Talk of The Villages Florida - Dropping Home Prices in TV is a Good Thing

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- The Villages, Florida, General Discussion (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/)

- - Dropping Home Prices in TV is a Good Thing (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/dropping-home-prices-tv-good-thing-344602/)

Quote:

Originally Posted by dewilson58 (Post 2263330)

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

:popcorn:

Really? I have a comfortable 2.75% mortgage, while I'm making over 5% on CDs in my IRA with money I didn't have to distribute, and pay taxes on, thanks to my mortgage.

I don't feel sad. I don't think you need to feel sad for me either. It's working out OK.

Just look at the sales price drops. “REDUCED” is everywhere.

Quote:

Originally Posted by Laker14 (Post 2263358)

Yes "really?"

Like I said, That's an investment decision.

Quote:

Originally Posted by Normal (Post 2263360)

Just look at the sales price drops. “REDUCED” is everywhere.

Marketing.

Increase the price 20% over last year, then show a 5% reduction........that's not a sales price drop.

Quote:

Originally Posted by dewilson58 (Post 2263330)

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

:popcorn:

I agree. In 1980, I had a $35K mortgage with an interest rate of 7.75 percent, which was considered a bargain at the time. I couldn't sleep at night, so I paid it off in 3 years. I offered the bank a discounted cash payoff, but they refused. That is the only loan I have ever had. To me, borrowing money has never been a good financial decision.

Quote:

Originally Posted by Craig Vernon (Post 2263319)

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!

I'm not sure where everyone is getting this nonsense about home prices dropping like a rock in TV and everywhere else.

I bought a home in TV, less than 2 years ago. I can make a reasonable profit, if I sold it today.

For the last year, I've been looking for another home in TV, as the one I bought, doesn't exactly fit my needs ... there was very limited availability 2 years ago.

I watch the Listings every day, for homes for sale in the geographic area I want in TV. Pound for pound, the houses that I see (& are being sold) are still 10%-15% more than I could have bought them for, 2 years ago.

There was rampant speculation over the last few years, in TV and other locations. That's over with for now. If you did your due diligence when you bought, you're still sitting with normal real estate appreciation of 3%-4% per year.

Quote:

Originally Posted by dewilson58 (Post 2263366)

Marketing.

Increase the price 20% over last year, then show a 5% reduction........that's not a sales price drop.

Totally agree but the reductions are just beginning to correct the pricing related to rates. If this continues it simply makes TV not a good market for investors and a better market for individual buyers.

Quote:

Originally Posted by Craig Vernon (Post 2263370)

Great point regarding the tapering of investors ... again, that was driven by insanely low rates.

For resales' price reductions; I take those with a grain of salt because (at least in my experience) that's typically caused by emotional sellers who've talked their listing agent into an unreasonable original list price. I've always hated the initial pricing decision for my moves. So ... i wouldn't get so alarmed by the rising number of "Reduced" listings ... agents are not always able to get owners to price accordingly.

Definitely noticing much lower prices in my village. Several listed at prices I haven't seen in years. Two went pending in no time while others that are higher priced have been on the market for a long time. Small sample but certainly seeing a trend.

There is no way I would have moved here if I had to take out a mortgage.

Quote:

Originally Posted by cjrjck (Post 2263404)

Same here, we are not only seeing the large inventory of new homes, many 1 and 2 year old homes have been on the market a while. We know of a man down the street who is willing to take a 10 K loss from what he paid two years ago on a 1500 square foot home.

Quote:

Originally Posted by dewilson58 (Post 2263345)

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

Mine was 11% and we were thrilled to refinance it down to 8 1/4%.

Quote:

Originally Posted by dewilson58 (Post 2263329)

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

Yeah, I think they are. According to Zillow, the value of our house has decreased about 10% in the last year.

Quote:

Originally Posted by tophcfa (Post 2263416)

Mine was 11% and we were thrilled to refinance it down to 8 1/4%.

Mine was 8.85% in 1988 with first time home buyer rate.

Quote:

Originally Posted by dewilson58 (Post 2263330)

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

:popcorn:

OPM (other people’s money or mortgage) is why one would always have a mortgage, when your money makes more money that interest on mortgage. Your financial advisor, and COA can explain benefits