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So as we move further into the first quarter our team here at CabinetCorp are really keeping our tabs on what economist and industry professionals say about this year’s home improvement growth potential. We have come across several sources that have different opinions but the general consensus predicts for an upward yet slow growth for the year 2015.
First to know what direction we are headed in we must know what direction we are coming from. HIRI is one of the leading sources and are well known for their market research on the home improvement industry. They provide a great summary of the market rates for 2014 and what their predictions are for the future.
Home improvement growth rates can be affected by several factors. Some of these factors may have nothing to do with the home improvement industry directly but certainly can have an effect on sales and growth. Things like employment rates and wages, student loans and consumer spending.
In a recent discussion at #KBISVEGAS with 3 top economists, they discussed their forecasts on the home market and although they didn’t entirely agree here is what they had to say “Single family housing starts will increase 26 percent to 800,000 a year, however this is still below the normal level” said Crowe. Nothaft predicts a modest rise in home prices and a growth forecast of 15% in home sales. Berson discussed the factors that could negatively affect the market for the year.
Sources: http://www.builderonline.com/design/consumer-trends/make-demand_o
Now, JCHS has their own opinions on what the future holds. They are predicting that home improvement spending will decelerate from 6.3% in the first quarter to 1.6% by the third quarter. See their findings here.
Although there is no way to really know what will happen in the market, knowing these forecasts and economic factors can help you prepare your business goals and expectations for the year. Do you have any thoughts or predictions on what the future has in store for the home improvement market? Share your thoughts and feedback with us on our facebook page!