News, Trends, Community - January

Building Supplies

Remodelers Rely More on a Single Source

Remodelers and builders are increasingly using single sources of supplies for most of their building products, according to a survey by the Indianapolis-based Farnsworth Group.

Builders and remodelers reported lumber and building material dealers as their primary source for purchasing materials; these top suppliers get about 70 percent of the business. Warehouse home centers serve as the primary source for nearly one-third of remodelers but just 12 percent of builders.

Builders and remodelers cited somewhat different priorities for selecting suppliers though product availability was the No. 1 factor for both. For remodelers, availability was followed by quality products, customer service and price, which were all rated similarly. The importance of availability as the top factor in the decision-making process illustrates that, in some cases, remodelers are willing to pay a little more for the sake of having the product in stock and ready to install.

The study indicated a similar pattern in the way builders and remodelers prefer to receive information from manufacturers and suppliers. Their preferences for being contacted (from most preferred to least) are via e-mail, magazine advertising, Internet, Web sites and newsletters.

Design

Remodeling Increases for Architects

Remodeling activity during the third quarter of 2010 showed an increase compared with the same period a year earlier, according to the Washington, D.C.-based American Institute of Architects Home Design Trends Survey. Additions, alterations, and kitchen and bath remodeling projects are reported as improving by a majority of residential architects with only a small minority reporting market conditions weakening in their areas, the report says.

Distressed homes accounted for 34 percent of third-quarter 2010 sales, up from 30 percent a year earlier.

Source: National Association of Realtors

Windows & Doors

Demand to Rise 6.6 Percent

Demand for windows and doors in the U.S. is forecast to rise 6.6 percent per year to $31.2 billion in 2014. This is a rebound from the 2004-09 period when demand fell 4.3 percent annually, reflecting the collapse of the housing market between 2007-09. Although housing completions will remain below the level reached at their cyclical peak in 2006, the recovery in new-home construction will fuel above-average gains in the residential market for windows and doors through 2014, according to The Freedonia Group Inc., a Cleveland-based industry market-research firm.

Consumers

Americans Uncertain about Housing

Washington, D.C.-based Fannie Mae’s most recent housing survey finds Americans are less certain the housing market has bottomed and continue to be wary of buying a home. The Third Quarter 2010 Fannie Mae National Housing Survey found fewer Americans think it is a good time to buy a home (68 percent, down 2 percentage points since June), and more Americans think it is a bad time to buy (29 percent, up 3 percentage points). Similar to the last survey, an overwhelming majority of Americans believe it is a bad time to sell a home (85 percent, up 2 percentage points since June).

Building Materials

Drywall Prices on Upswing

Drywall prices are expected to increase approximately 25 percent in 2011, according to published reports. Chicago-based USG Corp. announced an increase in November 2010, followed by similar announcements from Valley Forge, Pa.-based CertainTeed Corp.; Charlotte, N.C.-based National Gypsum Co.; Reston, Va.-based Lafarge North America; and Austin, Texas-based Temple-Inland. The drywall makers have sustained losses in recent years as the decline in new-home construction and decreased demand for the product has driven prices down. USG has introduced a lightweight version of its Sheetrock brand drywall that it hopes will command a higher price, according to a Dow Jones Newswires story.