The National Association of Home Builders (NAHB) recently announced its Remodeling Market Index (RMI) rose three points to 56 in the second quarter this year, reportedly regaining the momentum built in 2013. This is the fifth consecutive quarter for an RMI reading above 50, which 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.
“With many home owners on better financial footing, home remodeling has become more popular,” said NAHB Remodelers Chair Paul Sullivan. “The completion of postponed work has helped remodelers in all regions regain confidence in the remodeling market.”
The RMI’s future market conditions index rose to 56 from 52 in the previous quarter, under the strength of an increase in all four 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 increased three points to 56 this quarter. Remodeling jobs valued at $25,000 or more rebounded to 54, the same level as the end of 2013. Smaller remodeling jobs and maintenance and repair components performed well this quarter with readings of 56 and 58, respectively.
For more information, visit www.nahb.org/remodel.