May is Oregon & National Home Remodeling Month

PRO Named Once Again In Governor’s Proclamation For Oregon Home Remodeling Month

May is National Home Remodeling Month and that would be reason enough to celebrate for the Professional Remodelers Organization of the HBA of Metro Portland (PRO)… But they have a little more to be happy about this month, because the Governor of Oregon, John Kitzhaber, has recognized the PRO in his annual Oregon Home Remodeling Month proclamation!

Remodelers and related industry professionals can get some great materials and tips for promoting your business during National Home Remodeling Month at the NAHB Remodelers website.

View or download the Governor’s Proclamation of Oregon Home Remodeling Month HERE.  PRO members, why not print this out and display it in your office or showroom!

For more information about the Professional Remodelers Organization (PRO), please contact the Home Builders Association of Metropolitan Portland at 503-684-1880.

Your Home, Our PROfessionals

Your Resource for  Remodeling Professionals

As we look forward to spring and early summer and the remodeling “season” kicks into high gear, homeowners all over the Portland Metro area are searching for a resource for professional contractors and service providers.  At the PRO, we are that resource.

The  Professional Remodelers Organization of the Home Builders Association of Metropolitan Portland (PRO) consists of the area’s top remodelers, subcontractors, and suppliers who work together to promote quality and professionalism in the home remodeling industry. In the past 13 years, the organization has grown to 220 members and currently is the third largest in the United States.

“Our members take pride in their craft, have years of experience in the field and are knowledgeable about the newest and most innovative products on the market,” said Mitch Stanley, former Professional Remodelers Organization chairman. “One of the big reasons our group continues growing fast is that we are committed to ethical business conduct and we encourage our membership to invest in training and education.”

The National Home Builders Association estimates that Americans will spend $145 billion in home remodeling in 2013. Remodeling accounts for 2 percent of the US economy and 40 percent of all residential construction.

Each spring, the Professional Remodelers Organization produces the Tour of Remodeled Homes, which showcases the top remodeling projects in the area. They also are active participants in the Home Builder Association’s Spring and Fall Home and Garden Shows, and PRO members are involved in several fundraising events throughout the year to support local charities. In the last several years years, the group has raised thousands of dollars for the Home Builders Foundation, which creates shelter opportunities for the disadvantaged or transitional homeless and provides educational opportunities for future generations of industry professionals.  The PRO also won a national CADRE Award for their participation in the  complete remodel and upgrade of the Cordero House.

The organization has been recognized nationally for its energy, commitment to the industry, dedication to the community and government affairs efforts. To date, the Organization has won 12 prestigious  Council Awards for Demonstrating Remodeling Excellence (CADRE) the highest national honor any organization can receive. Category wins include Outstanding Community Service Project, Outstanding Member Services and Education and Outstanding Public Relations and Promotion Program. The PRO was also recognized nationally  with and Association Excellence Award (AEA) for their volunteer project building the Santa House at Bridgeport Village Shopping Center for the 2011-2013 holiday seasons.

To find out more about the professional members of the PRO, search our online directory and look for the PRO logo!

News from IBS – Industry Outlook Is On The Rise for 2013-2014

We can all agree by this point that the turn around and positive growth of the home remodeling market will not take place at the same break neck speed with which the fall off began… but at the recent International Builders Show in Las Vegas, the consensus seemed to be that slow and steady growth was A-OK with Remodelers.  Speaking with a panel of remodelers from across the country, the National Association of Home Builders’ Paul Emrath explained how the organization arrived at the current forecast.

“We are predicting slow and steady growth in remodeling activity throughout 2013 and 2014,” said Paul Emrath, NAHB’s vice president for survey and housing policy research. “That outlook is consistent with the indicators of future activity in our recent Remodeling Market Index (RMI) survey. Many remodelers are reporting increases in calls for bids and appointments for proposals, so now it’s a question of how quickly they can convert those calls and appointments into actual work.”

