Current market conditions in the remodeling industry increased for most of the U.S. from the fourth quarter of 2004, according to the first quarter 2005 release of the NAHB's Remodeling Market Index.
Only the West — where market conditions were substantially more favorable than in the other three regions at the end of 2004 —showed a decrease. Nationally, the RMI current market conditions index jumped two points to 52.9, the biggest increase in a year and a half. Growth in additions and alterations costing less than $25,000 was the driving force, according to a press release announcing the findings. The release also suggested that the renter-occupied market — which generally accounts for about one-third of all remodeling activity — showed strong growth.
The future expectations index sits at 53.6, meaning the second quarter of 2005 projects to be a healthy one. “We saw solid growth in the first quarter of this year and continued positive momentum into the next quarter,” said David Seiders, chief economist at the NAHB, which publishes the RMI. Seiders cited calls for bids, amount of work committed to for the next three months, and backlogs as the fuel for the anticipated growth.
Credit: NAHB