Remodelers' impressions of remodeling activity indicate the market is improving, according to the latest Remodeling Market Index (RMI) from the National Association of Home Builders (NAHB). The latest overall RMI figure edged upward to 41.5 during the fourth quarter from 40.8 in the third quarter; an RMI below 50 indicates that more remodelers say market activity is lower compared to the prior quarter than report it is higher. The RMI has been running below 50 since the final quarter of 2005.
The overall RMI combines ratings of current remodeling activity with indicators of future activity like calls for bids. In the fourth quarter, the RMI component measuring current market conditions stayed flat at 43.3, while the RMI component measuring future indicators of remodeling business increased to 39.7 from 38.1.
"Remodeling activity has been rising slowly since the first quarter of 2010. Expected improvements in the job market and the overall economy are beginning to increase homeowners' confidence and remodelers are seeing indications that business will pick up," said NAHB Chief Economist David Crowe.
