[shut the front door]

Originally Posted by jimhoward

Here is one concrete example illustrating why I think existing homes sit on the market a relatively long time.

Three beautiful new Veranda homes were sold in Water's Edge last week in a lottery. They had greatly oversized lots, overlooked a pond, and had pools and big bird cages. Absolutely gorgeous. They sold the homes for $690K, $763K and $786K. A Maybury and 2 Jacksons.

Now look on thevillages.com and on Zillow for pool homes with large lots, overlooking water or some spectacular view. You will find a few but none with an asking price less than $1M and typical is about $1.1M. I am sure the owners put money into them, but even so I think it is little wonder that people clamor to buy new homes.

The only new houses that sit on the market for a long time are on interior lots.

Have you ever considered that those of use who have a pool home with an outdoor kitchen backing up to a lake and no kissing lanais aren't going anywhere? You can find houses such as these if you look carefully, but most of us who have that and paid $350k for it 15 years ago aren't selling. EVER. And those homes down south aren't any cheaper when you throw in that 50k bond.

[Altavia]

This is one market where buying the lowest cost, interior homes is a poor choice from the long term investment perspective.

Interior lots appreciate at a much lower rate than homes in a more desirable location

Sites like Zillow do not distinguish the difference given how homes are mixed togethet

[jimhoward]

Originally Posted by shut the front door

Have you ever considered that those of use who have a pool home with an outdoor kitchen backing up to a lake and no kissing lanais aren't going anywhere? You can find houses such as these if you look carefully, but most of us who have that and paid $350k for it 15 years ago aren't selling. EVER. And those homes down south aren't any cheaper when you throw in that 50k bond.

Yes, understood. People with beautiful homes such as yours value them very highly, and may not sell them until they die. That is why the asking price is over $1M for those that are for sale. But some are indeed for sale and at the asking price they don't sell seem to sell instantly. Equally beautiful new built homes are rare. But they do exist and they have lower cost, even after accounting for upgrades and bonds, than existing homes. I think that is why they do sell instantly. Its not lack of rationality by those buying new built homes