In the housing market for single families 55 and older, builder confidence is continuing to stay positive and has even increase one point, when compared to the previous quarter.
This is the ninth consecutive quarter with a reading above 50, according to the National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI). The reading from the second quarter is 57, compared to 56 in the last quarter.
“Builders and developers for the 55+ housing sector continue to report steady demand,” Jim Chapman, chairman of NAHB’s 55+ Housing Industry Council and president of Jim Chapman Homes LLC in Atlanta, said in a press release. “However, there are many places around the country facing labor and lot shortages, which are hindering production.”
There are three index components of the 55+ single-family HMI that are taken into account: traffic of prospective buyers, present sales and expected sales.
This quarter, traffic of prospective buyers increase four points to 42. Meanwhile, present sales saw no change at 62 and expected sales for the next six months dropped by two points to 69, according to the HMI.
The other segment for the 55+ housing market that was evaluated was multifamily condominiums, which fell by one point to 47. Expected sales for the next six months, however, increased three points to 54. Present sales stayed at 49 and traffic of prospective buyers fell seven points to 38.
Current and future demands for existing multifamily rentals fell one point from 68 to 67 and the present production fell by nine points to 51— from a record high reading in the previous quarter, according to the HMI. Expected future production rose three points to 56 for the multifamily rentals category.
“Much like the overall housing market, this quarter’s 55+ HMI results show that this segment continues its gradual, steady recover,” Robert Dietz, NAHB’s chief economist said in a press release. “A solid labor market, combined with historically low mortgage rates, are enabling 55+ consumers to be able to sell their homes at a favorable price and buy or rent a home in a 55+ community.”
Written by Alana Stramowski