NAHB Remodeling Index Falls in Second Quarter

Washington, DC, July 28, 2011 -- The remodeling market slipped under pressure from a sluggish economy according to the National Association of Home Builders' Remodeling Market Index.

The index fell 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.

"Remodelers have experienced the same hiccup that has rippled through the U.S. economy," said NAHB Remodelers Chairman Bob Peterson, a remodeler from Ft. Collins, Colo.

"After picking up the pace early in the year, the calls from customers dropped off and remodeling slowed down."

Regionally, current market conditions shrank in two areas, the Midwest and the South. The West and Northeast both climbed modestly.

"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. Home owners who may want to remodel still face stringent lending requirements, and uncertainty about the economy is making them hesitant to undertake major improvements."