NAHB Remodeling Market Index Flat in First Quarter
May 10, 2012
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Remodeling activity remained relatively flat in the first quarter of 2012, with the Remodeling Market Index (RMI) from the National Association of Home Builders downed a point to 47 from the upwardly revised 48 in the previous quarter.
NAHB also announced that it is revising the RMI back to 2006 after the recent discovery of a computer coding error. NAHB said the error had slightly reduced the true values of the overall index, as well as its two major components. Revisions generally show a one point or less quarterly increase, with quarter-to-quarter patterns remaining relatively unchanged, NAHB said.
The overall RMI combines current remodeling activity ratings with future activity indicators.
In the first quarter of 2011 the RMI component measuring current market conditions dropped one point to 49, while the component measuring future indicators of remodeling business fell two points to 44.
"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., GMB, CAPS, GMR and owner/president of Moore-Built Construction & Restoration Inc. in Elm Grove, LA. "That is why many remodelers reported lower numbers for future activity."
The three components measuring current market conditions moved in different directions in the first quarter:
* major additions remained even at 44
* minor additions rose one point to 52
* maintenance and repair dropped four points to 51.
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. Calls for bids rose one point to 47 and amount of work committed for the next three months remained even at 42.
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