Resale home prices (asking) are sky rocketing
 

Still doing my (very expensive) homework as I have a few years left before retirement and am keeping an eye on house prices.

Is it just me... but from what I see lots of house listings have asking prices that are 40% higher than what the houses sold for just 1 - 2 years ago. The new house prices haven't gone up more than 5-10 %(however granite and other up-sells are no longer included)

With another thread recently saying resale house volumes are down... are some sellers getting ahead of themselves. Is anyone seeing big gaps between asking and sales prices?

Will be down at the end of the month to kick a few more tires :)

T-325 (now 2-3 years out)

You are one smart cookie.

Prices are going to have to get a little more realistic.

When you look at the price of a new house you are really seeing the price of a bare bones residence. After moving in many people spend $20,000 to $80,000+ on improvements to their house. Projects such as new floors, crown moulding, driveway stones or designs, glassed in lanais, attic stairs, extra landscaping, etc.. all add up to thousands of dollars. So when people go to sell their house they often add all these improvements to the price they paid for it originally. So if you paid $290,000 in 2013 for your stretched, Gardenia designer home and then added $60,000 in major improvements you would price your home at $350,000. After paying a realtors commission you actually would lose money on the house, but this market is not strong enough to recoup all your monies, in my opinion. The prices I see do not reflect much upside over the last year and a half. You can still find a new, bare bones Gardenia in the $290,000 price range. The used market actually seems soft and home owners are not getting the price they think is right (cost plus improvements) I know people who have taken their year and a half old homes off the market because no one will give them an offer they want.

it also seems in the winter months house prices are higher--the hope is to snag a snowbird willing to pay. I'd keep looking at list vs sale prices.

And if your improvements are to your specific tastes, they may not appeal to buyers. There were stainless steel appliances in the house we bought, but we did not pay a premium for them. Although pretty, they are a pain in the patootie to clean. That figured into our offer.

As The Villages and it's lifestyle reputation grows, and demand increases, so goes the home prices. Some resales do seem unreasonably high right now, but I guess a house is worth whatever someone is willing to pay for it.

Is there a bubble within the bubble?

I would say some people are just trying to make more than they should on the sale of their home. However, this often means they drop the price to a more realistic level later and miss sales in the meantime. Several houses we looked at in December are now priced more reasonably. We may have gone a different direction if they had been priced that way in December. Too bad for them.

Anybody interested in properly pricing listings might benefit from reading "The New Rules of Real Estate" by the founders of Zillow, Spencer Rascoff and Stan Humphries, two very, very sharp guys. It is an easy read and the authors make some interesting points on why some properties appreciates while others do not.

Very hard to compare the used housing market year to year........unless you have hundreds in each pool, individual items within the home are make it impossible to compare...........finishes, lot size and location, etc. 40% seem high to me...........have not seen that type of increases over a two year period. You did say asking price, so there could be some exceptions out there.

Nobody has data...?

Hate to say it, but people do get greedy. They look upon their house as a gold mine when maybe it's really just Worth silver

Spotting an overpriced house here in The Villages is pretty easy. It is anything that has been on the market for more than a week. Houses priced right are gone in hours, especially this time of year with so many buyers looking.

but prices definitely have gone up. I bought in May, 2013 and at that time some 2br 2br courtyards resales were still listing in the high 160s and low 170s. Nothing like that now.
and that was an increase from a few months before.

I bought in August 2013 when patio villa's when in low inventory but I paid a reasonable price. Since then I believe the "Daily Sun", had stated prices increased about 27%.

I have seen two homes purchase at way above, what they should have sold for.

If you are going to wait three years before buying, you may pay more, if build-out is completed, assuming you want to purchase, a brand new home. I also tend to believe the pre-owned homes will be worth more, after build-out. As always, the market will determine the selling price. If you are like me, you will go crazy trying to figure out all of the variables in buying a home. I tend to have developed the "paralysis of analysis".

I believe some home owners are capitalizing on the fear of some people wanting to move here, by asking for much more, than their home is worth. JMO

One thing that has helped me to buy here is, "what is it worth to get on with the rest of your life"?

