Are property values dropping?

[graciegirl]

We have been searching for a second home here ( We own a Camellia in Hadley)for our permanent move and I keep looking at bigger designers and premiers. I just checked a really nice house and saw it was listed for over a 100K less than what they payed for it when it was built.

This isn't the first time that I have seen homes offered for less than what was paid for them.

I hope that it was just built during the boom.

There are a couple people who post on here, who pay close attention to these things. I hope they will log in.

[kb8tpw]

I know of a Cottage, pretty well topped out and well landscaped - nice looking in deed that just sold, after a very short time on the market. Major renovation was done for a Florida room as well and it appears to have sold in a price range that would have covered their add-ons plus 18-24 months equity. There are at least 3 other properties nearby (Designers) that have not moved after several months on market so it's a very individual thing.

[Taj44]

We had some friends who recently sold a beautiful designer house on the golf course, bought new in the last 2 years at a very low price (relative to those bought during the boom), and they lost money on it, I'm guessing at least 10%.

[Larry Wilson]

Friends just bought in Polo Ridge, at 30 thousand less than what it sold for a year and a half ago.

[l2ridehd]

GG. My tracking shows that property prices are flat. Have been for about 6 months. In the last half of 09 and first half of 10 they moved up a few percentage points. Probably due to the tax incentive that allowed people who wanted to move to TV to sell there homes up North. Starting about last August until now they are flat. Some moved down a few percentage points and some up a few, but taking the average by model they are basically flat.

There are some good buys out there and if you can find an anxious seller you can get some good deals. My expectation would be prices to remain flat, maybe go down 1 or 2 %, but no wide swings. If you find a home you like I would move on it.

We went through the same thing, looking at premiers to get some extra space and features we really wanted, but were not able to find anything that had a location we liked as well as where we are. So last December we bought a ranch home around the corner from our current home. It had a golf car garage which I wanted, and now we have 6 bedrooms 4 baths and 4 car garage. Plenty of space for company, grand kids and we can rent it when not being used. And we didn't have to give up our location on the golf course with the pool and a home we do like.

So again I would not bother timing the market. We may not be at the exact bottom, but we are there plus or minus a point or two so it is time to buy if that is your plan.

Good luck with your search.

[nkrifats]

GG. My tracking shows that property prices are flat. Have been for about 6 months. In the last half of 09 and first half of 10 they moved up a few percentage points. Probably due to the tax incentive that allowed people who wanted to move to TV to sell there homes up North. Starting about last August until now they are flat. Some moved down a few percentage points and some up a few, but taking the average by model they are basically flat.

There are some good buys out there and if you can find an anxious seller you can get some good deals. My expectation would be prices to remain flat, maybe go down 1 or 2 %, but no wide swings. If you find a home you like I would move on it.

We went through the same thing, looking at premiers to get some extra space and features we really wanted, but were not able to find anything that had a location we liked as well as where we are. So last December we bought a ranch home around the corner from our current home. It had a golf car garage which I wanted, and now we have 6 bedrooms 4 baths and 4 car garage. Plenty of space for company, grand kids and we can rent it when not being used. And we didn't have to give up our location on the golf course with the pool and a home we do like.

So again I would not bother timing the market. We may not be at the exact bottom, but we are there plus or minus a point or two so it is time to buy if that is your plan.

Good luck with your search.

I have to agree with l2ridehd. I believe it is that way most places right now. Some area's have not seen the bottom yet. I believe the vilages is stable with little or no movement right now. Just my thoughts.

[ladydoc]

We discussed our move with our financial advisor and the advice we got was that home prices have not bottomed out yet (but they did agree with me that not every move in life has to be based primarily on finances!!). I said we were not willing to wait a few years just to get something a little cheaper. They told us to sell this house ASAP to avoid further deterioration of home prices and to mortage the new house. We were told that mortages are so cheap now that keeping the money invested that we could use to buy outright would make MORE for us then we will pay in mortage interest. Makes your head spin.....Just getting more and more excited about coming for the Lifestyle Preview. Can't wait!!!

[villagerjack]

We bought about 4 years ago and the prices for our Champion Golf Course 3 B/R CYV are about the same as they were at that time for the same type location and size villa. There are other CYVs on resale for slightly less but they are on the Executive Courses and some are not elevated. The difference in locations even what may seem to be similar locations like "golf course front" can be deceiving.

[784caroline]

The houses that have gotten hurt the most are houses sold in 2005-2006with "LOT" premiums..that is Golf, lake or Privacy views. The house value itself has dropped 5-10% but the lot premium has vanished.

[graciegirl]

The houses that have gotten hurt the most are houses sold in 2005-2006with "LOT" premiums..that is Golf, lake or Privacy views. The house value itself has dropped 5-10% but the lot premium has vanished.

The house that I was talking about is indeed on a very premium lot.

I love to ask a question on here. I know I can count on such good answers.

[Challenger]

We discussed our move with our financial advisor and the advice we got was that home prices have not bottomed out yet (but they did agree with me that not every move in life has to be based primarily on finances!!). I said we were not willing to wait a few years just to get something a little cheaper. They told us to sell this house ASAP to avoid further deterioration of home prices and to mortage the new house. We were told that mortages are so cheap now that keeping the money invested that we could use to buy outright would make MORE for us then we will pay in mortage interest. Makes your head spin.....Just getting more and more excited about coming for the Lifestyle Preview. Can't wait!!!

I would be very wary of a FA who recommended thar you mortgage your house to invest, Although you might make out ok, no one can be sure that you will make a return in excess of the mortgage interest , closing costs and fees.

