Builder Confidence in 55+ Market Reaches Record High in Q1

The ""National Association of Home Builders'"":http://www.nahb.org/default.aspx (NAHB) 55+ single-family Housing Market Index (HMI) jumped year-over-year for the sixth consecutive quarter in Q1, the association reported.

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As of the end of March, the index rested at 46, 19 points above the same period last year and the highest first-quarter number recorded since the inception of the index in 2008.

""Builders and developers for the 55+ housing sector continue to report increased optimism in the market,"" said Robert Karen, chairman of NAHB's 50+ Housing Council and managing member of the Symphony Development Group. ""We are seeing an increase in consumer demand for homes and communities that are designed to address the specific needs of the mature homebuyer.""

There are two separate 55+ HMIs to represent two segments of the market: single-family homes and multifamily condominiums. Each index measures builder [COLUMN_BREAK]

sentiment based on a survey gauging current sales, prospective buyer traffic, and anticipated six-month sales. A number below 50 indicates more builders view conditions as ""poor"" than ""good.""

According to NAHB, all of the components of the 55+ single-family HMI showed significant growth on a yearly basis. Present sales climbed 19 points to 46, expected sales increased 21 points to 53, and traffic of prospective buyers rose 15 points to 41.

The 55+ multifamily condo HMI posted a gain of 23 points to rest at 38, the highest first-quarter reading since the index was created. All 55+ multifamily condo HMI components increased compared to a y ear ago: The present sales component was up 23 points to 37, expected sales climbed 23 points to 43, and prospective buyer traffic rose 23 points to 38.

In addition, the 55+ multifamily rental indices showed strong gains in the first quarter. Present production increased 12 points to 43, expected future production rose 13 points to 48, current demand for existing units rose 14 points to 56, and future demand increased 13 points to 58.

""The strong year over year increase in confidence reported by builders for the 55+ market is consistent with year over year increases in other segments of the home building industry,"" said NAHB chief economist David Crowe. ""While demand for new 55+ housing has improved due to a reduced inventory of homes on the market and low interest rates, builders' ability to respond to the demand is being limited by a shortage of labor with basic construction skills and rising prices for some building materials.""