WASHINGTON - The National Association of Home Builders (NAHB) reported its Remodeling Market Index (RMI) gained 3 points to 56 in the second quarter of 2014, reestablishing the momentum built in 2013. An RMI above 50 indicates that more remodelers report market activity is higher compared to the prior quarter.
The RMI's future market conditions index grew 4 points to 56 from the previous quarter. The gains were caused by an increase in all of its subcomponents: calls for bids, amount of work committed for the next three months, backlog of jobs and appointments for proposals.
The current market conditions component of the RMI grew 3 points to 56 in the quarter. Remodeling jobs valued at $25,000 or more grew to 54, the same level as the end of 2013. Smaller remodeling jobs and maintenance and repair components reported scores of 56 and 58, respectively.
"The recent improvement in the job market has helped restore remodelers' confidence after a dip in the first quarter that was probably in part weather-related,” said NAHB Chief Economist David Crowe. “As homeowners feel more secure about their economic situation, they become more willing to undertake remodeling projects--especially larger, discretionary projects. In addition, fewer new home builders are looking to remodeling as a way supplement their revenue, and this has somewhat reduced competition for remodeling projects."
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