Builder Confidence Rises for 55+ MarketMay 9th, 2014 by DWM Magazine
Builder confidence in the single-family 55+ housing market for the first quarter of 2014 is up year-over-year, according to the National Association of Home Builders’ (NAHB) latest 55+ Housing Market Index (HMI) released this week. 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 and the 10th consecutive quarter of year over year improvements.
There are separate 55+ HMIs for two segments of the 55+ housing market: single-family homes and multifamily condominiums. Each 55+ HMI 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.
Two of the components of the 55+ single-family HMI posted increases from a year ago: present sales rose six points to 52 and expected sales for the next six months climbed nine points to 62. Meanwhile, traffic of prospective buyers held steady at a reading of 41.
The 55+ multifamily condo HMI increased one point to 39, which is the highest first-quarter reading since the inception of the index. Two of the 55+ multifamily condo HMI components showed increases compared to a year ago: present sales increased four points to 41 and expected sales for the next six months rose five points to 48. Traffic of prospective buyers, however, decreased six points to 32.