There is concern among some village operators that Australia is going to catch a cold as America sneezes over its subprime loan crisis. Recent history, especially in NSW, where the property market has also slowed, shows ageing retirees can hold back selling up their homes if they believe they are not getting the right price. In America, the retirement village sector is bucking their very slump. Demand is reported to be higher than ever with many mortgage-free retirees prepared to sell their homes at lower prices because they still come out ahead. Robson Communities, a developer in Tucson, Arizona is planning a 6,000-home retirement community; company chief economist Steve Soriano says sales have far exceeded expectations.
Australia historically does have a hesitation to sell when home values dip.
