According to the latest National Association of Home Builders Remodeling Market Index (RMI), the second quarter of 2019 posted a reading of 55, rising one point from the previous quarter with 54.
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.
"The demand for remodeling continues to hold strong throughout the country," said NAHB Remodelers Chair Tim Ellis, CAPS, CGP, CGR, GMR, Master CGP. "However, the lack of skilled labor continues to be one of the largest roadblocks in the industry."
Current market conditions rose two points from the previous quarter to 55. Among its three major components, major additions and alterations increased four points to 53, minor additions and alterations and the home maintenance and repair component both held steady at 55 and 56, respectively.
The future market indicators gained one point from the previous quarter to 55. Calls for bids stayed at 54, amount of work committed for the next three months fell two points to 52, the backlog of remodeling jobs increased four points to 58 and appointments for proposals remained steady at 55 for the third quarter in a row.
"The remodeling market has decelerated somewhat due to ongoing supply-side challenges, as well as year-over-year declines in existing home sales," said NAHB Chief Economist Robert Dietz. "However, remodelers' confidence continues to be positive. Market conditions would be better if not for labor shortages and rising construction costs making it difficult to complete some projects at prices home owners can afford."
The Federal Reserve cut its federal funds rate today by 25 basis points (bps) to a range of 2.0% to 2.25%. This cut represents a marked change in the direction of monetary policy in the first half of 2019.
Marking the one-year anniversary of the White House executive order on workforce development this week, Greg Ugalde, chairman of the National Association of Home Builders issued the following statement
Existing-home sales in the U.S. weakened in June 2019, as total sales saw a small decline after a previous month of gains. While two of the four major U.S. regions recorded minor sales jumps, the other two - the South and the West - experienced greater declines last month.
According to Freddie Mac's latest Primary Mortgage Market Survey, after declining for most of 2019, U.S. mortgage rates remained mostly unchanged this first week of July. The recent stabilization in mortgage rates reflects modestly improving U.S. economic data.
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