The Prices Of Homes Are C R A Z Y !
 

Hello All - I'm Susan, from Lancaster, single and have finally made the decision to buy a home here in The Villages. I'm currently here in The Villages searching for a home and I'm very amazed by the prices of both new and used homes here.

In the new southern area, homes are selling very quickly, supply is low ( compared to last year ) and new homes prices are just crazy. Used home prices are even worse.

How are you guys dealing with the massive increase in home prices within The Villages?
Should I wait until the prices stabilize?

I can't believe that a new house I saw three years ago when Fenny first became developed is now on sale on the used home market for 40% more in just three years !

I have no idea what to do, please help. Thank You Susan of Lancaster

Prices in TV have not and will not drop...............now having said that, sh^t happens.

I can't imagine, waiting will save you money.

Obviously there is a material shortage and this is creating upward pressures, but even with the supply chain catches up, I doubt prices will drop in TV.

Good Luck.

Yeah, instability makes it very hard to make good long term decisions.

In 2006, housing prices were increasing, but that stopped in 2007. Houses decreased in value and a lot of people just walked out of their house and mailed the keys to the bank. It was called "jingle mail".

You can read what the learned Economists say about the financial situation in our country and what the future holds, but then you have to remember that if you put all of the Economists end-to-end around the world, they would not reach a conclusion.

Another poster said the peak baby-boom year in America was 1958, which means those babies are now 63 years old and looking for a place to retire. Maybe that is why so many perple are moving to The Villages.

How did TV home prices do in the 2008 timeframe? (I've tried looking but haven't found the info yet) I know my house up north lost quite a bit of assessed value during that time.

Prices are currently affected by the pent-up demand from Covid, increased price of building materials, and extra money in savings due to having nowhere to spend it in the last year. I wonder what will happen if material prices drop, will prices come down or will profits increase? How about when the post-Covid shuffle slows and inventory begins to rise? It will be interesting to watch.

Sorry but my crystal ball has broken

Patients the bubble will bust all the hot air in the mid Atlantic state it's unenviable

Don't wait. Trust me. Now is the time. Just do it!

We sold our relatively small 50yr old 3/1.5 home in NJ 3 years ago for $295K. That buyer just (3 months ago) resold it for $450K in an area I would never now bring up my children! The furnished 2/2 stick built home we bought here for $170K 3 yrs ago is now going for $250K bare (identical home next door with original everything down to the $10 ceiling fixtures w/zero improvements). It all evens out in the end. Get more for yours, pay more for the next.

We bought our TV home in 2005. Even in 2008 we never loss the original value of house and if we had sold would have still made a slight profit.

From what I have read and heard when the housing bubble burst around 2006-2008 the sales of new homes in The Villages slowed down some and existing homes held their value far better than homes in most of the rest of the country. IMHO sales in TV slowed only because folks were unable to sell their homes elsewhere for a reasonable price, if at all. Thus, they could not buy in TV and move.

Homes prices in most of the country have gone through the roof. I bought a second home in Northern Idaho for $390K in 9/2017. Zillow now says it is worth $663K, an increase of 70% in less than four years.

Susan,

To our surprise we bought a new home, because it was cheaper than an older home. We got lucky and bought in October 2020 when inventory was high because everyone was afraid. That was the time to buy, you missed it.

None of us are going to live forever, so buy now before prices continue to go up. Just buy, a smaller home that is in your budget.

Best of luck!

Was just in Lititz with family.....same conversation up there. Met a friend in Montgomery County, her nephew made an offer of 90K over asking price and it was rejected. If you're not buying an investment property but a place to live, time to move forward and start the next chapter.

Blah, blah, blah...no one actually knows...if they did they would invest and make zillions. When it comes to many things in life(most everything)then nothing is certain...you throws the dice you take your chances. No guarantees. Such is life.

I bought here in Hawkins 2 months ago and there were a bunch of new houses under 200,000. I watched about 3 neighborhoods sell out back in April when i bought my CYV. Now it seems they don’t have much inventory. I’d say wait until a new neighborhood opens up and buy what you’re looking for right away.

I agree with you.
However the only one who will eventually appreciate this is our Son. 😉

I personally would not buy now.

First, your question about how most posters here who own their houses are dealing with it, I would say we are taking very good care of the house, enjoying the area, as we aren't really looking to move again.

Now, housing prices do not go up at this rate forever, they go up more than they go down, but there will be opportunities. I recommend still renting and watching and working with a broker who knows your situation and will help you get what you are able to afford. Knowing what you can afford is the key, and you might not be able to get what you want at the moment, but work for what you can afford. . . . or negotiate a really affordable long term lease and save your money while waiting for the market to cool off a bit.

The only reason we bought 2 1/2 years ago, is that I did not buy a house in a similar situation with a new development in the early 80s, and then just watched the home prices continue to go up and up. . . so I had learned that sometimes taking an early risk is worth it. But then again, my wife bought our current house in 2004 and the house (not mortgage) was underwater for about 15-16 years. . . always, always, always is the future is uncertain. best also work with a CFP to help figure out how to re arrange your finances to help you maximize your situation. . .

good luck

Practically speaking, there is one and only one way that you can get a home below market value and the chances of that are extremely slim.

The first buyer of a new home cannot sell the home in less than a year for more than the purchase price plus improvements.

If this happens it isn't likely that the home listing will ever leave the real estate office, either a real estate agent will buy it or they will feed the listing to a lucky customer.

That said it does happen, this is how we purchased our home. In our case the home was on the higher end (fewer buyers at higher price points) so it did make it to the open market. We have experienced 50.3% appreciation in 18 months.

