55+ Builder Confidence Improving

active adult housing marketAccording to the National Association of Home Builders‘ (NAHB) latest 55+ Housing Market Index (HMI), builder confidence rose in the second quarter of this year. The index has more than doubled since the same period last year, from 13 to 29, the highest second-quarter reading since NAHB began indexing builder confidence in the market.
The index measures 55+ builders’ opinions using a survey “that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic).”
A number below 50 means that builders responded that conditions are poor. The current 55+ measure, at 29, is poor, but is considerably higher than last year’s measure.
For single family homes, present sales more than doubled over last year, from 12 to 30, expected sales increased from 17 to 35 and prospective buyers increased from 13 to 22.
For condos, the index rose overall from 8 to 19; with present sales up from 10 to 18, expected sales up from 10 to 20 and prospective buyers up from 12 to 19.
Rentals in this sector have also improved and are holding steady.
Active adult households are increasing all across the country and are slowly returning to the market, seeking housing that specifically meets their needs. There is a pent up demand from these buyers, who are waiting to be able to sell their current homes at a reasonable price.
Is this national trend occurring here in Chicago real estate as well? Let us know what you’re seeing.