Remodeling increased in May to a seasonally adjusted annual rate of 2,663,000.  This represents a 3 percent increase from the April rate of 2,579,000 and, according to BuildFax which released its Remodeling Index (BFRI) on Tuesday, is 6 percent higher than in May 2011 when the rate was estimated at 2,521,000.

BFRI uses construction permits for residential remodeling projects filed with local building departments to base an estimate of the number of properties for which remodeling is scheduled. 

On a regional basis the Index was mixed.  In the Northeast it rose 3 percent from April to 529,788, 14 percent above the level in May 2011.  The South, at 1,010,000, was down 4 percent month-over-month but up 2 percent year-over-year.  In the Midwest the Index was 510,000, unchanged from the previous month and down 1 percent from May 2011.  The greatest change was in the West where the BFRI rose 7 percent to 736,000, a 9 percent annual increase.

"Remodeling growth appears to be flattening out, although 2012 looks like it will still be significantly better than 2011," said Joe Emison, Vice President of Research and Development at BuildFax.