Builder Confidence Down in the 55+ Segment

Builder confidence in the 55+ single family market declined one point in Q3 compared to Q2 of this year, and five points compared to Q1, according to latest numbers from the National Association of Home Builders Housing Market Index.

Builder confidence in the 55+ multifamily rentals market is doing better than all other segments - up three points in Q3 versus Q2, and five points compared to Q1. Present demand for existing units in this sector was 40; NAHB says that a number of 50 and above represents more builders have positive outlooks than poor.

"The market remains weak given the many uncertainties people face in this economy. While potential buyers exist, they are hesitant to commit to buying a new home as they are concerned about selling their existing home at a fair price, due to low appraisals, an abundance of foreclosures and tighter mortgage lending criteria," says NAHB Chairman Bob Nielsen in the release.

Builder confidence in the 55+ single family market for the next six months dropped nine points since Q1, and three points since Q2. This prediction was the most drastic in the latest HMI numbers.

In October, NAHB reported that builder confidence in new single family sector rose four points - the largest one-month gain since April 2010.

How do you feel about the market you serve? Are you more optimistic, pessimistic, or the same?