Remodeler confidence stayed steady and positive in the second quarter, with the National Association of Home Builders Remodeling Market Index posting a reading of 61. The gauge slipped one point from the first quarter but has held in the low 60s for the past year, well above the break-even 50 mark that separates a market seen as good from one seen as poor.
The Current Conditions Index held at 70, with all three project-size categories in positive territory: large projects of $50,000 or more at 64, moderate projects at 73 and small projects under $20,000 at 74. The Future Indicators Index, which tracks leads and inquiries alongside project backlogs, eased two points to 52.
NAHB Remodelers Chair Elliott Pike said sentiment has been positive and stable over the past year, with rising costs, economic uncertainty and tight financing for larger projects the main headwinds. NAHB Chief Economist Robert Dietz pointed to rising homeowner equity and an aging housing stock as the forces driving remodeling demand despite affordability concerns. He noted that 74% of remodelers reported suppliers raising materials prices since March on higher fuel costs, with those increases averaging 6.7%.
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