Quote:
Originally Posted by Rainger99
It seems that a lot of pre-owned houses are for sale - and the asking prices are significantly higher than the purchase price even for houses built in the last five years.
Assume a home with a view (golf course, water, preserve) and a home without a view (wall or kissing lanai) and that there have been modest improvements in all homes (no pools) but some upgrades and landscaping totaling no more than $25,000.
Ballpark, how much should a new home (veranda, designer and courtyard villa) increase in value after 1,2,3,4, and 5 years?
Has there been a significant change now as compared to houses built in 2015?
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There are alot of variables in play to answer that question precisely.
Keep in mind the following direct and indirect effects:
1) being retirement location, a small but stable percentage of all homes preowned will be up for sale during to the passing of the last living owner. The percentage may be stable, but as the villages grows, the absolute number increases.
2) preowned in a fully developed (older) neighborhood which a buyer can see, and can evaluate current amenities as permanent for the rest of the owner's life has more buyers than newer areas with up and coming amenities and houses. Here the future is more uncertain than the certainty of the older neighborhoods. Therefore the higher premium for older areas, some with extras which are very expensive today, (pools) but estates just want to get rid of the house
3) The size of the under development of the villages acreage ready for unbuilt houses. A new house which may be cheaper is competition. . . and pushed by the villages sales team can influence house prices.
4) external to The Villages, the demand to move in is influenced by the ability to sell and the sale price of the family home being sold in order to move into the villages. . as well as the time of year, which makes a big influence on the number of houses for sale throughout the year.
The point is, there are alot of influences for demand, as well as supply, which can change the rate of increase annually as each year is different. . . .home prices generally increase 4-6 % a year, very close to a multiple of GDP growth. . .
The whims of the buyers also change year to year, based upon the weather, the economy and life situations of buyers and sellers. . . so not sure of the genesis of the question, but don't over analyze the market, make your list of must haves, and nice to haves, and your price point, and just scour the market for your opportunity. You just won't know when it's available until it happens. .
kind of like it won't work, until it does type of event.
and once you buy and move in, the price fluctuations or trends are of no more significance to your lifestyle, the money has been sunk and if you buy well, you won't care about other houses. .