The Remodeling Market Index (RMI) dipped three points to 57 in the first quarter of 2018, according to the National Association of Homebuilders. For 20 consecutive quarters the RMI has been at or above 50, which indicates that more remodelers report market activity is higher compared to the prior quarter than report it is lower (Figure 1).
The overall RMI is an average of two sub-indices: one index measuring current market conditions and another measuring future market indicators. In the first quarter of 2018, the current market conditions index decreased two points to 58 (Figure 2). Among its three major components major additions and alterations waned four points to 56, minor additions and alterations increased one point to 60, and the home maintenance and repair component fell four points to 57.
The future market indicators index dipped four points from the previous quarter to 55 (Figure 3). Calls for bids increased one point to 57, amount of work committed for the next three months decreased four points to 54, the backlog of remodeling jobs dropped nine points to 57 and appointments for proposals fell three points to 54.
Despite slipping three points, demand for remodeling jobs continues at a solid pace. Unusually cold weather in some areas of the country may have played a role in the slight dip, but strong home price appreciation and the ongoing inventory shortage has provided for a robust remodeling market.