Builders are reporting strong gains in the 55+ single-family housing market in the third quarter of this year. According to the 55+ Single-Family HMI data released by the NAHB Thursday morning, home-builder confidence in the 55+ housing market stood at a score of 59, a two-point increase quarter-over-quarter, which marks a 10th straight month that the index is above 50.
Each quarter, the National Association of Home Builders (NAHB) gauges builder sentiment in the 55+ housing market based on how builders rate current sales conditions, future sales expectations, and prospective buyer traffic on a scale of 0 to 100. An index above 50 represents a positive outlook for the 55+ market.
“Builders and developers for the 55+ housing sector tell us that business is solid right now and they expect that trend to continue through the rest of the year,” said Jim Chapman, chairman of NAHB’s 55+ Housing Industry Council, in a statement.
Two of three components of the 55+ single-family index posted growth in this quarter. Current sales conditions rose two points to 63, and prospective buyer traffic rose five points to 47. Sales expected for next six months dropped from 69 to 65 in this quarter, still well above the 50 threshold.
“The 55+ housing market continues on a steady path toward recovery, much like the overall housing market,,” said NAHB Chief Economist Robert Dietz. “Older home owners are able to take advantage of low mortgage rates and rising home prices, enabling them to sell their current homes and buy or rent a home in a 55+ community.”
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