|
Happy New Year to our friends, past customers, & future customers! One thing I've learned about the real estate market is that change is constant. Just like the stock market, we can see wild swings affect property values. These are generally in the short term though, so if you're investing or purchasing a primary residence, we hope you plan to hold it long enough to insulate yourself. 2023 was another interesting year with one of the fastest rises in mortgage interest rates in history, coupled with unique challenges in Florida with much higher insurance premiums and new State required engineering reports by the end of 2024 for all condos 3 stories or higher. Many condo complexes are seeing steep rises in HOA fees to fund the higher Reserve budgets that will be required and/or assessments to offset the HOA fee increases. Experienced, hardworking real estate agents like ourselves were continually on the phone or email explaining these issues and how it was putting downward pressure on property appreciation and longer days on the market for actively listed properties. The commercial real estate market had significant challenges too, with the higher mortgage rates significantly decreasing the ROI on commercial properties as well as short-term rental properties. On the barrier islands of the Space Coast, especially in the areas that allow shorter minimum stays, we also saw saturation of short-term rental properties. Frustrated newer owners of these properties were not seeing the returns they forecasted and some experienced short-term property owners saw decreased guest reservations. Some owners are in it for the long haul and will stay at it through this pullback while others are already ready to unload their properties, even if breaking even or at a small loss. In addition, Brevard County is seeing a lot of new hotel developments that have added to this pressure and it's been discussed that the post-pandemic travel craze has lightened after pent-up demand waned and some of the funds used for travel that may have come from PPP monies dried up. Another wrinkle to this that's been documented is that those who moved to their second homes during the pandemic when work from home was most prevalent decided to continue working from home in their second home and are selling their primary residences. Fortunately for us here in Florida, we've been more insulated from downward pressure in values than some other states with a continued influx of new residents to our state. Throughout the county, values overall have seen slight price appreciation on most property types, though there has been a slight pullback along the barrier islands due to the issues mentioned that especially affect coastal properties. I've always said that we pay a price to live near the ocean. Although final 2023 statistics are not in yet, in general, we saw slower sales volume and a return to a more normalized market. We welcome this for both sellers and buyers which will allow them to make less hurried and more thoughtful decisions. Please find us with your questions. We’d love to help you make the most informed real estate decisions that meet your life goals. As always, we welcome the opportunity to serve you!
|
