One hundred ninety-five Leisure World units were up for sale as of Monday, July 30, according to Hank “Mr. Hank” Barto of Seal Beach’s Leisure Living Resales.
In May, the Sun reported that there were 201 units up for sale. At the time, Seal Beach Chamber of Commerce President Nat Ferguson said the units ranged in price for $59,000 to $409,000.
This week, Barto told the Sun that listings had been hovering around 200 for some time.
“It’s really a buyer’s market,” Barto said.
According to Barto, there were 114 two-bedroom, one-bath units available; 44 one-bedroom, one-bath units and 33 two-bedroom, two-bath units in the retirement community.
The fact that so many units are up for sale does not necessarily mean bad news for the retirement community.
Barto said that when he started selling Leisure World units 17 years ago, an average of 250 units were available at any given time.
There are 6,482 cooperative units and 128 condominiums in Leisure World, according to the 2011 Annual Report for the Golden Rain Foundation of Seal Beach.
Barto said the turnover in Leisure World units averages about 500 a year, with residents dying or leaving the retirement community.
According to the U.S. Census Bureau, the population of the entire city of Seal Beach grew by nine individuals between 2000 and 2012.
“Leisure World is a different kind of world,” Barto said.
Residents who buy into Leisure World by a share in one of the 16 mutual benefit corporations that make up the gated community. A shareholder is allowed to live in a unit, but does not own the unit. The price of the share, however, is based on the market value of the unit the resident chooses to move into.
Without knowing how many of the for-sale units are occupied or empty, it is impossible to know if the units represent a drain on Leisure World’s income. The Golden Rain Foundation charges a monthly fee for shareholders living in Leisure World.
Shareholders are not allowed to sublet units.
Potential Leisure World residents are screened for physical and financial health.
Leisure World residents may not finance the purchase of their share in one of the retirement community’s mutual benefit corporations and may be required to have assets worth as much as three times the market price of a particular unit.
