WASHINGTON -- The Remodeling Market Index of the National Association of Home Builders rose three points to 56 in the second quarter, regaining the momentum built in 2013. This is the fifth consecutive quarter for an index reading above 50, th eassociation reports.
An index with a reading above 50 indicates that more remodelers report business is higher (compared to the preceding quarter) than lower.
“With many home owners on better financial footing, home remodeling has become more popular,” said Paul Sullivan, chairman of remodelers division of the assocoation, in a prepared statement. “The completion of postponed work has helped remodelers in all regions regain confidence in the remodeling market.”
The future market conditions index rose to 56 from 52 in the first quarter, reflecting an increase in all four of its subcomponents: calls for bids, amount of work committed for the next three months, backlog of jobs and appointments for proposals.
The market conditions component increased three points to 56 this quarter. Remodeling jobs valued at $25,000 or more rebounded to 54, the same level as the end of 2013. Smaller remodeling jobs and maintenance and repair components performed well with readings of 56 and 58, respectively.
“The recent improvement in the job market has helped restore remodelers’ confidence after a dip in the first quarter that was probably in part weather-related," noted David Crowe, association chief economist, in his statement. In addition, fewer new-home builders are looking to remodeling as a way supplement their revenues, and this, he suggested, has reduced the competition for remodeling projects.
SOURCE: National Association of Home Builders
Published by The Business Journal, Youngstown, Ohio.
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