Remodeling Market Index Dips in 1st Quarter
The National Association of Home Builders’ Remodeling Market Index posted a reading of 54 in the first quarter of 2016, dipping four points below the previous quarter but remaining in positive territory.
An Remodeling Market Index above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than those who report it is lower. The overall Remodeling Market Index averages ratings of current remodeling activity with indicators of future remodeling activity.
“Remodelers were solidly booked for jobs in the first quarter of 2016 but calls and appointments for work slowed down in comparison to the end of 2015,” said 2016 National Association of Home Builders Remodelers Chair Tim Shigley, CAPS, CGP, GMB, GMR, a remodeler from Wichita, Kansas. “Volatility in the financial markets during the first quarter may have impacted consumers’ readiness to commit to projects.”
The Remodeling Market Index’s current market conditions index stands at 55, down a point from the previous quarter. Among its components, major additions and alterations continued gains from the previous quarter, rising to 55 from 54. The smaller remodeling projects component decreased two points to 54, and the home maintenance and repair component of the Remodeling Market Index decreased two points to 56.
At 53, the Remodeling Market Index’s future market conditions index decreased six points: Calls for bids decreased to 51 from 58, the amount of work committed fell to 52 from 57 and appointments for proposals dropped to 52 from 60. Meanwhile, the backlog of remodeling jobs decreased only three points to 58 from the previous quarter’s reading — and high-water mark — of 61.
“Minor declines in the small additions and maintenance categories coupled with a slight uptick in major additions resulted in a flat outcome for current market conditions,” said National Association of Home Builders Chief Economist Robert Dietz. “While the future market conditions of the index dipped slightly, we still anticipate modest growth in the remodeling industry over the course of 2016.”
For data tables on the Remodeling Market Index, visit www.nahb.org/rmi. For more information about remodeling, visit www.nahb.org/remodel.