More good news for the remodeling industry was released recently by the NAHB: the Remodeling Market Index (RMI) improved slightly in the fourth quarter of 2010 over the previous quarter. Homeowner confidence is returning, and 2011 holds the promise of a much healthier remodeling market, according to NAHB economists.
The fourth quarter RMI measured 41.5, up from 40.8 in the third quarter, continuing its slow rise through 2010 that reflects an uptick in interest from homeowners, according to NAHB Remodelers Council chairman Bob Peterson, co-owner of Associates in Building & Design in Fort Collins, Colo. Although the current RMI indicates that more remodelers are reporting low market activity rather than high activity when compared with the prior quarter, expectations of improving employment and economic conditions are setting the stage for a strong remodeling recovery through 2011.
“More remodeling jobs will unfold as consumers in more secure financial positions enter the remodeling market,” notes NAHB chief economist David Crowe. “A more robust recovery in residential remodeling will depend on future improvements in labor and credit markets.”
The NAHB’s RMI rates current market conditions and indicators of future activity. The fourth quarter 2010 current market conditions component stayed flat at 43.3, while the indicators of future activity component increased from 38.1 to 39.7.
Read more about remodeling’s predicted 2011 recovery.
