Prices on new construction going up?

[linandvin]

Heard prices will be going up in June. Does anyone have any historical info on how often prices go up and what percentage? Also how often incentives may occur? Thanks!

[jackz]

Our salesperson mentioned a 5 - 7% increase in prices.

[ssmith]

Yep, while we were there in April our sales rep, Jack Skelly- the old timer told us prices were going up. Construction material costs have increased, probably due to higher gas etc.

[momesu]

Our salesperson mentioned a 5 - 7% increase in prices.

That's a significant increase in prices....I guess it's time for me to begin thinking pre-owned instead of new....when home prices elsewhere round country are dropping so can't get as much out of existing home can't look at spending even more for new one in TV. I can't imagine I'm the only one in this position. I have a $ amount I can spend and it looks like in TV it will get me significantly less after June 1.:sad:

[ssmith]

Momesu, we will have to be careful when it is time for us to buy also. Our current home may not bring in as much as we hope for and homes don't cost much in Indiana. Also we will try to project what retirement income will be and cost of insurance.

[Frangyomory]

We bought in 2005, July. One year later, our property had appreciatec by $5,000. However, after that, the market began to flop and within three years, our property was worth just about what we paid for it. Today, a home like ours is selling for about $3,000 less than we paid for it.

I never worry about the value of the home. It only matters if we are interested in selling and we are not. We are frogs.....here until we croak. After that, the kids can worry about the value. LOL!!!!

[Frangyomory]

Having lived here for almost 6 years, if I were advising anyone today, I would say get a pre-owned. The new build out is way out and not near anything. Even with the planned building of strip malls with shopping, etc. to be close by, the area just off 466 is the best location. We are near everything that we need or want to see. Good luck.

Don't forget about the Bond also. Many pre-owned homes have bonds paid off and that will save you money and frustration.

[John_W]

We had planned to purchase a new Woodlawn (concrete 2 BR CYV) on our LSV next week. The new homes site listed five available and I asked my salesman and if anymore were coming up soon. He said no, those five in Southern Star Villas in Tamarind Grove are the last, it will now be called the Durham and cost about 4% more.

He said there is already one Durham listed for $187,000 on a corner lot. If you consider that's about a $10,000 premium lot, then that means the regular price will be about $177,000. That's just about 4% more than the current price which is usually about $169,000.

Fortunately for us and anyone else interested, they had reduced four of the Woodlawns to between $162,000 - $165,000. Then last Thursday when I was looking at the site, the price on one dropped to $156,995 while I was refreshing my page. My salesman went over that night and took pictures inside the unit and emailed them us that night and we purchased the home over the telephone the next day.

I don't feel like were totally in the blind, since we've been through the Woodlawn model, we've seen the online tour many times, we've seen photos of the actual unit and we've driven through Southern Star Villas on our visit last April. So now we have closing July 5th and will become Villagers.

[natickdan]

We bought in 2005, July. One year later, our property had appreciatec by $5,000. However, after that, the market began to flop and within three years, our property was worth just about what we paid for it. Today, a home like ours is selling for about $3,000 less than we paid for it.

I never worry about the value of the home. It only matters if we are interested in selling and we are not. We are frogs.....here until we croak. After that, the kids can worry about the value. LOL!!!!

"I never worry about the value of the home. It only matters if we are interested in selling and we are not."

Sound advice, Frangyomory! We bought (new) in January and we were careful to buy within our budget. We didn't buy our home thinking this was an investment. Yes, it would be nice if our home appreciates, but the reality is that it will be part of our estate we'll leave our children at a much later time in life. Until then, we'll enjoy our time in TV.

Regarding pre-owned, I would also suggest looking at those, too, even if you are considering purchasing new.

[rubicon]

Bought in 2006 when house prices peaked. fortunately I sold my home for my price before the market crashed. I would like to move but it doesn't fit investment philosophy (i.e. bought high would have to sell low). It doesn't appear from WSJ headlines that the housing market is going to recovery anytime soon.

Two people I know bought up at Saint Charles and were offered 5% discount to build immediately rather than waiting for one year. both of their homes are built and they are renting them out as they both still work.

I should have considered renting

[gmcneill]

Heard prices will be going up in June. Does anyone have any historical info on how often prices go up and what percentage? Also how often incentives may occur? Thanks!

I was told by TV sales associates this week that a 2-4% increase will go into effect on June 17.

