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NAHB: Remodeler Confidence Regains Momentum
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.
“With many home owners on better financial footing, home remodeling has become more popular,” said NAHB Remodelers Chair Paul Sullivan, CAPS, CGR, CGP, of Waterville Valley, N.H. “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.
“The recent improvement in the job market has helped restore remodelers’ confidence after a dip in the first quarter that was probably in part weather-related. As homeowners feel more secure about their economic situation, they become more willing to undertake remodeling projects—especially larger, discretionary projects,” said NAHB Chief Economist David Crowe. “In addition, fewer new home builders are looking to remodeling as a way supplement their revenue, and this has somewhat reduced competition for remodeling projects.”
For more information about remodeling, visit nahb.org/remodel.