What’s happening with home prices?  Depending on who you ask, some people may tell you that home prices are coming down as they notice price reductions happening more frequently.  Others may tell you that they continue to go up.  They would both be partially correct.  While we are seeing more price reductions than the previous post covid years, prices continue to go up but at a slower pace.

“For the first time in state history, the median sale price for Florida exceeded that of the national number and has stayed there for several months.”  This was the headline of a recent Florida Realtors news story.  One would think that with uncharacteristic prices increases and mortgage rates hovering around 7% that prices would not keeping going up.  However, they do!   Let’s look at why.

Both nationwide and in Florida, the housing market continues to be plagued by high prices and supply challenges:

Nationwide:

Price Trends:

Home prices in the U.S. have seen significant increases.  This had been inflamed by a housing deficit estimated at 4.5 million homes as of 2022, up from 4.3 million in 2021. This shortage has driven up prices, making homeownership increasingly unaffordable for many families.

Market Dynamics:

Despite mortgage rates hovering around 7%, demand remains strong, influenced by factors like remote work flexibility and demographic shifts. However, the supply of homes for sale or rent has not kept pace with demand, leading to continued price escalation.

Affordability Challenges:

The ratio of home prices to household income has increased sharply since the COVID-19 pandemic, reaching levels that strain affordability for average households. This disparity is particularly acute in metro areas where the median home price far exceeds what typical families can afford without significant income levels.

Florida:

Market Conditions:

Florida’s housing market reflects many national trends but with some unique characteristics. The state has historically been known for more affordable housing compared to other parts of the country, but recent years have seen rapid price appreciation.

Price Trends:

Median sales prices for single-family homes have risen steadily. As of May 2024, the statewide median sales price for single-family homes was $426,581, up 1.6% from the previous year. Using the median instead of average sales price prevents outliers, or prices that are wildly high or low, from skewing the picture of the overall market.

Inventory and Sales:

While inventory levels are improving slightly year-over-year, they are still below pre-pandemic norms in some areas, especially in South Florida. This imbalance continues to put upward pressure on prices, though recent increases in inventory suggest a potential for moderating price growth in the near future.

Affordability Concerns:

The affordability gap has widened in Florida, with median home prices surpassing national averages for several consecutive months. This trend is driven by factors such as wealth migration, high demand from both retirees and younger professionals seeking more space and better living conditions.

Future Outlook:

Economic indicators, including rising interest rates and increased inventory levels, may contribute to a slowdown in price appreciation. However, the overall market remains robust, supported by ongoing demographic shifts and economic factors influencing housing demand.

What’s Happening with Home Prices in Okaloosa County?

In May 2024 median sales price for a single-family home was $375,000.  This is up from $360,000 in May 2023.  In May 2022 homes on average sold for 101% of list price.  In May 2023 they sold for 99% of list price and May 2024 for 98% of list price.  So even though price reductions are happening, the actual median sales price is still increasing.

What about Niceville?

In May 2024 median sales price for a single-family home was $575,000.  The national median for May was $419,300.

In summary, while both the U.S. and Florida housing markets face challenges such as supply shortages and affordability issues, there are indications that price growth may moderate as market conditions evolve. Economic factors, including interest rates and inventory levels, will likely play crucial roles in shaping future housing market trends.  Don’t hold your breath expecting prices to come down any time soon.

Staging to Sell vs. Decorating: Understanding the Difference.  I want you to think about a time you saw someone wearing an eye-catching outfit.  You thought it looked fabulous on them but couldn’t image yourself wearing it.  That is, in some sense, the difference.

When preparing your home for sale, there’s often a debate between staging and decorating. Both involve enhancing the appearance of your home, but they serve different purposes. Let’s look at the differences between staging and decorating.

Staging: Making Your Home Irresistible to Buyers

Staging is all about presenting your home in its best possible light to appeal to potential buyers. The goal is to create a neutral, inviting space that allows buyers to envision themselves living there. Here’s how staging differs from decorating:

1. Neutralizing Personal Style:

   While decorating reflects your personal taste and style, staging aims to appeal to a broad range of buyers. This often involves depersonalizing the space by removing family photos, quirky decor, and personalized items. Neutral colors and minimalist decor are typically preferred to create a blank canvas for buyers to image themselves in your home.

