Facing a downward-trending construction labor market and a slowly growing economy, builder sentiment for the 55+ single-family housing market took a break in the second 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 57, a one-point increase quarter-over-quarter and unchanged from the second quarter of 2015.
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 continue to report steady demand," said Jim Chapman, chairman of NAHB's 55+ Housing Industry Council, in a statement.
The three components of the 55+ single-family index paint a mixed picture for this quarter. Current sales conditions held firm at a reading of 61, a one-point decrease from a year earlier. Sales expected for next six months dropped from 71 to 69 in this quarter, still strong. The prospective buyer traffic component, which foreshadows how much people are interested in home buying, increased from the seven-month low of 38 to 42, but still remained in negative territory below the 50-point threshold.
“Much like the overall housing market, this quarter’s 55+ HMI results show that this segment continues its gradual, steady recovery,” said NAHB Chief Economist Robert Dietz. “A solid labor market, combined with historically low mortgage rates, are enabling 55+ consumers to be able to sell their homes at a favorable price and buy or rent a home in a 55+ community.”
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