WASHINGTON — Remodeler confidence improved to 59 in the second quarter of 2015 as the country sprang back from the severe winter, according to the National Association of Home Builders‘ (NAHB) Remodeling Market Index (RMI).
An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity. The RMI was 59 in the Northeast, 61 in the Midwest, 57 in the South and 61 in the West.
“The confidence in the remodeling industry has been in positive territory for nine quarters in a row as the entire housing industry’s situation continues to improve,” said NAHB Remodelers Chair Robert Criner, GMR, GMB, CAPS, a remodeler from Newport News, Va. “With an increase in existing home sales, remodelers received more signed contracts and calls for pricing.”
Major additions gained steam in the second quarter of 2015, rising to 57 from 54. Rising from 56 in the previous quarter to 61, smaller remodeling jobs continued to show strength. Overall, the current market conditions of the RMI rose one point to 59 this quarter.
The RMI’s future market conditions index rose to 58 from 55 in the previous quarter. Two of its subcomponents—calls for bids and appointments for proposals—gained five or more points from the previous quarter’s reading while the amount of work committed for the next three months and the backlog of jobs remained steady.
“The rebound in remodeler confidence tracks the overall arc of the housing industry as it gains strength through new and existing home sales,” said NAHB Chief Economist David Crowe. “Gains in the RMI are tempered by ongoing labor shortages for work on remodeling projects.”