The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) dropped 4 points to 53 from the previous quarter, but remained above the breakeven point of 50, which indicates that more remodelers report activity is higher (compared to the prior quarter) than report activity is lower. Although the RMI declined, it is consistent with levels seen in the first half of 2016.
The overall RMI is an average of two main sub-indices, one that tracks current market conditions and another tracking future market conditions. In the fourth quarter, the current market conditions index dropped 3 points to 53, but is still consistent with readings from earlier this year (Figure 2 to the right).
Among its components, major additions and alterations dropped one point to 53, demand for smaller remodeling projects decreased four points to 52, and the home maintenance and repair component declined by five points to 54.
For more information from the National Association of Home Builders, click here.