Home buyers aged 55 and older are feeling more confident in the housing market, according to the latest National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI) report of second quarter data.
Compared to the second quarter of 2013, the single-family index increased three points to a level of 56, which is the highest second-quarter reading since the inception of the index in 2008 and the 11th consecutive quarter of year over year improvements. An index number below 50 indicates that more builders view conditions as poor than good.
“We have seen steady improvement in the 55 [plus] housing sector as buyers and renters are attracted to new homes that offer many of the luxuries and conveniences they desire,” said Steve Bomberger, chairman of NAHB’s 50+ Housing Council and president of Benchmark Builders Inc., in a news release. “55 [plus] buyers are very selective and have high expectations, and new construction can meet their needs and discerning tastes.”
Present sales climbed seven points to 61 and expected sales for the next six months rose one point to 61 among those 55 and older, according to the single-family HMI. Meanwhile, traffic of prospective buyers dropped six points to 42.
Present production of 55 plus multifamily rentals rose three points to 53, expected future production increased one point to 53, while current demand for existing units dropped three points to 59 and future demand fell two points to 61.
“One of the factors contributing to the positive signs in the 55 [plus] housing market is the slow but steady increase in existing home sales in the last three months,” said NAHB Chief Economist David Crowe. “The 55 [plus] market is strongly driven by consumers being able to sell their existing homes at a favorable price in order to buy or rent in a 55 [plus] community.”
Find access to the full report here.
Written by Cassandra Dowell