After increasing in the 4th quarter of 2011, NAHB’s Remodeling Market Index (RMI) declined by one point to 47 in the 1st quarter of 2012.
Both of the RMI’s major components declined in the 1st quarter. The RMI component measuring current market conditions dropped one point to 49, while the component indicating future remodeling activity fell two points to 44.
The RMI and all of its components are based on a survey of remodelers that asks them if various market conditions have gotten better or worse since the previous quarter. The answers are placed on a scale from 0 to 100, where 50 is a “break-even” point that occurs when equal numbers of remodelers report better and worse conditions.
Recently, even more than the overall RMI, its current-conditions component has been fairly stable, moving in a relatively narrow band just below the break-even point of 50.
For more detail on the RMI, all its components and subcomponents, and a complete history, see NAHB’s RMI web page: http://www.nahb.org/reference_list.aspx?sectionID=136