Builder confidence for the single-family 55 and up housing market hit a record high this past quarter. During the first quarter of 2020, builder confidence in this sector dramatically decreased to just below 40. Any number above 50 shows positive confidence. According to the National Association of Home Builders, confidence for this sector hit 83, up 18 points from the second quarter of 2020. The index questions home builders on current sales, prospective buyer traffic, and anticipated six-month sales to generate an overall confidence level. The index for the 55 plus housing market for multifamily condominiums also hit an all-time high.
A growing number of prospective homebuyers want to experience communities either virtually, by self-led appointments, or private appointments. Traffic remains strong, but the type of traffic is evolving through growing availability of digital options.
All three index components of the 55+ single-family HMI posted all-time highs in the third quarter: present sales increased 16 points to 88, expected sales for the next six months rose 20 points to 90 and traffic of prospective buyers jumped 23 points to 69.
The 55+ multifamily condo HMI increased 20 points to 67 in the third quarter (Figure 2). All three index components posted increases: present sales rose 20 points to 70, expected sales for the next six months increased 15 points to 67 and traffic of prospective buyers jumped 24 points to 63. The 55+ multifamily condo HMI, and its present sales and traffic of prospective buyers components reached all-time highs in the third quarter.