RISMEDIA, May 2, 2011—According to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI), the remodeling market is heading into recovery with an increase to 46.5 in the first quarter of 2011 from 41.5 in the fourth quarter of 2010. This marks the highest level for the RMI since the fourth
quarter of 2006. An RMI below 50, however, indicates that still more remodelers report market activity is lower (compared to the prior quarter) than report it is higher.
The overall RMI combines ratings of current remodeling activity with indicators of future activity like calls for bids. Current market conditions for the first quarter of 2011 rose to 46.1 from 43.3 in the previous quarter. Future market indicators climbed to 46.8 from 39.7 in the previous quarter.
“Remodelers report a jump in activity so far this year and have been receiving more calls for work and appointments,” says NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo. “However, many home owners are still slow to commit to remodeling due to feeling uncertain about the economic recovery and difficulty obtaining loans.”
Regional break downs for current remodeling market conditions showed growth in all but one area: Northeast 46.1 (from 38.8 in the fourth quarter), South 46.1 (from 45.8), and West 46.1 (from 39.7). Only the Midwest experienced a decline to 47.1 (from 54.3).
All current remodeling market indicators increased: major additions to 50.3 (from 48.6 in the fourth quarter), minor additions to 48.0 (from 43.9), and maintenance and repair to 39.5 (from 37.0). Future market indicators also improved across the board: calls for bids rose to 53.1 (from 47.2), appointments for proposals to 52.4 (from 43.1), backlog of remodeling jobs to 49.7 (from 42.6), and amount of work committed for the next three months to 32.1 (from 25.9).
In an additional special question remodelers reported the top reasons prospective customers are holding back from remodeling their homes:
Customers think it is hard to get financing (90 percent of remodeler respondents); Customers have lost equity in their homes (81 percent); Customers are uncertain about their future economic situation (74 percent); Reluctance to invest in home when not sure home will hold its value (67 percent); Negative media stories making customers more cautious (62 percent) and Inaccurate appraisals are making financing more difficult (54 percent).
“Home remodeling continues to slowly increase and continued growth through the year is expected.” says NAHB Chief Economist David Crowe. “The fact that some indicators are breaking 50 means remodelers are seeing improving activity in their markets. While credit scarcity and economic uncertainty continue to weigh down remodeling, signs of increasing consumer interest are promising.”
For more information about remodeling, visit www.nahb.org/remodel [1].
RISMedia welcomes your questions and comments. Send your e-mail to: mailto:%20realestatemagazinefeedback@rismedia.com [2].
Have you heard about RISMedia’s Real Estate Information Network® (RREIN)? RREIN is an elite network of leading real estate companies dedicated to providing consumers and their agents with leading real estate information, and committed to the belief that Information Share Equals Market Share. Having only launched this past June 2010, the RREIN network is already comprised of 40 leading brokerages, which make up 575 offices, 30,000 agents, 167,000 closings and represents over $41 billion in transactions. How can RREIN help your recruiting efforts and differentiate your company today? For more information, email mailto:%20RREIN@RISMedia.com [3].
Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.
quarter of 2006. An RMI below 50, however, indicates that still more remodelers report market activity is lower (compared to the prior quarter) than report it is higher.
The overall RMI combines ratings of current remodeling activity with indicators of future activity like calls for bids. Current market conditions for the first quarter of 2011 rose to 46.1 from 43.3 in the previous quarter. Future market indicators climbed to 46.8 from 39.7 in the previous quarter.
“Remodelers report a jump in activity so far this year and have been receiving more calls for work and appointments,” says NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo. “However, many home owners are still slow to commit to remodeling due to feeling uncertain about the economic recovery and difficulty obtaining loans.”
Regional break downs for current remodeling market conditions showed growth in all but one area: Northeast 46.1 (from 38.8 in the fourth quarter), South 46.1 (from 45.8), and West 46.1 (from 39.7). Only the Midwest experienced a decline to 47.1 (from 54.3).
All current remodeling market indicators increased: major additions to 50.3 (from 48.6 in the fourth quarter), minor additions to 48.0 (from 43.9), and maintenance and repair to 39.5 (from 37.0). Future market indicators also improved across the board: calls for bids rose to 53.1 (from 47.2), appointments for proposals to 52.4 (from 43.1), backlog of remodeling jobs to 49.7 (from 42.6), and amount of work committed for the next three months to 32.1 (from 25.9).
In an additional special question remodelers reported the top reasons prospective customers are holding back from remodeling their homes:
Customers think it is hard to get financing (90 percent of remodeler respondents); Customers have lost equity in their homes (81 percent); Customers are uncertain about their future economic situation (74 percent); Reluctance to invest in home when not sure home will hold its value (67 percent); Negative media stories making customers more cautious (62 percent) and Inaccurate appraisals are making financing more difficult (54 percent).
“Home remodeling continues to slowly increase and continued growth through the year is expected.” says NAHB Chief Economist David Crowe. “The fact that some indicators are breaking 50 means remodelers are seeing improving activity in their markets. While credit scarcity and economic uncertainty continue to weigh down remodeling, signs of increasing consumer interest are promising.”
For more information about remodeling, visit www.nahb.org/remodel [1].
RISMedia welcomes your questions and comments. Send your e-mail to: mailto:%20realestatemagazinefeedback@rismedia.com [2].
Have you heard about RISMedia’s Real Estate Information Network® (RREIN)? RREIN is an elite network of leading real estate companies dedicated to providing consumers and their agents with leading real estate information, and committed to the belief that Information Share Equals Market Share. Having only launched this past June 2010, the RREIN network is already comprised of 40 leading brokerages, which make up 575 offices, 30,000 agents, 167,000 closings and represents over $41 billion in transactions. How can RREIN help your recruiting efforts and differentiate your company today? For more information, email mailto:%20RREIN@RISMedia.com [3].
Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.
Phillip King, Suffolk Realtor, Coldwell Banker Residential Brokerage, Ronkonkoma, Holbrook, Lake Grove, Holtsville, Farmingville, Sayville, Blue Point, Patchogue, Medford, Bellport, Brookhaven, Mastic, Shirley, Manorville, Center Moriches, Moriches, East Moriches, Eastport, Shoreham, Wading River, Ridge, Middle Island, Yaphank, Real Estate for Sale, Long Island Home, Long Island House, Long Island Real Estate, Long Island Houses For Sale, Long Island New York Property, Suffolk County Real Estate, Suffolk County Property, Suffolk County Homes, Suffolk Homes, Real Estate Agents in, phillip.king@cbmoves.com, cbmoves, Long Island Realty, Long Island Real Estate Agent, Long Island NY Real Estate, Long Island Condos, Suffolk County Condo, Long Island New York Condo, Long Island New Homes
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