[Craig Vernon]

The Villages success is based upon likeminded folks that save and move to a beautiful place to reward a lifetime of effort. The last few years have priced homes out of many savers range and moved sales into an elevated investment cycle that hurts the environment for snowbirds and full-time residents. As the place we love becomes a less desirable investment many of the problems that have come with it simply go away. This morning's listings Zillow 384, TV preowned 394, TV new 314 and growing. This is the largest number of listed new construction since I started keeping track in 2020 and just short of twice the number which was 199 in January of this year. I asked the Village Newcomers Jerry and Linda on their YouTube channel if they would or could have moved here if prices were where they are now. The answer was "No," and they are a prime example two retired teachers with pensions coming to their happy place. See you all in February. Have a Great Day!

[ThirdOfFive]

It isn't just price that is the determinant. Interest rates have as much or more to do with the slowdown in sales, particularly for those who cannot afford to pay cash for a home here.

Some rough-and-ready examples (courtesy of mortgage calculator website:

$500,000 home, 20% down, interest rate 7.5% = monthly payments of $2796.86
$600,000 home, 20% down, interest rate 2.5% = monthly payments of $1896.58
$700,000 home, 20% down, interest rate 2.5% = monthly payments of $2,212.68

These numbers don't give an exact figure, but are ballpark; they also don't include things like insurance, bond, etc., which raises the monthly costs. But it is a good approximation.

[dewilson58]

" Dropping Home Prices in TV is a Good Thing"............are they dropping???

[dewilson58]

Originally Posted by ThirdOfFive

It isn't just price that is the determinant. Interest rates......

Sad if a retired person purchases in TV and has a mortgage.

[DeweyBeach]

Real estate is correcting everywhere, as it should. I've moved multiple times due to transfers and have seen the difference in the "need to move" vs the "nice to move" markets. When rates were crazy low there were so many investors and "nice to move" buyers out there it drove values insanely high. Let's just keep in mind that The Villages will always be higher in value since the buyers are from every category imaginable (Last Time Moves, Investors, Second Homes, Nice to Move, etc) ... while I expect our statistics to decline, I believe it will be at an anomalous rate to the rest of the state.

[tophcfa]

Originally Posted by ThirdOfFive

It isn't just price that is the determinant. Interest rates have as much or more to do with the slowdown in sales, particularly for those who cannot afford to pay cash for a home here.

Some rough-and-ready examples (courtesy of mortgage calculator website:

$500,000 home, 20% down, interest rate 7.5% = monthly payments of $2796.86
$600,000 home, 20% down, interest rate 2.5% = monthly payments of $1896.58
$700,000 home, 20% down, interest rate 2.5% = monthly payments of $2,212.68

These numbers don't give an exact figure, but are ballpark; they also don't include things like insurance, bond, etc., which raises the monthly costs. But it is a good approximation.

By all reasonable measures interest rates really aren’t high. Interest rates are supposed to be set so responsible savers and investors can earn a real rate of return above inflation. Since the housing market crash of 2007/08, the Federal Reserve long time irresponsible monitory policy of artificially low interest rates created a society dangerously addicted to unsustainable debt. Current interest rates are around long term averages if the period of artificially low rates are excluded. Housing values should adjust to reflect the Federal Reserve returning to doing their job responsibly.

[MX rider]

Originally Posted by dewilson58

Sad if a retired person purchases in TV and has a mortgage.

You shouldn't paint with such a broad brush. Everyones situation is different.
We bought about 18 months ago when the rate was 3.5%. Our investments make more than that, so we decided to finance and leave our cash invested.

That said, some people may be able to afford a mortgage payment and not have enough liquid money to pay cash. There's no real right or wrong way to do it. If people can do this and find their happy place, good for them.

Interest rates do factor in on sales, in my opinion.

[dewilson58]

Originally Posted by tophcfa

By all reasonable measures interest rates really aren’t high. Interest rates are supposed to be set so responsible savers and investors can earn a real rate of return above inflation. Since the housing market crash of 2007/08, the Federal Reserve long time irresponsible monitory policy of artificially low interest rates created a society dangerously addicted to unsustainable debt. Current interest rates are around long term averages if the period of artificially low rates are excluded. Housing values should adjust to reflect the Federal Reserve returning to doing their job responsibly.

I think my first mortgage was 12%. OUCH!!!!

[MX rider]

Originally Posted by dewilson58

I think my first mortgage was 12%. OUCH!!!!

LOL. I remember at some point in our lives we got 9% on a refinance and thought we hit the lottery!

[dewilson58]

Originally Posted by MX rider

You shouldn't paint with such a broad brush. Everyones situation is different.
We bought about 18 months ago when the rate was 3.5%. Our investments make more than that, so we decided to finance and leave our cash invested.

That's an investment decision, not I need a mortgage on my retirement home.

[MX rider]

Originally Posted by dewilson58

That's an investment decision, not I need a mortgage on my retirement home.

Read the second paragraph. It's not as cut and dried as you think

[dewilson58]

'''

[dewilson58]

Originally Posted by MX rider

Read the second paragraph. It's not as cut and dried as you think

I did.

I said, "It's sad"

[MX rider]

Originally Posted by dewilson58

I did.

I said, "It's sad"

We'll just have to agree to disagree on this. If they can afford to make the payments and still enjoy life, go for it.
I don't think it's sad at all that they can be happy and live out their retirement dream in such a great place like TV, even if they have to finance.

Hell, you can't take it with you.

[Craig Vernon]

Agree that interest rates are causing sales to slow and also prices are still at levels related to lower rates. There is a series of videos by Realty Executives on YouTube, David is in Florida that tracks price reductions and sales data from the MLS. New construction prices are lower, and it is interesting to see how it is being done by lowering lot prices some to zero dollars.