Is your business on a 14-year high? National Association of Realtors announced that August hit a 14-year high in existing home sales last month.
NAHB announced strong builder confidence as the NAHB/Wells Fargo Housing Market Index (HMI) reached an all-time high of 83 this week. HMI is defined by NAHB as "an insider’s perspective on the current state of housing." The organization asks members to rate market conditions of the single-housing family market conditions.
Mortgage Bankers Association reported a continued increase in mortgage applications this past week. "Mortgage applications activity remained strong last week, even as the 30-year fixed-rate mortgage and 15-year fixed-rate mortgage increased to their highest levels since late August. Purchase applications were up over 25 percent from a year ago, and the demand for higher-balance loans pushed the average purchase loan size to another record high. The strong interest in homebuying observed this summer has carried over to the fall," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.
So what does all of this mean for the pro painting industry? According to NAHB's AVP of Forecasting and Analysis, "If the inventory is limited, there is less opportunity to pick and choose. They will buy the house even if it is old, so when the new homeowners move in, it's more likely that they will need the house refreshed." Home buying aside, a survey of homeowners by ANGIHome Services released in late June reported, 92% of "people who typically hire homeservice pros plan to hire pro this year." Though as is often typical, the pros they are most often hiring are plumbers, electircians and landscapers. 54% reported that they plan to take on painting as a DIY project. Though some important safety factors in hiring any pro were reported as social distancing, extra sanitation and PPE, so make sure you have your safety plan in order.
Stay tuned as APC dives deeper in our upcoming Economic Forecast Podcast.