The National Association of Home Builders is reporting this week that their Remodeling Market Index (RMI) posted a reading of 53 in the second quarter of 2016. Although it slipped one point from the previous quarter, it is still the 13th consecutive quarter with a reading above 50.
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.
"Overall, remodelers are reporting steady work in the second quarter," said 2016 NAHB Remodelers Chair Tim Shigley, CAPS, CGP, GMB, GMR, a remodeler from Wichita, Kan. "With an increase in calls for bids, we should see the market pick up slightly moving forward."
The RMI's current market conditions index came in at 54, decreasing by a single point from the previous quarter. Among its components, major additions and alterations dipped three points to 52, minor additions and alterations fell one point to 53 and maintenance and repair remained unchanged at 56.
At 53, the RMI's future market conditions index remained unchanged from the previous quarter. Among its four components, calls for bids increased two points to 53, the amount of work committed rose one point to 53 and appointments for proposals stayed even at 52. Meanwhile, the backlog of remodeling jobs decreased five points to 53.
"At slightly above 50, the overall RMI is in line with our forecast of steady growth in the remodeling market for 2016," said NAHB Chief Economist Robert Dietz. "Current economic conditions and a rising need to improve the nation's aging housing stock in the face of changing demographics are supporting growth for the remodeling sector."