The NAHB’s 55+ Housing Marktet Index finished up the quarter with a reading of 56. That’s a five-point drop from the previous quarter, but it does make the eighth consecutive quarter with a reading above 50.
“Although builder sentiment in the 55+ housing sector is down slightly from its peak, overall confidence is still in positive territory,” said Jim Chapman, chairman of NAHB's 55+ Housing Industry Council. “Builders for the 55+ market are doing quite well in some areas across the country, while others are experiencing challenges that are hindering production.”
There are two HMIs for the two segments of the 55+ housing market: multifamily condos and single-family homes. Each 55+ HMI surveys builders about current sales, prospective buyer traffic and anticipated six-months sales to determine builder sentiment, according to the NAHB. An index reading above 50 indicates that most builders view conditions as good.
Two out of three components of the 55+ single-family HMI dropped in the first quarter. Current ales fell four points to 61, and prospective buyer traffic dropped 14 points to 38. However, projected six-month sales spiked eight points to 71, the highest reading since the index began in 2008.
The 55+ multifamily condo HMI, meanwhile, remained in negative territory. However, it did rise six points to 48, with all three components showing increases.
Builder confidence in the single-family 55+ housing market dipped in the first quarter, but remains in positive territory, according to the National Association of Home Builders.