19 May Single-Family 55+ Housing Market is Back On the Rise
According to the NAHBs latest 55+ Housing Market Index and eyeonbuilding.org, builder confidence in the single-family 55+ housing market for the first quarter of 2014 is at its highest. Compared to the first quarter of 2013, the single-family index increased 4 points to a level of 50, which is the highest first-quarter reading since the inception of the index in 2008.
The largest factor contributing to this positive sign is higher house prices and low interest rates, which help baby boomers sell their existing homes at a favorable price and in turn, purchase a new home more suited to the current lifestyle.
The 55+ HMI segments include single family homes and multifamily condominiums.
Each 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.
Present sales of the 55+ single family HMI rose six points to 52 and expected sales for the next six months climbed nine points to 62. The 55+ multifamily condo HMI increased one point to 39, which is the highest first-quarter reading since the inception of the index.
Eye On Building also reports that current demand for existing units dropped one point to 55; however, future demand showed an increase of one point to 59