Remodeler Confidence Fell in Early 2013

May 13, 2013

remodeler confidence fallsConfidence in the remodeling market declined in the first quarter of 2013, according to a statement from the National Association of Home Builders (NAHB). NAHB measures remodelers’ confidence with the Remodeling Market Index (RMI), which fell six points to 49, citing concerns about growing construction supply and labor costs.

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.

“Remodelers remain optimistic about the outlook for growth in the remodeling market this year, but the rising cost of doing business makes it difficult to deliver the prices that many of our customers expect,” said 2013 NAHB Remodelers Chairman Bill Shaw, GMR, GMB, CGP, a remodeler from Houston. “Repairs and minor additions are currently the strongest categories of business for remodelers as home owners continue to invest in deferred maintenance and room-by-room remodeling.”

The future market indicators component of the RMI decreased from 56 in the previous quarter to 48. Current market conditions also fell from 54 in the previous quarter to 50.  Remodelers indicated that activity was particularly strong in owner-occupied properties, rating all categories of remodeling in owner-occupied homes 51 or better.

The RMI was 47 in the Northeast, 47 in the Midwest, 51 in the South and 52 in the West.


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