“Consumers want to create value by adding bonus spaces without building full additions to their home,” said Bob Hanbury, CGR, a remodeler from Newington, Conn. “As part of the economic recovery, professional remodelers are helping clients take advantage of their home’s hidden assets by remodeling basements, above-garage spaces and attics to fully take advantage of the size of the home.”

“Backlog was what we are all looking for, and that seems to be the current trend as people are moving forward with projects that they had been thinking about for some time,” said Ben Morey, CGR, CAPS, a remodeler from Signal Hill, Calif. “While the full teardown and rebuild market has not taken off, home owners are committing to projects that look for ways to create a new environment within the current floor plan of their home.”

Read the more about it here.

Remodelers: Have you already seen growth for 2013?

Remodeling Market Index Climbs Five Points, Returns to 2005 Levels

The Remodeling Market Index for the 3rd quarter of 2012

The Remodeling Market Index (RMI) climbed to 50 in the third quarter of 2012, up from 45 in the previous quarter, according to the National Association of Home Builders (NAHB). Released today, the RMI is at its highest point since the third quarter of 2005, tracking the positive trends recently seen in the rest of the housing sector.

The RMI component measuring current market conditions rose to 52 from 46 in the previous quarter, while the component measuring future indicators increased to 49 from 44.

An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future activity.

“The strength of the RMI, especially in owner-occupied properties, shows that home owners are investing in remodels as home prices stabilize,” said NAHB Remodelers Chairman George “Geep” Moore Jr., GMB, CAPS, GMR, a remodeler from Elm Grove, La. “As owners become more confident that investments in housing will hold their value, they are beginning to undertake projects to improve their comfort that they had been putting off.”

All three indicators of current market conditions improved: maintenance and repairs rose to 56 (from 50), minor additions and alterations to 51 (from 47) and major additions and alterations to 49 (from 42). Current market conditions improved or held steady in all four regions in the third quarter of 2012. Current remodeling activity was particularly strong in owner-occupied housing; the sub-components of the current conditions index for owner-occupied housing were all well over 50, ranging between 55 and 60.

Future market indicators in every region but the Northeast experienced gains from the previous quarter: Northeast, 38 (from 41); Midwest, 50 (from 46); South, 52 (from 46); and West, 52 (from 42). All indicators of future market conditions rose: calls for bids, 48 (from 44); amount of work committed for next three months, 46 (from 43); backlog of remodeling jobs, 50 (from 46); and appointments for proposals, 51 (from 43).

“The improvement in the RMI provides more evidence that the remodeling industry is making the orderly recovery from its low point in 2009 as we’ve been expecting,” said NAHB Chief Economist David Crowe. “Although remodeling projects over $25,000 are now showing some signs of strength, they are still lagging behind smaller property alterations and maintenance and repair jobs. The recovery of the remodeling market in general, and large projects in particular, continues to be constrained by factors such as tight credit and problematic appraisals.”

See more about the current RMI here: http://www.nahb.org/fileUpload_details.aspx?contentID=137354&fromGSA=1

EPA Underestimates Costs and Overestimates Benefit of Lead Rule

From our friends at the National Association of Home Builders (NAHB), some recent news about the ongoing battle for legislation to restore the homeowners’ right to opt out of costly lead based paint removal protocols:

Recently, the U.S. Environmental Protection Agency’s Inspector General reported on the findings of an investigation into the agency’s economic analysis of the Lead: Renovation, Repair and Painting (LRRP) rule. Not surprisingly, that report determined that the EPA Office of Chemical Safety and Pollution Prevention (OCSPP) underestimated the rule’s cost and overestimated its benefits.

Moreover, the EPA Inspector General found that the training manual and subsequent “certified renovator” training failed to clearly delineate which lead-safe work practices are mandated and which are simply recommendations.

For more information about what the NAHB is doing to improve the effectiveness and reduce the cost of this rule, check out this recent article on Housing Zone by Professional Remodeler.

