The Villages Q2 Real Estate Update
 

For those not on the email list, Q2 Real Estate Update from The Villages.

Spanish Springs

Lake Sumter

Brownwood

Link to the full document.

Q2 Market Update 2022

Deleted duplicate post...

How do you get on the mailing list for these updates?

With rising interest rates wonder how much price of homes will come down?

We are looking at some of the new spec homes in the new areas. The prices have gone up from last year but they still aren't as high as the pre owned homes in other areas of TV. My question is why are the preowned homes so much more expensive than the new homes. It doesn't make sense to me.
Can someone please explain this to me?

For one thing established landscaping. Also closing to shopping.

Ask a Villages Rep to add you to the mailing list. They don't send a lot of spam.

It's been reported up to 80% of home sales here are cash.

We have added thousands into our home since we had it built. We expect to add a few more eventually. If you purchase a pre owned home you will most likely change a few things, but overall most of the usual upgrades will be done, which will save you time, aggregator & money. A lot of upgrades have gone up in price due to labor & material increases.

For examples, we have upgraded our floors, put sliding glass, electric shades & a/c in our lanai, as well as many other items.

Also our location is super. A stone’s throw to multiple pools, rec centers, dr offices and shopping.

The better locations sell fast, remaining inventory homes tend to have something less desirable about the home or location. They may be discounted as the areas is closed out

I have heard that but for the other 20% who need a mortgage costs will go up and supply of buyers who can afford this place will go down.

Have purchased three new homes over the last several years near Lake Sumter Landing and 466a. At that time we found discounted new build homes because the developer wanted to finish the neighborhood and move onto the next project. There were some good deals to be had.

They are overpriced. Many will need a roof, ac, water heater etc. better off with new

Location, location, location is a time honored real estate adage.

What percentage of homes are being bought by real estate investment companies this year?

It’s not unusual to see a pre owned home with $50k of upgrades. Some listings claim $150k of upgrades. A pre owned home less than 10 years old with a bunch of upgrades is a better value than a brand new home.

Also either low or no bond on older homes. (Sorry if this has already been mentioned.)

Preowned have-
upgrades done - these can be expensive
Some of the bond paid
bigger yards
Closer to shopping and golf courses
NO TOLLWAY NOISE
Closer to more town squares
Sometimes some furnishings or a golf cart.

I have bought one of each, it all equals out

IMO it’s mostly because upgrades like driveway painting, landscaping and interior upgrades have been done. Bond May also be paid, or paid down.

Personally, I don’t want the traffic that all the shopping areas bring, so that would be a negative on my list.

Location, location, location.

These stats are on Village sales, does not include Realtor sales.

That doesn’t mean the 80% need a mortgage. With mortgage rates at 2 or 3%, you finance, if they jump to 5 or 6%, you pay cash, or finance a much smaller amount.

That’s impossible, I’ve read on here MANY times, a house with $0 bond is not worth more than a house with a bond balance

It’s almost impossible to generally compare 2 homes, without knowing the details of what’s included.
With a new home, there are always upgrades that need to be made. Most pre owned homes have many thousands of dollars in upgrades. The area around an existing home is most likely fully build out and already has established traffic routes.

As mentioned, established home MIGHT have replacement/maintenance costs sooner.

I wasn't aware of this phenomenon. But, as mentioned before, it's tricky to compare prices without looking at the particulars of each home. When I was shopping for a home in TV, I found that pre-owned homes were a better value, IMO, when I factored in upgrades, and bonds. Bonds don't affect the value of the house, unless of course, one can do math.

I also factored in age of roof, HVAC etc etc, and where I wanted to live.

5 years ago when we bought a new home the re-sales were also higher and our agent said they always are. We looked at both and chose new because there was no wear and tear on anything and at the time you can pick any lot you wanted and they were cheap. Also took into consideration the new home warranty.

It was to me when I was buying.

OK but several real estate sales folks have told us not worth paying off bond unless we are sure to stay in our current house for forseeable future so our bond is still there for now.

Different strokes for different folks. I look at it as bad debt, like paying interest on a credit card.

We all spend our money as we see fit.

Thinking it is best to decide if we stay in current house for some time before paying off bond and possibly not getting the money back from our buyer.

The bond is not the same as credit card debt or even mortgage debt. Those debts are debts against an individual that can affect their credit rating and can have other financial consequences, like higher insurance rates. But, the bond is a debt against the property, and does not count as individual debt. The individual homeowner never needs to pay off the bond. But, you do need to pay interest.

I understand. To me it is like credit card debt because you can't write-off the interest.

Here's a thread on Bond discussion.

https://www.talkofthevillages.com/fo...highlight=Bond

Doubt that will help, there are only 107 posts on that thread.🤦

Just another Groundhog Day thread... 🤣

The question of whether to pay it off or not is a different question than whether or not the existence of a bond balance has an effect on the purchase price, or attractiveness of the property compared to other properties.

We were told by several real estate professionals that most people will not consider the cost of the bond in deciding on whether to buy a property.