Washington, D.C.—The National Association of Home Builders released its NAHB/Westlake Royal Remodeling Market Index for the first quarter, posting a reading of 62. While the index fell two points from the previous quarter, it remained solidly in positive territory.
The NAHB/Westlake Royal RMI survey asks remodelers to rate five components of the market as good, fair or poor. The survey measures each question on a scale from 0 to 100. A reading above 50 means more remodelers view conditions as good than poor. The results reflect seasonal adjustments.
The Current Conditions Index is an average of three components: the current market for large projects, moderately sized projects and small projects. The Future Indicators Index averages two components: the current rate of leads and inquiries and the backlog of remodeling projects. The overall RMI is calculated by averaging these two indices.
Current conditions hold steady
“Remodeler sentiment remained generally positive in the first quarter, as it was at the end of last year, even as many remodelers are still working to manage their customers’ cost expectations,” said Elliott Pike, a remodeler from Homewood, Ala. “Only a relatively small share report homeowners putting projects on hold due to economic and political uncertainty.”
The Current Conditions Index averaged 70, edging down one point from the previous quarter. All three components remained above 50. The index for large remodeling projects of $50,000 or more dipped two points to 67, while moderate projects between $20,000 and $50,000 dropped two points to 69. Small projects under $20,000 increased one point to 74.
“Ongoing positive remodeler sentiment is consistent with the NAHB outlook, given an aging housing stock and the lock-in effect of elevated mortgage rates keeping owners in their homes,” said Robert Dietz. “In the first quarter, remodelers reported that 21% of their projects were associated with home improvements made shortly after a purchase, while only 4% were for homeowners’ projects to ready a home for sale.”
The Future Indicators Index averaged 54, down two points from the previous quarter. The component measuring leads and inquiries dipped one point to 53. The backlog of remodeling jobs dropped three points to 55.