Remodeling activity continued to grow in the second quarter of 2005, according to the National Association of Home Builders’ Remodeling Market Index. Today’s second-quarter results were slightly below the seasonally adjusted first quarter of 2005 but remained in the positive-growth range.

“The high rates of home sales and home-price appreciation are helping fuel strong remodeling activity,” said Remodelors Council Chairman Don Novak, a remodeler from Cedar Rapids, Iowa. “Though we saw little change overall, the RMI still shows above-average activity for the past quarter and this will continue into the third.”

The RMI is derived from a quarterly national survey of more than 500 remodelers and is seasonally adjusted. The current market conditions index dropped one half a point from 52.9 to 52.4. The future expectations index also moved down from 53.6 to 52.8. Both indexes continue to show above-normal activity.

Regionally, strong readings in the Northeast, South and West were partially offset by a sub-par reading for the Midwest. Current market conditions in the Northeast improved from 53.8 to 59.1 and the West gained nearly five points from 53.6 to 58.5. Conditions dropped in the Midwest from 48.9 to 44.7 and in the South from 58.4 to 55.7.

“A maintenance of positive readings in most parts of the country reflects remodelers’ confidence in their component of the housing sector,” said NAHB Chief Economist Dave Seiders. “In markets where there is strong real estate appreciation, remodeling continues to see near-record growth.”

Owner-occupied units saw a slight increase in current market activity, moving from 55.8 to 63.3. Renter-occupied units had a nearly two-point decrease from 47.7 to 45.8. In the futures expectation index, the reverse trend was true. Owner-occupied units index dropped from 56.7 to 55.8 and renter-occupied units index increase from 41 to 43.

The RMI “special questions” section survey covered questions on remodelers’ profile. In 2005, 64 percent of remodelers responding had 20 or more years of experience. This is an increase from 59 percent and 54 percent from 2003 and 2002, respectively. The level of education saw wide changes from previous years. In 2005, 32 percent of remodelers had completed an advanced degree in graduate school. Previously in 2003 and 2002, only 10 and 11 percent earned an advanced degree. While 42 percent of respondents said they earned a college degree this year, this is a marked decline from 53 percent in 2003 and 50 percent in 2002.

***

What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect Las Vegas is back and there are only a few presale tickets left! Register today before they're gone.REGISTER×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription