by Bill McBride on 12/19/2011 08:30:00 AM
Monday, December 19, 2011
The BuildFax Residential Remodeling Index increased for the twenty-fourth straight month in October to 147.6, a new high for the index. This was up from 141.4 in September, and up 39% year-over-year from 105.8 in October 2010. This is based on the number of properties pulling residential construction permits in a given month.
In October 2011, all four regions - West, Midwest, Northeast and South - had gains. The West is at a new all time high, and is up 52% year-over-year. The Midwest is near an all time high, and is up 20% year-over-year. The South is up 11% year-over-year and the Northeast was up from September but is still down 4% year-over-year.
Click on graph for larger image.
This graph shows the NSA index by region. Most of the recent increase is in the West and Midwest. The South is also starting to increase.
Note: Permits are not adjusted by value, so this doesn't mean there is more money being spent, just more permit activity. Also some smaller remodeling projects are done without permits and the index will miss that activity.
Since there is a strong seasonal pattern for remodeling, the second graph shows the year-over-year change from the same month of the previous year.
Even though new home construction is still moving sideways, two other components of residential investment are doing better: multi-family construction and home improvement. Data Source: BuildFax, Courtesy of Index.BuildFax.com