More Good News For the Remodeling Industry Existing Home Sales Still Up

Furniture World Magazine

According to the National Association of the Remodeling Industry (NARI), the outlook is still good for remodeling contractors. Existing home sales as published by the National Association of Realtors (NAR) were up by an unexpected 6.1% in October. "This is great news for the remodeling industry," said Kevin McNulty, executive vice president and chief operating officer of NARI. "Recent homebuyers are an active spending group within the remodeling industry, accounting for more than 25% of the total dollars spent on remodeling in the U.S. in 2001." David Lereah, NAR's chief economist, said there are a couple reasons for the increase. "Obviously, historical lows in mortgage interest rates in recent months are a big stimulus," he said. The future looks bright ahead, too - NAR President Cathy Whatley said the interest-rate picture remains optimistic. "In recent weeks, the 30-year fixed-rate mortgage has moved lower, briefly dipping below 6.0 percent. Right now there's very little pressure on interest rates to move much higher, so we'll have favorable affordability conditions for some time to come," she said. Meanwhile, residential remodeling and repair expenditures are at an all-time high. Projected total spending in 2002 is $163 billion, compared to 2001 at $157.5 billion and 2000 at $150 billion. Homeowners who undertake remodeling projects can increase the value of their home and recoup a significant portion of the investment if their project is well thought out and the work is performed by a professional. "Remodeling is still a strong investment, and it can increase a homeowner's quality of life, but with less risk and expense than what would be incurred by moving or building new," said McNulty The top two home improvements with the highest return are kitchen and bathroom remodeling. Rather than simply following the latest trends, however, McNulty advises that, "Homeowners should consult with experienced, professional remodelers early in the planning process," he continues, "to ensure that their needs are being met to fit their own particular lifestyle." For homeowners who are planning to remodel their home, NARI offers a free brochure entitled, "How to Select a Remodeling Professional," which is available to consumers by calling 1-800-611-NARI or by visiting NARI's website at www.RemodelToday.com. The National Association of the Remodeling Industry (NARI) is the only trade association dedicated solely to the remodeling industry. With more than 5,800 members nationwide, the Association -- based in Des Plaines, Illinois, -- is "The Voice of the Remodeling Industry"™. For membership information, or to locate a local NARI chapter or a remodeling professional, visit NARI's website at www.RemodelToday.com or contact the national headquarters office at 800-611-NARI.