Remodelers expect market gains during 2011

The latest National Association of Home Builders' Remodeling Market Index edged up to 41.5 in fourth quarter 2010, compared to 40.8 in the third quarter. An RMI below 50 indicates that more remodelers say market activity is lower compared to the prior quarter than higher. The RMI has been running below 50 since the final quarter of 2005.

However, all but one index for future market conditions improved during the fourth quarter. Calls for bids jumped to 47.2 (from 42.9), along with backlog of remodeling jobs at 42.6 (from 37.2), and appointments for proposals at 43.1 (from 41.9). The amount of work committed for the next three months shrank to 25.9 (from 30.3).

Current conditions indices for remodeling improved in two regions: the Midwest posted a 54.3 (from 44.9 in the third quarter) and the South posted a 45.8 (from 42.3). Current indices declined in the Northeast to 38.8 (from 41.6) and the West to 39.7 (from 49.3). Future market indicators grew significantly in nearly all regions: Northeast 49.5 (from 34.0); Midwest 56.1 (from 39.4); and South 47.0 (from 37.9). Only the West region reported some decline at 39.7 (from 41.0). Major additions also expanded to 48.6 (from 45.8), but minor additions dipped slightly to 43.9 (from 46.4), according to a Jan. 27 NAHB report.

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