NAHB Reports Remodeling Increase

According to the National Association of Home Builders (NAHB), remodeling activity picked up in the third quarter of 2006. The association publishes a Remodeling Market Index (RMI) based on a quarterly survey of professional remodelers, whose answers are assigned numerical values to calculate two separate indexes. NAHB says the first index gauges current market conditions and is based on reports of major and minor additions, alterations and maintenance work and repairs on owner- and renter-occupied dwellings. The second index gauges expectations for the near future and is based on remodelers' reports of their bid calls, jobs committed to for the next three months, backlogs and proposal appointments. NAHB also says it asks a series of "special questions" at the end of the survey to help pinpoint market trends.

According to RMI findings, the current market conditions index increased on a seasonally adjusted basis and future expectations moved up by nearly two points.

NAHB reported Remodelors™ Council chairperson Vince Butler from Clifton, Va., said, "Though market strength varies across the country, we are pleased to see a rebound in remodeling activity. The trillions of dollars in homeowner equity combined with the growing age of the housing stock means that the remodeling market will remain relatively strong in the face of a slower housing market."

Further RMI findings indicate current market conditions in the South and West rebounded into the positive range and the future market conditions in both areas increased by more than six points. Northeast findings indicate market conditions remained the same, while future conditions increased and Midwest conditions increased, while future conditions dropped nearly two points.