Builders Say Mature-Housing Market Still Weak

Washington, DC, May 12, 2010--Builder confidence in the mature-housing market remained weak, according to 2010 first-quarter data from the National Association of Home Builders’ 55+ Housing Market Index.

“The 55+ segment of the market is still stalled in most regions,” said NAHB Chief Economist David Crowe.

“Since the builders’ potential buyers are having difficulty selling their existing property, they are unable to move to a more appropriate home.”

Noting that a large share of prospective buyers for active adult housing are still in the workforce, and expect to remain so, Crowe added that “many buyers and renters are concerned about their current job security, and may be holding off on any decision to move until the economy becomes more predictable.”

The two-point rise in the index was a result of a rise in the present sales component to 17, from last year’s first quarter level of 13 – possibly reflecting some increased activity fueled by the tax credit. But builder expectations for the next six months remained at 30, the same level reported by builders in the first quarter of 2009. Traffic of prospective buyers also remained at the same level – 18 – as the previous year’s first quarter.

Numbers over 50 indicates that more builders see conditions as good rather than poor.