Remodeler Confidence Highest in almost a Decade

Buildersrnwho remodel residential properties are seeing continued activity in theirrnsegment of the homebuilding market the National Association of Home Buildersrn(NAHB) said today.  The organization’srnRemodeling Market Index (RMI) climbed 2 points in the third quarter of 2013 torn57.  It was the highest reading for thernRMI since the first quarter of 2004 and the second quarter in a row the indexrnhas increased. </p

Arnscore above 50 for the RMI or any of its components indicate that more buildersrnengaged in remodeling report that activity in various market segments hadrnimproved relative to the previous quarter than report declining activity.  Remodelers are also asked to project futurernactivity from current indicators. rnPerceptions of current and future activity are averaged for an overallrnRMI average</p

ThernRMI’s measure of current market conditions rose four points from the secondrnquarter to 58, the highest in RMI’s 12 year history and perceptions of thernthree major categories of remodeling also increased.  Major additions and alterations grew from 51rnto 55, minor additions and repairs from 55 to 58 and maintenance and repairrnfrom 57 to 59.   The current market scores,rnNAHB said, were driven party by rising existing home sales. The future marketrnindicators component of the RMI was unchanged from the previous quarter readingrnof 56.</p

“Therngrowth in home equity and home sales prompted home owners to remodel as theyrnprepare to move or undertake upgrades that they put off during toughrntimes,” said NAHB Remodelers Chairman Bill Shaw.  “NAHB Remodelers looks forward torncontinuing our tradition of professional service and craftsmanship as thernhousing recovery makes progress.”<br /<br /The RMI registered its second consecutive quarterly gains in the Northeast,rnMidwest and West but edged down slightly in the South after a five point gainrnthe previous quarter. All four regions were above 50 and higher in the thirdrnquarter than in the first quarter of 2013.<br /<br /"In addition to existing home sales, which support remodeling activity asrnowners fix up their homes before and after a move, remodeling has benefitedrnfrom rising home values,” said NAHB Chief Economist David Crowe.rn”This boosts home equity that owners can tap to finance remodelingrnprojects. We expect existing home sales and house prices to increase, but at arnslower rate over the next year, so the demand for remodeling services shouldrnalso increase, but more gradually over that period.”

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