Quote:
Originally Posted by CoachKandSportsguy
Does anyone know the portions of inventory which is AirBnB and other short term rental property owners?
Its well known around the country that many AirBnBs were purchased during the pandemic, and the returns aren't there any more, due to the opening of the economy, and that rental prices have collapsed, along with days rented as intl travel came back with revenge vacations.
There are two houses in our development for sale, one is the original owners, and the other has only owned the house for 2 years, as the second owner. Both houses priced at the top of the Zillow range. However, I don't understand some peoples taste in home design. . not sure the reasons, but out of 99 houses, there is 1 or 2 houses for sale every year. . .
Also, any indication of foreign owners where the the value is falling with the USD conversion rates?
Is the percentage of owned homes any higher than in the past? if 1% is for sale at the prior max, and with the growth of homes built and sold in the last 5 years, is the percentage any higher than normal? if not, the number of houses is a function of the total number of houses that have been built.
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The percentage wouldn’t matter if the supply wasn’t desirable. The obvious is more houses are placed up for sale than sold per month.
Look at indicators for reasoning:
First is the decreased new home sales since 2022, they seem to be drifting toward 2020 numbers. The developers new home sales were at about 3000 homes per year in 2023 and 2024. The two previous years of 2022 and 2021 hovered closer to 4,000 homes sold per year. Of course this means production needs to be reduced by 1/4 of output (or it has already.)
The Villages New Home Sales: 2003-Present | Inside the Bubble
A second item would be the economic tide of employment. Many workers are required to return to the work place and aren’t permitted to work from their vacation home anymore. Unfortunately, layoffs are now possible for many. Only the blind don’t see a recession coming.
Third, disposable income has been reduced across the board, particularly in New York, Michigan and Ohio, important states to the Florida demographic.
Fourth, foreclosures in the Villages have hit an all time high at 44 for last month.
All of us hope these tides turn, but right now most see the obvious.
One positive is the increased pressure for inflation pricing due to loss of cheaper immigrant labor. It could force pricing to maintain at artificial highs.