Remodelers’ Confidence Dips in the First Quarter

Conditions in the remodeling market dipped in the first quarter, according to NAHB’s survey of professional remodelers, as the overall Remodeling Market Index (RMI) derived from the survey fell six points to 49.   Prior to that, the RMI had been generally trending upward, albeit with significant quarter-to-quarter fluctuations.  So, although the first quarter 2013 RMI indicates a pause in the improvement that the remodeling market had been showing, it is nevertheless the third highest reading for the RMI since the first quarter of 2006.

RMI Q1 2013

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.

In the first quarter of 2013, both major components of the RMI declined. The future market indicators component decreased from 56 in the previous quarter to 48. Current market conditions fell from 54 in the previous quarter to 50.

Concern about the rising costs of construction materials and labor probably contributed to the pause in the general upward trend of remodelers’ confidence, as the rising cost of doing business makes it difficult to deliver at prices many customers expect.

For more detail on all RMI components and subcomponents, along with their history, see NAHB’s RMI web page.



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5 replies

  1. Perhaps I can leave my genuine opinion this time without having it “mediated” away because this site does not seem to tolerate free and honest thought.

    Today’s numbers show interest rates at their highest in two years. The idea that now is the time for first time buyers to get in while they can (as I read on another site) is counter-intuitive. A real housing recovery is built on first time home buyers and those were only 30% of the so-called “recovery” even before these latest numbers. Most first time buyers are now being priced out, not priced in – to the market. The majority of this so-called “recovery” has been investors looking to buy distressed properties on the cheap, do minor renovations, then rent them out. Many of these investors are now bailing as they see that the “recovery” is a temporary thing meant to fizzle out in the not-so-long-term.

    Wages are comparatively low, and first time buyers are being squeezed out, not pulled in.
    Mom and pop home improvement operations are going to feel the brunt of this in the near future. Many will go out of business because the so-called recovery is all smoke, mirrors and deception. Let’s see what some other mom and pops think if I’m finally allowed to leave a reply that is not “mediated” away because it doesn’t fall in line with the opinions the “mediators” of this site. I fully expect that they will not allow anyone to see this comment and make up their own mind because this comment is simply not what they want to hear. Respect The First Amendment and let people see opinions other than your own without “mediating” a comment off the site because you don’t happen to like it’s content. The FCC takes an interest in that kind of censorship whether your the NAHB or not!

Trackbacks

  1. Eye on the Economy: Rising Home Values Fail to Lift Remodeling in Early 2013 | Eye on Housing
  2. Eye on the Economy: Rising Home Values Fail to Lift Remodeling in Early 2013 - Helping Hands Custom Builders
  3. Remodelers’ Confidence Dips in the First Quarter
  4. Remodelers’ Confidence Dips in the First Quarter | Eye on Housing

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