Washington, D.C.—The National Association of Home Builders’ Remodeling Market Index (RMI) posted a reading of 61 in the second quarter, down one point from the previous quarter but remaining in positive territory.
The RMI has remained in the low 60s over the past year. A reading above 50 indicates more remodelers view market conditions as good than poor.
“Remodeler sentiment has been positive and stable over the past year,” said Elliott Pike, NAHB Remodelers chair and a remodeler from Homewood, Ala. “The major headwinds that are preventing an even stronger remodeling market include rising costs, political and economic uncertainty and difficulty obtaining financing with favorable interest rates for larger projects.”
Robert Dietz, NAHB chief economist added, “Despite affordability concerns, rising homeowner equity and an aging housing stock are powering demand for residential remodeling,” Dietz said. “This is keeping the remodeling market relatively strong despite certain impediments, like the rising cost of building materials. In the latest RMI survey, 74% of remodelers reported that their suppliers have increased prices of materials since March due to higher fuel costs, with the average increase in materials prices over that time being 6.7%.”
The Current Conditions Index remained unchanged at 70. The component measuring large remodeling projects of $50,000 or more fell three points to 64. Moderate-sized projects between $20,000 and $50,000 increased four points to 73, while projects under $20,000 held steady at 74.
The Future Indicators Index declined two points to 52. The component measuring leads and inquiries fell two points to 51, while the backlog of remodeling jobs slipped one point to 54.