NAHB Remodeling Index Hit All-Time High In Q3

NAHB Remodeling Index Hit All-Time High In Q3

In yet another sign that the housing recovery is moving along at a steady pace, the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) reclaimed its all-time high in the third quarter as remodeling activity continued to pick up.
The index, the NAHB said Thursday, hit the high-water mark of 57 in the third quarter. It is the sixth straight quarter for an RMI reading above 50.
An RMI above 50 indicates that more remodelers report market activity is higher compared to the prior quarter than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.
"The stabilization of the RMI in the mid-50s for more than a year demonstrates the slow, steady recovery of the housing industry that we expect to continue," NAHB Chief Economist David Crowe said in a statement.
The spurt in the third-quarter index bodes well for home improvement retailers such as the highly rated Home Depot (NYSE:HD) and Lowe's (NYSE:LOW), home renovation product suppliers such as quartz countertop maker Caesarstone Sdot-Yam(NASDAQ:CSTE), and building products firms such as Eagle Materials (NYSE:EXP).
"Most remodelers remain confident that the market is improving as home owners undertake renovations large and small," NAHB Remodelers Chairman Paul Sullivan said in a statement. "The consistency and longevity of positive RMI readings are in line with the gradual recovery of the housing industry."
The RMI's future market conditions index rose to 58 from 56 in the previous quarter. All four of its subcomponents — calls for bids, amount of work committed for the next three months, backlog of jobs and appointments for proposals — increased or remained level with the previous quarter's reading.
The component of the RMI for current market conditions rose one point to 57 in the third quarter. The categories of large additions and smaller remodeling jobs made a two-point gain apiece. The large-addition category's reading moved up to 56, while the smaller-remodeling reading rose to 58.
Meanwhile, the RMI's future market conditions index rose to 58 from 56 in the previous quarter.
"The fact that the index has been above 50 for six quarters doesn't just mean it's good — it means for six quarters it's better than the previous quarter," NAHB research associate Heather Taylor told IBD. "We're getting better and better."

Read More At Investor's Business Daily: http://news.investors.com/business/102314-723167-remodeling-measure-rises-for-sixth-straight-quarters.htm#ixzz3HsFHDGTh
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