According to the National Association of Home Builders (NAHB) the 55+ market for single family homes is growing! The most recent 55+ Housing Market Index has tripled in the past year, rising from a 12 to a 36. This is the highest third-quarter reading since 2008.
Many 55+ residents are seeking out new home communities that can fit the needs of their lifestyle. The NAHB lists three separate housing market indexes for single-family homes, condos and rental apartments, which highlights how the 55+ housing market is improving in many different ways. Condos currently remain the weakest segment of the 55+ housing market, while single-family homes are faring better.
Expected sales of 55+ single-family homes increased from 27 to 42 and prospective home buyer traffic increased from 20 to 33. The NAHB index works by measuring current sales, prospective home buyer traffic and anticipated six-month market sales. A number below 50 means that most builders view housing conditions as ‘poor’ rather than good. However, it is important to note that the current index numbers haven’t been matched since before the recession. The 55+ condo index currently stands at 23, but this is a great improvement from the previous index of 13.
NAHB Chief Economist David Crowe said that the NAHB expects the 55+ housing growth will continue well into 2013. While homebuyers still face a few obstacles, such as tight mortgage credits and a shortage of available lots in some areas, the recent high numbers prove that 55+ housing will continue to flourish.
If you’ve recently moved into a 55+ community, feel free to share your story in the comments section!