Like their home-building counterparts, remodelersrnwho are members of the National Association of Home Builders (NAHB) arerndisplaying more confidence in their industry than they have in years. The NAHB’s Remodeling Market Index (RMI) forrnthe fourth quarter of 2011 which measures remodelers’ sentiments about theirrnbusiness climate rose to 46.6 its highest level in five year. In the third quarter the Index was 41.7.
Like the Home Builders Index (HMI) the measuresrnresponses from home builders, the RMI surveys NAHB members who are involved inrnremodeling about current market conditions and about indicators of futurernconditions. Scores above 50 for the HMI,rnthe RMI or their component indices indicate that more respondents view thernmarket as good than view it as fair. InrnJanuary the HMI hit a 54 month high of 25. The RMI component measuring current market conditions rose to 48.4 from 43.0rnand two of the categories within that index rose significantly. Market activity related to major additionsrnrose from 45.2 to 52.3 and minor additions from 45.7 to 50.1The component measuring future market indicators ofrnremodeling business rose to 44.8 from 40.4 in the previous quarter and two ofrnits categories rose over the 50 mark; calls for bids increased from 45.4 to 50.7rnand appointments for proposals to 50.1 from 43.3. The third category, work committed for thernnext three months rose only slightly to 31.5 from 29.9. ”As more consumers remain in theirrnhomes rather than move in this economy, remodelers benefited from a gradualrnincrease in home improvement activity, taking us to a five-year high,” saidrnNAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP. ”2011 ended on a strong note for thernremodeling industry.”Scores improved for both future market indicators and current marketrnconditions in all four regions of the country.All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.
