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Builder Confidence in 55+ Homes Spikes in Q208-16-13 | News

Builder Confidence in 55+ Homes Spikes in Q2

Homebuilders are bullish on the 55+ housing sector, pushing the quarterly market confidence index from the National Association of Home Builders to its highest level since it began in 2008. Homeowners, lured back to the housing market by increasing prices, are looking to sell and move into more lifestyle-appropriate housing, which builders are anxious to provide.

Builder confidence in the 55+ housing market surged in the second quarter of 2013, according to the National Association of Home Builders' (NAHB) 55+ Housing Market Index (HMI), released August 13.

The index increased 24 points to a level of 53, the highest second-quarter number since the inception of the index in 2008 and the seventh consecutive quarter of year-over-year improvements.

"Builders and developers for the 55+ housing sector are feeling optimistic as they are seeing more consumers return to the marketplace," said Robert Karen, chairman of NAHB's 50+ Housing Council. "With existing home prices rising, consumers are able to sell their current homes and make the move toward either purchasing a home or renting an apartment that is designed to more specifically suit their lifestyle."

All of the components of the 55+ single-family HMI showed major growth from a year ago: present sales climbed 24 points to 54, expected sales for the next six months increased 25 points to 60, and traffic of prospective buyers rose 26 points to 48. An index number below 50 indicates that more builders view conditions as poor than good.