The National Association of Home Builders latest Remodeling Market Index (RMI) posted a reading of 58 in the fourth quarter of 2019, up three points from the previous quarter.
The RMI has been consistently above 50--indicating that more remodelers report market activity is higher compared to the prior quarter than report it is lower - since the second quarter of 2013. The overall RMI averages current remodeling activity and future indicators.
"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."
The National Association of Home Builders' latest 55+ Housing Market Index is reporting this week that U.S. builder confidence in the single-family 55+ housing market dropped four points to 68 in the fourth quarter of 2019.
According to new research by Zillow, the total value of every home in the U.S. is $33.6 trillion, nearly as much as the GDP of the two largest global economies combined -- the U.S. ($20.5 trillion) and China ($13.6 trillion).
According to CoreLogic's latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, data collected for October 2019 shows a national rent increase of 3.1% year over year, compared to 2.9% in October 2018.
The oldest Millennials, who will turn 40 in 2020, have lived through a turbulent decade of housing marked first by the initial recovery from the Great Recession, then the extraordinary home value growth of recent years.
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