The National Assn. of Home Builders (NAHB) Remodeling Market Index (RMI) remained flat for the first quarter of 2012, decreasing one point to 47 from the previously upward revision to 48 last quarter.
“We are seeing that the demand for remodeling work has been pulled forward because of a mild winter,” said NAHB Remodelers Chairman George “Geep” Moore Jr., GMB, CAPS, GMR and owner/president of Moore-Built Construction & Restoration Inc. in Elm Grove, LA. “That is why many remodelers reported lower numbers for future activity.”
Regionally, remodeling market conditions in the West increased three points to 47, while the other three regions showed declines: the Northeast to 48 (from 55), the Midwest to 50 (from 52) and the South to 46 (from 49).
“Even though many remodelers report that consumers are showing increased interest in remodeling, they are hesitant to act because of financing constraints and the spotty nature of the economic recovery, which so far has failed to reach some of the larger markets in country,” said NAHB Chief Economist David Crowe. “Many consumers are likely to be deferring large remodeling projects until they feel more comfortable with the economic climate in their area.”
NAHB also noted that the RMI was revised going back to 2006 because of an error, which had slightly reduced the true values of the overall index, as well as its two major components. The revisions generally show a one point or less quarterly increase, with quarter-to-quarter patterns remaining relatively unchanged.