Remodeling Market Index reaches highest level in four years
The National Association of Home Builders' Remodeling Market Index reached its highest level since fourth quarter 2006, posting a score of 46.5 for first quarter 2011, according to an April 28 NAHB release. This news is tempered by the fact that an RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher.
The overall RMI combines ratings of current remodeling activity with indicators of future activity, like calls for bids. Current market conditions for the first quarter of 2011 rose to 46.1 from 43.3 in the previous quarter. Future market indicators climbed to 46.8 from 39.7 in the previous quarter.
"Remodelers report a jump in activity so far this year and have been receiving more calls for work and appointments," said NAHB Remodelers Chairman Bob Peterson, in the release. "However, many home owners are still slow to commit to remodeling due to feeling uncertain about the economic recovery and difficulty obtaining loans."