Glut of Homes and Condos Rises by 5% in May

June 28 — The latest in a steady string of depressing news for sellers of retirement communities continued this week. Sales of all types of existing homes and condos fell 10.3% in May from the year ago period, and median prices fell 2.1% (Source: National Association of Realtors). The worst news, for sellers, was that number of homes listed for sale increased to an 8.9 months supply. These increasing inventories were unwelcome for two reasons: a rising figure predicts slow sales ahead, and inventory levels rarely rise in May. Families with children often buy in this month so they can move over the summer.

Meanwhile the Commerce Department reported that new home construction also fell in May by 2.1%, putting additional dimension on the housing market’s poor health.

The Wall Street Journal reported that David Resler, chief economist to Nomura Securities, wrote to clients that “falling prices and record inventories leave little doubt that the ‘correction’ in the housing market is nowhere near ending.” What this means for baby boomers hoping to purchase a condo or home in an active adult community over 55 is unclear. Viewed from rosy-tinted glasses, supplies are up, prices are down - therefore it should be a good time to shop. For those who tend to be pessimists, things can only get worse. If you are tempted, here is a link to list of the best retirement communities. National Association of Realtors. U.S. Commerce Department
State mini-guides to retirement

Should You Purchase Your Retirement Community at an Auction

June 26 — It’s every would-be real estate investors dream. A perfect active adult community property comes on the auction block in a distressed market - and you snap it up for hundreds of thousands of dollars less than its market value. As real estate auctions make a comeback these days more and more people - including baby boomers looking for a retirement condo or house in an over 55 community - are catching the auction fever.

In Riverside California this past May over 1200 would-be investors had their chances when 100 properties in that region were auctioned off. So how many realized their dream? According to a recent New York Times article, not many people came away with significant savings. Why? The auctioneers, Real Estate Disposition Corporation, did a superb job of revving up buyer excitement, too many buyers were a bit too eager to bid, and in the end the banks selling the properties might have won the day. As one attendee told the Times, “We learned a lot today. You can probably buy them cheaper in the market than here.

Looking ahead to the future, chances are there will be many more chances to bid on a foreclosed property in the near future. In 7 southern counties of California for example, there were 6007 foreclosures in the 1st Quarter of 2007 - compared to 721 in the corresponding 2006 quarter. As the supply of foreclosed homes coming on the market continues to increase the corresponding opportunity to purchase your dream retirement community at a song increases. Perhaps you will have the discipline and the luck to make your retirement dream come true.

Here is a link to more California retirement communities. And here is more help on reviews of retirement communities, including those in Kentucky.

Life Care Communities Target Baby Boomers

June 22 - Fort Myers, Florida — The logic is compelling, even though a bit unconventional. Sue Wininger, Marketing Director at Cypress Cove at Health Park Florida, recently stated in an interview with Topretirements the many reasons baby boomers should consider moving directly to a life care facility instead of making an interim downsizing step to a condo. “With our focus on wellness and the amenities that active adults want,” Wininger says, “baby boomers can an experience a healthier life, which translates into a longer life.” This enthusiastic and personable marketing pro also pointed out how moving directly to a life care facility helps people avoid the hassle of multiple moves and re-establishing new friendships and community ties.

Unlike their parents before them, today’s 50 and 60 somethings know about life care communities and their many advantages. They don’t expect their children to have to take care of them. Increasingly they are buying into these communities for an easier lifestyle in a facility that bundles many services into 1 product. At Cypress Cove in Fort Myers, for example, boomers will find independent living, assisted living, and life care so that they will never have to move again, no matter how their health condition might change. Along the way they can enjoy amenities like a huge indoor pool, fitness club and exercise classes, and college courses. Cypress Cove offers the courses as a location of the Renaissance Academy of Florida Gulf Coast University. Cypress Cove is affiliated with Lee Memorial Hospital.

While Wininger’s logic is powerful, life care communities may have a difficult time persuading baby boomers to move into a community that many people view as “only for old people”. She countered that communities affiliated with universities or medical institutions such as hers, which offer more amenities and programs, will have an easier time attracting a younger audience than unaffiliated places. She also made the interesting case that newer, even unbuilt, communities will have more success because the audience is planning on entering in the near future, rather than moving in directly.

