Smaller projects push remodeling activity to seven-year high

More homeowners are tackling remodeling jobs once again.

The Remodeling Market Index recently climbed to its highest point since the third quarter of 2005, the National Association of Home Builders reported. The greater momentum in remodeling is yet another positive trend recently trickling through the housing sector, according to NAHB.

“The strength of the Remodeling Market Index, especially in owner-occupied properties, shows that home owners are investing in remodels as home prices stabilize,” says George “Geep” Moore Jr., NAHB remodelers chairman. “As owners become more confident that investments in housing will hold their value, they are beginning to undertake projects to improve their comfort that they had been putting off.”

The index showed an increase in all three of the indicators measured: maintenance and repairs, minor additions and alterations, and major additions and alterations.

David Crowe, NAHB chief economist, said remodeling projects over $25,000 are still lagging behind smaller property alterations and maintenance and repair jobs because of tight credit and problematic appraisals.