As goes home building, so goes home remodeling, according to
the index released today by the National Association of Home Builders.
The trade group’s Remodeling Market Index stands at 44.8 for
the second quarter, down from 46.1 in the first quarter. Future expectations
dropped by more than two points to 44.1
“Not surprisingly, the remodeling market is following the
downswing we are seeing in the overall housing market,” said NAHB Chief EconomistDavid Seidersin a press release announcing the index. “We
expect some further erosion in the second half of this year and in 2008,
followed by a gradual recovery in 2009 and beyond.”
The RMI measures remodeler perceptions of market demand for
current and future residential remodeling projects. Any number over 50
indicates that the majority of remodelers view the market conditions as
improving.
According to the index, only the Northeast has shown some
improvement, with RMI readings moving from 43.4 in the first quarter to 49.5 in
the second quarter.
Other regions of the country reported declines in their
readings, with the Midwest falling from 47.5 to 44.5, the South declining from
45.9 to 42.3, and the West slowing from 48.2 to 46.8.
“While we have experienced some weakening in the remodeling
market, activity has remained relatively steady,” said NAHB Remodelers ChairmanMike Nagel, a remodeler from Chicago. “We may have seen a
decline in the number of major remodeling projects. However, the market has
been buoyed by an increase in the number homeowners requesting smaller scale
projects and home alterations.”
Aug. 7, 2007 - NAHB Survey Reports Remodeling Drop
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