The Current Conditions Index increased two points in the second quarter.
Remodeler confidence slipped in the second quarter, according to the latest National Association of Home Builders (NAHB)/Westlake Royal Remodeling Market Index (RMI).
The latest index fell two points to a reading of 68. But the NAHB says confidence remains in a good position despite the rising costs of home renovation projects.
“Remodeler sentiment remains positive even though the median price of a bath remodel has risen to $40,000 and the median price of a kitchen remodel to $75,000 as seen in NAHB’s latest survey,” said NAHB Chief Economist Robert Dietz. “The low inventory of homes on the market, aging housing stock, elevated work-from-home and growing equity owners have in their homes are continuing to support remodeling demand.”
The Current Conditions Index averaged 77, increasing two points compared to the previous quarter.
Two of the three components increased as well: the component measuring large remodeling projects ($50,000 or more) inched up one point to 72 and the component measuring small remodeling projects (under $20,000) rose by four points to 81. The component measuring moderately-sized remodeling projects (at least $20,000 but less than $50,000) decreased by one point to 77.
The Future Indicators Index fell four points to 60 compared to the previous quarter. The component measuring the current rate at which leads and inquiries are coming in remained even at 59, and the component measuring the backlog of remodeling jobs dropped eight points to 61.