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Judy Storey Maritato , Executive Director

Second Quarter 2013 Home Improvement Market Intelligence Key Trends and News Prepared by Research Dynamics Edition 5.0 – August 2013. Judy Storey Maritato , Executive Director. Second Quarter 2013 Home Improvement Market Intelligence Executive Summary.

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Judy Storey Maritato , Executive Director

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  1. Second Quarter 2013Home Improvement Market IntelligenceKey Trends and NewsPrepared by Research DynamicsEdition 5.0 – August 2013 Judy StoreyMaritato, Executive Director

  2. Second Quarter 2013 Home Improvement Market IntelligenceExecutive Summary PURPOSE: To provide at-a-glance intelligence and insights about key trends and news in the home improvement/remodeling industry. • Jobless rate fell from 7.6% to 7.4%; consumer confidence fell slightly in July but still improved vs. last year • Home prices are rising in major metros, 12/20 Case-Shiller metros up double-digits • “We are seeing improvements in the remodeling market that should lead to this year being the best year for growth since 2005” (Hanley-Wood Chief Economist J. Smoke) • Unexpected 6 point increase in the Builder Confidence in the market for newly built, single-family homes • 84/200 of the lumber and building material businesses showed double-digit growth in 2012 sales • Housing starts showed a dramatic 28% increase in 2012 • Harvard's JCHS Leading Indicator of Remodeling Activity measure predicts annualized growth of nearly 20% by the end of 2013, continuing its strong outlook • LIRA revisions increased estimates of home improvement spending in 2011 but decreased spending estimates for 2012 for technical reasons • Watch List • More builders buying product at inflated prices with a declining supply • Trade labor continues to be in demand in some markets, creating shortages • “Economy stuck in second gear… reliably growing, but too slowly to absorb the residual slack in the economy left over ..” (The New York Times) RESEARCH DYNAMICS Research Dynamics

  3. Second Quarter 2013 Home Improvement Market IntelligenceIndustry Statistics U.S. Remodeling and Remodelers Activity Despite slight ups and downs in recent IMI levels, majority of metros remain solidly on the path to recovery Sources: Harvard JCHS LIRA, Hanley Wood Market Intelligence RRI, NAHB RMI, NAHB/First American IMI RMI above 50 indicates more remodelers report market activity is higher (compared to prior quarter) than report it is lower. Home Sales Data for June 2013 One year ago the 30-year averaged 3.55% Housing Starts (SAAR) Existing sales dipped 1.2% in June but are 15.2% higher than June of 2012 30-yr fixed-rate 4.36% (August 1, 2013) RESEARCH DYNAMICS RESEARCH DYNAMICS Source: U.S. Census as of April 16, 2013 Sources: U.S. Census/HUD; NAR Research Dynamics

  4. Second Quarter 2013 Home Improvement Market IntelligenceCharts RESEARCH DYNAMICS

  5. Second Quarter 2013 Home Improvement Market IntelligenceJoint Center for Housing Studies (JCHS) of Harvard University “Homeowners are more comfortable investing in their homes right now….consumer confidence scores are back to pre-recession levels, and since recent homebuyers are traditionally the most active in the home improvement market, the growth in sales of existing homes is providing more opportunities for these improvement projects.” -Eric Belsky, JCHS RESEARCH DYNAMICS Nextrelease October 17, 2013 Research Dynamics

  6. Second Quarter 2013 Home Improvement Market IntelligenceHome Sales through August 2013 RESEARCH DYNAMICS Source: NAHB as of August 1, 2013 Research Dynamics

  7. Contact us for more information or for a customized report Research Dynamics Judy StoreyMaritato Executive Director judy@rdynamics.biz

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