Tag Archives: Remodeling Market Index

News from IBS – Industry Outlook Is On The Rise for 2013-2014

We can all agree by this point that the turn around and positive growth of the home remodeling market will not take place at the same break neck speed with which the fall off began… but at the recent International Builders Show in Las Vegas, the consensus seemed to be that slow and steady growth was A-OK with Remodelers.  Speaking with a panel of remodelers from across the country, the National Association of Home Builders’ Paul Emrath explained how the organization arrived at the current forecast.

“We are predicting slow and steady growth in remodeling activity throughout 2013 and 2014,” said Paul Emrath, NAHB’s vice president for survey and housing policy research. “That outlook is consistent with the indicators of future activity in our recent Remodeling Market Index (RMI) survey. Many remodelers are reporting increases in calls for bids and appointments for proposals, so now it’s a question of how quickly they can convert those calls and appointments into actual work.”

“Consumers want to create value by adding bonus spaces without building full additions to their home,” said Bob Hanbury, CGR, a remodeler from Newington, Conn. “As part of the economic recovery, professional remodelers are helping clients take advantage of their home’s hidden assets by remodeling basements, above-garage spaces and attics to fully take advantage of the size of the home.”

“Backlog was what we are all looking for, and that seems to be the current trend as people are moving forward with projects that they had been thinking about for some time,” said Ben Morey, CGR, CAPS, a remodeler from Signal Hill, Calif. “While the full teardown and rebuild market has not taken off, home owners are committing to projects that look for ways to create a new environment within the current floor plan of their home.”

Read the more about it here.

Remodelers: Have you already seen growth for 2013?

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Remodeling Market Index Climbs Five Points, Returns to 2005 Levels

The Remodeling Market Index for the 3rd quarter of 2012

The Remodeling Market Index (RMI) climbed to 50 in the third quarter of 2012, up from 45 in the previous quarter, according to the National Association of Home Builders (NAHB). Released today, the RMI is at its highest point since the third quarter of 2005, tracking the positive trends recently seen in the rest of the housing sector.

The RMI component measuring current market conditions rose to 52 from 46 in the previous quarter, while the component measuring future indicators increased to 49 from 44.

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 activity.

“The strength of the RMI, especially in owner-occupied properties, shows that home owners are investing in remodels as home prices stabilize,” said NAHB Remodelers Chairman George “Geep” Moore Jr., GMB, CAPS, GMR, a remodeler from Elm Grove, La. “As owners become more confident that investments in housing will hold their value, they are beginning to undertake projects to improve their comfort that they had been putting off.”

All three indicators of current market conditions improved: maintenance and repairs rose to 56 (from 50), minor additions and alterations to 51 (from 47) and major additions and alterations to 49 (from 42). Current market conditions improved or held steady in all four regions in the third quarter of 2012. Current remodeling activity was particularly strong in owner-occupied housing; the sub-components of the current conditions index for owner-occupied housing were all well over 50, ranging between 55 and 60.

Future market indicators in every region but the Northeast experienced gains from the previous quarter: Northeast, 38 (from 41); Midwest, 50 (from 46); South, 52 (from 46); and West, 52 (from 42). All indicators of future market conditions rose: calls for bids, 48 (from 44); amount of work committed for next three months, 46 (from 43); backlog of remodeling jobs, 50 (from 46); and appointments for proposals, 51 (from 43).

“The improvement in the RMI provides more evidence that the remodeling industry is making the orderly recovery from its low point in 2009 as we’ve been expecting,” said NAHB Chief Economist David Crowe. “Although remodeling projects over $25,000 are now showing some signs of strength, they are still lagging behind smaller property alterations and maintenance and repair jobs. The recovery of the remodeling market in general, and large projects in particular, continues to be constrained by factors such as tight credit and problematic appraisals.”

See more about the current RMI here: http://www.nahb.org/fileUpload_details.aspx?contentID=137354&fromGSA=1

Second Quarter RMI Dips Slightly Amid Softening Labor Market

source – NAHB.org

The second quarter results of the Remodeling Market Index (RMI) slipped under pressure from a softening labor market, according to the National Association of Home Builders (NAHB), dropping two points to 45. The downward adjustment comes after the RMI reached 48 twice in 2011, the highest reading since 2006.

The RMI is based on a quarterly survey of NAHB remodelers that asks them to rate current remodeling activity along with indicators of future activity, like calls for bids. An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher.

In the second quarter, the RMI component measuring current market conditions dropped to 46 from 49 in the previous quarter. The RMI component measuring future indicators of remodeling business remained unchanged at 44.

“Remodelers have some backlog of jobs and along with higher quality leads, this is making them cautiously optimistic about the near future,” said NAHB Remodelers Chairman George “Geep” Moore Jr., GMB, CAPS, GMR and owner/president of Moore-Built Construction & Restoration Inc. in Elm Grove, La. “The positive outlook is constrained by continuing credit constraints and inaccurate appraisals that make customer financing difficult for big jobs like additions and whole house remodels.”

To read the full article, visit the NAHB website.

Remodeling is on top!

