Landscape products will be an $8.2 billion industry by 2019, a leading market research firm said in an in-depth analysis. The demand side will be spurred in large part by an ever-improving economy, continued growth in construction of residential and nonresidential developments, and other factors.

A leading U.S. market research firm is predicting nationwide demand for landscape products will grow 5.3 percent annually and generate $8.2 billion in sales by 2019.

Freedonia Group said several trends should help push demand higher, including continued expansion of both residential and nonresidential buildings. Sales of existing homes should continue to increase, and disposable income for most people will keep rising.

Now that the recession of 2007-2009 is history, many people will want to upgrade their homes with products such as landscape lighting, outdoor pots and planters, garden statuary and water features.

"The popularity of outdoor living spaces such as outdoor kitchens and living rooms will continue to grow as homeowners look to increase their usable living space," Freedonia said.

"Such living spaces will drive demand for landscaping products, including concrete pavers for patios and flooring, bricks and stones for walls and seating areas, and trellises and pergolas for cover."

Sales of outdoor fireplaces, fire pits and chimineas should also trend higher, as homeowners upgrade their properties.

Long-term effects of the drought in certain parts of the U.S. and heightened environmental concerns will be contributing factors as well. These issues should fuel sales of hardscape products, synthetic turf and permeable pavers.

Businesses such as restaurants, coffee shops and bars will want to add outdoor seating areas, which will also lead to more sales of hardscape products such as pavers and stone, fireplaces and fire pits, as well as landscape lighting.

To develop its report, Freedonia did an in-depth analysis of the $6.3 billion U.S. landscaping products industry. It pored over historical demand data, as well as product, market, end-user and U.S. regional forecasts for these products, among other research.

Source: Freedonia Group
Website link: https://tinyurl.com/okytz58

Steady Rise in Home Prices Might Be Slowing
The relationship of supply and demand continues to push existing home prices higher, but the appreciation trend may have moderated some in the third quarter.

Supplies of existing single-family homes remain tight, while sales appear to be gaining more and more traction, the National Association of Realtors said in a third-quarter report.

Home prices are steadily rising as a result.

Median third-quarter prices for existing single–family homes increased in 87 percent of the 178 major U.S. markets measured by the NAR, compared to the third quarter of 2014. Median prices decreased in 24 areas, or 13 percent.

But in the second quarter of 2015, compared to the second quarter of the previous year, 93 percent of metro areas experienced median increases.

So the data does show a slight decline from the second quarter to the third.

The NAR also said 21 metro areas had double-digit gains in the third quarter, down from the 34 regions with double-digit hikes in the second quarter.

Nationwide, existing–home sales, including single-family residences and condos, increased 3.4 percent to 5.48 million units in the third quarter, up from 5.30 million in the second quarter. This is also 8.3 percent higher than the 5.06 million units sold in the third quarter of 2014.

"Demand for buying picked up speed in many metro areas during the summer, as more households entered the market, encouraged by favorable mortgage rates and improving local economies," said Lawrence Yun, chief economist for the NAR. "While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales."

The national median price for an existing single–family home was $229,000 in the third quarter, up 5.5 percent from the third quarter of 2014, when it was $217,100.

"Unfortunately, the lack of any meaningful gains in housing supply pushed prices in some areas above what some potential buyers "?u especially first–time buyers "?u are able to afford," Yun said.

Source: National Association of Realtors
Website link: https://tinyurl.com/pgzg743