Third-Quarter Index Points to an ‘Amazing’ Year for Remodeling Activity
NAHB’s Remodeling Market Index (RMI) moved up a point in the third quarter as mortgage rates continued to linger below the 6% threshold and housing demand remained brisk.
“This has been an amazing year for remodeling,” said NAHB Remodelors™ Council Chairman Douglas Sutton, Sr., CGR, CAPS, a remodeler in Springfield, IL. “With home sales remaining at record-breaking levels, the major additions and alterations sector has kept many remodelers busy working through growing backlogs.”
In the quarterly survey of 500 remodelers from around the country, current conditions in the July-August period rose to 51.8, up from 50.6 in the previous quarter, and future expectations remained unchanged at 52.4. Starting with the third quarter, the index is now being seasonally adjusted.
“With the ongoing favorable interest rates, rising employment and household incomes, and high home price appreciation rates, we expect the remodeling market to remain on a strong growth path,” said NAHB Chief Economist David Seiders. “The RMI is still above 50, which signals that the market remains healthy. All indicators point to another booming year for remodeling in 2004 and the outlook for 2005 is quite good as well.”