As home prices rise, remodelers are feeling optimistic about the home improvement market, the National Association of Home Builders reports.
The second quarter Remodeling Market Index (RMI) rose six points to 55. An RMI above 50 indicates that more remodelers are reporting higher market activity, per NAHB.
“Remodelers’ positive sentiment is directly related to increased demand for their services,” said NAHB Chief Economist David Crowe. “Rising home prices are making remodeling jobs possible for more home owners while existing home sales provide additional momentum as home owners prepare their homes for market.”
The future market indicators component of the RMI increased to 56 from the previous quarter level of 48. Current market conditions rose from 50 in the previous quarter to 54. All of the indicators of future activity — such as calls for bids, work committed for three months, backlog, and appointments — were over 50 for the first time in eight years.
“The RMI future market results are especially promising,” said NAHB Remodelers Chairman Bill Shaw, a remodeler from Houston. “Not only do remodelers have projects booked for the next few months, but they also have more work coming in the door.”
For more information about remodeling, visit www.nahb.org/remodel.