flexiblefullpage -
Currently Reading

Remodeling Market Index recedes slightly in second quarter

Advertisement
billboard -
Data & Research

Remodeling Market Index recedes slightly in second quarter

The second quarter results of the Remodeling Market Index (RMI) slipped under pressure from a softening labor market, according to the National Association of Home Builders (NAHB), dropping two points to 45.


By HZ Staff July 26, 2012
Remodeling Market Index, second quarter 2012, RMI, future activity, optimism

The second quarter results of the Remodeling Market Index (RMI) slipped under pressure from a softening labor market, according to the National Association of Home Builders (NAHB), dropping two points to 45. The downward adjustment comes after the RMI reached 48 twice in 2011, the highest reading since 2006.

The RMI is based on a quarterly survey of NAHB remodelers that asks them to rate current remodeling activity along with indicators of future activity, like calls for bids. An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher.

In the second quarter, the RMI component measuring current market conditions dropped to 46 from 49 in the previous quarter. The RMI component measuring future indicators of remodeling business remained unchanged at 44.

"Remodelers have some backlog of jobs and along with higher quality leads, this is making them cautiously optimistic about the near future," said NAHB Remodelers Chairman George "Geep" Moore Jr., GMB, CAPS, GMR and owner/president of Moore-Built Construction & Restoration Inc. in Elm Grove, La. "The positive outlook is constrained by continuing credit constraints and inaccurate appraisals that make customer financing difficult for big jobs like additions and whole house remodels."

In the South, the RMI rose by one point to 47, while in the West it was flat at 47. The RMI for the Northeast and Midwest regions fell by six points and four points, down to 42 and 46, respectively.

Among the detailed RMI components, two important indicators of future activity increased in the second quarter: backlog of jobs to 46 (from 43) and amount of work committed for the next three months to 43 (from 42). All indicators of current market conditions fell: major additions and alterations to 42 (from 44), minor additions and alterations to 47 (from 52) and maintenance and repairs to 50 (from 51).

Related Stories

Data & Research

Guest Column: External Forces

NAHB's chief economist on what lies ahead for the custom home market?

Data & Research

Growth of solar power expected to cause PV shortage

The solar industry faces its first shortfall in eight years, and smaller installations could be put on hold as a result.

Data & Research

Researchers recommend new homes have safe rooms for tornado survival

Researchers recommend that tornado-prone areas adopt more robust design standards similar to those used by coastal regions to help homes survive hurricanes.

Data & Research

New-home sales rise 6.4 percent in April

Sales of newly built, single-family homes rose 6.4 percent to a seasonally adjusted annual rate of 433,000 units in April, according to data from HUD and the U.S. Census Bureau.

Data & Research

Builder confidence remains in holding pattern

Builder confidence in the market for newly built, single-family homes in May fell one point to 45 from a downwardly revised April reading of 46 on the Housing Market Index.

Data & Research

Buyers of National Green Building Standard homes satisfied with purchase

A new study conducted by GuildQuality shows that homeowners who purchased a National Green Building Standard-certified home in the past three years are happy they did.

Marketing & Sales

The rise of Pinterest

Given its strong emphasis on visuals, Pinterest might seem like a perfect fit for marketing new homes, but builders should be mindful of their larger marketing strategy before jumping on the Pinterest bandwagon.

Data & Research

Lexington homebuilders association first in U.S. to support energy rating index

The Home Builders Association of Lexington, KY., is the first U.S. builders association to support the Home Energy Rating System (HERS) index.

Data & Research

Seattle leads top 10 high-tech U.S. metros

A new study from Richard Florida, co-founder and editor of The Atlantic Cities, examines the top high-tech metropolitan areas in the U.S.

Data & Research

10 cities with the fastest growth in wages

PayScale, a company that compiles information on employee salary data, released an index of how many times private-sector wages have changed since 2006. 

Advertisement
boombox1 -
Advertisement
boombox2 -
Advertisement
native1 -

More in Category




Advertisement
native2 -
Advertisement
halfpage1 -