A majority of remodelers say their market is declining, according to a survey by the National Association of Home Builders (NAHB). The association's Remodeling Market Index (RMI) dropped to 41.7 in the third quarter from 46.5 in the first quarter.
The overall RMI combines ratings of current remodeling activity with indicators of future activity, like bid calls. In the third quarter, the RMI component measuring current market conditions fell to 43.0 from 44.8 in the previous quarter. The RMI component measuring future indicators of remodeling business declined as well, to 40.4 from 43.0 in the last quarter.
"Remodelers report that while many consumers show interest in having remodeling work done, they are slow to commit to projects," said NAHB Remodelers Chairman Bob Peterson, a remodeler from Ft. Collins, Colo. "Consumers are in a 'wait and see' mode with regard to current economic conditions."
All three components measuring current market conditions decreased in the third quarter: major additions to 45.2 (from 46.2 in the second quarter), minor additions to 45.7 (from 48.5) and maintenance and repair to 37.1 (from 38.4). Future market indicators decreased as well: calls for bids to 45.4 (from 49.8), amount of work committed for the next three months to 29.9 (from 32.3), backlog of remodeling jobs to 43.0 (from 45.7) and appointments for appraisals to 43.3 (from 44.2).
Earlier this month, researchers at Harvard said remodeling activity should remain weak at least through the first half of 2012.
