heavy” planners, planning six or more projects. This is the highest project incidence rate in the third quarter since we started tracking in 2013.
We’re not the only one noticing this. John Burns Real Estate is showing similar, that homeowners are doing more projects now, and moving less, citing a pace of $215 billion in renovation spending this year this year, at a time of a continually dropping supply of houses for sale. Homeowners are renovating, not moving.
Yet with this news, you would think renovation professionals are thrilled with the business, yet, that’s not what the most recent release of the National Association of Homebuilders’ Remodeling Market Index says. The RMI measures contractor’s sentiment on the current conditions and future indicators of the remodeling market. After a strong showing in 2015, the RMI has dropped off considerably so far in 2016.
One reason for this discrepancy could be the popularity of DIY into today’s market. According to both the recently released Product Purchase Tracking Study and Retail Selector Study, about two-thirds of projects undertaken by homeowners are of the DIY variety. The popularity of online sources is likely making homeowners feel more comfortable handling more projects.