The National Association of Home Builders released its year end 2010 data that shows the 55+ Housing Market Index for single-family homes dropping three points to 14 from a year ago following declines in the second and third quarters of 2010. Index numbers over 50 represent a more positive view by builders while index numbers below represent a negative sentiment. The most optimistic sign of hope for the 55+ market came from the expected production of multifamily rental units that saw an increase of five points to 23 in comparison to 2009. Some of the other key figures in the data show:
- Present sales dropped four points to 13
- Expected sales (six months into the future) dropped five points to 24
- Traffic of prospective buyers fell two points, to 10.
- 55+ multifamily condo HMI had a value of 8, down from 11 at the end of 2009
- Current demand for multifamily rental units rose 2 points to 28
- Expected demand for multifamily rental units rose to 32, an increase of 2 point compared to 2009
"The normal course of purchasing a new home in anticipation of or upon entering retirement has been interrupted by the fall in Baby Boomers’ house values and reduction in their home equity," said NAHB Chief Economist David Crowe. "Boomers are finding that the market for their current home remains soft and potential buyers cannot qualify for affordable mortgages. Even those with the ability to buy a new home are finding a limited selection, as builders cannot get loans to build homes."
Visit the 55+ HMI tables for more detail.