Remodeling Slows Down
With the economy remaining in a somewhat uncertain position, homeowners are putting off making improvement to their houses. At least that seems to be the situation indicated by a recent report.
The latest National Assn. of Home Builders (NAHB), www.nahb.org, Washington, D.C., Remodeling Market Index (RMI), shows that the remodeling market lost steam during the second quarter of 2010. The RMI decreased to 40.7 from 47.9 in the first quarter. The RMI measures market demand for current and future residential remodeling projects, and any number below 50 indicates that more remodelers think conditions are getting worse rather than improving.
The NAHB says the RMI has been running below 50 since the last quarter of 2005, but it approached the break-even point during Q2 2010.
“Remodelers are suffering from weak consumer confidence and constricted credit lines,” says Donna Shirey, remodelers chairman, NAHB. “Homeowners are delaying remodeling projects because of economic uncertainty.”
The NAHB also keeps track of the types of remodeling projects currently getting the most attention. Right now, 61% of remodelers say bathroom remodeling was one of their most common projects during the first half of 2010. The second most common project was kitchen remodeling with 52%. In years previous, kitchen remodeling has held the first position, with 70% of remodelers reporting it as their most common activity.