Rising Rates Not Holding Home Improvements Back

The pent up demand for House Doctors handyman services, remodeling and home improvements means our franchisees are experiencing good growth as figures released just last week by the U.S. Department of Housing & Urban Development (HUD) and the U.S. Census Bureau show housing production nationwide continuing to rise despite rate increases. We maybe at the other end of the housing industry in that we improve and repair existing homes but we are always monitoring any changes in the market to see what impact they may have on our franchise network.We are finding that recent rate increases are not having a negative impact on remodeling or the need for handyman services either.

House production continues to rise

The U.S. Department of Housing & Urban Development (HUD) and the U.S. Census Bureau show housing production rose by 0.9 percent to a seasonally adjusted annual rate of 891,000 units in August. Increases in single-family starts, up by seven percent to 628,000 were the main reason behind the increased housing production in August. Regionally, single-family starts activity rose 9.6 percent in the Northeast, 7.1 percent in the Midwest, 2.3 percent in the South and 17.5 percent in the West.This report means builders are now seeing the pent up demand that we have witnessed in remodeling and home repairs for most of this year. We have seen an improvement over the year in homeowners confidence with many customers now interested in bigger projects.

This is all very encouraging with neither segment of the market being hindered by rising interest rates. With this pent up demand now is the time to consider a handyman services and remodeling franchise. Our top franchisees are growing at a fast pace with same store sales growth of 20 percent  With this strong market growth we are looking to open another 40 franchises over the next year.

Why do you think our market is so strong?

Franchise generates revenue making homes energy efficient

A remodeling franchise can generate additional revenue by making homes more energy efficient for their customers. Data from the Residential Energy Consumption Survey (RECS) shows energy consumption in homes steadily declining over the last 10 years with newer homes being more energy efficient. However many older homes still need a lot of work done on them to reduce their energy consumption. As energy costs increase there is the opportunity for remodeling franchises, home improvement franchises or handyman franchises.

Survey shows change in leading energy consumer in homes

Data from the Residential Energy Consumption Survey shows that appliances, electronics, lighting and water heating have now overtaken home heating and cooling as the number one energy consumer in our households.
Energy consumption varies across the country and you can check the average consumption in 16 States through RECS. The survey also shows that newer homes consume about the same energy as older ones although they are as much as 30% larger.
At House Doctors our technicians regularly work on energy inefficient homes especially the older ones and improving energy efficiency throughout homes is something we should all strive for. It doesn't need to cost a fortune to start saving money.There are a number of smaller home improvements that can be done to make customers homes more energy efficient. Did you know that households can save 20-30% on energy bills by implementing simple home improvements?
Franchisee's handymen can complete simple weatherization and energy efficiency repairs that helps customers save money.

What's the easiest small repair you have done to improve the energy efficiency of your home?

Improving home equity good news for remodeling franchise

Over the Summer as home values continued to rise, the national negative equity rate continued to fall.
This is more important for handyman franchises, home improvement franchises and remodeling franchises than many people realize. When the equity in homeowners properties increase they feel more confident in having the necessary home repairs and maintenance done and they start to consider remodeling and home improvements.

Negative equity rate falling good news for remodeling franchise

 

Negative equity dropped to 23.8 percent of all homeowners with a mortgage, according to the second quarter Zillow Negative Equity Report. This signals better times ahead for home improvement and remodeling franchises.
Median home prices are now increasing monthly in many areas reducing the size of the negative equity hole many people found themselves in. We have a lot of catching up to do but things are now heading in the right direction. This is good news for confidence, the economy and the home improvement market. At House Doctors many of our franchisees are already experiencing double digit increases this year.
The recent July data from RealtyTrac shows 2013 U.S. Residential & Foreclosure Sales Report, which shows that U.S. residential properties sold at an estimated annualized pace of 5.5 million in July 2013, up four percent from the previous month and up 11 percent from a year ago—the biggest annual increase in sales volume so far this year. California Arizona, Nevada, and Georgia posted the four biggest annual increases in median home prices in July: California (up 31 percent); Nevada (up 27 percent); Arizona (up 21 percent); and Georgia (up 20 percent).
A strong housing market can have such an impact on the US economy. We see it in our business. Handyman services, home improvements and remodeling increase as negative equity decreases. Improving home values can prove to be the kick start the economy needs.
According to RealtyTrac the national median sales price was $174,500 in July, up four percent from the previous month and up six percent from a year ago—the 16th consecutive month where median home prices nationwide have increased annually after.

Do you think improving home equity is good for our market? Please let me know.