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All three major components of the RMI’s current market conditions index increased in the third quarter. Major additions and alterations increased from 51 to 55, minor additions and repairs from 55 to 58 and maintenance and repair from 57 to 59. The future market indicators component of the RMI remained even with the previous quarter reading of 56.

Regionally, the RMI has registered two consecutive quarters of gains in the Northeast, Midwest and West. In the South, the RMI edged down slightly in the third quarter after a five point gain the previous quarter. All four regions were above 50 and higher in the third quarter than in the first quarter of 2013.

“In addition to existing home sales, which support remodeling activity as owners fix up their homes before and after a move, remodeling has benefitted from rising home values,” said NAHB Chief Economist David Crowe. “This boosts home equity that owners can tap to finance remodeling projects. We expect existing home sales and house prices to increase, but at a slower rate over the next year, so the demand for remodeling services should also increase, but more gradually over that period.”

For more information about remodeling, visit www.nahb.org/remodel.

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