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Remodelers Modestly More Optimistic in Second Quarter
Optimism among remodelers about the state of the nation’s remodeling market grew modestly in this year’s second quarter, according to the NAHB Remodeling Market Index (RMI), with their perceptions of current market conditions rising to 38.1, from 34.5 in the first quarter, and future expectations climbing from 30 to 34.2.
The RMI has been running below 50 since the final quarter of 2005, reflecting a diminishing volume of remodeling expenditures. Any number over 50 indicates that the majority of remodelers view market conditions as improving.
“With more calls from home owners and more projects under way, remodelers are seeing better activity in their businesses,” said NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, CGP, a remodeler from Tucson, Ariz. “Although remodeling jobs are still harder to find, home owners are showing more interest in remodeling spending.”
Indicators for current remodeling market conditions improved across all regions from April through June. They rose from 35.7 to 36.9 in the Northeast, from 36.1 to 38.3 in the Midwest, from 34.3 to 39.7 in the South and from 32.8 to 40.5 in the West.
Responsible for a good share of the market improvement were major additions and alterations costing $25,000 of more, which rose on the index from 32.7 in the first three months of the year to 38.2 in the second quarter.
Remodelers indicated less growth in minor additions and alterations costing less than $25,000, which rose from 39.1 to 41.5, and maintenance and repair, increasing from 30.4 to 33.6.
All measures for future expectations in the remodeling market increased significantly. Calls for bids registered 38.8 on the index, up from 34.2 in the first quarter; the backlog of remodeling jobs stood at 34.4, up from 28.5; and appointments for proposals were at 40.3, up from 35.3.
“While remodelers remain cautious, they report business is looking a little better after several challenging quarters,” said NAHB Chief Economist David Crowe. “Conditions for this quarter have returned to nearly the levels of this time last year. The uptick in the expectations component suggests this trend will continue as the entire housing market begins its recovery.”
For information on remodeling resources available from NAHB, visit www.nahb.org/remodel.
For further information, e-mail Kelly Mack, or call her at 800-368-5242 x8451.
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