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Builders Serving Mature Home Buyer Market See More Consumer Interest

Sales Still Low; Future Expectations Higher, But Modest reports the NAHB.

June 2009 - The National Association of Home Builders (NAHB) has released new information about the growing mature home buyer market. Builders of single-family housing for this demographic sector reported an increase in traffic as prospective buyers searched for smaller, more easily managed homes that are energy efficient and have all of the latest easy living amenities.

"A strong and growing number of retirees and empty-nest households are interested in either downsizing or moving to a more user-friendly home," stated David Crowe, NAHB's chief economist. These buyers are not interested in moving out of their locale but rather they want to stay near their existing community.

The data was gathered during the first quarter of this year and was used to compile NAHB's current 55+ Housing Market Index (55+ HMI).

The component of the Index measuring traffic rose to 14, up from nine in the last quarter representing a 55% increase in consumers actively looking at properties. The reported sales component, however, dropped five index points to 12 from the previous quarter's 17. The drop in the reported sales component pushed the overall 55+ HMI down from 16 to 14.

The 55+ HMI is a diffusion index, derived from quarterly surveys of builders and developers designed to study builder sentiment on single-family housing and both multifamily condo and rental conditions. The survey asks builders to rank their perceptions of the current sales conditions, prospective buyer traffic, and market expectations for the next six months as "good," "fair," or "poor."

Despite difficult market conditions, builders who specialize in this sector are seeing more prospective buyers coming through their doors according to the survey. Builders exhibited guarded optimism as they look forward six months.

Economist Crowe explained that "the current market still presents significant obstacles to homeowners who need to sell an existing home before buying a more appropriate one. That situation is holding many mature consumers back from moving."

"With the return of a more stable, healthier housing market, the pent-up demand for housing with the features and amenities that appeal to Baby Boomers will keep builders in this sector busy for years to come," noted Crowe.

Link: Mature Home Market
Posted by Customer Service on June 12th, 2009 9:11 AMPost a Comment (0)
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