Sun, Jul 06, 2008
Bob Axtell (with hand raised), a SaddleBrooke Ranch salesman, talks to prospective buyers in the senior community.
David Sanders / Arizona Daily Star
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Senior housing thriving

Northwest

>> Amenities abound for active seniors

Restricted-age housing thriving

> Senior communities like Saddlebrooke ranch are bucking national real estate slump <
By Brian J. Pedersen
arizona daily star
Tucson, Arizona | Published: 03.13.2008
As the housing market remains in a downward mode, sales of new and existing homes nationally and in the Tucson area continue to dip.
Sounds like the worst possible time for a new development to have its grand opening, doesn't it?
Not so for some age-restricted communities.
When Robson Communities officially began selling homes last month at SaddleBrooke Ranch, its newest age-restricted development, sales far exceeded developers' expectations..
"We had hoped to get maybe a sale or two that first weekend," said Steve Soriano, Robson's chief economist and executive vice president. "We sold 15."
Though just as susceptible to the woes facing non-senior housing, many age-restricted communities aren't feeling the crunch of the downturn that standard neighborhoods have.
Among the reasons:
● Buyers often have been saving up for quite some time with the long-term plan of putting that savings toward a retirement home.
● Buyers who need to sell an existing home in order to buy into an age-restricted community, even if they don't get what they want for their home, often have paid off that first home. So they can sell it for below-market value and still come out ahead.
● The latest wave of people buying into age-restricted communities is growing fast, making for a steady flow of eligible buyers.
Developer is not alone
SaddleBrooke Ranch, which is planned for up to 6,000 homes northeast of Oracle Junction in Pinal County, is not the only new age-restricted community to pop up recently in the region.
K. Hovnanian Homes last month opened Four Seasons at Rancho del Lago, a 522-home senior neighborhood in Vail.
And existing senior communities throughout the Tucson area continue to sell new homes. The Del Webb development Sonora recently sold the last of its 428 units in Rancho Sahuarita last month.
"There is more pent-up demand than ever," Soriano said of age-restricted housing.
"We are seeing the effects of this housing downturn, but we're only seeing it in terms of people who want to buy with us having to sell their own home first. Our prospect list of people that are interested in buying from us is as deep as it's ever been."
Prices of homes in age-restricted communities vary, just as they do in standard developments. Of the newest neighborhoods, Four Seasons at Rancho del Lago lists models ranging from $179,990 to $309,990, while SaddleBrooke Ranch's homes start at $299,900 and go as high as $580,900.
The median home price in Pima County is $226,577.
With age, come advantages
Communities that cater to older buyers have a few advantages over standard developments, said local industry consultant John Strobeck.
"They probably have more cash buyers than others," Strobeck said of senior communities. "There are a lot (of buyers) that come with money. Those people have built up equity in their homes and can use that to purchase a new house."
Age-restricted communities cater to a different demographic, says Lori Adair, a resident of SaddleBrooke, Robson's other senior development in southern Pinal County.
"The baby boomers are coming up, and they're going to have to have a place to live," Adair said.
And as the number of people becoming eligible to live in age-restricted communities continues to grow, such developments aren't likely to run out of prospective buyers any time soon.
Age-restricted communities normally are for people 55 or older but have a percentage of homes open to residents as young as 40.
"The demand is always going to be there," said Brad Adair, Lori's husband.
Buyers have nest eggs
The people visiting SaddleBrooke Ranch during its grand opening included a smattering of locals, many of whom already live in senior developments.
Robert Spears and his wife, Jacquie, who live in the Quail Creek age-restricted community in Sahuarita, took at look at SaddleBrooke Ranch because they were thinking of moving closer to Phoenix.
To do so, though, Robert Spears said they'd have to wait several months to try and sell their existing home, likely at a much lower price than they'd want.
"If it's priced right, or below market, you can sell it," he said. "But you're probably talking $70,000 less than what we'd hope for."
Having to sell an existing home before buying a new one is a problem facing nearly every buyer in today's market, said Alina Hushka, Robson marketing vice president.
But Hushka said people looking to buy in age-restricted communities tend to be able to better weather even a large reduction in the selling price of their first home in order to buy their new property.
"This age group, the baby boomers … there is a little bit more cushion with this particular group of people than with first-time buyers or buyers with families. They've built their nest egg."
That's what Art Behnke said he's noticed from most of the people who moved into his Sonora neighborhood in Sahuarita in the past year or so.
"Ninety percent of the people who come into here, this is what they planned for," Behnke said. "If you've got money put away for retirement, that makes a difference."
Amenities sell communities
What makes age-restricted communities desirable to buyers is not the homes themselves, but other things, like accompanying community centers and golf courses.
Builders often promote these developments as "active adult communities," hoping to draw older buyers who might have retired from work but are still looking for ways to keep busy.
"These are people who want to enjoy an active lifestyle," said Jacque Petroulakis, a spokeswoman for Pulte Homes. "It could be through recreation; it could be through leisure. And it's not just having the community center or the pool — it's the programs that go with those amenities."
Added J.R. Brannon, Robson's lead sales agent for SaddleBrooke Ranch: "It's the amenities and the activities that are the biggest thing. The house is really secondary."
Next to SaddleBrooke Ranch's model home center is a plot of land where work has already begun on that community's sports and aquatic center, slated to open in 2009.
Such facilities, which include pools, gyms and tennis courts, are common to most senior neighborhoods. Same goes for clubhouses — with or without golf courses attached to them — that often have several meeting rooms and card rooms and multiple restaurants.
"That's definitely a plus," said Marcia Neugebauer, who lives in the Academy Village retirement community on the far Southeast Side.
● Contact reporter Brian J. Pedersen at bjp@azstarnet.com or call 434-4079.