Home remodeling in the U.S. slowed slightly in the second quarter of 2007, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI). The current market conditions component slipped from 46.1 to 44.8 on a seasonally adjusted basis and the future expectations measure declined by more than two points to 44.1. The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number over 50 indicates that the majority of remodelers view the market conditions as improving.
Regionally, the Northeast of the U.S. exhibited some improvement with RMI readings jumping from 43.4 in the first quarter to 49.5, and future expectations remaining relatively flat at 44.1 compared to the previous quarter reading at 44.3. Other regions of the U.S. reported declines in their RMI components. Current conditions in the Midwest fell from 47.5 to 44.5 and future expectations moved from 44.7 to 43.7. In the South, current market conditions declined from 45.9 to 42.3 and future expectations moved from 50.7 to 45.0. While the West showed a decline in current conditions from 48.2 to 46.8, future expectations jumped from 45.0 to 46.0.
"Not surprisingly, the remodeling market is following the downswing we are seeing in the overall housing market," said NAHB Chief Economist David Seiders. "We expect some further erosion in the second half of this year and in 2008, followed by a gradual recovery in 2009 and beyond."