Riding on the heels of historically low interest rates and a solid level of consumer confidence, the National Association of Home Builders (NAHB) Remodeling Market Index (RMI) posted a strong third quarter. Third quarter results moved one point ahead of the seasonally adjusted second quarter in 2004.

"This has been an amazing year for remodeling," said NAHB Remodelors Council chairperson Douglas Sutton, Sr., CGR, CAPS, a remodeler in Springfield, Ill. "With home sales remaining record-breaking, the major additions and alterations sector has kept many remodelers busy with continually growing backlogs."

The RMI is derived from a quarterly national survey of 500 remodelers. The current market conditions index moved one point, from 50.6 last quarter to 51.8. The future expectations index remained unchanged from last quarter at 52.4. Regionally, the Southern part of the country remained virtually the same in current activity, at 54.7, but gained nearly 4 points in future expectations, moving from 53.3 to 57.0. The Western section posted the highest growth in both current and future expectations, rising from 54.0 to 56.9 and 58.5 to 62.3, respectively. The Midwest posted a mixed bag as it showed a minor slowdown in current activity, dropping from 47.5 to 46.6, and a minor rebound in future expectations, moving from 43.3 to 44.4. The Northeast saw the biggest fall, dropping from 57.1 to 52.8 in current activity and 57.7 to 56.2 in future expectations. This is the first time the RMI has been seasonally adjusted.