Remodeling Market Index Continues Modest Climb in Q3
October 24, 2013
The Remodeling Market Index continued to climb at a modest pace in third quarter 2013, rising two points to 57, the highest reading since the first quarter of 2004, according to the National Association of Home Builders.
"The growth in home equity and home sales prompted homeowners to remodel as they prepare to move or undertake upgrades that they put off during tough times," explains NAHB Remodelers Chairman Bill Shaw.
Regionally, the RMI has registered gains in two consecutive quarters in the Northeast, Midwest and West. In the South, the RMI edged down slightly in the third quarter after a five-point gain the previous quarter.
"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," says NAHB Chief Economist David Crowe. "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."