Houzz released its Q1 Renovation Barometer, which tracks confidence in the home renovation market among industry professionals.
The Q1 Barometer posted strong quarter-over-quarter gains in market confidence for architects, general contractors and design-build firms (11% to 15%) and landscape/outdoor professionals (26%), with moderate gains for interior designers and building/renovation specialties (3% to 6%). Index scores of 71 or higher were posted across all company types, up from 61 or higher for Q4 2014. The positive sentiment among industry professionals is fueling continued optimism for Q2.
“The Houzz Renovation Barometer gathers input from a variety of professionals, from the design community, to contractors, to landscape specialists, offering unique insights into the health of the industry on the whole,” said Nino Sitchinava, principal economist at Houzz. “As we continue into 2015, our community of home remodeling professionals are consistent in their optimism for the growing willingness of homeowners to invest in their homes.”
According to Sitchinava, the high Barometer scores for Q1 reflect that significantly more firms are reporting quarter-over-quarter gains than declines in business activity. Market confidence was bolstered by the positive momentum of Q4 2014, and the seasonal uptick in demand at the end of the winter months. Home renovation professionals across all industry sectors expect this upward trend to continue, reporting high confidence for quarter-over-quarter improvements in Q2 (74 or higher). General contractors and those in landscape/outdoor specialties expressed particular optimism in the future of the market (82 or higher).
Additional findings from the Barometer include confidence bolstered by improvements in all three key activity indicators; year-over-year gains continue and record winter impacted business activity in the Northeast, but not optimism.
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