Remodelers’ Confidence Reaches Highest Point Since 2005

NAHB’s Remodeling Market Index (RMI) climbed to 50 in the third quarter of 2012, up from 45 in the previous quarter.  At 50, the RMI is at its highest point since the third quarter of 2005, tracking the positive trends recently seen in the rest of the housing sector.

The RMI measures professional remodelers’confidence in the market based on a quarterly survey that asks if various aspects of remodeling activity have gotten better or worse since the previous quarter.

The responses are aggregated into two major component indices.  In the third quarter of 2012, the major RMI component on current market conditions rose from 46 to 52, while the future indicators component increased from 44 to 49.  Each of the major RMI components is now higher than it has been at any time over the past six years.

Current remodeling activity was particularly strong in owner-occupied housing during the third quarter.  The sub-components of the current conditions index for owner-occupied housing were all well over 50, ranging between 55 and 60.

Although additions and alterations over $25,000 also showed considerable strength in the third quarter, they continue to lag behind smaller property alterations and maintenance and repair jobs.  The recovery of the remodeling market in general, and large projects in particular, is still facing constraints such as tight credit and problematic appraisals.

For more detail on all RMI components and subcomponents, along with their history, see NAHB’s RMI web page: http://www.nahb.org/reference_list.aspx?sectionID=136

About these ads

11 Responses to Remodelers’ Confidence Reaches Highest Point Since 2005

  1. [...] a stronger demand for remodeling as well. Today’s PHSI release comes out on the same day that the NAHB Remodeling Market Index (RMI) reached 50, the highest level since the third quarter of [...]

  2. [...] stronger demand for remodeling as well. Today’s PHSI release comes out on the same day that the NAHB Remodeling Market Index (RMI) reached 50, the highest level since the third quarter of [...]

  3. [...] past few months and is now sitting at a 4-year high. Indeed, NAHB’s Remodeling Market Index (RMI) indicated professional remodelers’ perceptions of current market conditions are at their highest levels [...]

  4. [...] sector, recent indicators suggest expansion after two years of moving sideways. For example, the NAHB Remodeling Market Index (RMI) climbed to 50 in the third quarter of 2012, up from 45 in the previous quarter. At 50, the RMI is at its highest point since the third quarter [...]

  5. [...] has reached its highest point in five years. NAHB’s own Remodeling Market Index (RMI) has pointed to an even stronger assessment of current market conditions by professional remodelers as the RMI [...]

  6. [...] has reached its highest point in five years. NAHB’s own Remodeling Market Index (RMI) has pointed to an even stronger assessment of current market conditions by professional remodelers as the RMI [...]

  7. [...] has reached its highest point in five years. NAHB’s own Remodeling Market Index (RMI) has pointed to an even stronger assessment of current market conditions by professional remodelers as the RMI [...]

  8. [...] hovered around a 5-year high for the past few months. NAHB’s Remodeling Market Index (RMI) has pointed to an even stronger assessment of current market conditions by professional remodelers as the RMI [...]

  9. [...] Remodelers’ Confidence Reaches Highest Point Since 2005 [...]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 7,134 other followers

%d bloggers like this: