NAHB Remodeling Market Index Takes a Nasty Dip

Remodelers are feeling decidedly less optimistic about the remodeling market, according to the latest Remodeling Market Index from NAHB.

The index, released today, shows a drop from 47.9 in the first quarter to 40.7 in the second quarter. An RMI below 50 means more remodelers feel the market is deteriorating than feel it is improving. Last quarter was the closest the RMI has come to 50 since 2005.

The RMI increased in the Midwest (from 43.8 to 44.7) and West (42.0 from 34.8), but dropped in the Northeast (46.6 to 41.4) and South (44.1 to 42.4).

Two comments on the drop from NAHB officials:

"Remodelers are suffering from weak consumer confidence and constricted credit lines," said NAHB Remodelers Chairman Donna Shirey, CGR, CAPS, CGP, a remodeler from Issaquah, Wash. "Homeowners are delaying remodeling projects because of economic uncertainty."


"While remodelers are continuing to struggle, we expect the rest of 2010 to be a period of stabilization for remodeling, with the first stages of recovery emerging by the end of the year, followed by a more robust recovery beginning early next year," said NAHB Chief Economist David Crowe. "For now, professional remodelers are taking on smaller projects and working to find consumers willing to spend money despite the economic uncertainty."

Other questions showed that NAHB members are undertaking smaller projects than in the past, as well, with marked decreases in room additions and kitchens and increased work in bathrooms and handyman projects. We saw similar results in our Business Results Study released in April, which showed a 47 percent drop in average project size. (No link, because HousingZone isn't back up yet, but e-mail me if you'd like more info.)

Memorial info for Don Novak

Most of you who would want to know this probably already do, but there is an endowment fund set up in Don Novak's name. Donations in his memory can be sent to:

HBA Endowment Fund

Kirkwood Foundation

PO Box 2068

Cedar Rapids IA 52406

Checks can be made payable to HBA Endowment Fund and will, among other things, endow a Don Novak scholarship

Thoughts on Don Novak

Just got some bad news. Don Novak, one of the great guys in the remodeling industry, passed away this morning. Don had been battling cancer for years, but stayed positive throughout.

Don was a past chairman of the NAHB Remodelers, 2002 NAHB Remodeler of the Year, a member of Remodeling magazine's Big 50 and recipient of a number of other awards over the years.

He was always willing to share information and his experience. The industry will certainly miss him.

Why I love the remodeling industry

Remodeling is a great industry filled with great people.

That's all I can say after the flood of support and well wishes I've gotten since Reed shut down Professional Remodeler on Friday -- calls, e-mails, comments through the various social media sites. It's great to hear what an impact we had on the industry at PR, and the offers of people to help me find what comes next for me.

I just got back from the NAHB Spring Boards in DC, where I was out trying to network and just generally keep up on the industry, and it was more of the same out there. Hopefully, I'll figure out a way to stay involved, whether or not we get Professional Remodeler restarted.