Remodeling Confidence Remains Strong Despite 3-Point Slip

Filed in Economics, Remodelers by on April 19, 2018 0 Comments
bathroom shower

This remodeled bathroom with a roomy walk-in shower was a winner in the NAHB Homes for Life Awards for designer Bonnie Lewis, CAPS, of 55+ TLC Interior Design LLC in Scottsdale, Ariz.

The NAHB Remodeling Market Index (RMI) posted a reading of 57 in the first quarter of 2018, down three points from the previous quarter and back to the same level as the third quarter of 2017.

The RMI has been above 50 — indicating the majority of remodelers report current market activity is better than the previous quarter — since the second quarter of 2013.

“An RMI reading over 50 shows that consumers still remain engaged in home improvement,” said NAHB Remodelers Chair Joanne Theunissen, CGP, CGR, a remodeler from Mt. Pleasant, Mich. “However, higher prices for labor and materials like lumber continue to cause delays in project starts and bring higher overall project costs.”

Current market conditions decreased two points from the fourth quarter of 2017 to 58. Among its three major components:

  • Large additions and alterations waned four points to 56.
  • Minor additions and alterations increased one point to 60.
  • Home maintenance and repair fell four points to 57.

The future market indicators index dipped four points from the previous quarter to 55. Among its components:

  • Calls for bids increased one point to 57.
  • Amount of work committed for the next three months decreased four points to 54.
  • Backlog of remodeling jobs dropped nine points to 57.
  • Appointments for proposals fell three points to 54.

“Strong price appreciation, inventory shortages of homes for sale and home owners’ desire for updated amenities maintain the remodeling industry on solid footing,” said NAHB Chief Economist Robert Dietz. “This quarter’s dip may be related to unusually cold weather in many parts of the country, but the forecast is for the remodeling market to grow in 2018.”

For the full RMI tables, please visit nahb.org/rmi. For more information about the benefits of the NAHB Remodelers Council, watch this video.

Facebooktwitterlinkedinmail

Tags: , ,

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement