Strong remodeling activity during the first quarter of 2012 resulted in an uptick in showroom traffic for an increasingly optimistic group of kitchen and bath dealers, the National Kitchen and Bath Association’s (NKBA) first-quarter status report finds.
Highlights from the survey include:
The average showroom saw 24 visitors during the quarter. That’s an 8 percent increase over the previous quarter and, albeit a 13 percent drop from a year-ago, the second-highest rate during the past two years.
Six in ten dealers say they’re expecting showroom visits to increase during the second quarter; 3 percent expect a decrease and 38 percent say traffic levels will stay the same.
Combined revenues from kitchen and bath remodels per dealership rose by one-half compared with the fourth quarter of 2011 and are up by one-third from a year ago.
Two-thirds of dealers expect their kitchen sales volumes to increase through June, 30 percent expect them to stay the same, and 4 percent say they will decrease.
NKBA-member dealers reported an average of 9.6 kitchen remodels during the quarter, representing a 17 percent increase from a year ago. The average kitchen remodeling budget increased by 6 percent from the fourth quarter 2011 to $30,000.
Overall, kitchen remodel revenues spiked 60 percent to $398,000 from Q4 2011.
The sector reversed a three-quarter decline to increase by 25 percent for this quarter over the previous quarter and by 9 percent from a year ago to a survey-high of 7.3 bathroom remodels per dealership.
More than half of the dealers expect higher sales volumes in the second quarter, while 45 percent expect volumes to remain the same.
The average bathroom remodel price of $14,625 is relatively consistent with the value for the previous two quarters, which highlights a 30 percent jump between Q2 and Q3 2011. Seven in ten dealers expect the average selling price of a bathroom remodel to remain at or near the current rate.
Overall bathroom remodel revenues rose more than 25 percent from Q4 2011 to $107,000 for the quarter.