Here is our article on “How to Help Persuade Your Elderly Relative It Might Be Time to Move”

Read this for help with the 10 Questions You Should Ask Before You Buy into a Retirement Community.

Should Boomers Dive in As Real Estate Bad News Piles Up

June 15, 2007 — Could more bad news possibly hit the real estate market that so many active adults are studying? A quote in today’s Wall Street Journal regarding homeowners who are entering the foreclosure process is typical of recent fare - “rates for the last 2 quarters are the highest in the (Mortage Bankers Association) survey’s 37 year history.” Other bad news items in the last few days are that the number of homes for sale keeps growing (up 5% in May), and pending sales were also down in April.

Foreclosure rates are highest in many of the states where active adult communities are being built: California, Florida, Arizona, Nevada, and Georgia. While baby boomers are probably not the ones in foreclosure (except those who might have chosen to speculate), the general pall in the overall real estate market is spilling into the active adult market. Sellers find it harder to sell, buyers get warier, and banks get more restrictive. Many speculators are apparently walking away from their investments as prices go down, adding to inventory.

If you thought this is as bad as it could get, think again. Just this week interest rates rose sharply, and many experts believe that the number of adjustable mortgages coming due for big interest rate increases has not yet its peak. Those trends will only have negative effects on the market.

The continuing stream of bad news probably raises a question for baby boomers looking to buy their retirement place - is now the time to invest, or should they wait until there are some signs of good news? Many of us believe that the “retirement” market will get tight as the initial wave of retiring boomers yields to a full-fledged surge, but when is the time to strike? Post your comment, we’d like to hear your point of view!

For your information here is Topretirement’s feature article on the Question of a Real Estate Bubble

Newest Retirement Community Idea Puts Focus on Stargazers

June 12- Every time we think we have heard about the most unusual type of retirement community, up pops another. The latest new idea is stargazer communities; developments geared for amateur astronomers. You don’t have to be retired to live in one of these developments, but most of the people interviewed in the article were either of retirement age or were baby boomers fast approaching it.

The New York Times reported (June 8, 2007) on a number of astronomers who have turned their dream into finding a home in a place favorable for stargazing into a reality. People who enjoy watching the stars, it turns out, share several unique environmental prerequisites. First, they need an area that is dark, away the from bright lights of civilization that ruin the celestial view. Another is that when they watch the stars live, they tend to stay up all night. Therefore they need quiet in the morning to get their rest.

The Times reported on several stargazer communities. The first astronomy village is thought to be Chiefland Astronomy Village near Chiefland, FL. The village is about 3 hours to the north of Tampa where the dark waters of the Gulf of Mexico contribute to good viewing. There are 20 homeowners in the village. Arizona Sky Village is adjacent to the Chiricahua Mountains in southeastern Arizona. The development in this unusually dark part of America has plans for 85 lots (which, according to the Times, start at $50,000 for a 4 acre lot). Another stargazer community is Deerlick Astronomy Village. Supposedly the darkest village in Georgia, it is about 120 miles east of Atlanta. Most homes in these villages tend to be modest, since the emphasis is on astronomy rather than on pursuits more common in typical retirement communities. Most of the homes are second homes, given the remoteness of their location.

To find a list of reviews of retirement communities of all descriptions check this out. Here is our list of retirement communities by state

So What is the Best Retirement Community?

June 6 - About the 5th time I was asked the question I finally caught on. The “question” comes up when someone finds out that I am associated with this site, obviously enough. They are usually a baby boomer thinking about where to live next, and they figure I must know the answer.

The problem is that I have heard about too many “best retirement communities”, too many “top 10 retirement communities”. Sorry, I just can’t tell you your right answer - there are too many. You have to pick the one that is best for you. So that means you have to do some thinking about what’s right for you - you have to answer the 16 questions in our free eBook: “The Baby Boomer’s Guide to Selecting the Best Retirement Community“. Only then will you know enough, and I can help with some “best” suggestions.

The good news is that there are so many excellent places, a place for everyone depending on their needs and desires. If you aren’t living in the perfect place now, relax. There are dozens of places where you have the opportunity to be deliriously happy.

See other posts in this blog or in the Tips and Picks section. Or, check out the best reviews of retirement communities. Here’s more on the types of retirement communities. Look up specific cities in Wikipedia or City-Guides.