Century 21 Ocean Real Estate Blog

March 24, 2023

Here’s Why the Housing Market Isn’t Going To Crash

 

#forsellers #foreclosures #pricing #housingmarketupdates

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3613 S Banana River Boulevard
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732 Bayside Drive
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376 Snook Place
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275 Andros Avenue
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1095 N Highway A1a
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8521 Canaveral Boulevard
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3355 S Atlantic Avenue
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132 E Park Lane
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919 Ridge Lake Drive
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10 Fairway Drive
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2390 Jason Street
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195 N Brevard Avenue
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March 24, 2023

Why Buying a Home Is a Sound Decision

 

#buyers #pricing #firsttimehomebuyers #moveupbuyers

If you’re thinking about buying a home, you want to know if the decision will be a good one. And for many, that means thinking about what home prices are projected to do in the coming years and how that could impact your investment.

This year, we aren’t seeing home prices fall dramatically. As the year goes on, however, some markets may go up in value while others may lose value. That’s why it’s helpful to keep the long-term view in mind. Experts project a return to a steadier rate of price appreciation in the years that follow.

Home Price Appreciation in the Years Ahead

Over 100 economists, investment strategists, and housing market analysts were polled by Pulsenomics in their latest quarterly Home Price Expectation Survey (HPES). The report indicates what they believe will happen with home prices over the next five years. As the graph below shows, after mild depreciation this year, these experts forecast home prices will return to more normal levels of appreciation through 2027.

The big takeaway is experts aren’t forecasting a drastic fall in home prices nationally, even though some markets will see home price appreciation while others may depreciate. And when they look further out, they see steady price appreciation in the long run. That’s a great example of why homeownership wins over time.

What Does This Mean for You?

Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. Here’s how a typical home’s value could change over the next few years using the expert price appreciation projections from the survey mentioned above (see graph below):

In this example, if you bought a $400,000 home at the beginning of this year and factor in the forecast from the HPES, you could accumulate over $54,000 in household wealth over the next five years. So, if you’re wondering if buying a home is a sound decision, keep in mind what a strong wealth-building tool it is long term.

Bottom Line

According to the experts, while we may see slight depreciation this year, home prices are expected to grow over the next five years. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) are projected to grow. Let’s connect to begin the homebuying process today.

 

March 21, 2023

Moving From New York to Florida

Moving From New York to Florida

Moving from New York to Florida can be an exciting and life-changing decision. The Sunshine State offers warm weather, beautiful beaches, and a more relaxed lifestyle. However, the move can also come with its own unique set of challenges. Here are some things to keep in mind if you're considering relocating from New York to Florida.

 

Climate:

One of the biggest differences between New York and Florida is the climate. Florida is known for its sunny weather and warm temperatures year-round. However, this can also mean dealing with humidity and occasional hurricanes. Make sure to do your research and prepare accordingly before you move.

 

Cost of living:

The cost of living in Florida can be lower than in New York, which is a big draw for many people. However, keep in mind that certain expenses, like property taxes and insurance, can be higher in Florida due to the threat of natural disasters. Make sure to factor these costs into your budget when planning your move.

 

Culture:

Florida has its own unique culture, which can be very different from New York's. The pace of life is generally slower, and there's more of a focus on outdoor activities like boating, fishing, and golfing. However, there are also plenty of cultural offerings like museums, theaters, and festivals.

 

Transportation:

While New York has a very robust public transportation system, Florida is more spread out and relies heavily on cars. Make sure to have a reliable vehicle if you're planning to move to Florida, as public transportation can be limited in some areas.

 

Community:

Moving to a new state can be daunting, but Florida is known for its welcoming communities. There are plenty of social clubs, churches, and volunteer organizations to help you meet new people and get involved in your new community. In summary, moving from New York to Florida can offer a new and exciting chapter in your life, but it's important to keep in mind the climate, cost of living, culture, transportation, and community. With some research and planning, you can make a smooth transition and enjoy all that Florida has to offer.

 

Find Your Florida Home Today!

March 15, 2023

How To Leverage Home Equity When Selling

How To Leverage Home Equity

How To Leverage Home Equity

 

One of the benefits of being a homeowner is that you build equity over time. By selling your house, that equity can be used toward purchasing your next home. But before you can put it to use, you should understand exactly what equity is and how it grows. Bankrate explains it like this:

“Home equity is the portion of your home you’ve paid off – in other words, your stake in the property as opposed to the lender’s. In practical terms, home equity is the appraised value of your home minus any outstanding mortgage and loan balances.”

