Confidence in the remodeling market dropped three points in the first quarter of 2018 to a reading of 57, according to the National Association of Home Builders’ Remodeling Market Index.
The fall brings the confidence level back to the same level it held in the third quarter of 2017; any level
above 50 shows a healthy amount of market activity, according to the NAHB.
“An RMI reading over 50 shows that consumers still remain engaged in home improvement,” NAHB Remodelers Chair Joanne Theunissen said in a statement. “However, higher prices for labor and materials like lumber continue to cause delays in project starts and higher overall project costs.”
Compared with the fourth quarter of 2017, current market conditions decreased two points to 58, with major additions and alterations falling four points to 56 and minor additions and alterations increasing one point to 60. Home maintenance and repair dropped four points to 57, and the future market indicators index fell four points as well, to 55.
“This quarter’s dip may be related to unusually cold weather in many parts of the country,” said NAHB Chief Economist Robert Dietz in a statement. “But the forecast is for the remodeling market to grow in 2018.”
