Interest in Remodeling Shows Signs of Picking Up

Washington, DC, Aug. 6, 2009--Residential remodeling showed modest gains during the second quarter, with increases in all indicators, according to the latest National Association of Home Builders Remodeling Market Index.

The current market conditions measure grew to 38.1 from 34.5 in the first quarter. Future expectations rose to 34.2 from 30 in the previous quarter.
 
Any number over 50 indicates that the majority of remodelers view market conditions as improving. The RMI has been running below 50 since the final quarter of 2005, following decreasing remodeling expenditures since that time.
 
“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, 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.

All measures for future expectations in the remodeling market increased significantly. Remodelers reported growth in calls for bids at 38.8 (from 34.2 in the first quarter). The backlog of remodeling jobs jumped to 34.4 (from 28.5). And appointments for proposals climbed to 40.3 (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.”