NAHB's Remodeling Index rose three points, to 56, in the second quarter — which regains the momentum started in 2013. This is the fifth consecutive quarter for an RMI reading above 50. 

That reading reflects remodelers' reports that market activity is higher than the previous quarter. NAHB's Remodelers Chair, Paul Sullivan, said, "The completion of postponed work has helped remodelers in all regions regain confidence in the remodeling market."

NAHB reported that the future markets index rose to 56, from 52 in the previous quarter, under the strength of 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.

Remodeling jobs valued at $25,000 or more returned to 54, the same level as at the end of 2013. Smaller remodeling jobs and maintenance and repair components performed well this quarter, 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," observed David Crowe, NAHB's chief economist. "As homeowners feel more secure about their economic situation, they become even more willing to undertake remodeling projects — especially larger, discretionary ones."

Crowe added, "In addition, fewer new homebuilders are looking to remodeling as a way to supplement their revenue; this has somewhat reduced competition for remodeling projects."

 

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