I believe that The Villages market will never really have a huge downturn. 10,000 people a day turn 65 every day. The number of retired citizens as a percentage of the population is just going to continue to grow for years to come. The Villages offers a lifestyle that is very attractive and appealing to a lot of people and they do things right.
That being said, there are some issues that are probably in play in the area where new homes are being offered. I do believe that new home buyers are fully cognizant of the nuances of Newell, Lake Denham, and Dabney, but realistically, if one wants to purchase a new home in The Villages, that's where they are being built and offered.
If I am reading the bond amortization schedules correctly, the bond on the home in Newell that was just mentioned is over $41,000. The interest rate on bonds is now also higher at 5.47%, so the yearly payment is almost $3,000 per year. For a house that was listed at $375k, and now at $349.5k, that may be a consideration. Also, the tax rate in Lake County/Leesburg is higher, somewhere around 3 millage points more than Sumter County/Wildwood, and around 6 points higher than Sumter County north of 44. Combine this with the higher mortgage rates for those that need one, and also how far out those homes are, and some folks may have chosen to wait for the next group of homes to be built which will be closer to Eastport.
Those conditions described above do exist right now, but I am confident that all those homes are going to still sell fairly quickly. They are brand new, it's very nice down there, and The Villages is a highly desirable destination and will remain so.
All IMHO.
|