Retirement real estate markets always have been somewhat different than the larger markets as a whole, and this past year has been no exception.
Take Westbrook Village in Peoria, for example. Median prices did slip in 2008 but at a slower rate than many other parts of the Phoenix real estate market for one very simple reasons – the bank owned homes driving down values elsewhere in Maricopa County are virtually non-existent in Westbrook or other retirement areas.
Rather, in Westbrook the decline was caused by basic market mechanics – an at times extreme lack of demand to meet supply. In 2008, according to data from the Arizona Regional MLS, there were 118 closed sales in Westbrook. More than 80 of those took place in the first six months of the year.
The reasons for the slow second half are obvious – the usual summer lull followed by the plunge in the Canadian dollar and overall uncertainty about the economy on either side of the 49th parallel.
At this writing, there are approximately 90 homes for sale in Westbrook Village. Just 90 homes out of nearly 4,000 properties total inside the subdivision. Supply clearly isn’t the issue at the moment. Discretionary income, or a lack thereof, is.
The below charts show the monthly sales and median price by month in Westbrook Village going back to 2001. This data, along with lists of all the sales in Westbrook since 2000, will be added to Westbrook Village Real Estate.com within the next few days. I’m putting the data behind a password for one simple reason – no other agents that I’ve seen have the data and I’m not going to be the source. They’re welcome to run the numbers.
As for the point of this exercise … one of my loyal visitors mentioned the trend in the Case Shiller numbers to me yesterday. On a macro level, such statistics can be helpful. But they don’t provide much insight at all into what takes place on the micro levels of the Phoenix real estate market, especially in retirement communities that buck the trends anyway.
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[tags]Phoenix real estate, Westbrook Village[/tags]