Index Finds Slight Remodeling Slowdown in Fourth Quarter - 2/28/2005 - Home Remodeling Interior Decorating Design

Index Finds Slight Remodeling Slowdown in Fourth Quarter

“Although the RMI is seasonally adjusted, we still can’t always predict the weather,” said Remodelors Council Chairman Don Novak, CGR, CAPS, CGB, a remodeler from Cedar Rapids, Iowa. “Interest rates are still good, and remodelers are looking forward to a rebound in the spring.”

The RMI is derived from a quarterly national survey of 500 remodelers, who are asked for their assessments of both current and future market conditions.

Although current market conditions for the closing three months of 2004 dropped from 51.8 to 50.7 on the index, future expectations climbed from 52.4 to 54.

Regionally, only the West saw a fourth-quarter improvement in current conditions, which moved up from 56.9 to 58.7; but the region saw the biggest drop-off in future expectations, from 62.3 to 57.3.

Future expectations moved up from 44.4 to 48.8 in the Midwest; stayed the same at 57.9 in the South; and declined from 56.3 to 53.8 in the Northeast.

“Despite the slowdown in the fourth quarter of 2004, the market remains positive and we continue to see gains in future expectations,” said NAHB Chief Economist David Seiders. “Calls for bids and appointments for proposals are still coming in, leading us to expect a healthy 2005.”

Broken down into components of the remodeling industry, the RMI saw a small gain in major additions and alterations from 49.22 to 49.88 from the third to the fourth quarter; a decline in minor additions and alterations from 51.65 to 50.15; and a decline in maintenance and repairs from 54.61 to 52.41.

Those surveyed for the fourth-quarter RMI were also asked a special question about their involvement in aging-in-place home modifications.

Sixty-one percent of survey respondents said that their company was involved in home modification work related to aging in place. Of those, about 71% reported undertaking jobs in homes whose owners were in the 55-64 age group; 62% worked on homes whose owners were 65 or older.

About 14% of those polled said that requests for aging-in-place jobs had increased significantly over the past five years, and more than 60% reported seeing some increase.

When asked to assess the familiarity of consumers with the concept of aging in place, 69% of the respondents said that some of their clients were aware of it, while 25% said their customers were not.

The most typical “aging-in-place” projects were installing grab bars, installing higher toilets and widening doorways. Other popular jobs were building ramps and installing curbless showers.

Of the remodelers who reported making aging-in-place modifications, 23% said they had earned a Certified Aging-In-Place Specialist (CAPS) designation and another 28% said they plan on obtaining the designation in the near future.