The Remodeling Market Index (RMI) rose six points to 55 in the second quarter of 2013, according to the National Association of Home Builders (NAHB), signaling renewed confidence in the remodeling market. An increase in existing home sales and higher demand for remodeling projects contributed to the positive report.
The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity. An RMI above 50 indicates more remodelers report market activity is higher compared to the prior quarter than report it is lower.
The future market indicators component of the RMI increased to 56 from the previous quarter level of 48, and current market conditions rose from 50 in the previous quarter to 54. All of the indicators of future activity were over 50 for the first time in eight years.
"Remodelers' positive sentiment is directly related to increased demand for their services,” said NAHB Chief Economist David Crowe. “Rising home prices are making remodeling jobs possible for more homeowners while existing home sales provide additional momentum as home owners prepare their homes for market."
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