Vanessa Brunner, Staff Writer for Houzz.com, recently polled some Professional Remodelers Organization (HBA PRO) members for insight and information about recent reporting that the remodeling industry is growing and recovering.  Read the whole story at Houzz.com to learn more about how people all over the country are responding to the changing remodeling market.

Here is and excerpt:
Home industry experts around the country grew optimistic at the recent news that the Remodeling Market Index had risen to its highest level in 5 years. According to the National Association of Home Builders, remodeling sentiment is at its highest since 2007, and should continue to increase through 2012. This shift has been a long time coming, and it can be seen in the projects on Houzz and just about everywhere else.

We spoke to builders and experts from around the country to get a glimpse of how widespread this change is and its impact on the home industry. The consensus seems clear: Remodeling is king right now, and it’s not going anywhere anytime soon.

Read the whole story here.

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Remodeling Market Index Softens – silver lining still visible.

At the Professional Remodelers Organization, we’ve been hearing that calls are slowing down a little this summer and the Remodeling Market Index seems to indicate that trend – but the real message here is that even with a slight drop this quarter, the market has still greatly improved over the last three years!

The Remodeling Market Index is published quarterly by the National Association of Home Builders, Remodelers Division.  In the second quarter of 2011 the RMI dipped slightly from 46.5 to 43.9.

In a recent post from the NAHB Remodelers, chief economist David Crowe stated, “While the RMI indicates that the home remodeling market softened somewhat in the second quarter, this is still the second highest RMI we’ve been able to report since the third quarter of 2007.”

Please follow the link below to read the full article from NAHB about the RMI and it’s trajectory.

http://nahbenews.com/nahbrenew/issues/2011-08-17/index.html

Remodeling Market Shows Signs Of Recovery

The residential remodeling market showed signs of improvement during the first quarter of 2009 with significant growth in all indicators, according to the latest National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). The current market conditions measure rose to 34.5 from 25.5 in the fourth quarter of 2008. Future expectations jumped to 30 from a historic low of 18.6 the previous quarter.
 
The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number over 50 indicates that the majority of remodelers view market conditions as improving. The RMI has been running below 50 since the final quarter of 2005, following decreasing remodeling expenditures since that time.
 
“Remodelers are starting to receive more calls for bids and requests for proposals, although getting customers to sign for a job continues to remain a challenge,” said NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, CGP, a remodeler from Tucson, Ariz. “While the size of the jobs is smaller, remodelers are optimistic about this uptick in market activity.”
 
The index component for national market conditions for major additions and alterations increased to 32.7 from 19.4 in the fourth quarter of 2008, while minor additions improved to 39.1 from 31.5. Maintenance and repair remained also climbed, to 30.4 from 23.6.
 
Measures for future expectations showed healthy growth during the first quarter, with the component for calls for bids rising to 34.2 from 20.6. The backlog of remodeling jobs component climbed to 28.5 from 18.4, and appointments for proposals jumped to 35.3 from 19.1. Finally, the component that measures the amount of work committed for the next three months rose to 21.8 from 16.4.
 
“Remodelers say things are looking up from the doldrums of the fourth quarter,” said NAHB Chief Economist David Crowe. “While conditions remain below average and are down slightly from this time last year, the gains over the last quarter, and improvement in market expectations suggest a spark to the start of recovery in the remodeling market.”

National News: Home Remodelers Lower Their Market Expectations

Remodelers perceived weakening demand for current and future residential remodeling jobs in last year’s final quarter, according to the latest NAHB Remodeling Market Index (RMI).

The RMI’s current market conditions indicator slid to 27.7, down from 33.5 in the third quarter, while future expectations plummeted from 27.7 to 19.6. Both readings were historic lows for the index, which was started in 2001.

Any number over 50 indicates that the majority of remodelers view market conditions as improving. The RMI has been running below 50 since the final quarter of 2005.

“During the last quarter many remodelers were wondering if their phones were still working because they received virtually no calls for work,” said NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, a remodeler from Tucson, Ariz. “The jobs we are getting are for smaller projects and necessary home maintenance.”

Compared to the previous quarter, the 2008 fourth quarter RMI showed market conditions for major additions and alterations declining from 29.4 to 20.2, while conditions for minor additions and alterations dropped from 38.5 to 33.5. Maintenance and repair fell from 30.9 to 27.6.

Overall, major additions and other large remodeling jobs have experienced a greater decline than smaller remodels and maintenance.

“Remodelers suggest that the huge decline in consumer confidence, volatility in the stock market and uncertainty about the future of the economy have resulted in home owners delaying remodeling decisions,” said NAHB Chief Economist David Crowe. “Consumers are waiting to see conditions improve before committing to home improvement spending.”

All the RMI measures of future expectations in the remodeling market — calls for bids, amount of work committed for next three months, backlog of remodeling jobs and appointments for proposals — were down in the final three months of last year.

Expectations for the remodeling market slipped in all regions of the country during the fourth quarter — from 32.9 to 24.9 in the Northeast, from 31.5 to 30.7 in the South, from 36.2 to 28.0 in the Midwest and from 36.1 to 25.0 in the West.