Eye On Housing
The Remodeling Market Index (RMI) remained stable with a reading of 58 in the third quarter of 2018, according to the National Association of Home Builders (NAHB). The RMI has been at or above 50 since the second quarter of 2013, which indicates that more remodelers report market activity is higher than report it is lower (Figure 1).
The overall RMI is an average of two indices: current markets conditions and future market indicators. In the third quarter of 2018, the current market conditions index rose one point to 58 (Figure 2). Among its components, major additions and alterations rose one point to 56, minor additions and alterations decreased one point to 57, and the home maintenance and repair component rose one point to 60.
The future market indicators remained unchanged from the previous quarter at 59 (Figure 3). Calls for bids rose two points to 57, amount of work committed for the next three months increased three points to 59, the backlog of remodeling jobs fell four points to 62 and appointments for proposals decreased two points to 59.
Counterbalancing market forces are keeping the RMI steady. A strong economy, coupled with low unemployment and easing lumber prices are being offset by rising interest rates and ongoing labor shortages.
For the full RMI tables, please visit www.nahb.org/rmi. For more information about remodeling, visit www.nahb.org/remodel.
I toured 9 homes on a “Remodel Tour” in Vancouver, WA. yesterday. (Across River from Portland)
My findings were that more and more people LOVE the area of their home and cannot find anything within the same area to “upgrade” to without going over their budget- so they started a small remodel job.
Then it goes from a new deck- to the floors… then fireplace replacement and what the hell- the Kitchen and Bathrooms! ($150,000 later)
I visited homes from $50K to $500K remodel jobs and every contractor told me they are months out with business and nothing seems to be decreasing in demand so as far as the NW goes- the trend matches the numbers perfectly.
On a side note- a majority of remodels are putting things in place for the mindset of getting older. I envision ever who creates affordable elevators/escalators will be able to take the industry by storm- a majority of buyers over 50 want one level today
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