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Jason Cortel's Blog

By Jason Cortel | Agent in Goodyear, AZ

Retirement Homes in Sun Cites are Falling

The volume of single-family homes sold in Sun City and Sun City West were the same in units sold in April 2010 and April 2011.  A new study reveled Tuesday, reports that the seller in both communities received less money.

In a report from the W.P. Carey School of Business at ASU reveled that 145 homes were sold in Sun City and 115 in Sun City West in both April of 2010 and 2011.

Sun City prices on sold homes fell to $117,000 and $150,000 in Sun City and Sun City West, respectively.  Last year the median prices were $130,000 and$185,000 in those communities.

There were 75 units sold in Sun City with a median price of $79,000 in April 2010, and 30 units in Sun City West that had a median price of $120,750. In 2011, 65 units were bought for $64,000 each in Sun City and the sellers of 30 condos/townhomes in Sun City West received a median price of $105,000.

The report also showed similar drop throughout the region.

The W.P. Carey School of Business report also reveled that foreclosures were declining Phoenix housing market for a second month in a row.

There has been a steady decline in volume of foreclosures as part of the existing home sales.  In January and February 43 percent of existing home sales were foreclosures, that number declined to just shy of 38 percent in March and April saw a drop to 36 percent.  These numbers are showing some stability returning to the market.

“The actual number of monthly foreclosures in the Phoenix area is still very high,” said Jay Butler, associate professor of real estate. “It’s like flying through a hurricane, and we may just be in the eye right now. There’s probably more of the storm to go through, and we could see another wave of foreclosures.”

In April, the Phoenix market saw a drop in foreclosures for exisiting-home sales by 400 units to 3,750.  Butler doesn’t expect to see clarity in the market’s direction until October or November for several reasons.

“Some homeowners have a lot of frustration built up, having used many of their resources like 401(k)s and other savings accounts to keep their homes; it’s unclear how much longer they can hold on,” says Butler. “Also, there are ongoing discussions about even stricter mortgage guidelines, inflationary concerns, changes in the secondary market and possible lowering of the Federal Housing Administration mortgage limit, which could strongly influence the market. It will take time for all of this to play out.”

Single-family foreclosures in April of this year in the West Valley ranged from 10 to 30 in Sun City West and Sun City, respectively, to 315 in Glendale, 195 in Peoria, 185 in Surprise and 65 in El Mirage.

Are you ready to start your search for homes for sale  in Sun City or Sun City West?  Visit my website’s Home Searchsection to search the MLS or contact me directly.

Source: “Home prices tumble in Sun Cities,” East Valley Tribune (May 11, 2011)


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