Phoenix Retirement Community Market Report June 2022
Home values inch higher in Phoenix retirement communities during the second quarter. At the six-month mark, home prices didn’t go down, but they didn’t go much either compared to the first quarter of this year. In fact, on average, values went up just 1% over the past three months. Homeowners have enjoyed a 26% increase in equity over the last 12 months. Let’s delve into more details about the Phoenix retirement community home value update for June 2022.
Table 1 shows a 12-month snapshot of average sales prices for June 2022 and June 2021, along with the change in home values for the top 10 phoenix retirement communities I work in. Over the past 12 months, however, home values soared 26%, with Victory at Verrado leading the way at 38%. Still not a bad increase, Arizona Traditions was at the bottom of the range with 21%. Victory at Verrado also had the highest average sale price at $767,000. Trilogy at Vistancia came in second at $709,000. Both communities are newer and still building new homes, so it makes sense they have higher price points.
(Table 1) Home Value Update June 2022
| Retirement Communities | 2022 Average Sale Price | 2021 Average Sale Price | 12 Month Home Value Change +/- |
|---|---|---|---|
| #1 Victory at Verrado** | $767,000 | $558,000 | 38% |
| #2 PebbleCreek** | $576,000 | $454,000 | 27% |
| #3 Sun City Festival** | $512,000 | $406,000 | 26% |
| #4 Sun City West | $427,000 | $338,000 | 26% |
| #5 Corte Bella | $650,000 | $521,000 | 25% |
| #6 Sun City Grand | $511,000 | $410,000 | 25% |
| #7 Trilogy at Vistancia** | $709,000 | 576,000 | 23% |
| #8 CantaMia** | $487,000 | $396,000 | 23% |
| #9 Sun City | $320,000 | $261,000 | 23% |
| #10 Arizona Traditions | $431,000 | $356,000 | 21% |
| Copy Right 2022 Sharon Rowlson |  |
Victory at Verrado boasts the highest equity increase in the Phoenix Retirement Community Home Value Update June 2022[/caption]
Table 2 shows you a 12-month snapshot of home values for March 2022 through March 2021. It was featured in the First Quarter 2022 Phoenix Retirement Community Home Value Update, should you want to check it out. The takeaway when you are comparing the two tables is how much equity has gone up in the last 3 months. Every single retirement community had equity increases, but on average, only 1% in the past 3 months. So if home values whet up 26% in the last 12 months and only went up 1% in the last 3 months, equity was building at 2.78% per month during those other 9 months. Pretty amazing the real estate market is shifting in favor of buyers right before our eyes.
Why is this happening? I think it’s a combination of things. Higher interest rates, inflation, fear of recession, and a lot happening in the world. We still have low inventory, but the high price of homes has priced some out of the market. Others have to sell their home before they can buy which creates a domino effect. Prices may not drop much, but they should stabilize with bidding wars, a thing of the past. Expect to see longer days on the market.
(Table 2) Home Value Update March 2022
* Data includes resale and spec homes, not new builds, so communities building new will have higher home value increases than shown.
Retirement Communities
#1 Victory at Verrado**
#2 Corte Bella
#3 Sun City West
#4 PebbleCreek**
#5 Sun City Grand
#6 CantaMia**
#7 Sun City
#8 Sun City Festival**
#9 Trilogy at Vistancia**
#10 Arizona Traditions
Copy Right 2022
Sharon Rowlson
**Stats from AZ MLS. Info deemed reliable but not guaranteed.
In Summary:
- Home value (equity) increases slowing in the second quarter of 2022
- Prices are stabilizing but are not going down
- The market is becoming more balanced between buyer and seller
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