Remodeler Confidence Up in Second QuarterJuly 25th, 2014 by DWM Magazine
The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) rose in the second quarter of 2014 from 52 points to 56, regaining the momentum built in 2013. This is the fifth consecutive quarter for an RMI reading above 50.
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, according to the NAHB.
The gain in the RMI was a result 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.
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,” says 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.”