Retirement Communities 2009 - Year in Review

Here is our retirement communities 2009 year inbut the builders are increasingly adding energy saving
review. There is a saying, "when the going getsfeatures, not wanting to get far behind in this
tough, the tough get going," and that is no truer thanimportant area.
in the year 2009. It was a tough year for the home- Customer Service Improves Major surveys showed
builders, but the best are gearing up to compete, tocompanies improved their customer service in 2009.
improve their bottom lines and be ready for whenIt makes sense in this market. Every customer
the economy improves. Here are some highlights ofcounts and there is no room for bad customer
this roller-coaster year:service. Meeting home building deadlines improved
- The Economy The biggest change was, likesubstantially as well as communication with the
everything else, affected by the derailed economy,customer. The companies are also eager to add
and for retirement communities developers thatmore flexibility in their floor plans. This means more
means one major factor: prices were lowered atoptions, more features, and better service.
most communities and inventories of homesCommunities were also holding seminars on how to
increased. Retirement communities had to remainsell your home and a wide variety of subjects helpful
competitive with home sales of foreclosures andto making a sale.
bankruptcies. This meant some really good deals- More incentives and Marketing If you didn't notice
existed, but financing was hard to get and existingthe giveaways, free offers, and creative marketing,
homes hard to sell. The suddenness of the change inyou weren't watching. With more inventory on the
the economy drove some companies to the edge ofbooks, there were more incentives offered.
bankruptcy. Retirement community builders and- Internet marketing The internet has been slow
developers were taking a huge "hit." There werestarting and we are still at the beginning of knowing
some major mergers, bankruptcies and cutbacks inhow to best use it, but more communities have
the number of communities being built. Builders werewebsites, and with a seriousness of purpose they did
selling land they had been holding, not developingnot have before. Most people will go first to the
more communities, and, overall, just watching theirinternet to do research. More communities need an
bottom line. Their goal being to come back strongerinternet presence.
when the economy improved. Some industryThis is the end of not only a year but a decade. This
improvement happened in the middle of the yeardecade has gone from one of fantastic momentum
attributed to the Homebuyers Tax Credit andfor active adult communities to one of great
pent-up demand. The Tax Credit was extended andchallenges to builders in 2009. The best communities
expanded through the early part of next year inare building on their experiences and improving which
order to help the industry.will eventually be good for the home building industry.
- Energy Even before the global warming crisis gainedThe future: We predict the improved customer
momentum at the end of the year, this became theservice will remain strong for a long time. In 2009, we
year our communities entered the main stream withlearned we must be continually wary of the solvency
more green building and home energy savingsof the companies we buy from as much as how
features. Large brand names began to be involvedmuch we love the community. In 2010, we should
and continued experimentation in this area. Theask more about the green features of the home.
companies felt that if you do not include greenThe best communities will continue to deliver on your
features you may no longer compete in this toughneeds.
economy. The public demand still may be lukewarm,