Remodeling franchise reasons for growth

With remodeling numbers up again the future looks bright for House Doctors our remodeling franchise. This post looks at why the growth is expected to continue in home improvements over the next few years and beyond in a market that is already worth well over 100 billion.

Baby boomers will fuel the growth for years to come

Did you know that around half of all the home improvements done in the US are for those 55 and over?

That statistic is even more important when you consider that this is one of the fastest growth sections of our society. By now you will have read the numbers that show 10,000 Baby Boomers turning 65 each day for the next 17 years. That is amazing growth and part of the reason for the good remodeling numbers.

Aging in place or modifying your home to live in it longer as you age is the fastest growing part of remodeling today. House Doctors remodeling franchisees do many aging in place type jobs like building ramps, widening doorways, installing walk in tubs, converting baths to showers and installing grab bars. Franchisees can look forward to continued strength in the market now and well into the future.

For more info please visit:- http://www.housedoctorshandymanfranchise.com/

Remodeling numbers good news for handyman business

The Remodeling Market Index (RMI) continued to climb in the third quarter of 2013 rising another two points. This is the highest reading since the first quarter of 2004, according to the National Association of Home Builders (NAHB). I believe this is another sign of a strengthening economy and good news for anyone considering a handyman business.

Improving economy is good news for handyman and remodeling franchises

The RMI's current market conditions index rose from 54 in the previous quarter to 58.
You know this is the highest reading since the creation of the RMI in 2001.
What does that mean? For those not familiar with the RMI it's an indicator of remodeling activity and confidence. Being above 50 indicates that more remodelers report market activity is higher as opposed to reporting it lower.
Increasing home equity and home sales, and a strengthening economy, definitely have an impact. We see it in our own network. Across the country our franchisees are producing some great numbers.

The exciting thing is that all of the three major components of the RMI's market conditions index increased in the third quarter. Minor additions and repairs increased from 55 to 58 while maintenance and repairs increased from 57 to 59. Even major additions and alterations increased from 51 to 55.

The growth in home equity and home sales has given home owners confidence to remodel, repair and do handyman upgrades that they had put off during the tough times.We expect the demand for remodeling services to continue to increase however at a more gradual pace as the housing recovery makes progress.

Do you think this is a good sign?

General Contractor Builds Handyman Franchise

Justin Bates has been in the Construction industry for 15 years. He even owned his own construction business doing residential homebuilding, additions, and other large projects. He is a licensed general contractor..So why did he decide to become a salt lake handyman and buy a home improvement franchise.

From general contractor to professional handyman

Justin shared with us why he decided with all of his industry experience to buy a House Doctors franchise. "It was the House Doctors Brand and culture that attracted me. I was looking for a proven business model that would cater to smaller jobs and a Brand that I felt was poised for growth. I found it with House Doctors. House Doctors is growing nationwide and one of the reasons for that I feel is the culture of continuously pushing for excellence, sticking to our word, maintaining a high degree of professionalism, and always doing what we say we are going to do. I feel homeowners are searching for a company that they can trust today. This is a growing market but very few companies in it are actually licensed or accredited to do the work. When you’re letting someone into your home to do a job, you need to know that they are competent in performing the work and that they are someone that you can trust."

The National Association of Remodeling (NARI) stats show less people moving and more fixing up their homes so home improvements is in a high growth mode. The need for professional companies in the smaller job market is strong but a lot of people still have had bad experiences when being let down by a contractor or handyman. That's where House Doctors is different. The House Doctors handymen are trained to provide excellent customer service and are insured and scheduled to turn up on time.

The House Doctors model is definitely working for Justin. He's growing a business by building a team of technicians who work on small jobs on home to-do lists, and all the way up to larger projects. He is becoming known as the go to guy for a Salt Lake City deck  Justin is now a preferred installer for TimberTech decks.
His business is booming and with the support of his Salt Lake City customers his franchise is now one of the fastest growing in the network. He is continuing to expand by introducing more products and services like bathroom remodeling to Salt Lake City.

Great news for remodeling, less foreclosure activity

While all of our eyes were focused on the goings on with our Government a small fact seems to have been overlooked. September was the 36th consecutive month with an annual decrease in U.S. foreclosure activity, a downward trend that started in October 2010. This is great news for a handyman and remodeling business and the home improvement market in general.

Lower foreclosure activity good news for remodeling market

National Mortgage Professional reports that RealtyTrac U.S. Foreclosure Market Report for September shows foreclosure filings such as default notices, scheduled auctions and bank repossessions, were reported on 131,232 U.S. properties in September, a 27 percent decrease from a year ago. This is great news for the handyman and home improvement market. Even if people are not planning on selling their home anytime soon they may be interested in repairing and improving it. First and foremost less foreclosures is great to see for it is a decrease in the personal heartache and suffering of those who go through the foreclosure process. Secondly with less foreclosures everyone feels better about from having less poorly maintained properties in a neighborhood

At House Doctors we have just launched our new website to take advantage of the growing home improvement market and this reduction in foreclosures will just add to an already booming niche.
September numbers helped drop third quarter foreclosure activity to the lowest quarterly level since the second quarter of 2007. There were a total of 376,931 U.S. properties with foreclosure filings in the third quarter of 2013, down seven percent from the previous quarter and down 29 percent from the third quarter of 2012. This is the biggest annual decrease since the second quarter of 2011.
Let's face it less foreclosures usually means less crime, higher home values and less competition when you come to sell. This all leads to a healthier housing market, more home improvements, and a stronger economy.
U.S. foreclosure starts in the third quarter were at a seven-year low. A total of 174,366 U.S. properties started the foreclosure process for the first time during the quarter, down 13 percent from the previous quarter and down 39 percent from a year ago to the lowest level since the second quarter of 2006.