Majority of Americans Have a Large Amount of Equity

If you’ve owned your home for a while, you’ve likely built up some equity – and you may not even realize how much. Based on data from the U.S. Census Bureau and ATTOM, the majority of Americans have a substantial amount of equity right now (see graph below):

And having such large amounts of equity is a benefit to homeowners in more ways than one. Rick Sharga, Executive Vice President of Market Intelligence at ATTOMexplains:

“Record levels of home equity provide security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.”

Over time, your home equity grows. In addition to providing financial stability while you own your house, when you’re ready to sell it, that money could go a long way toward paying for your next home. 

March 10, 2023

2 Things Sellers Need To Know This Spring

2 Things Sellers Need To Know This Spring

A lot has changed over the past year, and you might be wondering what’s in store for the spring housing market. If you’re planning to sell your house this season, here’s what real estate experts are saying you should keep in mind.

1. Houses That Are Priced Right Are Still Selling

Houses that are updated and priced at their current market value are still selling. Jeff Tucker, Senior Economist at Zillow, says:

“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”

The need to price your house right is so important today because the market has changed so much over the past year. Danielle Hale, Chief Economist at realtor.com, explains:

“With a smaller pool of buyers today and more competition from other homes on the market, homesellers will likely need to adjust their price expectations in the market this spring.”

While this spring housing market is different than last year’s, sellers with proper expectations who lean on a real estate expert for the best advice on pricing their house well are still finding success. And that’s great news if you’re thinking about selling.

2. Buyers Are Still Out There

As mortgage rates have risen and remain volatile, some buyers have pressed pause on their plans. But there are still plenty of reasons people are buying homes today. Lisa Sturtevant, Chief Economist at Bright MLS, spells out the mindset of today’s buyers:

“For some buyers, higher mortgage rates simply means buying a home is out of the question unless home prices fall. For others, higher mortgage rates will be a hurdle but ultimately will not keep them from getting back into the market after sitting on the sidelines for months.”

That’s why, if you’re interested in selling your house this spring, it’s helpful to work with a real estate agent who can help connect you with those buyers who are ready to purchase a home.

Bottom Line

There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.

March 1, 2023

March 2023 Brevard County Housing Statistics

March 2023 Brevard County Housing Statistics

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March 2023 \\\

 
 

Spring homebuying season underway, Sunshine State a leader in population gains; CENTURY 21 Ocean in Cocoa Beach has good feeling about the market! Check out our featured article in Brevard Business News.

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In this article Barbara discusses...

The US population rose 7.3%, Florida 15.6% between 2010 to 2021.

Brevard County grew 13.4% from 2010 to 2021 (544,000 to 616,628) with expectations of up to 736,000 by 2030.

Mortgage rates are expected to fall below 6% in 2024.

Florida had 4 of the 25 markets listed in UHauls Growth Index in 2022. Melbourne - Palm Bay was ranked 4th.

Grocery Store Wars - significant appreciation is noted for homeowners located near Trader Joes, Whole Foods, or Aldi's.

Senate Bill 4-D - State legislation requiring all condominiums 3 stories or higher to have engineering reviews by end of 2024. This could affect Reserve funds and ultimately HOA fees or assessments to meet those requirements.

 
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The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, explains the root causes of today’s low supply:

“Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.”

Let’s break down these two big issues in today’s housing market.

Rate-Locked Homeowners

According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):

But today, the typical mortgage rate offered to buyers is over 6%. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked.

When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project mortgage rates will gradually fall this year, and that could mean more people will be willing to move as that happens.

The Fear of Not Finding Something To Buy

The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they’ll go has left many on the sidelines as they wait for more homes to come to the market. That’s why, if you’re on the fence about selling, it’s important to consider all your options. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate buydowns.

What Does This Mean for You?

These two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But if you want to sell your house, today’s market is a sweet spot that can work to your advantage.

Be sure to work with a local real estate professional to explore the options you have right now, which could include leveraging your current home equity. According to ATTOM:

“. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.”

This could make a major difference when you move. Work with a local real estate expert to learn how putting your equity to work can keep the cost of your next home down.

Bottom Line

Rate-locked homeowners and the fear of not finding something to buy are keeping housing inventory low across the country. But as mortgage rates start to come down this year and homeowners explore all their options, we should expect more homes to come to the market.

