Builders Lose Confidence in Senior Housing Market

Washington, DC, Aug. 13, 2010--Builder confidence in the mature-housing market retreated during this year's second quarter, according to new data from the National Association of Home Builders' 55+ Housing Market Index.

"The same factors that affect activity in the overall housing market - including hesitant home buyers, tight consumer credit, and continuing competition from foreclosed and distressed properties - are having an impact on the 55+ segment of the market, which remains stalled in most regions," says NAHB's Chief Economist David Crowe.

"In spite of the recent flurry of home-buying activity tied to the home buyer tax credit, many older homeowners continue to have difficulty selling their existing homes, causing them to postpone plans to look for a home that offers reduced maintenance or is otherwise more appropriately designed to accommodate their current lifestyles."

A number greater than 50 indicates that more builders view conditions as good than poor. In the second quarter the index slipped four points compared to the same period a year earlier, to 12.  Present sales fell to 12, down four points; expected sales to 17, down seven points, and traffic to 12, down two points.

The 55+ multifamily condo index continued to record the lowest values, with a drop of five points over the previous year's second quarter, to a record low value of seven.