Each quarter since its inception in 2008, the National Association of Home Builders’ (NAHB’s) 55+ Housing Market Index (HMI) is used to measure builder confidence in the housing market for those age 55 and older. The 55+ single-family HMI measures builder sentiment based on a survey that asks respondents to evaluate market conditions as good, fair, or poor in a variety of areas: current sales, prospective buyer traffic, and anticipated six-month sales. An index value below 50 indicates that more builders view conditions as poor than good. While all index components of the HMI remain below 50, they increased considerably from a year ago and the increase reflects the fifth consecutive quarter of year-over-year improvements.
The HMI increase may bode well for those who have been waiting for market conditions to improve in order to find a more suitable home for their 55+ lifestyle. Per NAHB Chief Economist David Crowe, “Those customers who had been on the sidelines waiting for more stability in their local markets are starting to make their move toward either purchasing a home or renting an apartment that is designed to more specifically suit their lifestyle.”
National Association of Home Builders. Builder confidence in the 55+ housing market ends year on a positive note. http://www.nahb.org/news_details.aspx?sectionID=1843&newsID=15784.