2. Highlighting Key Features:

   Staging focuses on showcasing the key features of your home, such as architectural details, spaciousness, and natural light. Furniture placement, lighting, and accessories are strategically chosen to highlight these features.  You also want to create a sense of flow throughout the space. The goal is to make your home feel inviting and spacious, encouraging buyers to explore further.

3. Creating Emotional Connections:

   Effective staging goes beyond aesthetics to evoke an emotional response from buyers. This might involve setting the scene for a cozy family dinner or creating a tranquil retreat in the master bedroom. By tapping into buyers’ emotions, staging can help them envision the lifestyle they could enjoy in your home.

4. Maximizing Space:

   Staging often involves decluttering and rearranging furniture to maximize the perceived space. Bulky furniture pieces may be removed or replaced with smaller alternatives to make rooms feel more spacious and open. This not only improves the overall appearance of your home but also enhances its perceived value in the eyes of buyers.  Reducing the number of items in your cabinets and closets helps to give the appearance that there is plenty of room for storage.  This is important in Florida since storage space tends to come at a premium. 

Decorating: Personalizing Your Living Space

Decorating is about infusing your home with your unique personality and style. Unlike staging, which aims to appeal to a broad audience, decorating is all about creating a space that reflects your individual tastes. Here’s how decorating differs from staging:

1. Personal Expression:

   Decorating allows you to express yourself creatively and surround yourself with the things you love. Whether it’s bold colors, eclectic artwork, or vintage furniture, decorating is about making your home uniquely yours. While this personalization can be a selling point for some buyers, it may not appeal to everyone’s tastes.

2. Functionality:

   While staging focuses on creating a visual impact, decorating also considers the practical aspects of living in the space. This includes choosing furniture and decor that not only look good but also serve a functional purpose.

3. Long-Term Investment:

   When decorating your home, you’re likely to invest in pieces that you’ll enjoy for years to come. Whether it’s a statement sofa, an heirloom rug, or custom window treatments, decorating involves selecting high-quality items that reflect your lifestyle. While staging is temporary and aimed at selling your home, decorating is an investment in your long-term enjoyment and comfort.

Finding the Balance

So, staging to sell vs. decorating, can you do both?  While staging and decorating serve different purposes, there’s no reason why you can’t incorporate elements of both when preparing your home for sale. By striking the right balance between neutral staging and personalized decorating, you can create a space that appeals to a wide range of buyers while still reflecting your individual style.

Ultimately, the key is to present your home in a way that highlights its best features and allows potential buyers to envision themselves living there. Can they see themselves wearing that cool eye-catching outfit?  The goal is to make a lasting impression that leads to a successful sale.  Remember that you are trying to sell your home not necessarily show off your decorator skills.

Want some personal advice on setting up your home for a more successful sale, contact me!

Who doesn’t like before and after photos? Click here to see some.

What are the best improvements to make to your house before you sell? In the current market – high home prices, high interest rates and high inflation – you need to make your home as appealing as possible to buyers. On the other hand, you don’t want to spend money on items that will not give a good return on your investment.

Low-Cost Improvements

Let’s first talk about the low-cost improvements. While you may not think of this as an improvement, cleaning and decluttering are of high importance. You want your home to look as large as possible. You also want potential buyers to be able to picture themselves in your home. This is hard to do when the counters and closet are filled with your personal items.

New interior paint:

You may have painted your home in colors that appear to you. Even if your home is currently painted in neutral colors, it may have seen some wear and tear over the years. Take a good look at the high traffic rooms. Also inspect your door frames and baseboards. A fresh coat of paint on your white trim will really make your home feel fresh. Not sure what color to paint – consult your realtor.

Lighting:

New lighting fixtures in the kitchen, baths and main living space can give your whole home an updated feel. Replacing your bulbs with LED “daylight” bulbs not only makes for great photos and showings, but it also allows you to advertise the low-cost lighting.

