Expectations for 50+ Market Show Modest Rise
Builders of single-family housing for the active-adult home buyer market noted an increase in the traffic of prospective buyers during the first quarter of this year, according to the 55+ Housing Market Index (55+ HMI) released on June 4 by NAHB.
The overall index, however, dropped to 14, from 16 in the final quarter of 2008, driven down by a five-point decline in the sales component of the index to 12.
"A strong and growing number of retirees and empty-nest households are interested in either downsizing or moving to a more user-friendly home — especially if it's near their existing community," said NAHB Chief Economist David Crowe. "But the current market still presents significant obstacles to home owners who need to sell an existing home before buying a more appropriate one. That situation is holding many mature consumers back from moving."
Derived from quarterly surveys of builders and developers, the 55+ HMI gauges perceptions on current sales conditions, prospective buyer traffic and market expectations for the next six months. Reported on a scale of 0 to 100, a rating of 50 generally indicates that positive and negative responses are about equal.
Builders exhibited guarded optimism looking forward to the next six months, with that component of the index rising from 24 to 26 for single-family sales and from 17 to 20 for condominiums.
However, expectations for multifamily rentals in the coming six months fell from 37 to 35.
To see a chart of the latest index findings, click here.
"With the return of a more stable, healthier housing market, the pent-up demand for housing with the features and amenities that appeal to baby boomers will keep builders in this sector busy for years to come," noted Crowe.
For more information on 50+ resources available from NAHB, e-mail Ann Marie Moriarty, or call her at 800-368-5242 x8350.
Find Out What the 45+ Housing Market Wants
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To view or purchase this publication online, click here, or call 800-223-2665.