ReNews -- Remodelors Council News - 11/18/2009 (Plain Text Version)Greg Miedema, CGR, CGB, CAPS
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E-mail Our Editor In this issue: Remodelers See Encouraging Signs in Third QuarterAlthough residential remodelers reported that conditions remained relatively weak during this year’s third quarter, they also saw signs that their market was stabilizing, according to NAHB’s Remodeling Market Index, which was released on Nov. 5. The current market condition component of the index registered 39.8 for the third quarter, up slightly from 38.1 in the second quarter. Future indicators jumped from 34.2 to 38.7 over the same period. Although this marked the third straight quarterly improvement, both indices remained well below the break-even level of 50 on the index. The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number below 50 indicates that more remodelers say market conditions are getting worse than report improving conditions. The index has been running below 50 since the final quarter of 2005.
“Some remodelers are receiving more calls for bids, but it is still extremely difficult to close a sale,” said NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, CGP, a remodeler from Tucson, Ariz. “Financing continues to be an impediment, with many home owners not able to secure home equity loans or other lines of credit.” The index for current remodeling market conditions rose in the Midwest to 43.2, up from 38.3 in the second quarter, and in the West from 47.3 (from 40.5). They declined in the Northeast from 36.9 to 33.7 and in the South from 39.7 to 38.6. Remodeler assessments of demand for major additions climbed from 38.2 to 41.9 in the third quarter. Minor additions rose from 41.5 to 43.2, while maintenance and repair remained fairly flat, dropping from 33.6 to 33.1. The summary index of future market indicators showed greater improvement. Among the components of future indicators, calls for bids jumped from 38.8 to 46.5, appointments for proposals grew from 40.3 to 43.5, the amount of work committed for the next three months climbed from 23.3 to 27.5, and the backlog of remodeling jobs rose from 34.4 to 37.2. “Remodelers are no longer reporting markets deteriorating to the same degree as earlier in the year, but credit and financing of remodeling jobs remains a huge hurdle to overcome in closing sales,” said NAHB Chief Economist David Crowe. “Inaccurately low home appraisals also hurt remodelers, because they hamper both home equity loans and sales of existing homes that often stimulate remodeling.” For more information on remodeling resources available from NAHB, e-mail Kelly Mack, or call her at 800-368-5242 x8451. Learn How to Run a Successful Remodeling Company “The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through BuilderBooks.com, shows how to use proven management systems to run a successful remodeling company. The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs. To view or purchase this publication online, click here, or call 800-223-2665. 'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com "How to Find a Professional Remodeler," available at BuilderBooks.com, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler. The newly updated brochure highlights the before and after photos of the most frequently remodeled rooms in the house. To view or purchase this publication online, click here, or call 800-223-2665. For more information or to contact us directly, please visit www.NAHB.org | ©2009, National Association of Home Builders |