Builder
confidence in the 55+ housing market for single-family homes showed
strong continued improvement in the second quarter of 2013 compared to
the same period a year ago, according to the National Association of
Home Builders’ (NAHB) latest 55+ Housing Market Index (HMI) released
today.
The index increased 24 points to a level of 53, which is the
highest second-quarter number since the inception of the index in 2008
and the seventh consecutive quarter of year over year improvements.
“Builders and developers for the 55+ housing sector are feeling
optimistic as they are seeing more consumers return to the marketplace,”
says Robert Karen, chairman of NAHB’s 50+ Housing Council and managing
member of the Symphony Development Group. “With existing home prices
rising, consumers are able to sell their current homes and make the move
toward either purchasing a home or renting an apartment that is
designed to more specifically suit their lifestyle.”
There are separate 55+ HMIs for two segments of the 55+ housing
market: single-family homes and multifamily condominiums. Each 55+ HMI
measures builder sentiment based on a survey that asks if current sales,
prospective buyer traffic and anticipated six-month sales for that
market are good, fair or poor (high, average or low for traffic). An
index number below 50 indicates that more builders view conditions as
poor than good.
All of the components of the 55+ single-family HMI showed major
growth from a year ago: present sales climbed 24 points to 54, expected
sales for the next six months increased 25 points to 60 and traffic of
prospective buyers rose 26 points to 48.
The 55+ multifamily condo HMI posted a substantial gain of 24 points
to 43, which is the highest second-quarter reading since the inception
of the index. All 55+ multifamily condo HMI components increased
compared to a year ago as present sales rose 26 points to 44, expected
sales for the next six months climbed 26 points to 46 and traffic of
prospective buyers rose 19 points to 38.
The 55+ multifamily rental indices also showed strong gains in the
second quarter as present production increased 19 points to 50, expected
future production rose 20 points to 52, current demand for existing
units climbed 20 points to 62 and future demand increased 21 points to
63.
“The 55+ HMI for single-family homes almost doubled from a year ago,”
says NAHB Chief Economist David Crowe. “Sentiment in other segments of
the 55+ market housing was strong as well. This is consistent with the
increase in builder confidence we’ve seen in other NAHB surveys
recently. At this point, the main challenge for builders in many parts
of the country is finding enough buildable lots in desirable locations
and workers with the necessary skill set to respond to the increased
demand.”
For more information, visit www.nahb.org.
Reprinted with permission from RISMedia. ©2013. All rights reserved.