As the economy is slowly picking up steam, so does the remodeling industry. On January 26th Bob Peterson of the National Association of Home Builders, wrote the following:
Remodeling Market Index Rises to Five-Year High in Fourth Quarter of 2011
In the fourth quarter of 2011, professional remodelers saw remodeling market conditions rise to their highest level in five years, according to NAHB’s latest Remodeling Market Index (RMI), which climbed to 46.6, up from 41.7 in the third quarter. The RMI component measuring current market conditions rose to 48.4 in the fourth quarter from 43.0 in the previous quarter. The component measuring future indicators of remodeling business also saw positive movement, increasing to 44.8 from 40.4 in the previous quarter. An RMI below 50 indicates more remodelers reporting market activity is lower than in the prior quarter than those reporting it is higher. Based on results from a survey of remodelers, the overall RMI averages ratings of current remodeling activity with indicators of future activity. “As more consumers remain in their homes rather than move in this economy, remodelers benefited from a gradual increase in home improvement activity, taking us to a five-year high,” said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo. “2011 ended on a strong note for the remodeling industry,” Peterson added. Current market conditions improved significantly in all four regions over the third quarter of 2011. The RMI reported higher market activity in two important categories: major additions 52.3 (up from 45.2) and minor additions 50.1 (up from 45.7). Future market indicators in each region also experienced gains from the previous quarter. Two of the indices climbed above the level of 50: calls for bids at 50.7 (up from 45.4) and appointments for proposals at 50.1 (up from 43.3).