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Barometers { A look at key statistics & trends shaping the industry } Nation's Housing, Amidst Recovery, Still Volatile T he nation's housing market continues to exhibit signs of volatility – and continues to face growth challenges – even as the market continues on the path. Among the key statistics and forecasts released in recent weeks by government agencies, research frms and industry-related trade associations were the following: HOUSING STARTS The recent large dip in multi-family production in June "is consistent with the volatility that has come to characterize that sector, as well as the uneven pace of the housing recovery," according to David Crowe, chief economist for the National Association of Home Builders. "That said, the fact that single-family starts and permits both rose in three out of four regions in June is a positive sign that's in keeping with our forecast, as well as recent surveys in which single-family builders have registered an increasingly positive outlook," Crowe noted. According to the latest available fgures, nationwide housing starts declined to a seasonally adjusted annual rate of 836,000 units (591,000 for singlefamily units and 245,000 for multi-family homes), as construction of multi-family buildings slowed following recent months of strong activity in that sector. EXISTING-HOME SALES There is enough momentum in the housing market to sustain a gradual recovery, even with higher interest rates, the chief economist for the National Association of Realtors said last month. According to Lawrence Yun of the Washington, DCbased NAR, "affordability conditions remain favorable in most of the country, and we're still dealing with a large pent-up demand." Existing-home sales have stayed well above year-ago levels for the past two years, while the median price shows seven straight months of double-digit year-over-year increases, the NAR pointed out. "Inventory conditions will continue to broadly favor sellers and contribute to above-normal price growth," Yun said. APPLIANCE SHIPMENTS Domestic shipments of major home appliances rose in June compared to shipments during the same month in 2012, according to the Association of Home Appliance Manufacturers. The Washington, DC-based AHAM reported last month that June appliance shipments totaled 6.75 million units, up 3.6% from the 6.51 million units shipped in June, 2012. Year-to-date shipments were up 2.9% for the frst six months of 2013, compared to January-June of 2012, AHAM reported. 77% THE IMPORTANCE OF PRICING FOR KITCHEN & BATH PRODUCTS 1% More Important Than Three Years Ago Less Important Than Three Years Ago 22% About the Same as Three Years Ago The majority of kitchen/bath dealers and designers surveyed in a recent poll (77%) reported they feel that product pricing is more important now than it was three years ago, while virtually none feel it is less important. Surveyed dealers and designers also say they are feeling pressure from their clients to be competitively priced, and note they have high expectations for their suppliers to provide consistent and competitive pricing. Source: Supplier Services Survey, conducted for KBDN by RICKI, May 2013 CABINET & VANITY SALES Sales of kitchen cabinets and vanities continued to post significant gains in June, rising 16.2% compared to the same month in 2012, the Kitchen Cabinet Manufacturers Association said last month. According to the Reston, VA-based KCMA, manufacturers participating in the association's monthly "Trend of Business" survey reported that sales of stock cabinets rose 21.3%, while semi-custom sales gained 11.0% and custom cabinet sales increased 19.9%. Yearto-date sales through June were up 16.4% compared to the same six-month period last year, the KCMA reported. resources over the past few years put toward integrating technology into home kitchens – in refrigerators for instance – and there is some interest in this type of innovation among homeowners, but when it comes to their vision of the perfect technology for their kitchens, they mostly want technology to help them with the time-consuming and typically unpleasant task of cleaning up." The study highlights a notable tone of regret among some homeowners who have recently completed minor improvements or undertaken full-remodels of their kitchens. "As we have found in previous research, once a project is completed there's a sizeable number of homeowners who wished they had sprung for better cabinets or higher-end appliances," Bryan said. "The research s ug ge s t s t h at i nter ior designers and product manufacturers would do well to focus on this common feeling among homeowners," she noted. "It can mean spending more money and perhaps going a little over budget, but homeowners will be far happier in the long run. "It's an investment that will pay of virtually every day for the life of the kitchen," she adds. MARKET ANALYSIS Kitchen Remodeling Seen Rising Among Homeowners Charlotte, NC — A new study conducted by the Research Institute for Cooking & Kitchen Intelligence (RICKI) reveals that nearly two out of fve homeowners (38%) have seen the level of home repair or construction in their communities increase in the past six months, a 9% jump from three months earlier. The study, entitled Consumer Trends: From Remodeling Rates to Technology Trends, was conducted among 1,005 U.S. homeowners. "What we found is that homeowners across the country are seeing more construction activity in their 10 | Kitchen & Bath Design News September 2013 area, and kitchen remodeling rates specifcally are at 2006 pre-recession levels, the year RICKI first measured it," said RICKI Executive Director Brenda Bryan. "Another positive indicator is that two out of three homeowners feel that now is a good time to invest in their homes and an equal proportion say they would rather renovate their homes than move." The study, which also measured use of certain technologies in the kitchen, found that 44% of U.S. homeowners charge an electronic device in the kitchen. Accord i ng to Br ya n , "There have been a lot of