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.