More sellers are cashing-in equity and buying 55+ properties
Current economic and housing market conditions are fuelling a rise in confidence in the market for the 55+ housing sector.
Builders are feeling positive about current demand and the outlook especially for single-family homes in the sector.
The National Association of Home Builders 55+ Housing Market Index posted a reading of 67 in the second quarter, up 1 point from the previous quarter.
“Builders and developers continue to see demand from consumers for homes in the 55+ housing sector,” said Chuck Ellison, chairman of NAHB's 55+ Housing Industry Council and Vice President-Land of Miller & Smith in McLean, Va. “However, increases in building material costs have made it challenging to meet this demand.”
Current sales, buyer traffic, and the 6-month outlook were all higher for single-family 55+ homes compared to the previous quarter but for condos, the index dropped back but remains the second highest reading since the index began 10 years ago.
“Strong economic growth and rising home owner wealth are allowing consumers to sell their current homes and buy or rent homes in 55+ communities,” said NAHB Chief Economist Robert Dietz. “However, builders need to manage rising building material costs, especially for lumber, in order to continue providing housing at competitive prices.”
