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Originally Posted by tophcfa
Real estate values are always driven by supply and demand. Supply is being added very rapidly, buts that’s nothing new in the Villages. Demand for homes has slowed, increasing inventories. My take on slower demand includes the following:
Inflation - This is a very real and significant problem, cutting significantly into people’s disposal income and willingness to purchase a second home (which represents a significant percentage of Villages homes).
Decrease in home values up north - This makes it much more difficult, and risky, for those looking to flip their northern home into a Villages residence.
Floridas outrageously high property and casualty insurance (both homeowners and auto), property taxes, and the bond that comes with many Villages homes - It’s not just the price of homes that buyers must be able to afford, it’s the total package.
Economic uncertainties - These always exist, but seem unusually elevated these days, with new tariff driven inflation and recession fears and a very volatile (not in a good way) stock market. Not an environment conducive to making a significant investment in a home. I suspect many retirees equity in their investment portfolios have a high correlation to their willingness to purchase property.
Investor owned properties- The demand from this segment has slowed for several reasons, which all make a speculative real estate investment more risky than in prior years.
Hurricane burnout - it’s easy to forget about this factor this time of the year, but come mid October it’s fresh in people’s minds. This also effects the homeowners insurance market, which is a previously mentioned problem.
Reduced demand from those outside the USA - Many of these folks appear to be disenchanted and generally pi$$ed off with the USA these days.
Mortgage rates no longer at rock bottom like they were for many years - I suppose this is a deterrent to the segment of buyers not paying cash for their homes.
Just some random thoughts.
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Add to this that in the early 2000's, baby boomers were grabbing houses in TV and fueling growth. Now, those baby boomers are getting older and may be having health issues that force them to move back north to be with family who can take care of them.