The Home Improvement Research Institute (HIRI) reported recently that U.S. home improvement product sales are expected to stay strong in 2006 and beyond.
In addition, Global Insight recently boosted its fourth quarter 2005 estimates to a level $4.8 billion higher than the firm forecast back in June 2005. The revised estimate for total 2005 sales is $291.3 billion, 7.5 percent higher than in 2004.
The improved forecasts can be attributed to continued strong housing markets and hurricane rebuilding, according to HIRI.
Professional Market sales growth, at 8.4 percent, is expected to exceed Consumer Market growth for the second year in a row in 2005, stimulated by repairs and rebuilding in the aftermath of severe hurricane seasons.
Hurricane rebuilding activity will continue into next year, which will offset some of the negative effects of a slowdown in housing market activity in 2006, HIRI reports. Global Insight projects total home improvement product sales to increase 4.6 percent in 2006 to $305 billion.
Home improvement product sales growth will decelerate further in 2007 as rising mortgage rates further slow the pace of housing market activity. But the long-term outlook for the home improvement products market remains strong, HIRI reports. Total market growth in 2008-2010 is projected to average 4.6 percent a year in constant dollars, below the pace of the past five years but ahead of economic growth.