Conditions in the remodeling market dipped in the first quarter, according to NAHB’s survey of professional remodelers, as the overall Remodeling Market Index (RMI) derived from the survey fell six points to 49. Prior to that, the RMI had been generally trending upward, albeit with significant quarter-to-quarter fluctuations. So, although the first quarter 2013 RMI indicates a pause in the improvement that the remodeling market had been showing, it is nevertheless the third highest reading for the RMI since the first quarter of 2006.
An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.
In the first quarter of 2013, both major components of the RMI declined. The future market indicators component decreased from 56 in the previous quarter to 48. Current market conditions fell from 54 in the previous quarter to 50.
Concern about the rising costs of construction materials and labor probably contributed to the pause in the general upward trend of remodelers’ confidence, as the rising cost of doing business makes it difficult to deliver at prices many customers expect.
For more detail on all RMI components and subcomponents, along with their history, see NAHB’s RMI web page.