“While the RMI indicates that the home remodeling market softened somewhat in the second quarter, this is still the second highest RMI we’ve been able to report since the third quarter of 2007,” said NAHB Chief Economist David Crowe.
The remodeling market slipped under
pressure from a sluggish economy, according to the National Association of Home
Builders' Remodeling Market Index, which dipped during the second quarter to
43.9 from the first quarter result of 46.5. An RMI below 50 indicates that more
remodelers report market activity is lower compared to the prior quarter than
report it is higher.
The overall RMI
combines ratings of current remodeling activity with indicators of future
activity, like calls for bids. Current market conditions for the second quarter
of 2011 fell to 44.8 from 46.1 in the first quarter. Future market indications
dropped to 43.0 from 46.8 in the previous quarter.
“While the RMI
indicates that the home remodeling market softened somewhat in the second
quarter, this is still the second highest RMI we’ve been able to report since
the third quarter of 2007,” said NAHB Chief Economist David Crowe.
“There are several barriers blocking the way to a stronger recovery. Homeowners
who may want to remodel still face stringent lending requirements, and
uncertainty about the economy is making them hesitant to undertake major
Regionally, current market
conditions shrank in two areas: the Midwest to
44.4 (from 47.1 in the first quarter) and the South to 42.9 (from 46.1). The
West at 48.2 (from 46.1) and Northeast at 48.1 (from 46.1) both climbed
of current market conditions dropped: major additions to 46.2 (from 50.3 in the
first quarter) and maintenance and repair to 38.4 (from 39.5). A third
indicator, minor additions, remained essentially flat at 48.5 (from 48.0).
Future market indicators also descended: calls for bids to 49.8 (from 53.1),
backlog of remodeling jobs to 45.7 (from 49.7), and appointments for proposals
to 44.2 (from 52.4). The amount of work committed for the next three months
stayed level at 32.3 (from 32.1).
information about remodeling, visit www.nahb.org/remodel.
Remodeling Activity Slows Under Economic Uncertainty, Lending Requirements
August 4, 2011