Slow-Down in Real Estate
Market Not Slowing Furniture Sales
By Jeanette Joy Fisher
The real estate market may be slowing
down, but there doesn't seem to be a
corresponding slow-down in the number of
sales of furnishings that will go into
people's homes. In fact, the opposite seems
to be happening across the country.
For instance, California-based Dacor, a
kitchen appliance company, reports that
their sales for the first quarter of 2006
were up some 25 percent from the same period
of 2005. Another kitchen appliance supplier,
Pittsburg-based Sub-Zero, saw their sales
jump nearly 30 percent during that same
period.
What's driving the startling rise in the
home furnishings market?
The factors are complex, but the fact
remains that the numbers are definitely
rising, in spite of a softening real estate
market. Part of the reason for the increase
is that whether homebuyers are purchasing a
new or existing house, they will spend an
average of $6,000 during their first year of
ownership as they begin the task of turning
their new homes into a more accurate
reflection of who they are and how they
choose to live.
So even in the face of a slowing real estate
market, homebuyers are still spending
significant sums of money to upgrade and
furnish their new homes, which makes the
home furnishing industry somewhat less
susceptible to downturns in home sales. In
fact, the American furniture industry is
actually twice as large as the country's
music industry overall.
Home Furnishing Trends in America
Challenged
However, as is the case in all phases of the
American economy, the home furnishings
industry faces challenges from increasing
competition from globalization. As more
furniture is imported, it becomes more
difficult for American companies to compete
as consumer prices continue to decline. That
may prove advantageous to consumers, but it
will cause an increasing number of problems
for U.S. furniture companies.
There are several ways American furniture
companies are fighting back against their
foreign competition, especially when it
comes to innovation and increased
efficiency. After centuries of experience
with American consumers, U.S. furniture
suppliers have a firm grasp on what their
clients need and want when it comes to
furnishing their homes.
One of the most significant trends in recent
years has been the migration of suburban
homeowners back to urban areas. Since
they've often done quite well when they sold
their suburban homes, these buyers can
afford to upgrade both their living spaces
and the furnishing they fill them with.
With that trend also comes a rethinking
of interior spaces such as the kitchen.
Homeowners want appliances and furniture
that allows them to create an integrated
feel throughout their homes. For example,
kitchens have become much more than just
places to cook meals. They're now gathering
places, as well, and innovative furniture
allows homeowners to combine function with
style and utility.
Things may be slowing down for the housing
market, but the past few years have been
excellent for companies dedicated to helping
homeowners fill those houses with furniture
and appliances that can fit any type of
taste, lifestyle, and budget.
Copyright © 2006 Jeanette J. Fisher
Jeanette Fisher, author of interior design,
real estate, and credit books teaches five ways to
makeover your home, garden, and office for happiness and
productivity. Free Design Psychology information:
Design Psychology
Permission granted to publish this article as
long as the bio remains intact with a live link to
http://www.designpsych.com. No translations
allowed.
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