U.S. Remodelers Generally Optimistic

The National Association of Home Builders (NAHB)/Westlake Royal Remodeling Market Index (RMI) for the first quarter posted a reading of 70, edging up one point compared to the previous quarter. The U.S. index shows current conditions averaged 75 (a number over 50 indicates more remodelers view conditions as good than poor), dropping two points compared the previous quarter. Large remodeling projects ($50,000 or more) fell three points to 71 and the small remodeling projects (under $20,000) declined by two points to 77. Meanwhile, the component measuring moderately sized projects (at least $20,000 but less than $50,000) remained unchanged at 78. The future indicators index increased two points to 64 compared to the previous quarter while the current rate at which leads and inquiries are coming in rose two points to 59. The component measuring the backlog of remodeling jobs increased two points to 69. “Remodelers are generally optimistic about the home improvement market, although some are noting negative effects of material shortages and higher interest rates,” says Alan Archuleta NAHB remodelers chair and a remodeler from New Jersey. “Customers are still undertaking larger projects, but are mostly paying cash rather than financing them.”