Remodelers’ confidence increases in Q4
Tuesday, January 21, 2020 from Floor Covering Weekly
“The low inventory of homes on the market is forcing people to stay in their homes, thus increasing the desire and demand to remodel,” said NAHB Remodelers chair Tim Ellis, CAPS, CGP, CGR, GMR, Master CGP, a remodeler from Bel Air, Md.
Current market conditions increased two points from the previous quarter to 56. Among its three major components, major additions and alterations gained four points to 56, minor additions and alterations increased by one point to 54 and the home maintenance and repair component rose one point to 58.
The future market indicators gained three points from the previous quarter to 60. Calls for bids increased by three to 58, amount of work committed for the next three months gained three points to 57, the backlog of remodeling jobs jumped five points 64 and appointments for proposals increased by two points to 62.
“The jump in the backlog of remodeling jobs is unsurprising due to several factors,” said NAHB chief economist Robert Dietz. “Demand for remodeling is high, supported by a strong overall economy and low interest rates, and it is challenging to meet the demand and work off a backlog quickly due to the ongoing shortage of skilled labor.”
Beginning with the first quarter of 2020, the RMI will be redesigned and a new series will be released.