Hot on the heels of the LIRA report from the Joint Center for Housing Studies’ Remodeling Futures Program comes the latest report from our partner Hanley Wood called the Residential Remodeling Index.
In this RRI, there’s some pretty good news for the industry:
Remodeling and replacement project activity improved slightly in Q2 2012, according to the latest release of the Residential Remodeling Index (RRI) by Hanley Wood. The seasonally adjusted second quarter national composite of the RRI registered an 80.87 score, a 0.3% improvement over the revised first quarter’s 80.63 result.
It goes on to say that because housing numbers are starting to pick up, there’s been an increase in home improvement activity in the 366 metro areas Hanley Wood monitors. They get their statistics from permit activity as well as consumer-reported activity on remodeling and replacement projects.
Because of these gains, Hanley Wood is forecasting – similar to the LIRA report – that remodeling activity will be strong for several more quarters.
Hedging their optimism, it was only the first quarter-to-quarter gain in 6 quarters. It will be interesting to see if these gains continue in the third quarter of this year – which is likely as this has been a great “busy season”, according to our customers. But there is still a lot of doom-and-gloom talk out there about sluggish economies and it wouldn’t take much for consumer confidence to dry up in an instant.
However, according to the article, the executive director of Hanley Wood Market Intelligence believes that 2013 “has the potential to be the best year for remodeling activity since 2006.”
“Momentum will be building over 2012 as we anticipate 4% growth in the number of projects nationally,” he says. “What is most encouraging is that the recovery in remodeling and replacement will be widespread — of the 366 largest markets in the country, the RRI forecast for 2013 is calling for growth in all but four markets.”
That is a really great forecast and we’ve got our fingers crossed that the country is ready to take on bigger projects again.
What do you think?