I was the poster that said the peak birth year for baby boomer was 1958. Statistically, it is only slightly lower each consecutive year. Demand will remain high for 55+ communities especially while their perceived wealth from the equity in their primary home has skyrocketed with any mutual funds based on the stock market.

Much of the pricing has to do with record low interest rates. The majority of home buyers are taking out a mortgage. Low interest rates makes buying a home more affordable for more people. This increases demand and prices.
IF interest rates were to rise and drive mortgage interest back to 4 or 5 or 6%, there would be far fewer buyers for $500,000 homes. Prices would drop.
I have no idea if interest rates will rise in the near future. However, interest rates can not drop much lower as the 10 year US treasury is today at 1.4%

I have not looked for a month or 2 but there were a good number of Villas in the $200,000+/- range just as there were 2 years ago. We bought a Villa 2 years ago and love it. Our house up north was $215000 26 years ago, $450,000 2-3 years ago and about $750000 now so prices are crazy everywhere. If we could sell up north we would be in great shape but we can’t. With building materials up so much who knows if prices will ever come down.

IMO, you shouldn't worry about what has happened to prices in the last year, or two, or three. What you should consider is can you afford it? Do you want to live in TV enough to pay the price?
What if the value goes down a bit? Does that matter? Are you buying as a monetary investment, or as an investment in the quality of life for you over the next decade or two?

Prices won’t improve. Here’s why, more people will retire over the next 3 to 5 years and more people close to retirement realized over the last year work from home can mean working from The Villages. You sell your house at home at a HUGE profit, making a house in the Villages a bargain.

Hello and thanks, but I disagree with your point of view in that most of us are ARE buying a home as a monetary investment and just because I can afford the current high home prices, it doesn't make it any easier to pay these outrageous prices. I worked and saved all my life NOT to throw money away.

By the time you scroll down to read this, the houses have appreciated 5%... seriously if housing is appreciating in the rest of the country , why would it not here in TV? The Low prime interest rate should fuel the flames!

Don’t move, stay where you are.

Exactly right! Bubble or no bubble, the prices will continue to rise and then level off. They will not decrease. So, if you can afford it, buy whenever you want. If you cant, stay put where you are. Simple

Then dont throw it away and dont buy if you feel you cant afford it

Real Estate prices always have been cyclical. But have also always been on an upward slope. This peak is higher then the last peak and the next drop will not be as low as the last drop. The down side of buying in a peak is very limited selection. That will change when we get past this peak and prices stabilize. Selection will be much better but I doubt prices will be much lower. So if you can find what you want in this crazy market, buy it. I would not settle for something just to buy now. Availability will improve a lot over time, prices not so much. So if you can’t find pretty close to what you want, rent and wait it out.

then don't buy....this is america

The value of the dollar has been beaten up this year. Like the home prices in TVs the value will not get any better. Buy now if looking.

The housing market is crazy everywhere not just in The Villages. I was lucky and purchased in April right before the inventory of homes dried up. I wanted a resale to avoid paying a bond. I have several friends who haven’t been that lucky. On couple sold their home, went to SC to buy and found they can’t find one in their price range. The prices have gotten too high. They are living in a RV now. Another friend sold their home, went to NC, and have ended up buying a piece of land and are building because although materials are expensive, it is cheaper. Plan ahead…….

You may want to consider working with a Realtor and focus on pre owned houses without a bond

We could not afford to buy our own house right now. The days of selling your house up north and moving to Florida into a cheaper house and pocket the profits are long gone unfortunately.

Flgagg, I noticed you were at Elgin AFB and that’s some of the reason I’m quoting you. I have a long time friend who lives in the area of Eglin. His neighbor sold her home thinking she could take a bit a geographical cure so to speak. Turns out she cannot find another home nor could she even afford to purchase the home she sold last year. Your examples of your friends I believe is happening more often than not in 2021.

I wasn't making the point that nobody is buying a house as a monetary investment, I was asking specifically if that was the intention at this point. Who knows how buying anything right now will work as a monetary investment? Not me, not you, not anyone.

My point was that if buying now, at the current prices is affordable, and one has reached the point in life where quality of life is more important than getting a bargain, one shouldn't beat themselves up over not having done it 2 years ago, because that train has left the station. Certainly, however, if buying a home now feels like "throwing one's money away", one shouldn't do it.

I wish I'd bought Apple stock when my dad suggested it to me about 20 years ago. I didn't. That doesn't mean it wasn't a good buy 12 years ago, or 8 years ago, or 5 years ago. You can only do what makes sense to you right now, and not agonize over opportunities missed because you didn't have a Stu's crystal ball, (which by the way, he says is broken now anyway).

In south Florida the home prices then plummeted as high as 50%. In TV the hit was only 10%.

The Prices of Homes are CRAZY!
You can feel that, but the solution is NOT to wait, unless you think prices will be less later. Current trends indicate The Villages is increasingly popular. If you buy now, you are likely to be very happy with the value of your house in subsequent years. I am a new home owner here, and have no regrets.
Pres

Lancaster? Pa?

I have friends who had sold their Lantana on a cul-de-sac in Mallory for full price in July, 2020. The new buyers had to move back north and listed the house about three weeks ago.They had 11 showings and 3 offers on the first day. They sold it for $165,000 more than they purchased it for 18 months ago!

If this is an example of the pricing of homes in The Villages, it would seem prudent to wait until supply caught up with demand before deciding to move here.

The dog must have written this. He doesn't have spell-check on his computer. LOL

Prices in the Villages only seem to go up. Granted this rise is a bit steep. If you are sure you want to buy here, know the area you want to live, you probably shouldn't wait. Good luck.