May pay more in two or three years, or...............


:boom:

Too many homes are priced higher then what they are worth. We made an offer on one about a month ago and they countered. We in turn made another offer which they declined. They were $5000 higher then we were willing to pay.
Now in the past week they raised the price of the home up $5000 in the hopes that someone will offer what they wanted in the first place.
Many of the manufactured homes are being offered at a price where you should be able to get a nice stick built with a garage.
They are trying to get the snowbirds to buy before they go back home.
As long as people are foolish enough to pay too much money they will continue to price them too high.

It's like the old TV show, Hill Street Blues............"Hey, you be careful out there."

You take the copy of listing keep it when it sells go to site and see what the house really sold for. That way you know how long on the market and what was included in the house. Yes it takes time but if you really want to know that is how I did it. Plus I also knew that furniture was sometimes included, upgrades, and sometimes renters.

Resales
 

I keep an eye on resale Patio Villas in Lynnhaven.Most homes are selling for 3% to 5% below list.During March 2013 Patio Villlas were selling for $140,000 to $147,000.
Today $175,000 to $182,000.

I bought on a championship golf course in 2006 and have made made several additions, etc. Improvements aside my home is still not worth what I initially bought it for. I believe the OP is not comparing apples with apples

Don't pay too much attention to those who say sellers are greedy and over-priced.

While resales through the Villages may be lower than last year, that could be because so many people moved up from one house to a more expensive one last year. That alone would account for fewer this year. Plus another 2,600 NEW home sales have occurred.

Also, a healthy re-sale inventory is 4 months supply. Economists will generally use this as a benchmark.

Based on current re-sale inventory listed with The Villages (463 at this moment), and averaging the number of actual re-sales over the past 12 months (2,094), there is today 2.6 months inventory listed. These are extremely strong sales indicators. It also tracks closely with data provided by Lyle Gant for MLS listings (non-Villages agents). For January and February the average days on the market was 65 days. Again, just over 2 months.

Oh yeah, and the average sale was 97% of the listed price. Not Bad, huh?

2015 Sales

Do your own research, but don't miss out because some people give opinions rather than facts.

:pepper2::pepper2::pepper2::pepper2::pepper2:

Asking prices
 

As I understand it the asking price is not just a price the seller comes up with but a price that they are advised to use per the Village rep withwhom they are working.

One rep told "me the owners know what their home is worth."

So if someone prices a house higher than you think it should be priced and someone pays it.....the buyer is foolish? Did you really mean that?

May not want to post that link............the numbers don't calculate correctly.

I agree.................prices have come up and continue to, but we are not back to 2007 prices.

If they want to throw away money on an overpriced home it is ok by me. We will wait and keep looking.

Homes prices as with anything else are only worth what others are willing to pay. You can ask for the moon and wait forever or be realistic and go for a fair market selling price.

If you find the right home with the right view and in the village that you want to live in I don't think you are throwing away money. We bought the first two houses because it was what we wanted to spend. The third house was what we dreamed of.

In the end it is what a given house is worth to you.

I think when we were shopping we ran into three types of listing.

1. I am selling for a good reason ie death illness need to move close to kids etc. and will take a reasonable offer.

2. I am listing and will relocate to the newer area because they are new and shiny or I wish I had bought one with a _______. (fill in the blank) and want to cover cost of new place and all I want to do to it.

3. I bought 13 months ago and can now sell without giving the villages the extra profit and will list for as high as I can and still get lookers (If you track you will see these listings come on in the winter and drop off in the summer and then come back)

In all the cases people are usually adding the cost of their improvements the real estate 6% commission and about to my calculations about 25K to 75K.

I did a calculation based on cost to replicate new and add improvements, deducted for depreciation of appliances etc. and offered that price. I included a sheet with my calculation with the offer. I don't know if their realtor showed it to them but at least he had it. Ended up pretty close to that but not at what they had been asking. I felt that way I could sleep nights knowing that I hadn't overpaid.

You also have to figure in if the bond is paid on a used home.

I love the people who keep waiting--hope they got a contact with God-time is more important than $$--member:"Man makes plans & God laughs"