“Remodelers are experiencing slower activity in markets nationwide, particularly for major improvements to owner-occupied housing” said NAHB Remodelers Chairman Lonny Rutherford, CGR, CAPS, CGP, a remodeler from Farmington, N. M. “While markets remain pretty active, most remodelers are taking on a greater number of smaller jobs to maintain their businesses.”

 

The index shows a gradual decline in overall remodeling activity since 2005. Nationally, major additions and alterations declined slightly to 43.18 (from 44.15) during the second quarter, while minor additions and alterations increased slightly to 42.89 (from 41.57). Maintenance and repair declined to 39.06 (from 39.68)

 

“As in previous economic downturns, remodeling activity is proving to be cyclical rather than countercyclical, although the degree of decline pales in comparison to the setbacks registered in the new-home market, said NAHB Chief Economist David Seiders. “We expect remodeling to remain generally flat in 2009 followed by strong growth due to home maintenance needs.”

 

Regionally, current market expectations dropped in the second quarter, with the Northeast falling to 32.8 (from 36.4), the South to 40.1 (from 42.2), and the West to 42.4 (from 42.9). The Midwest, however, increased to 52.9 (from 44.1). All measures for future expectation (calls for bids, amount of work committed for next three months and appointments for proposals) slumped slightly except for a small increase in backlog of remodeling jobs at 42.13 (from 41).

 

Eighty-four percent of surveyed remodelers also reported home builders diversifying into remodeling due to the downturn in home building, thus contributing to more saturated remodeling market conditions.