New data released by the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) shows that professional remodeling activity has kept up a brisk pace in the second quarter of 2004, falling in line with the pace set a year ago.
"Despite a slight dip from 1Q04, many remodelers are still busy and backlogged," said NAHB Remodelers Council Chairman Douglas Sutton, Sr., CGR, CAPS, a remodeler in Springfield, IL, U.S. "A year-to-year comparison shows we are set to match last year's very strong activity -- we don't expect anything less."
Both RMI annual indexes are said to show activity in line with the Q203. Other comparisons indicate:
The current market conditions index standing at 53.5, compared to 2003's 53.6;
The future expectations index moving one point, from 54.8 in 2003 to 55.8 this year;
The Northeastern, Southern, and Western parts of the U.S. all posting modest gains from 2003, with the Northeast posting the highest growth in both current and future expectations rising from 52.1 to 58.3, and 55.6 to 61.4, respectively; and
A minor slowdown in the U.S. Midwest, which fell from 54.6 to 52.1 in current activity, and 55.5 to 50.1 in future expectations.
NAHB Chief Economist David Seiders attributed the healthy remodeling market to ongoing favorable interest rates and steady activity in all U.S. regions across the board. He also said that he expects the market to stay strong.
"The RMI is still above 50, which signals that the market remains healthy," he said. "And despite a drop from the first quarter, the industry continues posting higher activity than in previous years."
The NAHB also maintained that the market has remained steady in terms of minor and major additions and alterations, with virtually no change from the Q203. The RMI's maintenance and repairs'component saw a slight decline, from 55.45 to 53.71.
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