The National Association of Home Builders' Remodeling Market Index (RMI) edged down 2 points to 45 in the second quarter of 2012. The adjustment comes after the RMI reached 48 twice in 2011 - its highest reading since 2006.
The RMI is based on a quarterly survey of NAHB remodelers that asks them to rate current remodeling activity along with indicators of future activity. An RMI under 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher.
The RMI component measuring current market conditions dropped from 49 in the first quarter of 2012 to 46 in the second quarter of 2012.
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 "Geep" Moore Jr., GMB, CAPS, GMR and owner/president of Moore-Built Construction & Restoration Inc. 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."