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Daily News

Builders See More Interest from Mature Home Buyers
Jun 11, 2009
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U.S. builders of single-family housing for the mature home buyer market reported increases traffic from prospective buyers in the first quarter of this year. The 55+ Housing Market Index (55+ HMI), from the National Association of Home Builders (NAHB), reports that the component measuring traffic rose to 14, up from nine in the last quarter. The sales component, however, dropped five index points to 12 from the previous quarter’s 17. The drop in the reported sales component pushed the overall 55+ HMI down from 16 to 14.

The 55+ HMI is a diffusion index, derived from quarterly surveys of builders and developers designed to study builder sentiment on single-family housing and both multifamily condo and rental conditions.

Despite difficult market conditions, builders who specialize in this sector are seeing more prospective buyers coming through their doors according to the survey. Builders exhibited guarded optimism as they look forward six months, with the six-month expectation index number rising from 24 to 26 for single-family sales, and the condo sales index number rising from 17 to 20. Expectations for multifamily rental starts fell from 37 to 35.

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