As with much of the rest of the industry, sentiment is on the decline for home builders that service the retiree housing market, a new survey indicates.
The National Association of Home Builders' Housing Market Index fell three points in November to 12 on a scale of 100. Any score lower than 50 indicates builders are more pessimistic than optimistic about the state of the market.
Bob Nielsen, chairman of the NAHB, said that while there are buyers in the market, many of them are hesitant to buy because of the frequent foreclosures that have been taking place and tighter mortgage lending standards.
Something that can make the approval process more difficult for borrowers is if they have discrepancies on their credit reports. Improper credit reporting can make credit scores appear lower, making the mortgage approval process more difficult.
Meanwhile, builders have found obtaining credit to finance new construction difficult as well, according to David Crowe, NAHB's chief economist. As a result, Crowe predicts that there may be a shortage of multifamily rental units.