12 Nov Remodeling On the Rise
The Remodeling Market Index (RMI) climbed to 50 in the third quarter of 2012, up from 45 in the previous quarter, according to the National Association of Home Builders (NAHB). The RMI is at its highest point since the third quarter of 2005,
tracking the positive trends recently seen in the rest of the housing sector. Three indicators of current market conditions improved: maintenance and repairs rose to 56 (from 50), minor additions and alterations to 51 (from 47) and major additions and alterations to 49 (from 42). Current market conditions improved or held steady in all four regions in the third quarter of 2012.
Current remodeling activity was particularly strong in owner-occupied housing; the sub-components of the current conditions index for owner-occupied housing were all well over 50, ranging between 55 and 60. One of the most popular requests right now is the bathroom. Customers know they can get a good price on materials from local suppliers including discounted tile, remnant countertop material and plumbing fixtures. By saving on these products, they are able to afford the reputable contractors they really want to hire rather than the fly-by-night remodeler who promises to do it at half price in half the time then never finished the project
According to the American Institute of Architect’s Home Design Trends Survey, architects are getting more requests to upgrade and expand existing homes, but with more emphasis on functionality than the over-the-top opulence of a decade ago.