What's up with the Sun Lakes Real Estate Market?

Oakwood Country Club in Sun Lakes, AZ

Oakwood Country Club in Sun Lakes, AZ

First let me say I live in Sun Lakes and the market here is unlike anything else in the Phoenix Real Estate Market.  Why is it different?  Foreclosures.  We just don’t have that many of them in Sun Lakes.  But still our values have fallen by about 30-40%.  So why is that?  Well, one of the reasons is our buyer pool has been greatly diminished because it’s harder for folks to sell their homes in other parts of the country in order to purchase a home here. 

Another reason is the economy.  Sun Lakes is an Active Adult 40+ community (20% of the residents can be under the age of 55 but not younger than 40).  Many potential buyers are retired and have seen their stock portfolios and retirement funds impacted which has reduced the dollar amount people can or are willing to pay for a home. 

So over the past 3 years, if you’ve had a home to sell in Sun Lakes, you’ve had to reduce your price to beat the competition and to attract the few buyers we’ve had.  This has had a domino effect on all future sales in the area and has resulted in declining property values. You can check out my weekly real estate price report here.

Prices on homes in Sun Lakes are all over the board.  There is no rhyme or reason why some homes are priced thousands more or thousands less than another similar home.  It’s likely a result of the fact that many sellers here do not HAVE to sell so they will wait to get their price.  Overpriced homes are not going to appraise, but some buyers moving to Sun Lakes are paying cash and are more interested in getting a home they love so they don’t mind paying a little more than an appraiser would say the home is worth.  

If you really do want to sell your Sun Lakes home, however, and you price it aggressively,  my experience has shown the home will sell quickly.  Sun Lakes is one of the most desirable active adult communities in the Phoenix area and people really want to live here.  I know I do!