Home Remodeling Market Index – Jumps 5 Points And Forecast Even Better

The Remodeling Market Index (RMI) recently released report announces record breaking news that the RMI jumped to 50 in the third quarter of 2012. With levels unseen since 2005, the index is up five full points and projected to be even better in 2013. Destiny Homes, a Minneapolis based luxury home builder and remodeler, comments on the report and is in agreement with housing economist's forecasts for positive increases ahead.

Minneapolis, Minnesota (PRWEB) October 27, 2012

Destiny Homes owner Butch Sprenger says, "Each of the major RMI components shows marked progress at higher levels than we have witnessed at any time over the past six years, demonstrating that remodeling investments in housing are holding their value." The NABH survey responses are aggregated into two major component indices. In the third quarter of 2012, the major RMI component on current market conditions rose from 46 to 52, a hefty jump putting the strength of the housing industry score over the 50 percent threshold. The future indicators component increased from 44 to 49, a full five points.

"The improvement in the RMI provides more evidence that the remodeling industry is making the orderly recovery from its low point in 2009 as weve been expecting, said NAHB Chief Economist David Crowe. Although remodeling projects over $25,000 are now showing some signs of strength, they are still lagging behind smaller property alterations and maintenance and repair jobs. The recovery of the remodeling market in general, and large projects in particular, continues to be constrained by factors such as tight credit and problematic appraisals."

Future market indicators in almost every region and condition have a showing of strong gains over the previous quarter:

At the Semi-Annual Construction Forecast Conference on Wednesday, Oct. 17, participating economists discussed the increase in home prices, the increase in home values, the increase in home builder stocks, and constructions positive economic outlook for 2013. The reasons they determined behind the construction industry's positive momentum include:

1) Pent-up demand for household formations

2) Rising consumer confidence in economy

3) Strong and Increasing builder confidence in all three sectors of the industry: remodeling, multifamily and single-family construction

4) Growing demand for rental homes

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Home Remodeling Market Index – Jumps 5 Points And Forecast Even Better