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Barometers { A look at key statistics & trends shaping the industry } 8 | Kitchen & Bath Design News | November 2015 A s 2015 approaches its close, the housing market, despite some fts and starts, contin- ues its gradual uphill climb, according to the latest indicators. Among the key statistics and forecasts released in re- cent weeks by government agencies, research frms and industry-related trade associations were the following: HOUSING STARTS & NEW-HOME SALES The latest housing fgures indicate a "release of pent-up demand as the over- all economy strengthens, consumer confdence grows and mortgage in- terest rates remain low," David Crowe, chief economist for the National Association of Home Builders said last month. "The housing market should continue to move forward at a modest but more persistent pace throughout the rest of 2015," said Crowe, adding that the Washington, DC-based NAHB continues to hear from its members "that more serious home buyers are returning to the market [and] build- ers are gradually adding inventory to meet future demand as they handle shortages of lots and labor." EXISTING-HOME SALES While existing-home sales lost some momentum in recent months, "the good news for the housing market is that price appreciation has started to moderate from the unhealthier rate of growth seen earlier this year," the National Association of Realtors said last month (see related story, be- low). "With sales and overall demand higher than a year ago and supply mostly unchanged, low inventories will likely continue to limit options for people looking to buy this fall, even with the pool of buyers shrink- ing due to seasonal factors," said Lawrence Yun, chief economist for the Washington, DC-based NAR. "With job growth holding steady, prospective buyers can handle any gradual rise in mortgage rates, es- pecially if today's stronger labor market leads to a boost in wages and homebuilding accelerates to allevi- ate supply shortages and slow price growth in some markets," Yun added. CABINET & VANITY SALES Sales of kitchen cabinets and vanities continued to post solid gains in August compared to sales for the same month in 2014, the Kitchen Cabinet Manufac- turers Association said. According to the Reston, VA-based KCMA, manufac- turers participating in the association's monthly "Trend of Business" survey reported that August sales of cabinets and vanities rose 6.5% over August of 2014. Sales of stock cabinets gained 16.6%, while semi-custom cabinet sales declined 2.2% and custom cabi- net sales increased 5.5%, the KCMA said. Year-to-date sales through August were up 8.2% compared to the same eight-month period last year, the KCMA added. APPLIANCE SHIPMENTS Domestic shipments of major home appliances continued their year- long climb in September, gaining compared to shipments in the same month last year, according to the Associat ion of Home Appliance Manufacturers. The Washington, DC-based AHAM reported last month that September 2015 appliance ship- ments totaled 6.85 million units, up 5.9% from the 6.47 million units shipped in September, 2014. Year- to-date shipments for the frst nine months of 2015 were up 7.4% over January-September shipments in 2014, AHAM said. Washington, DC — Pending home sales remain "at a healthy level," and now have risen year-over-year for 12 consecutive months, yet another sign of a strengthening housing market, the National Association of Realtors said last month. "Even with the modest decline in contract signings, demand continues to outpace housing supply and elevate price growth in numerous markets," said Lawrence Yun, chief economist for the Washington, DC-based NAR. Pending sales have leveled of since mid-summer, with buyers being bounded by rising prices. Nevertheless, according to Yun, existing-home sales in the coming months should be able to "roughly maintain their current pace," although "there are looming speed bumps that have the potential to impact housing. "The possibility of a government shutdown and any ongoing instability in the equity markets could cause some households to put of buying for the time being," Yun observed, adding that anticipated changes being implemented in the mortgage closing process could delay some sales. Pending Home Sales Point to Continuation of Market Strength MARKET ANALYSIS Housing Market, Along with Economy, Seen Strengthening REMODELING, HIGH-END CONSTRUCTION OUTPERFORMING OTHER SECTORS % OF SURVEY RESPONDENTS REPORTING SECTOR IMPROVING MINUS % REPORTING WEAKENING Housing market conditions, while generally positive, are exhibiting somewhat slower growth compared to previous months. However, conditions vary considerably depending on market sector, with kitchen and bath remodeling continuing to outperform most other sectors, as refected in this graph. Source: American Institute of Architects 'Home Design Trends Survey' Remodeling Additions & Alterations 64% Kitchen & Bath Remodeling 59% Custom/Luxury Homes 34% Move-up Homes 29% Townhouse/Condo 18% First-Time Buyer/Affordable Homes 17% Second/Vacation Homes 3%