The NAHB’s Remodeling Market Index Improves

The 2011 fourth quarter results from the NAHB’s Remodeling Market Index (RMI) show improvements in both major areas used to calculate the total number. That caused the total to jump nearly 5 points from 41.7 in the third quarter to 46.6. This is the highest it’s been since 2006 and the closest it’s been to the magic number of 50. Anything above 50 indicates that more remodelers are experiencing significant growth in business versus those who see declines. The overall RMI is calculated by averaging two significant indicators—residential remodelers’ perception of the current market and future indicators of remodeling business prospects. Both of these climbed almost the same amount—just above and below 5 points, respectively—showing stability in the market. The two primary indicators also each have sub-categories, and several of those minor areas reached figures above 50 for the first time in five years. The number for major additions and alterations climbed to 52.3 and the call for bids by homeowners reached 52.5.