Let’s look at Sun City – one of the largest 55+ communities in the US, located east of Palm Springs with 5,000 condos.

• NET:
  • Prices increased across 2021 by 32%
    • 1QTR21 average $439K
    • 4QTR21 average $581K
  • Then held steady across 2022 at about $600K
    • Perhaps average getting soft, Nov-Dec ’22
• Effects from Fed raising interest rates?
  • Perhaps a slow developing change
  • Year prior to July 1, ’22 compared to July – Dec ’22
    • Condos sold/month down 50%
      • 31 homes to 22 homes
    • Average days on Market up 50%
      • 28 days to 45 days
  • Prices largely held steady until Nov/Dec ’22
• How do sales in this community differ from the norm?
  • 55+ Community, strong HOA
  • People purchasing not dependent on a job
  • Likely based on ability to sell prior home
  • Likely to pay cash rather than mortgage
  • Historically, more sales in snowbird season (winter) than in summer