The cost-to-value ratio may be down across much of the country for remodeling, but BuildFax is reporting that May was the hottest remodeling month on record.

According to their BuildFax Remodeling Index (BFRI), May hit its 19th straight month of year-to-year gains and was up 22 percent from May 2010.

"Through the first five months of 2011 we have seen impressive gains within the remodeling index and May has continued that trend with a record setting month," said Joe Emison, Vice President of Research and Development at BuildFax. "Even with the continued struggles in the economy, the remodeling industry has been a bright spot, as consumers look to make upgrades to their current homes, rather than purchasing a new residence. Based on the trends from the first months of this year, we expect to continue seeing strong gains from coast to coast."

Remodeling Magazine's recent Cost to Value Report revealed that the return on most home improvement projects has fallen over the last year, with garage door replacement being one of the only positive gains. Most homeowners are opting for less expensive projects, and mostly on the exterior of their homes. They have realized that curb appeal reigns supreme.

Regionally, remodeling activity picked up the most in May in the Midwest, which was up 18 percent. This is welcome news to a region that has seen it's fair share of difficulties in today's housing market. BuildFax reports that it is still 11 percent behind its 2010 levels. The Northeast posted healthy gains at 12 percent and both the South and West rose by 7 percent.

According to the National Association of Home Builders (NAHB), the remodeling market is heading into recovery. "Remodelers report a jump in activity so far this year and have been receiving more calls for work and appointments," said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Fort Collins, Colorado. "However, many home owners are still slow to commit to remodeling due to feeling uncertain about the economic recovery and difficulty obtaining loans."

"Home remodeling continues to slowly increase and continued growth through the year is expected." said NAHB Chief Economist David Crowe. "Remodelers are seeing improving activity in their markets. While credit scarcity and economic uncertainty continue to weigh down remodeling, signs of increasing consumer interest are promising."

Published: July 21, 2011 by Realty Times News - Clara Hill