While affordability concerns and builder confidence dips this fall, remodeling confidence remains solid in the third quarter according to this recent article from the National Association of Home Builders. Homeowners are choosing to stay in their current homes and renovate to fit their needs rather than find a new home. This may be in part due to inventories of existing homes still being rather stringent. Homeowners want to stay in their current homes, but recognize that their needs will change over time and are opting to remodel their kitchens, bathrooms and living space to reflect the needed changes. Continue reading the full article below.
Remodeling Confidence Remains Solid in Third Quarter
(NAHB), The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 58 in the third quarter of 2018, remaining stable from the previous quarter. The RMI has been consistently above 50—indicating that more remodelers report market activity is higher compared to the prior quarter than report it is lower—since the second quarter of 2013. The overall RMI averages current remodeling activity and future indicators.
“Remodelers across the country are seeing home owner demand remain strong through the midpoint of the year,” said NAHB Remodelers Chair Joanne Theunissen, CGP, CGR, a remodeler from Mt. Pleasant, Mich. “Both positive home price growth—albeit at a slightly slower rate—and good consumer confidence are supporting the steady remodeling market.”
Current market conditions rose one point from the previous quarter to 58. Among its three major components, major additions and alterations rose one point to 56, minor additions and alterations decreased one point to 57 and the home maintenance and repair component rose one point to 60.
The future market indicators remained the same as the previous quarter at 59. Calls for bids rose two points to 57, amount of work committed for the next three months increased three points to 59, the backlog of remodeling jobs fell four points to 62 and appointments for proposals decreased two points to 59.
“The stability of the RMI reflects offsetting trends in the remodeling market,” said NAHB Chief Economist Robert Dietz. “A sound economy with low unemployment and easing lumber prices are being counterbalanced by rising interest rates and the ongoing labor shortage.”
For the full RMI tables, please visit www.nahb.org/rmi. For more information about remodeling, visit www.nahb.org/remodel.