Builder confidence up in the us

Photo: NCinDC

Builders are particularly confident in the 55+ segment, according to the NAHB report. All segments of the market — single-family homes, condominiums and multifamily rental — registered increases compared to the same quarter a year ago. The single-family index increased six points to a level of 54, which is the highest fourth-quarter reading since the inception of the index in 2008 and the 13th consecutive quarter of year-over-year improvements.

"Over the past several years we have seen demand for 55+ housing explode," says Timothy McCarthy, chairman of NAHB's 50+ Housing Council. "While this growth in sales is welcome, many builders are challenged to ramp up home production to fill new home orders."

The indices tracking production and demand of 55+ multifamily rentals posted record year over year readings in the fourth quarter. Present production rose five points to 48, expected future production increased five points to 51, current demand for existing units climbed 10 points to 64 and future demand jumped 11 points to 66.

"The strength of the 55+ segment of the housing industry has been fueled in part by rising home values," adds Sird NAHB Chief Economist David Crowe. "Older home owners are finding it easier to sell their existing homes at a favorable price, allowing them to rent or buy a new home in a 55+ community."

The findings follow figures that are equally upbeat about the rest of the US property market. Markets in 63 of the approximately 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the fourth quarter of 2014, according to the NAHB/First American Leading Markets Index (LMI).

"The markets are improving at a consistent pace," says NAHB Chairman Tom Woods,
a home builder from Blue Springs, Mo. "A growing economy and rising consumer confidence should help drive the release of pent-up demand in 2015."