SUN CITY – Sun City’s economy, like the national version, slid downward and suffered in 2008-2011. Housing sales, prices, and closings nosedived as local and national real estate markets took a big hit in what will be known as the 2008 recession.
In Sun City, residents pay a $135 monthly assessment for common-area maintenance and administration of the many activities and events that take place almost daily in the nation’s first four-season senior development. Delinquencies in these payments rose sharply in the 2008-11 period. Home foreclosures and declining market values took center stage away from the lifestyle amenities that residents enjoy. Home values plummeted by as much as 75% or more.
That was then, this is now.
A sign hangs in front of a home for sale in Sun City. (Chris La Pelusa/Sun Day Photo)
Along with the nation, economic conditions in Sun City are steadily recovering, in some cases dramatically.
To get an accurate picture of this recovery, the Sun Day talked last week to a Sun City official; Tom Hall, president of Huntley Realty, one of the leading residential real estate firms in the Huntley/Sun City area; Lynn Klein of Century 21 Heritage; and one of the Huntley Realty’s agents. Hall’s firm has negotiated the most closings in the Huntley area for the past five years.
“We are moving out of a buyer’s market and transitioning into a seller’s market,” said Hall. “Home prices are rising, the number of closings is rising, and we should be in a genuine seller’s market this fall.”
Bill Pennock, executive director of the Sun City association staff, echoed this optimism. “The good news is the real estate market seems to be improving dramatically,” he said. “In May 2013, there were 32 closings in Sun City, six of which were foreclosed units. We had 47 closings in June, and the projections for July were strong.”
Pennock also said assessment delinquencies are trending downward this year.
“In May, 2013 there were 72 units with a dollar amount of $283,477. This is 11 units less than April, 2013, and $23,477 less. The May, 2013 delinquency count is 11 less than May of 2012, but the dollar amount is more than $4,000 higher because of the various interest charges and fees that are applied.”
“Most of the foreclosures in Sun City should be processed out and the homes made marketable by fall,” Hall said. “There are about 21 homes in pre-foreclosure in the community right now.”
Echoing this newfound optimism is Lynn Klein, owner of Century 21 Heritage, with offices in Hampshire, Marengo, and downtown Huntley.
“Prices are going up slowly, so that’s a good sign,” she said. “The biggest thing is that we are busy. There is a lot of activity in Sun City in closings, listings, inspections, and inquires from potential buyers. Overall, the market is looking better.”
In the Village of Huntley overall, data from the local market update of Midwest Real Estate Data LLC reveals the following trends between 2012 and 2013:
New listings of detached single family homes rose from 68 to 83 between May, 2012, and May, 2013. In the same period, homes under contract rose from 28 to 81, and the number of closed sales jumped from 37 to 47. Also in the same period, the average sale price rose from nearly $199,000 to nearly $232,000. The percent of original list price received rose from 92.2% to 94.4%. The average market time dropped from 226 days in May, 2012, to 125 two months ago.
Figures for attached single family homes (condos, town homes, etc.) showed comparable favorable trends for the period, including Sun City, according to MRED data.
“Most of my time in the last six months has involved Sun City listings, closings, inspections, and open houses,” said Joan Hightower, a veteran Huntley Realty agent who also has worked for Baird & Warner in the Chicago area. “Our office has been extremely busy recently, and I’m sure all agency offices in Huntley are experiencing the same thing. Tom Hall is primarily responsible for our growth and activity because he is so actively involved in so many programs and events in the Huntley community.”
Hightower lives in Sun City, and her business card says: “I live here, I love it, I sell it.”