Second Quarter RMI Dips Slightly Amid Softening Labor Market

source – NAHB.org

The second quarter results of the Remodeling Market Index (RMI) slipped under pressure from a softening labor market, according to the National Association of Home Builders (NAHB), dropping two points to 45. The downward adjustment comes after the RMI reached 48 twice in 2011, the highest reading since 2006.

The RMI is based on a quarterly survey of NAHB remodelers that asks them to rate current remodeling activity along with indicators of future activity, like calls for bids. An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher.

In the second quarter, the RMI component measuring current market conditions dropped to 46 from 49 in the previous quarter. The RMI component measuring future indicators of remodeling business remained unchanged at 44.

“Remodelers have some backlog of jobs and along with higher quality leads, this is making them cautiously optimistic about the near future,” said NAHB Remodelers Chairman George “Geep” Moore Jr., GMB, CAPS, GMR and owner/president of Moore-Built Construction & Restoration Inc. in Elm Grove, La. “The positive outlook is constrained by continuing credit constraints and inaccurate appraisals that make customer financing difficult for big jobs like additions and whole house remodels.”

To read the full article, visit the NAHB website.

Among Those Planning To Spend – Livability Is Tops!

Livability tops resale value across the board in a national survey conducted by Houzz.com

In a February 2012 survey, published recently on Houzz.com, homeowners that are looking to spend money on home improvement in the next two years are overwhelmingly focused on livability over resale value.  Great news for the remodeling market, as more homeowners choose to stay put and improve upon their existing homes.

Check out the full article at Houzz.com or see excerpts below:

Even as new and existing home sales and prices climb, homeowners are prioritizing aesthetics before profit, according to the February 2012 Houzz & Home Survey conducted among users of the Houzz app and website. Results are based on 29,127 respondents (87 percent homeowners, 13 percent renters).

Among homeowners planning to build, remodel or decorate in the next two years:

• 86 percent cited improving the look and feel of the space as an important driver for remodeling projects
• 47 percent cited increasing home value

The gap between these priorities was consistent across all income levels and demographic groups.

Of today’s homeowners, 70 percent do not plan to take out a loan to pay for that beautiful home. They’d rather cut back on vacations and other big-ticket items or do some of the work themselves than delay or decrease the budget for their home improvement plans.

Even upscale homeowners are taking a hands-on approach to building, remodeling and decorating projects. The survey found that while 45 percent of households at upper income levels ($150,000 per year or more) are choosing to hire an architect, an interior designer, a general contractor or another remodeling or decorating professional to complete a project in its entirety, an equal number of them are combining professional help and DIY efforts. That proportion is only slightly less than the 49 percent taking this combination approach in lower income brackets.

Read more at Houzz.com

Boomers Are Ready to Remodel

Check out this excerpt from a recent post by Hallie Busta at Custom Home 2012, a Hanley Wood publication:

As analysts talk of home prices hitting bottom, and as an increasingly disproportionate number of home-owning seniors look to sell and downsize, first-time buyers may begin to scoop up these properties. But industry experts agree that for the time being, seniors outnumber young, mortgage-worthy buyers, pushing the latter to hold back. The report notes that by 2030, baby boomers will have added 30 million people to the senior population, at which point the segment will account for 20 percent of the overall U.S. population, with two-thirds of this group being older than 85 years. Nate Berg writes for The Atlantic Citiesthat with 10,000 individuals in the U.S. turning 65 years old daily through 2020, where and how these seniors live will be important for monitoring shelter opportunities available to aging populations. The fact that the Echo cohort at best could add 18.8 million households on top of a 6.7 million household gain from other generational groups by 2020, according to the report, means the ball is in the remodelers’ court.

Rolf Pendall, the study’s co-author and director of the Metropolitan Housing & Communities Policy Center at the Urban Institute in Washington, D.C., says demand to match the caliber of senior-owned homes entering the market isn’t likely to pick up for another five to eight years. Meanwhile, seniors are turning to remodeling and retrofitting to make their homes compatible spaces for aging in place—a trend that represents a significant shift from the group’s historical impact on new construction, he says.

