WASHINGTON – Feb. 6, 2014 – The fourth quarter National Association of Home Builders' (NAHB) 55+ Housing Market Index (HMI) finds that builders are optimistic about the market.
"Over the past several years we have seen demand for 55+ housing explode," says Timothy McCarthy, chairman of NAHB's 50+ Housing Council. "While this growth in sales is welcome, many builders are challenged to ramp up home production to fill new home orders."
On the other side of the equation, more older Americans are deciding to sell the family home they've lived in for decades, creating an opportunity for Realtors who specialize in this market.
The sale of a family home often comes with challenges of its own. Many of these adults, for example, are reluctant to move and at odds with adult offspring over when to put the house on the market, the list price and where they should live next. It's a financial and emotionally charged decision that sometimes involves a health issue, according to Donna Anderson, former president of the Charlotte Regional Realtor Association.
One in four 2012 home sellers was older than 65, according to the Seniors Real Estate Institute.
NAHB says that all components of its 55+ single-family HMI posted increases from a year ago: present sales increased five points to 58, expected sales for the next six months rose two points to 64 and traffic of prospective buyers increased six points to 39.
The 55+ multifamily condo HMI posted a five-point gain to a reading of 40, the highest fourth-quarter reading since the inception of the index. All components of the index increased for the fourth quarter: present sales rose five points to 42, expected sales for the next six months climbed five points to 45 and traffic of prospective buyers increased three points to 33.
The indices tracking production and demand of 55+ multifamily rentals posted record year over year readings in the fourth quarter. Present production rose five points to 48, expected future production increased five points to 51, current demand for existing units climbed 10 points to 64 and future demand jumped 11 points to 66.
"The strength of the 55+ segment of the housing industry has been fueled in part by rising home values," says NAHB Chief Economist David Crowe. "Older homeowners are finding it easier to sell their existing homes at a favorable price, allowing them to rent or buy a new home in a 55+ community."
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