Mirrors:

Mirrors are growing in popularity. Trending mirrors in the entry and other rooms can bring in more light and make rooms appear larger. A good realtor can help you on where to place them.

Bathrooms:

New lighting and mirrors can really give these areas a fresh face. Fresh chaulk in the shower and tubs can also keep them from feeling old. You can consider painting your tile to update it. Spa tubs are no longer a highly desired item.

Flooring:

If your flooring is old and you can’t afford to update it, then give it a really good cleaning. If you have wood flooring, cover scratches and give it a good polish.

Exterior Updates:

The exterior is the first thing buyers see. Paint your front door. At the moment, black doors are very popular. Pressure wash your driveway, sidewalk and home. This will give you a lot of bang for your buck. Trim back any overgrown shrubs and put down a fresh layer of mulch.

Willing to Invest a Little More – These are statics from 2024 Cost vs. Value Report

Garage Door Replacement – you may recoup 193.9% of what you spend

Entry Door Replacement (Steel) – 188.1% return

Siding Replacement (vinyl) – about a 80.2% return

Siding Replacement (cement fiber board) – 88.4% return

Minor kitchen remodel – 96.1% return – The nontangible is that a lot of buyers will not even consider a home with a dated kitchen.  There are great local companies who can help you give your kitchen a facelift without breaking the bank.

Window Replacement (vinyl) – 67.1% return. However, in Florida this can have great appeal because it can significantly lower homeowner’s insurance cost.

Wood Deck Addition – 82.9%

Bath remodel – 45.1% return. Again, this is very appealing to a lot of buyers.

Roof Replacement (Asphalt Shingles) – 56.9% return. Even more important than window replacement, this has become a very important issue for home buyers in Florida. It may be required for a new owner in order for them to get insurance.

Concerned about how you pay for all these updates – contact me and let me tell you about a program exclusive to Coldwell Banker. Updates can be made and not paid for until your home is sold. No hidden fees or upcharges. Ask me about Realvitilize.

What are the best improvements to make to your house before you sell? It depends on what your home needs. I would be happy to give you a no obligation recommendation for your home.

Zillow publishes an estimated value for homes.  Can you believe the Zillow estimate?  I say no.  Let me tell you why.

What Zillow Does Do

Zillow’s estimate is based on an algorithm.  It compares your home to similar homes in the area.  Zillow looks at items such as square footage, number of bedrooms, and number of bathrooms.  It looks for homes that have recently sold.  Sounds like it would give you a reasonable value and occasionally it does.

What Zillow Doesn’t Do

Zillow does not take into account that the updates that may or may not have been done.  2 identical homes located next to each other are not valued the same when one home has spent $100,000 updating the kitchen and baths while the other has simply maintained. There is no way for Zillow to know about the updates. The house with a screened in pool is worth more than one without.  I think most people would agree that a 3-car garage is worth more than a 2-car garage.  One of my favorite things that I have seen Zillow do when calculating a home value is comparing a home located on the bay to the similar house across the street that is not on the water.  Zillow does not take into account that even though a home recently sold – it was on the market for 2 years.  Another thing that is hard for Zillow to do is to consider how the current real estate market is in your area.  Are homes selling quickly, is there a lot of inventory, are there a lot of buyers looking?

Where Can You Get a Good Estimated Value of Your Home

Many websites (mine included) offer a value calculator.  These are no better than the Zillow estimate.  You could take a look at the most recent “Market Value” of your home in the county appraiser’s website.  This value is a ballpark and is typically lower than what your home would actually sell for.  The most accurate value will come from hiring an appraiser.  Of course this will cost you money.  The next best value will come from asking a real estate agent to perform a competitive market analysis (CMA).  A good real estate agent will do something similar to what an appraiser will do.  A lot of work goes into a CMA – I wrote a whole article on this.

So, can you believe a Zillow estimate?  Again, I say no.  However, if you’re going to look at it, scroll down to where Zillow shows “Comparable Homes” and at least look at which homes it thinks are comparable to yours.  If you would like a true estimate of your home’s value, Call Me!  850-974-0869