Check out the rest of this report here.

Why Hire a “PRO”fessional Remodeler

Find a professional! Ask if they're a "PRO"

When planning your home remodel, choose to hire a professional for getting the job done right. Home owners can save time, aggravation, and money by hiring a professional remodeler.  And the best place to find a professional is to hire a member of the Professional Remodelers Organization (PRO) of the Home Builders Association of Metropolitan Portland.

“Professional remodelers help home owners rejuvenate their residences for beauty, efficiency, and comfort,” said Steve Klingerman, 2012 PRO Chair. “They save home owners time and money because these remodelers have years of training and home remodeling experience.”

Consider some of the qualities that make professional remodelers the best choice for your home remodel:

1.    Technical training and experience in home remodeling.
These remodelers have years of technical training and experience that cannot be equaled by do-it-yourself books or television programs. They understand a home’s structure, electrical wiring, plumbing and other details that must be considered before attempting a home remodel. Inexperience and ignorance can create costly mistakes, but professional remodelers can prevent disasters and solve unexpected problems.

2.    Ability to creatively address budget and space constraints.
Most remodelers relish the chance to employ new design solutions to reorganize and maximize space in a home. This ability to work with a home owner on their remodeling dreams within a budget is a specialty of many remodelers. They can help propose alternatives that keep the budget in check, such as providing a variety of product choices or redesigning interior space to minimize the need for building home additions.

3.    Information on tax credits and other ways to save money.
Remodelers can help you cash in on energy efficiency tax credits for saving on remodeling expenses. These credits offer money back on installing energy efficiency improvements such as new windows, doors, insulation, roofing, and more (see http://www.nahb.org/efficiencytaxcredit for more information). Remodelers may also know of additional local or state credits, rebates, and other methods of saving money on your home remodel.

4.    Commitment to excellent customer service.
A professional remodeler has solid business skills and understands that remodeling is about providing excellent customer service. These remodelers will take meetings and return phone calls to address customer concerns proactively. They prioritize customer satisfaction and take pride in their remodeling work.

5.    Professional references and work samples.
Professional remodelers are more likely to belong to trade associations (such as the National Association of Home Builders) where they benefit from education programs, acquiring knowledge and skills to better run a business and improve their home remodeling services. A remodeler in good standing can also provide references from past clients. They also can show examples of previous remodeling projects to give you a feel of the quality and style of their work.

Make the smartest investment in your home by hiring a professional remodeler. They’ll help you stay on budget, solve remodeling challenges, and provide a higher-quality service.

For more tips on planning a home remodel or hiring a professional remodeler, visit http://www.nahb.org/remodel or contact the Professional Remodelers Organization (PRO) at 503-684-1880.

LEAD legislation needs your support!

Our friends at NAHB Remodelers, our national affiliate, have provided a simple and convenient way to show your support for  the newly proposed S. 2148, the Lead Exposure Reduction Amendments Act of 2012

On March 1, 2012 Senator James Inhofe (R-OK) introduced S. 2148, the Lead Exposure Reduction Amendments Act of 2012.  This piece of legislation improves the Lead: Renovation, Repair, and Painting rule (RRP) which has hampered the home building industry with burdensome compliance costs. 

The Environment Protection Agency (EPA) finalized the RRP rule establishing new requirements for contractors and remodelers working in homes built before 1978.  The rule prescribes a series of work practices and contractor certification requirements as a way to address impacts associated with the disturbance of lead-painted surfaces in older housing.  Specifically designed to address potential lead exposures to children under six years of age and pregnant women, the RRP rule requires contractors and remodelers working in older homes to obtain certification from the EPA. 

This legislation will restore the “Opt-Out Provision” from the RRP rule which allowed homeowners without children under six or pregnant women residing in the home to allow their contractor to forego the use of lead-safe work practices.  By restoring the “opt-out provision”, it will eliminate unnecessary regulations and compliance costs estimated at $508 million a year.

Read more here.

Urge your Senators to support this legislation here.