[margaretmattson]

This is the only place that new homes are cheaper than re-sales. From personal experience, 70% over cost after 3 years is to be expected.[/QUOTE]

Preowned homes are more expensive because they have $25,000 or more to pay in closing costs. This gets added to the asking price. Not to mention the cost of upgrades they made to the home. Since many Villagers sell their homes within 1 to 3 years, I understand why their asking price is higher than new construction.

Those who sold their homes 70% or more over cost were fortunate. Those who bought the homes are now sitting on homes they cannot sell. Their asking price is way above the market. On MLS we see many who bought homes during the covid craze who now must take a loss. Some 40K and more. My daughter is moving slow in buying. She wants to do everything she can to avoid a possible expensive mistake. It seems for every"I made a wad of cash on my home' story, there is a sad reality for those who paid the wad. This is happening because the Developer continues to build at marginal price increases and has no problem discounting hundreds of homes to suit his needs. A buyer has to be careful!

[MrChip72]

Originally Posted by margaretmattson

This is the only place that new homes are cheaper than re-sales. From personal experience, 70% over cost after 3 years is to be expected.

Preowned homes are more expensive because they have $25,000 or more to pay in closing costs. This gets added to the asking price.

Nothing posted here is factually correct. A small percentage of new homes in less desirable areas are cheaper than existing homes.

We almost bought a fairly new preowned home 24 months ago and the closing costs were going to be around $2000. We ended up buying new but nothing related to closing costs, we still had to pay some fees to buy our new home.

[margaretmattson]

Originally Posted by MrChip72

Nothing posted here is factually correct. A small percentage of new homes in less desirable areas are cheaper than existing homes.

We almost bought a fairly new preowned home 24 months ago and the closing costs were going to be around $2000. We ended up buying new but nothing related to closing costs, we still had to pay some fees to buy our new home.

The closing costs to SELL A PREOWNED HOME are $25,000 or more. The realtors fees alone for a $500,000 home is $25,000. Yes, when you purchase a home, closing costs are minimal.

[Laker14]

As a very satisfied and comfortable (in my surroundings) Villages homeowner, way up here in Poinciana, I see what the developer is currently developing, and continuing to plan on developing, having less and less impact on me, and on my "investment". More and more, what is being developed is separated from me by distance and concept. The more that is true, the less impact it has on my current lifestyle and on my anticipated lifestyle and the marketability of my home, when the day comes I or my heirs should decide to sell it.

I believe the marketability of my home will be more affected by things neither I nor the developer can control, like interest rates, and how affluent the pool of buyers may be at that time, which will be due to how well THEIR homes are selling, distant from TV, and how well the investment markets have done for the decade or so prior to their retirement, or their pre-retirement years.

These quarterly reports are mildly interesting, but as for representing anything that affects me, personally, basically eye candy.

[Randall55]

Originally Posted by Altavia

Yep - $300 million in new home sales in Q1 (sans Middleton) - so 1-2 billion in new home sales this year is likely -- the sky is falling...

Danby is not an easy sell. South of Eastport move quickly.

Richmond and Villages north of Eastport are eagerly anticipated by buyers

A developer sellng a new home and the buyer wanting to eventually sell that same home are ENTIRELY DIFFERENT scenarios. The developer may make a sizeable profit from the buyer. However, that same buyer may need to sell for a loss.

Or, that same buyer can make more profit than the developer on the resale. Because of this, the developer does not allow a buyer to immediately flip his homes. He is interested in protecting himself.

What goes in the Developer's wallet stays in his wallet. What goes in a buyer's wallet stays in his. Both accept a potential for a loss. It is foolish to try and compare when one has nothing to do with the other. Congratulations! The developer is making great money.This doesn't always mean good news for homeowners.

[Two Bills]

I personally think far too many overthink the property market.
The main reasons a house does not sell, whatever the market, or interest rate conditions are:
Priced to high.
It's a dump.
Poor location, or a combination of any three.
If the market deems you sell low, you will buy low. That has always been, and always will be.
All commodities make their price level from market demand, and property is just another commodity.
The expectation that you should always make a profit is nonsense.
So many enter the housing market with expectations way above reality, just because historical sale prices were higher, or lower, if buying.
All reports and figures showing sales, returns etc. from vested interests should be treated with a very large pinch of salt.
My wife and I have bought and sold quite a few houses in our time, and all our best deals were in fallen markets.
Go grab a great bargain!

[dewilson58]

Originally Posted by twoplanekid

These are the actual numbers that have been reported for new home sales over the years.

Year Homes Sold (Home and Lot) Average Sale Price

2001 2,074 156,000
2002 2,260 163,000
2003 3,329 168,000
2004 3,955 204,000
2005 4,263 232,000
2006 3,935 257,000
2007 2,403 251,000
2008 2,236 231,000
2009 2,115 229,000
2010 2,208 231,000
2011 2,307 241,000
2012 2,850 244,000
2013 3,419 271,000
2014 2,601 304,000
2015 2,294 304,000
2016 1,966
2017 2,231
2018 2,134 281,000
2019 2,429 307,000
2020 2,452
2021 4,004
2022 3,923
2023 3,029 410,000

THE PLACE IS BOOMING.
Where else is selling 2,000-3,000-4,000 houses.
Some swings, but no market bust.

[jimbomaybe]

Originally Posted by Normal

The economy is hitting a tough spot for the Villages and the country. 55% of home purchases here are financed. The economy influences buying here and everywhere.

Credit card delinquency rates are at an all time high as reported by the Fed this week. Interest rates are starting to surge. Buckle up if you thought the inflation machine was tamed. Reports show there may be one, yes one rate cut in 2024.

With inflation being an issue would that not indicate a higher interest rate ?, home sales slowing , possible stagflation ?

[Papa_lecki]

Originally Posted by justjim

We had friends who recently looked at a new designer home with a 48,000 bond. The bond was a deal breaker for them. I understand their thinking. Overall, given the current economy and higher interest rates, I would rate the Developer’s first quarter results as above average.

Wait, I was told by TOTV experts that paying off the bond doesn’t impact your resale.

[jimbomaybe]

Originally Posted by Papa_lecki

Wait, I was told by TOTV experts that paying off the bond doesn’t impact your resale.

I have trouble trying to figure that out as well

[Randall55]

Originally Posted by Papa_lecki

Wait, I was told by TOTV experts that paying off the bond doesn’t impact your resale.

Lately, It has just been marketing jargon from the sales reps trying to make a bond payment seem inconsequential. Telling a would be buyer you do not need to pay it off helps immensely with a new home sale. I believe most on TOTV will agree the bonds are ridiculously high. Their advice has been don't buy new homes look at preowned instead.

[spinner1001]

Originally Posted by dewilson58

THE PLACE IS BOOMING.
Where else is selling 2,000-3,000-4,000 houses.
Some swings, but no market bust.

Yep.

People filter information to be consistent with what they want to believe.

[spinner1001]

Originally Posted by Papa_lecki

Wait, I was told by TOTV experts that paying off the bond doesn’t impact your resale PRICE.

There. I corrected it.

[Randall55]

Originally Posted by spinner1001

There. I corrected it.

If you buy a new home and pay off the $48,000 bond, do you think you can sell the home at a $50,000 higher asking price than same model homes? Most buyers wouldn't even look at your listing because they would instantly feel it is overpriced. They would have no idea you paid off the bond.

[dewilson58]

Originally Posted by Randall55

If you buy a new home and pay off the $48,000 bond, do you think you can sell the home at a $50,000 higher asking price than same model homes?

No body is saying you can profit from paying off a bond.