Arizona & Florida Snowbirds Can Expect Great Deals at Avatar Properties' Active Adult Communities
February 09 2012 - 2:50PM
Shortly after the new year, as the weather in northern climates
gets blustery… at least in most years, an annual migration gets
into full swing. Snowbirds begin to head south. Avatar Properties™,
an active adult community builder in the Sunbelt, says these
migrating snowbirds will find some pleasant surprises when it comes
to home prices.
Consider this fact. In two of the most popular snowbird
locations, Florida and Arizona, more than 1 million snowbirds are
now looking for places to roost for the winter (800,000 in Florida;
300,000 in Arizona). Among home builders, conventional wisdom holds
that a great many of these snowbirds will spend the season
searching for the perfect active adult community to call home – for
many, on a permanent basis.
For those on just such a search, there is some very good news at
hand. Home prices in both Arizona and Florida are now at levels not
seen since 2000. In Phoenix, the median home price at the end of
2011 stood at $122,000 according to the NAHB/Wells Fargo Housing
Opportunity Index; in places like Orlando, the median price
bottomed at $108,000 in early 2011 from a high of $248,000 in early
2007. After years of escalating home prices made these traditional
retirement havens less attractive destinations for the 55+ set, the
housing downturn has ushered in the return of affordability.
New York native Bruce Menzies survived two attacks on the World
Trade Center during his nearly 35-year career with the Port
Authority of New York and New Jersey. "When I retired in 2010 there
was no question I was going to find a way to live my dream of
having a place in Florida. My parents talked about it but never
made the move, and I wasn't going to let that happen," said
Menzies. He and his partner purchased a 2,300 square foot home in
Solivita™, www.solivita.com, an active adult community near
Orlando. The home was a great value, including dual master suites
and a space for a golf cart in the garage.
There's no doubt among the experts that the recession and nearly
five years of declining home sales and prices have kept many
snowbirds sitting on their nests. For perspective, consider the
fact that between 1990 and 2000, Florida and Arizona together
attracted an average 53,000 new residents age 60+ annually (40,000
Florida; 13,000 Arizona). Between 2009 and 2010 a total of just
23,000 people of all ages moved to Florida! But Stan Smith
of the University of Florida's Bureau of Economic and Business
Research is already predicting the return of those higher numbers
in just a few years.
Carl Mulac, President of Avatar Properties which is building
Solivita, knows why Smith is optimistic. "Home values across
Florida are now at levels last seen more than ten years ago in most
major markets. Florida real estate prices dropped hard, but that in
turn has created an exceptional buying opportunity," he said. At
Solivita for instance, new single family homes start at less than
$130,000. Mulac says that same kind of affordability can be found
around Phoenix, where Avatar is building another 55+ community,
CantaMia™ www.cantamia.com. In 2000, the median Phoenix resale home
price was $132,000 – today it's $125,000, with signs of
stabilization in the market. That affordability, combined with
energy savings features on selected new homes is attractive,
especially for part-time residents.
"We had been searching for four years for a warm weather winter
home and when we got to CantaMia we knew we had found the right
place for us. We love the heated pools, the spectacular setting,
and the photovoltaic solar that helps keep the energy bills low"
said Brent Kirkby, a new CantaMia resident. Brent and his wife
Lorie are snowbirds from Calgary, Alberta, the energy capital of
Canada. They love spending the winter in the desert with the warmer
daytime temps and an instant social life with the other community
residents. "We've met so many wonderful, new friends here," said
Lorie.
In 2005 the Orlando Regional Realtors Association reported more
than 37,000 home sales. Just three years later at the bottom of the
region's housing cycle that number was cut by more than 50%. Almost
28,000 homes were sold in 2011, putting the market back on track to
challenge that 2005 level in the year ahead. A similar scenario is
playing out in the Phoenix metro area where 101,000 homes were sold
in 2011, according to the Arizona Regional Multiple Listing Service
- fast approaching the 2005 high of 104,000 homes sold. Mulac says
that the jump in sales is indicative of the market's overall value.
"Many baby boomers still see Florida and Arizona as their ultimate
retirement destinations and the savvy ones know that the present
represents that one-time opportunity to truly buy at the bottom of
the market. Prices are already starting to slowly move up," he
said.
Mulac says his costs to build a new home are also at levels not
seen in a decade. "Since 2007 we have watched our construction
costs steadily decrease. Today, a buyer can build a brand new home
with us for about 35% less than they could in 2005. Materials,
products and labor all dropped substantially during the last four
years but they are starting to move up," he said.
In November 2011, the Bureau of Labor Statistics reported that
its residential construction index was up 5.9% year-over-year. In
its monthly report it found that materials such as gypsum, a key
ingredient in drywall, was up 3%; plywood was up 3%; asphalt
roofing and siding climbed 2.5%. With respect to
gypsum, which can represent as much as 5% of a home's cost, several
large producers raised prices 35% in January.
As those one million snowbirds begin their home search in the
warmer climes, they may very well experience that
once-in-a-lifetime opportunity sought by everyone – to buy at the
bottom of the market.
Media Contact: Ken Plonski 863-427-7126 or
ken_plonski@avatarholdings.com
This information was brought to you by Cision
http://www.cisionwire.com
http://www.cisionwire.com/avatar-properties/r/arizona---florida-snowbirds-can-expect-great-deals-at-avatar-properties--active-adult-communities,c9218718
The following pictures are available for download:
[Image] |
At Solivita, courtyard villas are selling for less than
$160,000 and are quite popular with Snowbirds because exterior
maintenance is included, allowing them more time to enjoy the
active adult lifestyle |
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