WASHINGTON - Confidence in the remodeling market rebounded in the second quarter of 2013 with the Remodeling Market Index (RMI) rising six points to 55, according to the National Association of Home Builders (NAHB). The rise in existing home sales and increased demand for remodeling projects contributed to the positive report.
An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.
"Remodelers are feeling optimistic about the home improvement market during what has turned out to be an uneven recovery," said NAHB Remodelers Chairman Bill Shaw, GMR, GMB, CGP, a remodeler from Houston. "The RMI future market results are especially promising. Not only do remodelers have projects booked for the next few months, but they also have more work coming in the door."
The future market indicators component of the RMI increased to 56 from the previous quarter level of 48. Current market conditions rose from 50 in the previous quarter to 54. All of the indicators of future activity (i.e. calls for bids, work committed for three months, backlog, and appointments) were over 50 for the first time in eight years.
"Remodelers' positive sentiment is directly related to increased demand for their services. 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," said NAHB Chief Economist David Crowe.
For more information about remodeling, visit www.nahb.org/remodel.
ABOUT THE RMI: The RMI is based on a quarterly survey of professional remodelers, whose answers to a series of questions were assigned numerical values to calculate two separate indexes. The first index gauges current market conditions and is based on remodelers' reports of major and minor additions and alterations, plus maintenance work and repairs, on both owner- and renter-occupied dwellings. The second index summarizes indicators of future remodeling activity and is based on remodelers' responses to questions about calls for bids, amount of work committed for next three months, job backlogs and appointments for proposals.
ABOUT NAHB REMODELERS: NAHB Remodelers is America's home for professional remodelers, representing the more than 24,000 remodeling industry members of the National Association of Home Builders (NAHB). Founded in 1982, the organization provides information, education and designation programs to improve the business and construction expertise of its members and to enhance the professional image of the industry. Its membership incorporates 148 local councils in 45 states. Learn more about remodeling at www.nahb.org/remodel.
Follow NAHB Remodelers on Twitter at www.twitter.com/NAHBRemodelers.
ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in remodeling, home building, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.
Follow NAHB on Twitter at www.twitter.com/NAHBMedia.
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