Remodeler Confidence Rebounds in Second Quarter

NAHB Press Release

WASHINGTON, July 25 - Confidence in the remodeling market rebounded in the second quarter of 2013 with the Remodeling Market Index (RMI) rising six points to 55, according to the National Association of Home Builders (NAHB). The rise in existing home sales and increased demand for remodeling projects contributed to the positive report.

An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.

"Remodelers are feeling optimistic about the home improvement market during what has turned out to be an uneven recovery," said NAHB Remodelers Chairman Bill Shaw, GMR, GMB, CGP, a remodeler from Houston. "The RMI future market results are especially promising. Not only do remodelers have projects booked for the next few months, but they also have more work coming in the door."

The future market indicators component of the RMI increased to 56 from the previous quarter level of 48. Current market conditions rose from 50 in the previous quarter to 54. All of the indicators of future activity (i.e. calls for bids, work committed for three months, backlog, and appointments) were over 50 for the first time in eight years.

"Remodelers' positive sentiment is directly related to increased demand for their services. Rising home prices are making remodeling jobs possible for more homeowners while existing home sales provide additional momentum as home owners prepare their homes for market," said NAHB Chief Economist David Crowe.
For more information about remodeling, visit www.nahb.org/remodel.

House Lead Paint Bill Would Help Remodelers, Consumers

NAHB Press Release

WASHINGTON, May 22 - Responding to concerns from the National Association of Home Builders (NAHB) and affiliated trade groups, bipartisan legislation to make much-needed improvements to the Environmental Protection Agency's (EPA) Lead: Renovation, Repair and Painting (LRRP) rule was reintroduced in the U.S. House of Representatives today.

The Lead Exposure Reduction Amendments Act of 2013 (H.R. 2093) is identical to legislation introduced in the last Congress. The bill would reinstate the opt-out provision to allow home owners without small children or pregnant women residing in the home to decide whether to require LRRP compliance, allow remodelers to correct paperwork errors without facing full penalties and provide an exemption for emergency renovations. It would also eliminate the requirement that recertification training be "hands on," so that remodelers would no longer have to travel to training facilities out of their region.

The bipartisan bill, companion legislation to S. 484, was introduced in the U.S. House of Representatives by Rep. Tim Murphy (R-Pa.), along with 21 original co-sponsors.

"H.R. 2093 will make common sense improvements to the EPA's lead paint rule for home owners and remodelers who must comply with the regulation's costly work practices and recordkeeping requirements," said NAHB Remodelers Chairman Bill Shaw, GMR, GMB, CGP, a remodeler from Houston. "Most importantly, it will continue to protect pregnant women and small children against lead hazards. I commend the bill's co-sponsors for their commitment to improve this burdensome regulation."

The LRRP rule applies to homes built before 1978 and requires renovator training and certification, adherence to lead-safe work practices and record keeping.

By removing the opt-out provision in July 2010, EPA more than doubled the number of homes subject to the LRRP rule, adding an estimated $336 million per year in compliance costs to the remodeling community - without making young children any safer.

For more information about remodeling, visit www.nahb.org/remodel.

Remodeler Confidence Dips in First Quarter 2013

NAHB Press Release

WASHINGTON, April 25 - Remodelers' confidence in the market dipped in the first quarter of 2013 when the Remodeling Market Index (RMI) fell six points to 49, according to the National Association of Home Builders (NAHB). Concern about the rising costs of construction materials and labor contributed to the pause in the general upward trend of remodelers' confidence.

An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.

"Remodelers remain optimistic about the outlook for growth in the remodeling market this year, but the rising cost of doing business makes it difficult to deliver the prices that many of our customers expect," said 2013 NAHB Remodelers Chairman Bill Shaw, GMR, GMB, CGP, a remodeler from Houston. "Repairs and minor additions are currently the strongest categories of business for remodelers as home owners continue to invest in deferred maintenance and room-by-room remodeling."

The future market indicators component of the RMI decreased from 56 in the previous quarter to 48. Current market conditions also fell from 54 in the previous quarter to 50. Remodelers indicated that activity was particularly strong in owner-occupied properties, rating all categories of remodeling in owner-occupied homes 51 or better.

"Although this quarter's RMI indicates a pause in the improvement that the remodeling market had been showing, it is nevertheless the third highest reading for the RMI since the first quarter of 2006," said NAHB Chief Economist David Crowe. "Like the rest of the home building industry, remodelers are starting to feel squeezed by higher costs and limited availability of labor and materials, which is unusual at such an early stage of a housing recovery. However, the downturn was so deep and extended that this time it may take a while to re-establish the supply chains."

The RMI was 47 in the Northeast, 47 in the Midwest, 51 in the South and 52 in the West.

For more information about remodeling, visit www.nahb.org/remodel.

Checklist for Finding and Hiring a Builder or Remodeler

By: Karen Nakamura, CEO
      BIA-Hawaii

Doing your homework will help you have a more successful experience.

 Use this checklist to help you select a home builder or home remodeler to work on or build your home:

• Contact the Building Industry Association of Hawaii for the names of member builders and remodelers: info@biahawaii.org or go to www.biahawaii.org. You can also ask family, friends or coworkers for recommendations.
• Make sure the builder or remodeler has a permanent business location and a good reputation with local banks and suppliers.
• Find out how long they have been in the building business. It usually takes three to five years to establish a financially sound business. You want to make sure they will be around after the construction is complete to service any warranties.
• Check out the company's rating and if there have been any complaints filed with your local Better Business Bureau: www.bbb.org. or the Department of Commerce and Consumer Affairs: http://cca.hawaii.gov/resources/
• Make sure the builder has sufficient workers compensation and general liability insurance. If not, you may be liable for any construction-related accidents on your premises.
• Ask the builder to provide you with names of previous customers. If they won't, beware. If they do, ask the customers if they would hire the builder/remodeler again.
• Ask if you can see the builders work, both completed and in progress. Check for quality of workmanship and materials and cleanliness of job site.
• Do you feel you can easily communicate with the builder? Remember you will be in close contact with them throughout the construction process and afterward as you live in your new home.
• Make sure the builder provides you with a complete and clearly written contract. The contract will benefit both of you. If you are having a new home built, get and review a copy of the home warranty and homeowner manual as well.
• Be cautious of unusually low-priced bids. If the builder is unable to pay for the materials and labor as the project proceeds, this may indicate a potential problem. Keep in mind that less expensive does not necessarily mean better!
• Make sure your payments are spelled out progress payments that identify when payment is due upon completion of the specific phase of the work.
• Make sure you sign a lien disclosure statement with the contract.
• Make sure the Notice of Completion is filed in the newspaper this starts the 45 days of the lien period.
• Make sure you get a Certificate of Occupancy and the permit is closed out. When the permit is not closed the work is not recorded with the building department so your plans are not updated. When you need an appraisal, a loan or go to sell, you may have a problem because what is recorded does not match the existing as built. When that happens, there are permit fees, and penalties to get the records corrected.

For more information contact me: ktn@biahawaii.org or call 808-847-4666 x 7502