May
03

Remodeling Market Index Takes A Fall

May 03, 2012

The National Association of Home Builders (NAHB) issued a press release concerning the Remodeling Market Index (RMI) and revisions the NAHB have made after finding a computer error regarding the index.

In the first quarter of 2012, remodeling activity remained relatively flat according to the NAHB, with a decrease of one point to 47 from the upwardly revised 48 in the previous quarter.

Remodeling Market IndexThe Remodeling Market Index  takes ratings of current remodeling activity and combines them with indicators of future activity to make up the index. An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher according to the NAHB.

The current economic climate has had considerable pull on the state of remodeling throughout the country.

“Even though many remodelers report that consumers are showing increased interest in remodeling, they are hesitant to act because of financing constraints and the spotty nature of the economic recovery, which so far has failed to reach some of the larger markets in country,” said NAHB Chief Economist David Crowe. “Many consumers are likely to be deferring large remodeling projects until they feel more comfortable with the economic climate in their area.”

The three components measuring current marketing conditions are:

  • major additions, which remained even at 44 on the RMI.
  • minor additions, which rose one point to 52 on the RMI.
  • maintenance and repair, which dropped four points to 51 on the RMI.

Two of the four components measuring future market indicators decreased: backlog of remodeling jobs dropped four points to 43 and appointments for proposals fell five points to 45. However, calls for bids rose one point to 47 and amount of work committed for the next three months remained even at 42 according to NAHB.

“We are seeing that the demand for remodeling work has been pulled forward because of a mild winter,” said NAHB Remodelers Chairman George “Geep” Moore Jr. “That is why many remodelers reported lower numbers for future activity.”

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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