The market looks good for remodelers following the first quarter of 2015.

RMI
The NAHB’s RMI peaked at 60 in the fourth quarter of 2014.

The newest National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 57. Though off slightly from the historically high level of 60 in the last quarter of 2014, the number is above the key break-even point of 50.

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. The rating was 59 in the Northeast, 54 in the Midwest, 56 in the South and 62 in the West.

“Like the rest of the home building industry, remodelers are facing the pressure of increasing costs for labor and materials, but an RMI above 50 indicates that they still feel positive about the market on balance,” says NAHB chief economist David Crowe. “The strength of the RMI’s maintenance and repair component was likely due in part to the harsh weather conditions that struck many parts of the country during the first quarter and necessitated repairs.”

Small renovation jobs continued to show strength. The home maintenance and repair component of the RMI increased four points to 64 in the first quarter, the highest reading on record. Overall, the current market conditions of the RMI declined two points to 58 this quarter.

The RMI’s future market conditions index fell to 55 from 60 in the previous quarter. All four of its subcomponents—calls for bids, amount of work committed for the next three months, backlog of jobs and appointments for proposals—decreased slightly from the previous quarter’s reading.

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