Remodeling Market Dips During Housing Downswing

WASHINGTON –According to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI), remodeling activity dropped slightly in the first quarter of 2007. Reportedly, the current market conditions index slipped from 48.2 to 46.1 on a seasonally adjusted basis, while future expectations edged up to 46.5 from 46.0. The RMI is used to measure remodeler perceptions of market demand for current and future residential remodeling projects. Normally, 50 is the dividing line between a growing and shrinking market.

“Compared to the major up-and-down cycles of the new home market, remodeling activity remains fairly steady,” said NAHB Remodelers Chairman Mike Nagel, CGR, CAPS. “A significant part of the remodeling market comes from work that home owners cannot delay – like replacing a roof – keeping the industry relatively stable during housing market downswings.”

The Midwest showed strong RMI readings in the first quarter, with activity increasing from 44.4 to 47.5, while future expectations grew to 44.7 from 35.7. The Northeast decreased from 45.7 to 43.4 and the South lowered from 52.8 to 45.9.

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