The increase will apply to all new "build now" construction orders placed on or after that date, and also to a contruction order in progress but not yet "accepted into the system" (my words) on or before that date.

[2 Oldcrabs]

ABC news just reported that houses are at a 8 year low. ( That would be 2003 prices). Many people need to sell their existing home before purchasing in TV.If they keep raising prices they may "cook the golden goose". If they are raising prices , does that mean they are stopping the discounts on many of the already built homes listed on their web site?

[pauld315]

I really wouldn't worry about it. We were down there last year on a LSP and it seems to me that the houses were priced higher then than they are now. Also, houses are always being discounted. They know how to hit the sweet spot that the market will bear to keep their sales going.

[Another 65er]

It's not likely that prices will increase by 4-7%. Homes in TV were selling about 200-250 new homes when we purchased our home nine months ago. Demand has slowed as less than 200 new homes in the last 12 months (see the ad in the DS) and about 110 preowned homes monthly over the last year.

As pauld said, they know how to find the right price point, using discounts.

[billmar]

We were also told new construction prices are going up on cottage and designer homes June 17. Approx. $3000-7000 depending on model.
Guess they feel they can so they will.:rolleyes:

[kentucky blue]

ABC news just reported that houses are at a 8 year low. ( That would be 2003 prices). Many people need to sell their existing home before purchasing in TV.If they keep raising prices they may "cook the golden goose". If they are raising prices , does that mean they are stopping the discounts on many of the already built homes listed on their web site?

Somebody needs to get with TV's marketing and sales departments, and said...................What the hell are you thinking!!!!!!No way, you can justify increasing prices in this current market environment, and they should be smart enough to realize it.This sales pitch to pressure clients to buy now, before the so-called increase will fall on deaf ears.The powers that be, need to stop reading "The Villages Daily Sun", get out of the bubble, and get back into the real world, sooooooooooooooooooooooooon !!!!!!:loco:

[The Shadow]

US house price fall 'beats Great Depression slide'

The ailing US housing market passed a grim milestone in the first quarter of this year, posting a further deterioration that means the fall in house prices is now greater than that suffered during the Great Depression.

The brief recovery in prices in 2009, spurred by government aid to first-time buyers, has now been entirely snuffed out, and the average American home now costs 33 per cent less than it did at the peak of the housing bubble in 2007. The peak-to-trough fall in house prices in the 1930s Depression was 31 per cent – and prices took 19 years to recover after that downturn. SNIP

http://www.independent.co.uk/news/business/news/us-house-price-fall-beats-great-depression-slide-2291491.html

[ljones190]

They most likely have no choice but to raise prices, inflation is here and building material costs are most likely are up 10-15% in the last two years. Do not believe the CPI that the Government publishes every month, that is a consumer price index far different then raw materials to build a home. As others have said they can always discount later if they need to do so to sell.

[graciegirl]

Seems that I have heard each summer that prices are increasing and I have to wonder if it is just a ploy to get the about to be buyers to act.

It seems to me that prices really haven't changed on a Camellia from what we bought new three years ago. It is kind of a shell game. Here is a Camellia priced at $246, with discounts now $228.

Maybe not a shell game but a marketing technique.

[batman911]

I somehow doubt that the cost of building materials or labor is going up. There is so little demand due to lack of new construction starts. On the contrary, have you heard of anyone in construction getting a pay raise lately? What could be driving the prices up if there is very little demand? On another note; does anyone else believe the reason the bond on TV homes is paid separately is to remove that figure from the appraised value of the new homes. Morgage lenders and traders might balk at providing loans for homes that are over priced in comparison to appraised value. I know, I know, it's the life style but that does not compute into the appraised value of the home for new construction in my view. In effect, you are taking out a second mortgage to finance the bond amount. You just have to wonder why other developers include the infrastructure cost in the price of the home. If TV developer is separating it, there must be a good reason and advantage to him. Anyone disagree or have a better reason?

[John_W]

I posted this earlier that prices have already gone up. They have replaced an older model with a newer model of the same floorplan. I just bought a 2 BR CYV called the Woodlawn. When I wasn't happy with the cabinet choices offered in the five available I asked my salesman if anymore were coming online. He said no, because they are no longer making the Woodlawn, but the exact same floorplan is now called the "Durham". He said look on the new homes site, there is a corner site Durham already listed for $187,000. That's about $8,000 more than a Woodlawn would normally bring on a corner lot. Woodlawn is normally about $169,000 + $10,000 for a premium lot ($179,000).