 

The Two Big Issues the Housing Market’s Facing Right Now
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Monthly Market Detail - January 2023\\\

Brevard County Housing Statistics

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Feb. 28, 2023

What You Should Know About Rising Mortgage Rates

What You Should Know About Rising Mortgage Rates

After steadily falling over the winter, mortgage rates have started to rise in recent weeks. This is concerning to some potential homebuyers as the combination of higher mortgage rates and higher prices have made homes less affordable. So, if you’re planning to purchase a home this year, you too may be wondering if now’s the right time to buy or if you should hold off on your search until rates come back down.

The recent uptick in rates has been driven by what’s happening with inflation. Joel Kan, Vice President and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains:

“Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time.”

The most recent weekly average 30-year fixed mortgage rate reported by Freddie Mac is 6.5%. It’s the third week in a row that rates have increased and puts them at the highest point they’ve been this year (see graph below):

Advice for Home Shoppers

If you’re thinking about pausing your home search because rates have started to go up again, you may want to reconsider. This could actually be an opportunity to buy the home you’ve been searching for. According to the MBA, mortgage applications declined by 13.3% in just one week, so it appears the rise in mortgage rates is leading some potential homebuyers to pull back on their search for a new home.

So, what does that mean for you? If you stay the course, you’ll likely face less competition among other buyers when you’re looking for a home. This is a welcome relief in a market that has so few homes for sale.

Bottom Line

Over the last few weeks, mortgage rates have risen. But that doesn’t mean you should delay your plans to buy a home. In fact, it could mean the opposite if you want to take advantage of less buyer competition. Let’s connect today to explore the options in our local market.

Feb. 28, 2023

One Major Benefit of Investing in a Home

 

One of the many reasons to buy a home is that it’s a major way to build wealth and gain financial stability. According to Freddie Mac:

“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”

With spring approaching, now’s a great time to consider if buying a home makes sense for you. The best way to figure that out is to talk with a trusted real estate professional.

The Largest Part of Most Homeowners’ Net Worth Is Their Equity

You may be surprised to learn just how much of a homeowner’s net worth actually comes from owning their home. The National Association of Realtors (NAR) shares:

Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about ten times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”

In other words, home equity does more to build the average household’s wealth than anything else. And according to data from First American, this holds true across different income levels (see graph below):

Bottom Line

One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. Let’s connect today so you can start investing in homeownership.

Sales@c21ocean.com | 321.323.1212 |

Feb. 24, 2023

Sunshine State a leader in population gains; Century 21 Ocean in Cocoa Beach has good feeling about the market

Sunshine State a leader in population gains

Schluraff said that one good sign for the

housing market is the influx of new residents to Florida.

“People are still moving to Florida and Brevard,” she

said. “That’s been a pattern we’ve seen for several

years. We continue to receive calls from people out of the

area inquiring about real estate here, but not like we did

during what I call the ‘pandemic sales boom.’ We’re back to

a more normal market, which we welcome because the

pandemic sales boom in real estate was exhausting for the

CENTURY 21 Ocean team.”

 

Don't miss the CENTURY 21 Ocean team and Broker Barbara Schluraff in the latest edition of Brevard Business News. 

 

See Page 12

Feb. 24, 2023

The Two Big Issues the Housing Market’s Facing Right Now

Issues the Housing Market is Facing Right Now

The biggest challenge the housing market faces is how few homes there are for sale. Mark Fleming, Chief Economist at First American, explains the root causes of today’s low supply:

“Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.”

Let’s break down these two big issues in today’s housing market.

Rate-Locked Homeowners

According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):

But today, the typical mortgage rate offered to buyers is over 6%. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked.

When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project mortgage rates will gradually fall this year, and that could mean more people will be willing to move as that happens.

The Fear of Not Finding Something To Buy

The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they’ll go has left many on the sidelines as they wait for more homes to come to the market. That’s why, if you’re on the fence about selling, it’s important to consider all your options. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate buydowns.

What Does This Mean for You?

These two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But if you want to sell your house, today’s market is a sweet spot that can work to your advantage.

Be sure to work with a local real estate professional to explore the options you have right now, which could include leveraging your current home equity. According to ATTOM:

“. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.”

This could make a major difference when you move. Work with a local real estate expert to learn how putting your equity to work can keep the cost of your next home down.

Bottom Line

Rate-locked homeowners and the fear of not finding something to buy are keeping housing inventory low across the country. But as mortgage rates start to come down this year and homeowners explore all their options, we should expect more homes to come to the market.