The Remodeling Market Index (RMI) rose two points to 57 in the third quarter of 2013, the highest reading since the first quarter of 2004, according to the National Association of Home Builders (NAHB).
The RMI’s current market conditions index rose from 54 in the previous quarter to 58, the highest reading since the creation of the RMI in 2001, driven partly by rising existing home sales.
An RMI above 50 indicates that more remodelers report market activity is higher (compared with the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.
“The growth in home equity and home sales prompted hom owners to remodel as they prepare to move or undertake upgrades that they put off during tough times,” said NAHB Remodelers chairman Bill Shaw, GMR, GMB, CGP, a remodeler from Houston. “NAHB Remodelers looks forward to continuing our tradition of professional service and craftsmanship as the housing recovery makes progress.”
All three major components of the RMI’s current market conditions index increased in the third quarter. Major additions and alterations increased from 51 to 55, minor additions and repairs from 55 to 58, and maintenance and repair from 57 to 59. The future market indicators component of the RMI remained even with the previous quarter reading of 56.
Regionally, the RMI registered two consecutive quarters of gains 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. All four regions were above 50 and higher in the third quarter than in the first quarter of 2013.