The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 57 in the first quarter of 2015, off slightly from the historically high level of 60 in the last quarter of 2014, but 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 RMI was 54 in the Midwest.
“Remodelers remain positive about the gradual pace of market improvement, but that confidence was tempered by a severe winter and continued labor shortages,” said NAHB Remodelers Chair Robert Criner. “Clients continued to call for consultations for home remodeling jobs at the beginning of 2015.”
NAHB states that small renovation jobs continue 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.