The market for new construction still remains challenging but there are hopeful signs in this new study.
The latest Houzz Expected Business Activity Indicator for all residential construction companies showed an increase of three points to 61 for the third quarter, up from 58 in the second quarter. The index is based on expectations for project inquiries and newly committed projects. Readings above 50 indicate that more companies expect improvement than deterioration.
Most of this increase came from build-only remodeling companies, with their forward-looking index increasing nine points to 59 with both expectations for project inquiries and new committed projects rising at similar rates.
Design-build firms were also confident but their conversion rates declined for the period. The design-build index declined three points to 63 from 66.
A separate survey from Houzz (which offers services and software to both home builders and homeowners)–the Expected Business Activity Indicator– perhaps offered more encouragement for the housing market. In the Indicator’s survey of architecture and design firms, the index increased eight points to 68 with expectations for project inquiries rising from 60 to 67. New committed projects increased from 61 to 69, while architects produced the largest gain, with their forward-looking index jumping 13 points to 71.
Because architectural services get involved earlier in the construction process, their encouraging results could indicate a longer-term rebound for building activity, Houzz said.
