Builder confidence in the housing market for those 55 years of age and older is slipping, highlighting a recent trend showing that Baby Boomers are staying put rather than downsizing.
According to the latest Housing Market Index from the National Association of Home Builders, sales of single-family homes to those over age 55 declined seven points to 60 in the third quarter.
But builders aren’t completely down on the market as a reading above 50 indicates that the sentiment is good, whereas a score below 50 means confidence is poor.
All three measurements of the single-family market for the 55-plus set saw a decline. Present sales dropped seven points, while expected sales for the next six months also fell 12 points and traffic for prospective buyers decreased four points.
NAHB’s 55+ Housing Industry Council Chairman Chuck Ellison said part of the problem is that some builders are having trouble producing homes in the budget for prospective buyers in this age bracket.
“In some places it is becoming a challenge for builders to provide housing at prices their customers can afford,” Ellison said,…