Data for the broad housing market continues to be lackluster and the National Association of Homebuilders 55+ Housing Market Index shows that the senior housing market continues to follow similar trends. The third quarter results for 2010 showed continued declines from 2009 levels across most areas. The association’s index came in five points lower than Q3 2009 based upon current sales at 15. Present sales dropped four points to 15, expected sales during the next six months dropped six points to 24 and traffic of prospective buyers fell seven points to 11. A score of 50 or higher indicates builders are viewing the environment as good versus poor. The only positive readings were in the multifamily rental area that showed present demand and expected demand rising slightly to 28 and 32 respectively.
"While we have anecdotal information that some local 55+ markets are beginning to rebound, the third-quarter data show that national conditions for this sector have not yet turned the corner," said NAHB’s Chief Economist, David Crowe. "Real improvement won’t happen until we have better employment numbers, and consumers who are more confident of keeping their jobs. Those consumers will buy the homes of the 55+ age cohort, so that the mature buyers will be able to move to more appropriate housing."
