“While we’ve experienced some weakening in the remodeling market, activity has remained relatively steady,” commented NAHB Remodelers Chairman Mike Nagel. “We may have seen a decline in the number of major remodeling projects, however, the market has been buoyed by an increase in the number of homeowners requesting smaller-scale projects and home alterations.”
According to NAHB Chief Economist David Seiders, the remodeling market “is following the downswing we’re seeing in the overall housing market.” Seiders said the NAHB expects further erosion for remodeling through the second half of 2007 and into 2008, followed by a gradual recovery in 2009 and beyond.
Slump in Home Sales Creates Market Frenzy
Stocks connected to the kitchen and bath industry seesawed dramatically, along with much of Wall Street, as declining home sales and record foreclosures wreaked havoc on the market in August.
The index of 52 key stocks of building products manufacturers, distributors, retailers, home builders and e-commerce enterprises – as tracked in Kitchen & Bath Design News’ exclusive monthly Stock Index – rose 10.32 points, or 0.36%, to close the trading period from Aug. 3 through Sept. 5 at 2913.65. The Dow Jones Industrial Average gained 123.56 points, or 0.94%, ending the month-long trading period at 13305.47, while the Nasdaq Composite Index rose 94.70 points, or 3,77%, to close at 2605.95 (see Market Diary, on the right).
Declining stocks outpaced advancing issues 29-14, with three stocks attaining a new 52-week high and 28 descending to a new annual low.
Top gainers for the period included Lowe’s, Illinois Tool Works and Louisiana-Pacific Corp. The greatest losers were home builders Centex Corp., Ryland Group and Pulte Homes.
Editor’s Note: Several of the companies listed in KBDN’s monthly Stock Index are parent companies of – or have key financial ties to – building and remodeling industry product suppliers. Included are the following: Armstrong World Industries (Triangle Pacific, Bruce Hardwood, Hartco Flooring); Black & Decker (Price Pfister, Kwikset, DeWalt); D.R. Horton (Schuler Homes); Electrolux AB (Frigidaire Co.); Emerson Electric Co. (In-Sink-Erator) Fortune Brands (Moen, MasterBrand Cabinets – Aristokraft, Decorá, Diamond, Kemper, Omega Cabinetry and Schrock); Griffon Corp. (CLOPAY); Illinois Tool (Wilsonart International, Florida Tile); IAC/InterActive Corp. (ServiceMagic, Inc.); International Paper (Nevamar); Knape & Vogt (Feeny Mfg.); Masco Corp. (Merillat Industries, KraftMaid, Delta Faucet, Peerless Faucets, Aqua Glass/Huppe, Melard Mfg., Zenith Products and Baldwin Hardware); Mohawk Industries (Dal-Tile); Move.com (formerly Homestore.com), Newell Rubbermaid (Amerock); OfficeMax (formerly Boise Cascade); Pentair (Porter-Cable); Technical Olympic USA (Engle Holdings Corp. and other home-building companies.); Tomkins (LASCO Bathware and Pegler Ltd.); U.S. Industries (Jacuzzi Brands, Inc.); Weyco Group (Willamette Industries); and Whirlpool Corp. (KitchenAid and Roper).