For the eighth consecutive quarter, the 55+ single-family HMI stayed above 50 (the breakeven point). As the National Association of Home Builder’s reports, in the first quarter of 2016 confidence in the single-family 55+ housing market settled in at 56. Despite a drop of five points, more builders still view conditions as good rather than poor.
There is a 55+ HMI for both single-family and multifamily condominiums and the scores are based on a survey that asks builders if current sales, prospective buyer traffic, and anticipated six-month sales for their respective market are good, fair, or poor.
Of the three subcomponents for the 55+ single-family HMI, two decreased from the previous quarter. Present sales fell four points to 61 and traffic of prospective buyers decreased by 14 points to 38. The expected sales did see an eight point jump, to 71, however, which is the highest since the index first started in 2008.
On the multifamily condominium side of things, the HMI increased six points to 48 with all of its subcomponents increasing, as well. Present sales increased five points to 49, expected sales rose five points to 51, and traffic of prospective buyers experienced the largest increase of eight points to 45.
Despite the overall positive conditions for the 55+ housing market, builders are still facing the familiar problems of labor shortages and lot availability.
To read the full report and to view accompanying graphs and charts, follow the link below.