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Home Remodels On The Rise08-03-15 | News

Home Remodels On The Rise
RMI Points To Increased Activity

The Remodeling Market Index, tracked by the National Association of Home Builders, remained well above its benchmark 50-level in the second quarter of this year.

The remodeling industry seems to be riding on the coattails of the housing industry's recent success.

A recent Remodeling Market Index, tracked by the National Association of Home Builders on a quarterly basis, moved up to 59 in the second quarter of 2015. It stood at 58 in the first quarter of the year.

Each RMI uses the number 50 as its benchmark. Scores above 50 mean more remodelers are reporting higher activity, compared to the previous quarter. Conversely, scores below 50 point to a downward trend.

Regional scores were used to come up with an aggregate RMI for the entire nation. The breakdown by region is as follows:

• Northeast, 59
• Midwest, 61
• South, 57
• West, 61

"The confidence in the remodeling industry has been in positive territory for nine quarters in a row as the entire housing industry's situation continues to improve," Robert Criner, a member of the NAHB and chairman of the RMI, said. "With an increase in existing home sales, remodelers received more signed contracts and calls for pricing."

Another index that gauges major additions rose in the second quarter to 57 from 54. And yet another index that tracks smaller remodeling jobs moved to 61 from 56.