It is that time of year!
The start of a New Year brings hopes and aspirations, goals and plans along with the familiar uncertainty of what exactly will happen in the coming 12 months that make this year up.
Here, at The Mobile Home Dealer, we would like to help bring industry insight to you from our time selling mobile homes on leased land all throughout the greater Sarasota Florida area in an attempt to educate all of the mobile home Buyers and Sellers in the general area.
Although this is not a guarantee of any sort, as this is merely just our opinion, we feel that that is grounded in facts and data to support our thoughts of what will happen in the Sarasota Florida mobile home market over the next 12 months.
It is not secret what is happening in the single family real estate market at this current time. With record low interest rates and supply chain issues continuing to remain prevalent, this has been one of the larger reasons why prices have sky rocketed in this arena.
With raising costs for single family homes we have seen a growing number of mobile home Buyers come into the mobile home space as they have been pushed out of being able to afford a single family home at this time.
These new Buyers have begun purchasing many of the higher priced mobile homes in the area and we do not see this slowing down anytime soon.
We continue to see a larger inventory push in the lower priced homes throughout the area as well as homes that are in need of light fixing up.
With the rise in inventory in these units we feel there will be plenty of opportunities in the coming year for would be Buyers to purchase a great home at a heavily discounted price so long as they are willing and ready to either do the updates themselves or hire them out to a licensed professional.
We continue to see a rise in mobile home prices, especially for the higher end units.
The reason we feel there is a price increase for these units is because there are more Buyers coming into the space who are ready to pay this amount because, to them, it is the only affordable housing option as they are unable to afford to pay the asking amounts for single family homes.
Pleas note, we only see this in the higher end homes, not in the middle and lower priced properties.
If you are looking for a nearly brand new, turn key mobile home in a 5 Star mobile home park expect to pay top dollar or even higher at this time. These prices, although high for the overall mobile home market, are still lower than those of a comparable single family home.
If you are looking at Buying a lower cost property, be prepared to act fast but do not feel like you need to be overpaying in this market.
Lot Rent Increase:
This is one point that we do not see anyone discussing at this time and we feel this is the “secret” to all mobile home sales for 2022.
It is reasonable to say that lot rent will increase 1-2% per year to match national inflation.
With everything that is going on the economy currently, mainly, the high levels of inflation we are expecting lot rent to increase quite a bit more then the standard few percentage points.
Most of the mobile home parks in the Sarasota Florida area are senior parks.
Many of these residents are paying their bills from their Social Security income.
With the dramatic rise we expect to see in lot rent increases throughout early 2022 we expect for a huge amount of current residents to not be able to afford to keep their homes due to this lot rent surge and, as such, will have to look to sell their mobile home by the end of the year.
As upsetting as this is, we feel that this will be happening in the Summer to Fall months of the year after the lot rents are increased across the board and the snow bird season ends.
If you do not have to buy a Sarasota Florida mobile home right away you may want to hold off until the Spring or Summer as we expect a surge of additional inventory to hit the market. While we are unable to promise anything, we do expect the surge of homes to help bring down the price of the homes due to the extra choices Buyers have.
The state of mobile homes in the Sarasota Florida area is in a unique spot and we feel that if you are looking to buy or sell your current mobile home then this is a great time to do both.
The key, however, is to be realistic about your expectations on both the price you are looking to get for your mobile home and what you expect to see included in your budget.
Having these expectations understood before entering the market will make the mobile home buying and selling process that much more enjoyable.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.