The National Association of Home Builders (NAHB) released the NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter recently. The report shows a 65, a decline of three points from the second quarter.

 

The survey polls remodelers that rate five stats as good, fair, or poor to determine the remodeling market's standing. Questions are measured on a scale from 0 to 100 as an index above 50 shows conditions higher.

The Current Conditions Index, meanwhile, takes an average of large remodeling projects, moderately sized, and small projects. The Future Indicators Index is an average of two components: the current rate of leads and inquiries and the backlog of remodeling. The overall RMI is calculated by the average and any number over 50 shows that more remodelers view remodeling market conditions as good. Currently, the Current Condition Index averaged 72, a five-point drop from the prior quarter.

"While there is still demand for remodeling, we are seeing some customers pull back a bit, especially for larger projects, due to higher prices and increased interest rates," said NAHB Remodelers Chair Alan Archuleta, a remodeler from Morristown, N.J.