Welcome!




Expand Your Education with These Courses from
Effective Presentation Skills for Sales Professionals: Skills for Sales Success: Part Five.
Customer Relationship Building: Skills for Sales Success: Part Seven.
Expand your education through NAR's REALTOR® University: A Consumer Advocate Approach to Mortgages: Course 2.
Bundle 2: CIPS Elective Courses (US Version).
Bundle 3: CIPS Institute (US Version).

55+ Housing Market Ends 2010 in Slump

Have a comment on this article? Share on Facebook!

RISMEDIA, February 15, 2011—Home builder sentiment for the mature-market sector retreated in the last quarter of 2010 when compared to the same period a year earlier. The National Association of Home Builders’ 55+ Housing Market Index for single-family homes dropped three points to 14 from a year ago following annual declines in the second and third quarters of 2010.

“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.”

The 55+ single-family HMI measures builder sentiment based on current sales, prospective buyer traffic and anticipated six-month sales for the 55+ single-family market. A number greater than 50 indicates that more builders view conditions as good than poor. Among the index components, present sales dropped four points, to 13. Expected sales (six months into the future) dropped five points, to 24. And traffic of prospective buyers fell two points, to 10.

The 55+ multifamily condo HMI also showed continued weakness, with an index level of 8, down from 11 at the end of 2009. All three index components—current sales, expected sales and buyer traffic—declined during this period.

While the present production index for multifamily rental units rose only one point, to 17, the index of expected production for those units in the next six months jumped five points, up to 23, indicating respondents see some strengthening in the months ahead for the construction of apartments. Current and expected demand for multifamily rental units each rose by 2 points, reaching 28 and 32, respectively.

For more information, visit www.nahb.org.

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com

Our Latest News >>