Remodelers Expect Market Gains in 2011February 1st, 2011 | Category: Industry News
The latest National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) edged up to 41.5 in the fourth quarter of 2010, compared to 40.8 in the third quarter. An RMI below 50 indicates that more remodelers say market activity is lower compared to the prior quarter than report it is higher. The RMI has been running below 50 since the final quarter of 2005, according to the NAHB.
The overall RMI combines ratings of current remodeling activity with indicators of future activity like calls for bids. In the fourth quarter, the RMI component measuring current market conditions stayed flat at 43.3 from 43.4 in the previous quarter. The RMI component measuring future indicators of remodeling business increased, to 39.7 from 38.1 in the previous quarter.
“Remodelers are starting to see an uptick in interest from consumers who are considering future remodeling projects,” says NAHB Remodelers chairperson Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo. “Home owners are also showing more willingness to undertake larger remodeling projects.”
All but one index for future market conditions improved during the fourth quarter. Calls for bids jumped to 47.2 (from 42.9), along with backlog of remodeling jobs at 42.6 (from 37.2), and appointments for proposals at 43.1 (from 41.9). The amount of work committed for the next three months shrank to 25.9 (from 30.3).