Industry News

Real estate remodeling stagnant in fourth quarter

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Real estate remodeling activity was steady in the fourth quarter of 2006, as the two indexes that make up the National Association of Home Builders' Remodeling Market Index (RMI) grew at a snail's pace. The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects, with any number over 50 indicating that the majority of remodelers view market conditions as improving. The current market conditions index edged up slightly from 47.8 to 48.2 on a seasonally adjusted basis, and future expectations moved up to 46 from 45.4. "Remodeling retained strength across most of the country compared to late last year," said NAHB Remodelers Chairman Mike Nagel, a remodeler from Chicago. "Certainly regional economies and housing markets play an important role, but overall we see maintenance of high levels of remodeling activity and solid future prospects." The RMI component for the rental market indicated a strong increase in activity for that sector in th...