[silvertoken]

Up here in Boston I was watching television and it showed that Florida is booming with tourism. Fact is we are sick and tired of the snow. They were interviewing people at the airport and their wish was to have a cancellation or delay so they could stay a little longer. As I speak schools are closed and recreation centers are shut due to the fact that their are roofs caving in all over the place due to the huge amount of snow on top of them. Chicago especially has been a tragic situation. Senior citizens are being fined for not shoveling their sidewalks, there is no place to park near your home. I really believe that this may be a good year for real estate in Florida. 7 days and counting for me, so many here envy me and are planning to visit me as soon as they can. I should've got a 20 bedroom house.

[Pturner]

I would be very wary of a FA who recommended thar you mortgage your house to invest, Although you might make out ok, no one can be sure that you will make a return in excess of the mortgage interest , closing costs and fees.

I agree.

[LisaJ]

GG, I agree with I2ridehd and nknrifats. If you find a house that you like you should move on it. Sometimes trying to time the market ends up costing you more in the long run. If you can get what you want on a premium lot, for the price you want to pay, go for it! You've earned it.

[Advogado]

One consideration that hasn't been mentioned is that, because we have only one builder in The Villages, overall prices have not declined here to the extent that they have declined in the rest of the state and in most parts of the country. I.e., the Developer has been able to reduce the pace of new construction to adjust the supply to the reduced demand. I believe that this same consideration makes it very unlikely that there will be any significant future price declines.

[F16 1UB]

Designer house down the street sold new 2 years ago 269K. Owner put 20K upgrades. Had house on market for over a year. Went thru 2-3 Realtors. Finally owner listed himself for 229K. Sold within 2 weeks. Not sure what he got for it.

[StarbuckSammy]

Houses that were purchased in the "boom" times, say 2004-2007 may suffer from a decline in value. It appears that there is still a slight decline in prices of new houses and villas being built and sold now compared to a year ago. Comparable new CYV's are about 4-5% less today than last year.
If you are buying a house that was built/purchased in that high appreciation period, I would expect to buy it at a discount...if you buy new today...the key is that you are NOT buying at the top of the market...maybe not at the bottom but certainly not at the top.
I love the financial advisors saying it is not the bottom yet...ha...will they let you know when it is? Did they advise you of the top of the market?
The key is to try to remove all your emotion (which is difficult) and see if your purchase appears to be reasonable. Ask your agent to give you comps for the last few years.
I think if you buy a new house at today's prices from the developer you will be fine.
You'll love The Villages...

[Vinny]

I could buy my 8 month old villa for a few thousand less new now. My house is already worth less. Luckily I have no plans to move in the next few years.

[Bogie Shooter]

One consideration that hasn't been mentioned is that, because we have only one builder in The Villages, overall prices have not declined here to the extent that they have declined in the rest of the state and in most parts of the country. I.e., the Developer has been able to reduce the pace of new construction to adjust the supply to the reduced demand. I believe that this same consideration makes it very unlikely that there will be any significant future price declines.

There is only one builder doing new construction, who is that?

[kentucky blue]

I could buy my 8 month old villa for a few thousand less new now. My house is already worth less. Luckily I have no plans to move in the next few years.

Every pre-owned designer and premier home i looked at was priced to sell at a loss, when you included the real estate commission.Many were priced at a loss even before the commission, one premier over $100,000 loss and it is beautiful.The only reason my home in TV is worth more than i paid for it , is because of all the upgrades. Put your home on the market in TV now and you'll soon see the market is not flat, but still heading downward.Since i purchased a lifestyle in TV, and have no plans on moving, i'll be just fine . The real estate market will eventually turn around, but it won't be anytime soooooooon.

[Chi-Town]

Zillow your house for a fairly accurate graph even if the values are off.

[silvertoken]

Up here in Boston I was watching television and it showed that Florida is booming with tourism. Fact is we are sick and tired of the snow. They were interviewing people at the airport and their wish was to have a cancellation or delay so they could stay a little longer. As I speak schools are closed and recreation centers are shut due to the fact that their are roofs caving in all over the place due to the huge amount of snow on top of them. Chicago especially has been a tragic situation. Senior citizens are being fined for not shoveling their sidewalks, there is no place to park near your home. I really believe that this may be a good year for real estate in Florida. 7 days and counting for me, so many here envy me and are planning to visit me as soon as they can. I should've got a 20 bedroom house.

157 roof collaspe so far in Massachusetts alone, cars getting crushed by snow falling off of roofs. 5 days to go.....

[Taj44]

Every pre-owned designer and premier home i looked at was priced to sell at a loss, when you included the real estate commission.Many were priced at a loss even before the commission, one premier over $100,000 loss and it is beautiful.The only reason my home in TV is worth more than i paid for it , is because of all the upgrades. Put your home on the market in TV now and you'll soon see the market is not flat, but still heading downward.Since i purchased a lifestyle in TV, and have no plans on moving, i'll be just fine . The real estate market will eventually turn around, but it won't be anytime soooooooon.

I wish we had a crystal ball and could guarantee the market will rebound, but its not a sure thing. It used to be you'd buy a house and know it was an investment, if it was in a good neighborhood, you did certain upgrades, etc. Nowadays, I think all bets are off. I used to look at our house up north (in addition to being a place to live) as an investment , just like stocks or bonds, but the house down here, for me, is just a place to live. I think that's one reason we've avoided upgrading to something with a golfcart garage, and with more of a view, is that I don't like the feeling of not knowing whether I can sell it in the future for reasonably close to what I paid for it. As long as you know you're not moving, I guess its not an issue. I just like to keep my options open in case things change in the community or in my life, and I feel the need to move on.