WASHINGTON --Housing construction for the 55+ market struck a sour note for the final quarter of 2010.
According to the National Association of Home Builders, its 55+ Housing Market Index for single-family homes dropped three points to 14 from a year ago following annual declines in the second and third quarters of 2010.
"The normal course of purchasing a new home in anticipation of or upon entering retirement has been interrupted by the fall in Baby Boomers' house values and reduction in their home equity," said NAHB Chief Economist David Crowe. "Boomers are finding that the market for their current home remains soft and potential buyers cannot qualify for affordable mortgages."
The 55+ multifamily condo HMI also showed continued weakness, with an index level of 8, down from 11 at the end of 2009. All three index components - current sales, expected sales and buyer traffic - declined during this period.
Read theNational Association of Home Builders' press release.
Posted by Rich Christianson
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