I agree, replacing the CAT is probably the solution.
Consider other places for this service, as I've read many stories (here) about factory CATS failing every 50 to 90K on the HCH1 cars. Plenty of folks will say that the aftermarket CATS will fail at 50K or so. Some do, others don't. It often depended on the brand. And at (probably) about half the Honda price, it would be worth rolling the dice for me.
Be sure to check out lots of shops, and ASK what kind of cat they are using. There are poor generic ones out there (specific brands, even, that many of these shops arewell aware of). Try a true muffler shop. I'm not recommending Midas, per se (and I've have issues with them in the past). Prices vary wildly, sometimes for the exact same parts, that's why it pays to find out EXACTLY what brand and type of CAT they would use. I eve nget a part number if I can.
On my old Jaguar, the prices ranged from $1200+ down to $400. For one particular CAT part number, 3 different shop prices (including labor) were $400, $580, and $725!
Another option is to find the factory part cheaper (collegehillshondaparts.com or the like). I just searched their site and found:
Part Number Description Year Model List Price Our Price
18160-PZA-A00 CONVERTER 2003 CIVIC 950.41 741.32
18190-PZA-A00 CONVERTER 2003 CIVIC 890.76 694.80
Not sure if that's a front and a rear converter (probably so), but the $950 list priced-one sounds like your part. There, $200 bucks saved.
BTW folks - none listed there yet for the HCH2.