By this time, we have all seen that mobile homes located on leased land within the greater Sarasota Florida area have begun to see a dramatic rise in price.
This is due to several factors including the continued rise in real estate prices as well as inflation and the ever-present scarcity of homes on the market during this time of year.
When all of these factors are added together one can easily see why prices are higher than normal, even as recent as this time last year.
So, will the prices stay this high forever or will we see prices go down in the near future?
Before we dive into the ever so popular questions we first need to realize that mobile homes on leased land here in Sarasota Florida are viewed as and taxed as personal property and not real estate.
The reason for this is that the home that one is buying has a lot of rent associated with it along with a title for ownership and not a deed. As such, sales comps are nonexistent so it is nearly impossible to say for certain what homes are being sold during this time.
Without sales comps readily available there is no real way to see exactly what a home in a local mobile home park sold for due to the lack of a need for public recording of sales prices.
What we can say is that mobile homes on leased land are the last beacon of affordable housing.
Many home Buyers are being pushed out of the markets due to the high price of housing and the rising interest rates associated with purchasing these already high-priced homes.
If these prices for mobile homes on leased land do not eventually come down then the number of qualified Buyers for these types of properties will quickly dwindle leaving a surplus of higher-priced homes on the market. The reason for this is that most all mobile home parks in the greater Sarasota Florida area are senior parks requiring the residents of the home to be 55 years of age and older.
If mobile homes continue to stay on the market for prolonged periods of time with the Sellers of these homes continuing to pay lot rent we would expect to see the home prices come down significantly at a rapid pace.
In the early 2000s, Americans lost interest in the compact form of housing like mobile homes. From 2010, sales of mobile homes remained low, however, in 2018, Bloomberg reported that mobile homes were making noise.
In just 4 years since the Bloomberg report, sales of mobile homes have skyrocketed faster than single-family regular homes, as more and more Americans seek affordable dwellings.
Mobile homes are America’s biggest source of affordable housing, however, the rising prices due to increasing demands and investors’ activity are turning buyers away.
Although mobile home sales slowed in 2020, likely due to the Coronavirus pandemic, shipments of manufactured homes bounced back in 2021 and 2022. In fact, the year 2022 sold the most mobile homes since 2006 according to the data provided by Stacker.
The prices of new mobile homes are outpacing the prices of new single-family conventional homes. Mobile homes are becoming more expensive than traditional single-family homes, especially between 2020 and 2021. Although much of this can be attributed to the pandemic, the increasing cost of construction materials for conventional homes played a big role in the mobile home’s high demand eventually pushing the price up.
Lot rent prices are following suit. It’s not just mobile home prices that are going up. The cost of renting a lot where the mobile home sits is also increasing not only in Florida but in the whole country. The Midwest has recorded the highest lot rent increase according to the data while the average nationwide lot increase was 4.4%. This trend is likely to continue together with the increasing price of mobile homes.
While we here, at The Mobile Home Dealer, certainly do not have a crystal ball as to when the home prices will go down what we can say is that mobile homes, just like real estate, sell in different cycles. At times, a market is hot and homes go up significantly in perceived value, and at other times we see homes sell for far less. Within the Sarasota area, we even see this throughout the calendar year with more homes being available in the fall and winter and fewer homes for sale in the summer.
What we can say without a doubt is that if you are looking to buy a mobile home on leased land within the greater Sarasota Florida area now is the best time in the current market to do so. The reason is due to the lack of inventory and lack of Buyers who are in the market at this time. If, however, you decide to wait to buy your mobile home in Sarasota until the fall or winter of this year we could certainly expect the prices to go up even further and the willingness for Sellers to negotiate even less due to the number of available Buyers in the area!
The Mobile Home Dealer are licensed mobile home brokers in Sarasota Florida and the surrounding areas. We provide professional buy and/or sell assistance to our clients. If you have any questions, don’t hesitate to get in touch with us by clicking this link. You may also visit our Facebook Page and send us a message.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.
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