Mature Housing Builder Sentiment Falls in Q4

Washington, DC, Feb. 11, 2011 -- Home builder sentiment for the mature-market sector declined in the last quarter of 2010 when compared to the same period a year earlier, according to the National Association of Home Builders.

Its 55+ Housing Market Index for single-family homes dropped three points to 14 from a year ago following annual declines in the second and third quarters of 2010.

A number greater than 50 indicates that more builders view conditions as good than poor.

"The normal course of purchasing a new home in anticipation of or upon entering retirement has been interrupted by the fall in Baby Boomers' house values and reduction in their home equity," said NAHB chief economist David Crowe.

"Boomers are finding that the market for their current home remains soft and potential buyers cannot qualify for affordable mortgages. Even those with the ability to buy a new home are finding a limited selection, as builders cannot get loans to build homes."