|Housing News Endura Doors|
This was to be the year of the great housing market recovery and while this summer showed promise (particularly for construction of multi-family units), 2014 could be described as a bit of a disappointment when viewed in its entirety.
For the fiscal quarter ending on October 31, Toll Brothers reports a 10% gain in sales contracts, suggesting that move-up buyers are still buying. Hovnanian however, whose target market includes first-time home buyers, struggled to reach its 8% quarterly gain while relying heavily on sales incentives.
The fact is, potential first-time homebuyers aren’t buying.
One can only guess as to the reason(s) for this. During this same time, the job market has showed slow but steady improvement. Mortgage qualification requirements eased slightly and are likely to continue to loosen in 2015. However, student loan debt is a problem for many first time buyers.
Now for the good news….
The entry door market continues to grow.
Despite the less than stellar construction numbers for 2014, industry trends suggest continued growth for the entry door market. A report prepared by the Virginia Center for Housing Research at Virginia Tech forecasts continued growth of 4.9% in 2015.
The home remodeling business is very healthy.
The Remodeling Market Index, measuring the health of the home remodeling market, reached 57 in the 3rd quarter of 2014. To put this into perspective, an RMI of 50 means that more remodelers report increased activity over the prior quarter. The Remodeling Market index is comprised of four indicators; call for bids, work commitments for the next quarter, job backlog and requests for proposals.
The RMI has been over 50 for six consecutive months, a strong indicator that we’re in a slow but steady recovery. Gas prices and easing bank regulation could change everything for better or worse in 2015. Only time will tell.
Endura Products, Inc. manufactures entry door component systems that improve door construction, door installation and long-term performance in the home. Endura components improve functionality, maximize the seal between the door and the opening, and reduce air and water infiltration.