While the nation’s housing market remains in a significant decline, and the kitchen/bath market remains softer than in recent years, the first hints of “stabilization” may be in the air, according to the latest industry barometers. Among the statistics and forecasts released by government agencies, research firms and industry-related trade associations in recent weeks were the following:

Exisitng-Home Sales

A late-2007 rise in existing-home sales is a sign of “stabilization” in housing in the wake of mortgage disruptions earlier in the year, the National Association of Realtors said last month. “Near term, existing-home sales should continue to hover in a narrow range, and that’s good news because it will be a further sign that the housing market is stabilizing,” said Lawrence Yun, chief economist for the Washington, DC-based NAR. “Mortgage interest rates are near historic lows and current data shows decelerating price declines, along with a modest reduction in the number of homes on the market,” Yun added. Total housing inventory at the end of November 2007 declined to 4.27 million existing homes available for sale, which represents a 10.3-month supply at the current sales pace, down from a 10.7-month supply a month earlier, said the NAR, which is forecasting existing-home sales to rise marginally this year.

Housing Starts

Home builders continued to put the brakes on new-home production as 2007 wound to a close amid attempts by builders to work down the inventory of unsold homes and return the housing market to greater health and balance. Reports of continued declines in housing starts are “very much in line with our expectations,” said David Seiders, chief economist for the National Association of Home Builders. “It’s no surprise that builders are starting fewer homes at a time when home buyer demand is weak and there’s a heavy supply of vacant homes on the market.” The Washington, DC-based NAHB is forecasting the supply-demand balance to improve during the early part of 2008, supporting the early stages of recovery in starts and permits during the second half of the year.

Cabinet & Vanity Sales

Sales of kitchen cabinets and bath vanities, mirroring declines in housing, fell again in November of 2007 compared to the same month a year earlier, 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 overall cabinet sales declined 8.7% in November compared to November of 2006. Sales of stock cabinets fell 14.2% for the month, while semi-custom cabinet sales slid 1.9% and custom cabinet sales declined 8.8%. Year-to-date sales through the first 11 months of 2007 were down 12.2% from the January-November time period of 2006, the KCMA reported.

Appliance Shipments

Shipments of major home appliances, following a year-long trend, fell in December of 2007 and declined for the full year compared to shipments in 2006, according to the Association of Home Appliance Manufacturers. The Washington, DC-based AHAM reported that December 2007 appliance shipments were down 10.6% compared to December of 2006. Shipments for the year were down 6.3% from 2006, AHAM noted. Shipments were off in all major kitchen-related product categories, including cooking, kitchen cleanup and food preservation, the Washington, DC trade association noted.

Market Analysis

Key Design, Product & Consumer Trends Examined in Survey of Kitchen Designers

Charlotte, NC — Once the exclusive domain of women in multi-gender households, kitchen remodeling decisions are now regularly made jointly by both men and women.

That’s one of several key conclusions in a newly released study conducted by The Research Institute for Cooking & Kitchen Intelligence, a Charlotte, NC-based organization of manufacturers, retailers, wholesalers and publications whose revenues are derived from sales related to activities that take place in the kitchen, including kitchen remodeling.

RICKI’s new study, Kitchen Intelligence: A Designer’s Perspective, consisting of an online discussion with 22 certified kitchen designers over a five-day period, “reveals what designers are hearing from clients – current thinking and predictions for the future for products and finishes, kitchen design and layout, and other kitchen remodeling related topics,” RICKI said. The study’s findings shed light on trends in overall kitchen design, as well as in nine specific product categories, including cabinets, countertops, range hoods/ventilation, flooring, faucets, sinks and major home appliances, the organization said.

Among the key findings:

• Designers are creating more kitchen designs that use a “zone” approach, as opposed to the traditional “work triangle” approach.