"Used" home prices: why pay for an "old" home when NEW ones cost the same? (Apopka: sale, countertops)

[OTownKnight]

Originally Posted by Corvette Ministries

When I trade homes I don't fret about buy low/sell high or buyer's market/seller's market. I buy when I buy and I sell when I sell.

In the end, it is what it is.

Eh, to each their own but I know most wouldn't feel this way if they bought for $400k in 2007 and were forced to sell in 2012 for less than half that, or were foreclosed on like many were.

If only we had a crystal ball to predict the peak of the market so we could sell, and then wait it out for a few years to buy again to get the good deals.

[seion]

Thanks to all that chimed in with their comments; I appreciate the discussion. My conclusion is that right now it's better to buy new, although we are talking places as far as Mount Dora, Cleremont, Sorrento, and Ocoee. Some builders are providing $8K back for closing. Median square feet is about 2,200 - 2,400. Myself I'm thinking Mount Dora; very nice place and a historic-looking.

[WithDisp]

Originally Posted by seion

Thanks to all that chimed in with their comments; I appreciate the discussion. My conclusion is that right now it's better to buy new, although we are talking places as far as Mount Dora, Cleremont, Sorrento, and Ocoee. Some builders are providing $8K back for closing. Median square feet is about 2,200 - 2,400. Myself I'm thinking Mount Dora; very nice place and a historic-looking.

Those are all horrible places.

[clearlevel]

Originally Posted by seion

This is what worries me. The 2007 prices were an anomaly, an aberration that obviously got "corrected" (painfully, I might add). So going back and creep up to those prices rapidly would eventually get us in the same predicament. Nothing I can do about it; just watching it unfold as it doesn't make sense for these house, some of them really looking old, especially inside, be at these price levels. I mean, if these houses were updated and looking great, then yes, $250K+ and more would make sense. Now it's almost like there is no interest in doing any upgrades; just put it on the market at a high price and see who bites. But when these houses have green old carpet and old appliances, it makes you wonder why. At the end, it may be a great investment opportunity to fix them up, and then sell them for $350K+ later on. But this just closes the affordability door for people. Oh well, let it be; nothing we can do about it. Just surprised at the prices vs. house conditions.

I would say the lower prices are what was the anomaly. You seem to not realize that it works both ways. What's good for buyers, might not be good for sellers.

For instance, you buy that new house for $250,000, but then, when the next recession hits, that home will be worth $130,000... and people will say the same thing you just said, which is to say, that the price was "corrected." Whereas, houses in Windermere, Dr. Phillips, Winter Park, will NOT go down that price, even in a recession. That's the point. Newness of house does not correlate to value.

Also, as I said, you don't know if the neighborhood will thrive, or if the HOA will shut down and all the amenities will be closed and all the neighbors leave.

Plus, the idea is that I think this is the new normal. And the reason why prices are going up is because there are plenty of people from up north who have money and big pensions and are able to buy these houses cash. They wouldn't be going up if there wasn't a market for them.

[bmw335xi]

The market goes in cycles of booms and busts but the long term trend is up.

[cjairo191]

Originally Posted by WithDisp

Those are all horrible places.

Mt. Dora is not horrible and its quite nice.

[idr591]

I love that the OP likes Mount Dora because is it "a very nice place and historic looking," but can't appreciate why someone may not want a brand new home.

[bmw335xi]

Originally Posted by cjairo191

Mt. Dora is not horrible and its quite nice.

Mount Dora isnt a place I'd want to live because I prefer larger cities, but for someone who likes small towns Mount Dora is a perfect choice, very quaint, very beautiful!

[seion]

Originally Posted by idr591

I love that the OP likes Mount Dora because is it "a very nice place and historic looking," but can't appreciate why someone may not want a brand new home.

Just because it's historic doesn't mean I have to ponder on whether I should buy an old home that may need a lot of repairs, some to bring it up to code, and a new house that gives me peace of mind.

[idr591]

Originally Posted by seion

Just because it's historic doesn't mean I have to ponder on whether I should buy an old home that may need a lot of repairs, some to bring it up to code, and a new house that gives me peace of mind.

If you're worried about making repairs, homeownership may not be for you. You will be making repairs no matter the age of the home. Lots of them.