Remodeling Market Continues Decline

Uncertain economic conditions are keeping many homeowners from "taking the leap" of remodeling their home, according the latest Remodeling Market Index (RMI) from the National Association of Homebuilders (NAHB). The overall RMI remained essentially unchanged at 40.8 in the third quarter, which means more remodelers believe the remodeling market is worsening than the number who think it is improving. (An RMI above 50 indicates more remodelers believe the market is improving.) The overall RMI combines indicators of current conditions and future conditions. The RMI measuring current indicators of remodeling business increased from 42.6 to 43.4, while the RMI measuring future business declined marginally to 38.1 from 38.9. The RMI has been running below 50 since the final quarter of 2005. "The economy is growing, but at a rate well below the level needed to reduce unemployment and ignite consumer confidence," said NAHB Chief Economist David Crowe. "For now, professional remodelers are concentrating on consumers' requests for smaller home improvements until the economic recovery strengthens."