Builder confidence continued to make huge strides in the second quarter of 2013 when compared to the same period a year ago, according to the National Association of Home Builders.
NAHB’s 55+ housing market is based on builder perceptions of new 55+ single-family home sales, both current and expected for the next six months, and traffic of prospective buyers.
"Builders and developers for the 55+ housing sector are feeling optimistic as they are seeing more consumers return to the marketplace," said Robert Karen, chairman of NAHB's 50+ Housing Council.
"With existing home prices rising, consumers are able to sell their current homes and make the move toward either purchasing a home or renting an apartment that is designed to more specifically suit their lifestyle,” he added.
All of the components of the 55+ single-family housing market index (HMI) reported major growth year-over-year in the second quarter, with present sales up 24 points to 54, expected sales for the next six months increased 25 points to 60 and traffic of prospective buyers rose 26 points to 48.
The 55+ multifamily rental indices also showed strong improvements year-over-year, with the overall gain of 24 points to 43, marking the highest second-quarter reading since the index began. All 55+ multifamily condo HMI components showed gains compared to the second quarter of 2012: present sales rose 26 points to 44, expected sales for the next six months jumped 26 points to 46 and traffic of prospective buyers increased 19 points to 38.
The rental indices reported gains as well in the second quarter, with present production up 19 points to 50, expected future production jumping 20 points to 52 and current demand for existing units rising 20 points to 62. Also, future demand increased 21 points to 63.
"The 55+ HMI for single-family homes almost doubled from a year ago," said NAHB Chief Economist David Crowe. "Sentiment in other segments of the 55+ market housing was strong as well. This is consistent with the increase in builder confidence we've seen in other NAHB surveys recently. At this point, the main challenge for builders in many parts of the country is finding enough buildable lots in desirable locations and workers with the necessary skill set to respond to the increased demand."