[Kelevision]

I was born in Lake County and was here before TV. IMO, There are several reasons. There are tons of rental properties here and what used to be a very lucrative income has turned into not such a lucrative income. I personally know 2 friends who just recently sold their rentals. They still live here in their other home. Lots of Canadians also own homes here and are selling. And people are leaving Florida in general due to high taxes, among other issues. I’m gonna go out on a limb and say expect more houses to get listed and less people buying in general for a while.

[Nanshe]

Yes!

[G.R.I.T.S.]

In my case regarding my friend’s home, she passed late last year and her relatives have the house on the market. I also know of several more people who have to move because of illnesses. I suspect this is a common reason as we do live in “God’s waiting room.”

[Andyb]

Nailed it.

[kimgarwel12@gmail.com]

We just looked at purchasing a CYV last week. Our current minimal mortgage is at 3%. After talking to the bank, even VA mortgage rates are at 6.5%. Add to that the substantial bonds, realtors fee of 5%, and estimated closing costs of $21k ( on a $350k house?? Seriously??) and even the banker said it was a no brainer, sit tight where you are. I guess our patio villa doesn't look so bad right now!! Too much inventory sitting for more than 6 mos. I've said more than once that it's easy to buy a house in Florida, but a bi$@# to sell one (from personal experience).

[Nana2Teddy]

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.

Your random thoughts feel very spot on!

[Marine1974]

Originally Posted by AMB444

Ok, all you smart people of TOTV.

I keep hearing from various sources that the real estate inventory is high right now and many properties are available.

What's your best guess or opinion on why this might be?

Thanks again for your responses!

It's impressive how much knowledge TOTV members have, so I do appreciate you all sharing your thoughts.

Currently the interest rates on a $400,000 home requires a $200,000 household income.
70 % of Americans purchasing a home with 20 % down payment do not qualify.

[Dgodin]

I can't believe people thinkk interest rates are high. Doesn't anyone remember when rates were actually high in the double digits?

Inflation is a factor, it's cutting into disposable income. The end of remote work is a factor. People close to retirement bought here. Insurance is a factor. For some it is unobtainable, for others it is expensive. Uncertainty is a factor.

[Bridget Staunton]

Not near as high as we used to pay years ago I remember paying 10% and I was glad to pay, just save a little more

[slg0921]

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.

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.

[jimhoward]

One reason that the number of listings in the Villages is historically high is that the Villages is historically big. There are more homes than ever before so we expect more listings.

Given that many villagers die every year and many more move within the villages every year, the number listings as a percent of total homes does not seem particularly high (even though I dont know what that exact number is).

[tophcfa]

Originally Posted by slg0921

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.

Good point, lack of quality health care in and around the Villages is a very real issue. Not only could it cause older retirees with health issues to relocate, but potential new residents might finally be waking up to the problem. Adequate quality health was a real issue here several years ago, and it only keeps getting worse as the rapid growth in housing is suffocating the healthcare system.

[Normal]

Home Insurance premiums are almost double a year later. It amounts to about 1,000 dollars a household. Perhaps 100 dollars extra a month here in The Villages. Not to mention auto rates skyrocketing.

[Tyson]

Its the markets. Anyone who might have been considering retiring to TV is probably thinking twice and those homes being built will sit for along time.

[thelegges]

Originally Posted by kimgarwel12@gmail.com

We just looked at purchasing a CYV last week. Our current minimal mortgage is at 3%. After talking to the bank, even VA mortgage rates are at 6.5%. Add to that the substantial bonds, realtors fee of 5%, and estimated closing costs of $21k ( on a $350k house?? Seriously??) and even the banker said it was a no brainer, sit tight where you are. I guess our patio villa doesn't look so bad right now!! Too much inventory sitting for more than 6 mos. I've said more than once that it's easy to buy a house in Florida, but a bi$@# to sell one (from personal experience).

Money goes a long way in today’s market. So buy now, hold on to current home, rent low to offset costs, then when market has an upturn sell. Under contract a home can be more desirable