WASHINGTON - The second quarter results of the Remodeling Market Index slipped under pressure from a softening labor market, according to the National Association of Home Builders, dropping two points to 45. The downward adjustment comes after the RMI reached 48 twice in 2011, the highest reading since 2006.
"Remodelers have some backlog of jobs and along with higher quality leads, this is making them cautiously optimistic about the near future," says NAHB Remodelers Chairman George "Geep" Moore Jr., GMB, CAPS, GMR and owner/president of Moore-Built Construction & Restoration in Elm Grove, La. "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."
In the South, the RMI rose by one point to 47, while in the West it was flat at 47. The RMI for the Northeast and Midwest regions fell by six points and four points, down to 42 and 46, respectively.