There’s been plenty of talk about the fact that there are fewer young Americans buying homes over the past few years. On the flip side, however, the market for new homes among buyers 55 and older has remained strong and continues to improve. In fact, the National Association of Home Builders 55+ Housing Market Index – which measures builders’ perceptions of the market among older buyers – has now seen seven consecutive quarters of positive readings. David Crowe, NAHB’s chief economist, says those gains will likely continue. “This quarter’s 55+ HMI is in line with our forecast for the overall housing market, which shows a gradual, steady recovery,” Crowe said. “In addition, the 55+ housing market is benefitting from growing home equity on the balance sheets of 55+ households, an improving economic outlook, historically low mortgage rates and a growing population as baby boomers age.” In other words, there are an increasing number of baby boomer households that have seen their current home’s value rise and are looking to capitalize on the equity they’ve gained by shopping for a new house that fits better with their needs and lifestyle. With affordability conditions still favorable across much of the country, builders expect to see many older buyers active in the market in the coming months. More here.
