Builder confidence in the single-family 55-plus housing market remained strong in the fourth quarter of 2015, with a reading of 61, up one point from the previous quarter. An index number above 50 indicates that more builders view conditions as good than poor.
This is the seventh consecutive month with a reading above 50, according to the report.
“Builders and developers for the 55-plus housing sector continue to report increased optimism in the market,” NAHB 55-plus Housing Industry Council Chairman Jim Chapman said, in the press release. “We are seeing steady consumer demand for homes and communities that are designed to address the specific needs of the mature homebuyer.”
One of the three index components of the 55-plus single-family home market index (HMI) posted an increase from the previous quarter, as traffic of prospective buyers increased six points to 52. Present sales held steady at 65 while expected sales for the next six months decreased four points to 63.
The 55-plus multifamily condo HMI dropped eight points to 42, falling back to a range typical of the past year-and-a-half. All three components decreased as well: present sales fell 10 points to 44, expected sales for the next six months fell 10 points to 46 and traffic of prospective buyers edged down three points to 37.
“This quarter’s 55-plus HMI is in line with our forecast for the overall housing market, which shows a gradual, steady recovery,” NAHB Chief Economist David Crowe said. “In addition, the 55+ housing market is benefitting from growing home equity on the balance sheets of 55+ households, an improving economic outlook, historically low mortgage rates and a growing population as baby boomers age."