Builders More Confident in Market for 55+ Homes
Washington, DC, May 9, 2013 -- Builders are growing more confident in the market for single-family homes for the over-55 crowd but they still aren't thrilled with it.
The National Association of Home Builders said its index increased 19 points on a year over year basis to 46, which is the highest first-quarter number recorded since the inception of the index in 2008 and sixth consecutive quarter of year over year improvements.
"We are seeing an increase in consumer demand for homes and communities that are designed to address the specific needs of the mature homebuyer," said Robert Karen, chairman of NAHB's 50+ Housing Council and managing member of the Symphony Development Group.
The index 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. An index number below 50 indicates that more builders view conditions as poor than good.
All of the components of the index showed significant growth from a year ago but only one was over 50; expected sales for the next six months increased 21 points to 53.
The 55+ multifamily condo HMI posted a substantial gain of 23 points to 38, which is the highest first-quarter reading since the inception of the index.