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.

Big Box Sales Increase Impacts Remodeling Franchises

Last week retailers Home Depot reported their first double-digit comparable sales increase since 1999. Lowe’s also reported a 9.6% increase. Is do it yourself taking off again or does this mean more work for handyman franchisees with House Doctors Remodeling?

The 3 different customers that visit Home Depot and Lowes

Home Depot and Lowes market products to;-

1) Home owners who tackle their own home improvements (DIY)

2) Home Owners who hire professionals to install the products (DIFM)

3) Professional contractors who choose the products to install for their customers.

At House Doctors Home Improvement Service we see the improving housing market definitely making a difference. Home Depot and Lowes are big players in product sales. Our franchisees are big players in product installation. When Home Depot and Lowes sell their products it creates a ripple effect. Many of our franchisees are experiencing double digit growth.
The increasing business seems to be coming from all three categories DIY, DIFM, and professional contractors. Sales of products to remodeling companies and contractors is the largest revenue generator for Home Depot, with almost double the sales of the DIY customers.
Our franchisees have customers who come from two of the segments the big box retailers target. Some of our customers purchase products then hire our professional handymen to install them (DIFM) and others have our franchisees recommend a product as part of the remodeling service we offer.

Small Business confidence edging higher - good for franchising

Whether you are looking at starting a fast food franchise, a handyman franchise or a remodeling franchise recent news that small business confidence is improving is good news for franchising. Combine that with the fact that another recent study shows the positive impact that entrepreneurs are having on the creation of wealth in the world and now may be the time for you to move forward with your business ownership.

Small Business Confidence Edges Higher As Entrepreneurs Help Create World Wealth

In July the National Federation of Independent Business report on small business optimism edged up to 94.1 from 93.5 as the 17th volume of Barclays Wealth Insights, the study on the changing order of wealth creation shows that entrepreneurship is one of the leading creators of wealth in the world.
In my view these studies show that:-

1) Small businesses in the US are starting to feel good about where we are heading
and
2) The success of these enterprises have a dramatic impact on not only our own economy but also the world's economy.

This is also good news for franchising. Franchising is the gateway to small business ownership for many entrepreneurs. The survey showing confidence returning to the small business community is great news but not only that we also have a separate report telling us that entrepreneurship is now being recognized as one of the dominant creators of world wealth.

U.S. Needs More Entrepreneurs

We need more entrepreneurs. The age of American wealth being created by the entrepreneur may be coming to an end. The picture may be changing with America falling behind the rest of the world when it comes to creating entrepreneurial wealth. The study from Barclays, "Origins and Legacy the Changing Order of Wealth Creation," finds that the developing countries now lead the U.S. when it comes to wealth creation by entrepreneurs. One major reason seems to be that the U.S. is further along in the wealth cycle and has a much longer history of wealth creation while the up and coming countries still have first generation entrepreneurs.

America was founded by innovators and risk-takers, early entrepreneurs willing to sacrifice a certain way of life and working hard to create a better opportunity. At our remodeling franchise we see that same entrepreneurial spirit in action everyday through our franchisees.

Please let me know what you think.

Remodeling Franchise Finds Market Good For Business

This market is good news for a remodeling franchise. The latest quarterly report by the National Association of Realtors® shows median home prices continuing to rise in the majority of metropolitan areas in the second quarter.The improving housing market means more home improvements because confidence is returning and homeowners are again interested in maintaining and improving their properties. This increased interest in home improvements has led to many of our remodeling franchisees seeing double digit gains already this year.

Direct link between rising home prices and increased spending on remodeling projects.

The improving housing market has a positive effect on many home improvement businesses. For example at House Doctors we see a direct link between rising home prices and increased spending on remodeling projects.The NAR data shows the national median existing single-family home price was $203,500 in the second quarter, up 12.2 percent from $181,300 in the second quarter of 2012. In the first quarter the median price rose 11.3 percent from a year earlier.
For an area by area comparison see the NAR map http://www.realtor.org/topics/metropolitan-median-area-prices-and-affordability/data showing median prices across the US.

Homeowners realize that a remodel can be a good way to increase the value of a home in a growing market. One way of getting a cost versus value comparison of remodeling projects in different areas of the country is to use a tool available from Remodeling Magazine. The tool compares the National average cost for 35 popular remodeling projects across the country with the value those projects are expected to retain at resale.