Remodeling Market Index Down in Second Quarter

Washington, DC, July 27, 2012 -- The National Association of Home Builders' Remodeling Market Index declined in the second quarter due to a softening labor market.

NAHB said its index dropped two points to 45. The downward adjustment comes after the RMI reached 48 twice in 2011, the highest reading since 2006.

A reading below 50 indicates that more remodelers report market activity is lower compared to the prior quarter than report it is higher.

In the second quarter, the RMI component measuring current market conditions dropped to 46 from 49.

The RMI component measuring future indicators of remodeling business remained unchanged at 44.

"Remodelers have some backlog of jobs and along with higher quality leads, this is making them cautiously optimistic about the near future," said NAHB Remodelers Chairman George Moore Jr.

"The positive outlook is constrained by continuing credit constraints and inaccurate appraisals that make customer financing difficult for big jobs like additions and whole house remodels."