NAHB 55+ Index Increase May Reflect Impact of First-Time Buyer Tax Credit And Selling Boomers

The National Association of Home Builders’ (NAHB) 55+ Single-Family Housing Market Index, based on a survey of builders who produce housing designed to meet the needs of mature consumers, released its third quarter data for 2009 that showed an increase of six points to a seasonally-adjusted level of 21.  The figure represent the highest level since the inception of the index.  The component gauging present sales conditions increased four points to 19, while the component gauging sales expectations for the next six months rose nine points to 32 and the component measuring traffic of prospective buyers increased seven points to 19.  The 55+ Market Index for multifamily condos, which is not seasonally adjusted, remained at is previous level of 13 but the future expectations index rose to 21, representing tentative optimism of multi-family and senior housing developers.

“As the home buyer tax credit stimulated sales among first-time buyers and stabilized home prices in many areas, older households were able to sell their existing homes, and pursue a home in a 55-plus community,” said David Crowe, NAHB’s chief economist. “The recent extension and expansion of the tax credit should extend the domino effect from first-time buyers and expand the effect by providing a credit to repeat buyers as well.”

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