New Home Market Thrives Among Older Buyers

According to a new survey of home builders, the market for single-family homes among buyers over the age of 55 is thriving. In fact, the index – which measures builders’ perceptions on a scale where any number above 50 indicates more builders feel conditions are good than poor – hit its highest second-quarter reading since the survey began in 2008. It marked the 11thconsecutive quarter of year-over-year gains. David Crowe, NAHB’s chief economist, said one of the factors contributing to the improvement is the slow but steady increase in sales of previously owned homes over the past three months. According to Crowe, the market for new homes among older buyers is dependent on those buyers being able to sell their existing homes at a good price. Homeowners over the age of 55 who are able to sell their current house are attracted to newly built homes because of the luxuries and amenities they offer. Also, the index showed a seven point increase in the component measuring present sales and a one point increase in sales expectations for the next six months.

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