Remodelers See Business Improving

Like their home-building counterparts, remodelers who are members of the National Association of Home Builders (NAHB) are displaying more confidence in their industry than they have in years.  The NAHB's Remodeling Market Index (RMI) for the fourth quarter of 2011 which measures remodelers' sentiments about their business climate rose to 46.6 its highest level in five year.  In the third quarter the Index was 41.7.

Like the Home Builders Index (HMI) the measures responses from home builders, the RMI surveys NAHB members who are involved in remodeling about current market conditions and about indicators of future conditions.  Scores above 50 for the HMI, the RMI or their component indices indicate that more respondents view the market as good than view it as fair.  In January the HMI hit a 54 month high of 25.

The RMI component measuring current market conditions rose to 48.4 from 43.0 and two of the categories within that index rose significantly.  Market activity related to major additions rose from 45.2 to 52.3 and minor additions from 45.7 to 50.1

The component measuring future market indicators of remodeling business rose to 44.8 from 40.4 in the previous quarter and two of its categories rose over the 50 mark; calls for bids increased from 45.4 to 50.7 and appointments for proposals to 50.1 from 43.3.   The third category, work committed for the next three months rose only slightly to 31.5 from 29.9.

 "As more consumers remain in their homes rather than move in this economy, remodelers benefited from a gradual increase in home improvement activity, taking us to a five-year high," said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP.  "2011 ended on a strong note for the remodeling industry."

Scores improved for both future market indicators and current market conditions in all four regions of the country.