In the single-family 55+ housing market, builder confidence remains positive for the second quarter of 2015 with a reading of 57, according to the National Association of Home Builders' (NAHB) 55+ Housing Market Index (HMI).
“Although builder confidence in the 55+ housing sector is down slightly from its peak, builders are still optimistic about the market going forward,” said Timothy McCarthy, chairman of NAHB's 55+ Housing Industry Council and managing partner of Traditions of America in Radnor, Pennsylvania. “According to our survey, one area in particular that’s improved recently is the condo market, and we expect this momentum to continue.”
According to the NAHB, despite a one-point drop in the previous quarter, this marks the fifth consecutive quarter that the index has been above 50.
“Overall, builders in the 55+ housing sector remain positive about the market,” said David Crowe, NAHB's chief economist. “However, many builders are being cautious as lot availability and skilled labor shortages remain a challenge in some parts of the country."
Builder confidence in the market for newly built, single-family homes in July reached new heights not seen since November 2005. According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released in July, builder confidence hit a level of 60 in July, while the June reading was upwardly revised one point to 60.
“The fact that builder confidence has returned to levels not seen since 2005 shows that housing continues to improve at a steady pace,” said Tom Woods, NAHB chairman and a home builder from Blue Springs, Missouri. “As we head into the second half of 2015, we should expect a continued recovery of the housing market.”
David Crowe, NAHB's chief economist believes more buyers are serious about purchasing, even though they are weighing their options and taking more time to buy.
"Builders report more serious buyers are visiting models and discussing prices and features," Crowe said. "While buyers are taking more time to decide to buy, more of them are finally making those decisions. However, builders remain concerned about their access to lots and labor. Ready-to-build lot supply continues to be the biggest concern among builders as the cheaper lot supply left from the bust is about exhausted, the pipeline of new developments was interrupted by very limited access to capital from regional and community banks and competition for the available lots has intensified.”