Prices Going Up?
 

We were planning on buying in TV in about 2 years, but are tempted to do it now because of low interest rates and what appears to be prices increasing by about 5-7% annually. Are the prices consistently increasing? Probably most in a new build or newer preowned,

We just did a refi and the appraisal agreed with your 5-7% over the 6 years we have been here. Lower than Zillow but I felt it was the right number.

Yes, 5-7%. Don't forget you can lease it out, or furnish it and rent it out and it pays for itself. Not hard to do at all. Even if you just rent out Jan-April, it will cover your expenses easily. We bought a home for $245,000 closed in Jan of 2015. I could EASILY sell it for $310 to $320 today (bumped out Jasmine with a Golf Cart garage on a large lot). Of course, we bought 10 years early... :)

Is that 5-7% per year or for the total of the 6 years?

per year


look at a property on zillow and you can see the trend lines

Another factor not discussed is a likely increasing impact fee.

The impact fee is paid by the builder to the county and included in the home price, it will also be reflected in used homes as new homes are the competition. Currently it is artificially low due to shifting of the payment of the infrastructure bill (the purpose of the fee) to taxes. New commissioners will be elected which will correct that problem. Lowering taxes and increasing the fee.

Supply and demand more and more people want to come so prices go up with higher demand.

4.55% annual rate of increase
 

(320/245)^(1/6) = 1.0455 = 4.55%

However, the rate of increase may have something to do with retirement trends, tax rates and housing availability in TV and stock market asset accounts. Hard to disaggregate the effects, but if the trends continue, then 4% should be a minimum, with 5%-6% if labor inflation picks up, hardly likely. Labor inflation is different that product inflation.

sports guy

I know you drank the Kool Aid but lets see how the new guys do when they understand the details.....you might be right but I choose to wait and see and not believe what political candidates promise.

yes, the prices are going up. 5-7% per year is probably about right.

The men who won the Republican primary are of the highest character according to those who personally know them. The fact that the Morses' launched an all out attack against them is the clearest evidence of the Morses' fear that they will impact their ability to influence the county commissioners, some would say that the commissioners work for them. Wait, in fact the lame duck commissioners do run businesses dependent on the Morses.

Now it is unlikely that they will be be able to completely roll back the tax increase. However since they will hold the majority they are in a position to increase the impact fee.

What details#? The budget jumped 50 million one year . 25%

Easily avoided by. A more normal impact fee

Prices are going thru the roof

But for how long?

This from a Washington Post article:
Every day, 10,000 Americans reach the age of 65. (In 2024, that number will crest at about 12,000 a day.) And every year, fewer and fewer of them have traditional employer-sponsored pensions to support them. The system that was supposed to provide for them is shot through with holes.


I believe there will be a point when the supply will definitely outstrip demand. Other factors are that subsequent generations will not have the same level of retirement assets. Also it is quite clear that the expansion of The Villages will never stop until there are no longer any buyers.

Personally I plan on selling my home within the next 5 to 10 years. Maybe sooner if hyperinflation returns. Eventually massive budget deficits and exploding monetary expansion will force interest rates much higher.