In the third quarter of 2013, the Remodeling Market Index rose two points to 57, the highest reading since the first quarter of 2004, according to the National Association of Home Builders (NAHB). An RMI above 50 indicates that more remodelers report market activity is higher (compared with the prior quarter) than report it is lower.
"In addition to existing home sales, which support remodeling activity as owners fix up their homes before and after a move, remodeling has benefitted from rising home values," said NAHB Chief Economist David Crowe in a statement. "This boosts home equity that owners can tap to finance remodeling projects. We expect existing home sales and house prices to increase, but at a slower rate over the next year, so the demand for remodeling services should also increase, but more gradually over that period."
