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Old 03-22-2015, 08:18 AM
 
2,932 posts, read 4,012,631 times
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Quote:
Originally Posted by TestEngr View Post
Well everything is local as they say in RE. FL RE is cheaper than big cities in NE for sure, but it is a bit higher than it probably should be. There are lots of homes that sit months or even years unsold, and to me that says they are too high and this when loans are lowest interest rates nearly possible. There are houses here in Volusia county that they clearly want $100K more than the home is worth like in Venetian Bay/New Smyrna Beach and they just leave them out there for sale, occasionally take them off market then it comes back again, but they don't sell because they are too high by clearly $100K.

What happens as interest rates rise? It makes it harder and harder and prices will have to come down. Right now interest rates are not really rising but they have only one way to go from here be it 6 months or two more years before rates start rising.
I don't get it. Some of the developments in Venetian Bay are bargains. DR Horton is offering a brand new 2000 sq ft home with good features for 194k. Would you suggest it is only worth 94k?
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Old 03-22-2015, 08:55 AM
 
Location: Pittsford, NY
518 posts, read 624,678 times
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Originally Posted by HarryWho? View Post
I don't get it. Some of the developments in Venetian Bay are bargains. DR Horton is offering a brand new 2000 sq ft home with good features for 194k. Would you suggest it is only worth 94k?
DR Horton is kind of the oddball of Venetian Bay. 6 months ago we looked at the tiny house they sold and with a few options it was actually closer to $250K, but anyway they use super tiny boxed in lots. KB Homes did some homes in there too years ago and they try to sell them around $300 to $350K as resale but they really are about the same as the DR Horton in value. Although they may not say who the builder is many Venetian Bay homes by builders other than DR Horton and KB are quite a bit higher any check tells that story. I would not buy the DR Horton, or KB built in past homes to be honest. The DR Horton has kind of a value but geez when you go to second floor you literally are looking in your neighbors a few feet away out the windows so that is kind of odd for a country sort of setting with tiny lots. The other builders are just too high, just look at some listing of the other homes in there. They list for $479K or something, they just never sell, clearly $100K over priced.
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Old 03-22-2015, 09:01 AM
 
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Quote:
Originally Posted by TestEngr View Post
DR Horton is kind of the oddball of Venetian Bay. 6 months ago we looked at the tiny house they sold and with a few options it was actually closer to $250K, but anyway they use super tiny boxed in lots. KB Homes did some homes in there too years ago and they try to sell them around $300 to $350K as resale but they really are about the same as the DR Horton in value. Although they may not say who the builder is many Venetian Bay homes by builders other than DR Horton and KB are quite a bit higher any check tells that story. I would not buy the DR Horton, or KB built in past homes to be honest. The DR Horton has kind of a value but geez when you go to second floor you literally are looking in your neighbors a few feet away out the windows so that is kind of odd for a country sort of setting with tiny lots. The other builders are just too high, just look at some listing of the other homes in there. They list for $479K or something, they just never sell, clearly $100K over priced.
Zero lot lines are becoming the norm everywhere it seems unless you are really shelling out the cash
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Old 03-22-2015, 09:07 AM
 
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Then I suggest it's a matter of perspective. I agree that small lots aren't for some. I personally wouldn't live in a planned community with an HOA or zero lot lines. But for those who relish the conformity and regimentation of such a development, it's quite an acceptable price to pay.
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Old 03-22-2015, 09:08 AM
 
Location: Pittsford, NY
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Originally Posted by chopchop0 View Post
Zero lot lines are becoming the norm everywhere it seems unless you are really shelling out the cash
I guess that is the unfortunate truth, almost any builder offering decent lots they start asking a price that seem like won't resell for years if you end up having to sell. We are kind of stuck partly because of that and waiting on some other things of course, but there is a real set of tiny lots going on out there for sure. Who knows maybe things will change if interest rates go up but it may take years to get to right equilibrium of decent lots trying to attract buyers for the value. We are always looking for that value.
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Old 03-22-2015, 09:23 AM
 
Location: Pittsford, NY
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Originally Posted by HarryWho? View Post
Then I suggest it's a matter of perspective. I agree that small lots aren't for some. I personally wouldn't live in a planned community with an HOA or zero lot lines. But for those who relish the conformity and regimentation of such a development, it's quite an acceptable price to pay.
Good point Harry. We are most definitely not looking for HOA's anymore as well and others should learn about that in their RE search. Too much ridiculousness in some if they make too many rules. While some limited HOA's can work, many times they start giving out fines to people who forget to mow the lawn because they were out of town or get police in to write parking tickets if you park slightly wrong even if you are in your own driveway. Those are actual stories I have heard from coworkers. HOA's can work, but they seem to just go downhill from stories we hear.
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Old 03-22-2015, 11:04 AM
 
Location: Heartland Florida
9,324 posts, read 23,796,698 times
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The Fed will never raise interest rates, they cannot. Doing so would burst the bond, stock and real estate bubbles. They will lose control when the rest of the world dumps the dollar. Debt levels are so high that interest rates at normal levels will blow the bubbles away.
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Old 03-22-2015, 11:18 AM
 
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Originally Posted by tallrick View Post
The Fed will never raise interest rates, they cannot. Doing so would burst the bond, stock and real estate bubbles. They will lose control when the rest of the world dumps the dollar. Debt levels are so high that interest rates at normal levels will blow the bubbles away.

Im only going by recent Fed news. My personal feelings are like yours.
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Old 03-22-2015, 11:25 AM
 
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Id like to thank the people that have responded. A lot of good information has been shared. My personal thoughts are the same as my first post. Here's a good episode of Nightline that aired 3/2/2015 on the topic "Zombie Homes". Florida homes are the main topic. If you can, please watch it and share your opinions and thoughts. It should only take 5 mins to watch it.

http://abc.go.com/shows/nightline/li...-houses-go-bad

How does someone know what their house is really worth with homes sitting like this? Would you feel comfortable buying a 300k home with idle houses and foreclosures around you? Not to mention, since 2012 home prices have already risen 40%+++ in Florida.


And the Fed is thinking of raising interest rates? I find homes overpriced across the country. Therefore, I find the National median home prices to be a poor comparison.

Last edited by cane2990; 03-22-2015 at 11:34 AM..
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Old 03-22-2015, 12:27 PM
 
Location: Pittsford, NY
518 posts, read 624,678 times
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Raising interest rates will help bring FL RE back to where it belongs. We sold our West Melbourne home at breakeven and it had tons of features, and moved to a rental at the moment due to job changes. We looked at houses in Volusia $250K to $500K and the ones at $250K need $100K of work, the ones selling higher are at least $100K over where they should be. FL RE is too high is as simple as it gets to me. When we sold we did not try to milk it, we could have but it was time to move due to jobs, most people do try to milk the real estate holding out and holding out.

Two people trying to buy our home in West Melbourne wanted to buy with something like $1000 down. We decided not to take that kind of offers at our agents advice that they seemed like the bank might eventually find them unqualified and they offered kind of low anyway. But there are people out there, a.k.a shadow banking, handing out business cards offering mortgages and that they can do it with almost nothing down. Last time we saw that was 2005 or 2006.

Raising interest rates might not cause the common industrial or tech stock equities to fall. Bonds, and stocks exposed to RE will probably fall, but well, that is how markets work. Time for RE to correct with rate rises, take out all the nothing down shadow banking too. I thought government banned shadow banking, but like I said two buyers offered buying our last home with essentially nothing down from some obscure lender. We got a mini bubble going on as people get in on low rates for last time perhaps.
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