Expected sales for the next six months rose by 9 points (year-over-year) to reach 62.
Chicago, IL (PRWEB) May 09, 2014
The National Association of Home Builders released their 55+ Housing Market Index on Friday, May 9th, and CF Funding is pleased to share that the Q1 2014 rating is now at its highest level since 2008. The 55+ HMI has now improved for 10 consecutive months year-over-year. According to Steve Bomberger, chairman of the 50+ NAHB Housing Council, “Rising house prices and low interest rates are helping baby boomers sell their existing homes at a favorable price and in turn, purchase a new home more suited to their current lifestyles.” As CF Funding has mentioned previously on their blog, rising equity and low rates have also allowed many 55+ homeowners to buy second homes or remodel.
The Housing Market Index measures builder sentiment in regards to current sales, prospective buyer traffic, and anticipated six-month sales for both the single-family home market and multifamily condominiums. The results are measured on a scale of 1-100, so a result above 50 means more builders than not view conditions as “good” or traffic as “high.” This quarter, present sales rose 6 points (year-over-year) to reach 52. Expected sales for the next six months rose by 9 points (year-over-year) to reach 62. Traffic of prospective buyers remained the same from the previous quarter and year-over-year at 41.
The multifamily condo HMI rose one point to reach 39, which is the highest first-quarter reading in the 55+ HMI’s history. In Q4 2008 the multifamily condo HMI was as low as 12, and the all-time low was reached in Q2 2010 at a score of 7. Present Sales in multifamily condos saw a year-over-year increase of 4, and sales expected in the next 6 months saw a year-over-year increase of 5. Unfortunately, traffic of prospective buyers decreased year-over-year by -6, however, this quarter held steady with Q4 2013’s score of 32.
Multifamily rental indices saw a slight decrease in present production to reach 42 this quarter. Future demand increased one point to reach 59. CF Funding agrees with NAHB Chief Economist David Crowe’s statement that “The 55+ segment of the housing market is stronger now than it was a year ago… but there are still some headwinds hampering a stronger recovery.” Crowe also stated in a press release that “builders in many markets are facing tight credit conditions and lack of lots and labor.” CF Funding would like to remind those who are looking to refinance or remodel that credit guidelines have changed and those who were previously not eligible may qualify for a new mortgage or construction loan. Contact the lender today at (888)344-4080 for more information.