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remodelerNAHB’s Remodeling Market Index (RMI) was 60 in the final quarter of 2014, indicating widespread confidence among remodelers that the market was improving compared to the previous quarter. The RMI and each of its components lies on a scale of 0 to 100, where a number above 50 indicates that more remodelers report market activity has improved (compared to the prior quarter) than report it has deteriorated.

RMI-graph-14Q4_1

The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity. The current market conditions component of the RMI increased to 60 from 57 in the previous quarter. The readings for all subcomponents, including large additions and small remodels as well as maintenance and repair, also saw increases.

The RMI’s future market conditions index also increased, to 60 from 58 in the previous quarter. All four of its subcomponents—calls for bids, amount of work committed for the next three months, backlog of jobs and appointments for proposals—increased from the previous quarter’s reading.RMI-table-14Q4_2

The RMI shows that, even with some weakness in existing homes sales and house prices earlier in the year, remodelers remain optimistic that markets are improving as 2014 closes. This is consistent with NAHB’s view that the remodeling market will show gradual improvement going forward.

View this original post on NAHB’s blog, Eye on Housing.

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