New home builders may be concerned about rising interest rates and slow home sales, but remodelers can still breathe easy knowing that the bottom won't drop out of their business in the very near future.
So say experts at the Home Improvement Research Institute, which is predicting growth near 2005 levels for the rest of 2006.
Contrary to some doom-and-gloom predictions, the overall home improvement market remains strong, which includes jobs contracted to professionals as well as do-it-yourself projects.
Sales are expected to increase to $312 billion, an 8.8 percent growth, for the entire year 2006. Total sales in 2005 is estimated to have reached a record $287 billion, which is up 9.2 percent over the previous year.
"While we anticipate a slowing of the growth rate in the second half, it should still be another excellent year for this industry," says HIRI Managing Director Fred Miller.
Growth of building product sales to professional contractors is estimated to reach $80.7 billion this year, a growth rate of 8.1 percent.
HIRI projects an average of 5 percent total market growth for 2007–2010, which is slightly below the pace of the past five years but well ahead of the rate of overall economic growth.