Builder Confidence Declines in the 55+ Housing Market
U.S. builder confidence in the 55+ housing market for single-family homes in Q1 2020 was down 30 points from Q4 2019 to 38, according to the National Association of Home Builders 55+ Housing Market Index (HMI). The multi-family condo market fell 29 points to a reading of 29 in the first quarter.
In the single-family home market, the 55+ HMI component gauging current sales conditions decreased 25 points to 48 in Q1, while the measurement of sales expectations in the next six months fell 41 points from Q4 to 34. The component measuring prospective buyer traffic dropped 33 points to 18 in the first quarter 2020.
The 55+ HMI multi-family component gauging current sales conditions declined 24 points from Q4 to 36, while the measurement of sales expectations in the next six months decreased 34 points to 27 in Q1. The component measuring prospective multi-family buyer traffic totaled 14, down 39 points from Q4.
Derived from a quarterly NAHB survey, the 55+ HMI gauges builder perceptions of current single-family and multi-family condo home sales and sales expectations in the over 55 market. Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good rather than poor. See NAHB