SW Florida Real Estate BlogRecently posted or modified blog posts in the category - Real Estate Newshttps://www.homemaxi.com/blog/Copyright HomeMaxi.com2023-10-09T19:09:16-07:00tag:homemaxi.com,2012-09-20:37318The Impact of Changing Interest Rates, Rising Property Taxes, Insurance Premiums, and the Concerns of Global Warming<img src="https://assets.site-static.com/userfiles/1371/image/Site_Pictures/from_air.jpg" width="400" height="267" style="float: left; margin: 0px 15px;" />The real estate market is a dynamic environment that constantly undergoes changes influenced by various factors. Among the significant elements that shape this market are interest rates, property taxes, insurance premiums, and emerging concerns like global warming and the increased frequency of hurricanes. In the following, I will touch on how these factors can impact the real estate market, affecting both buyers and sellers. By understanding these dynamics, individuals can make informed decisions and navigate the real estate landscape more effectively.
Interest rates play a crucial role in the real estate market. When interest rates rise, borrowing costs increase, making mortgages more expensive for homebuyers. As a result, potential buyers may become more hesitant to enter the market, reducing demand and potentially lowering property prices. On the other hand, declining interest rates can stimulate demand, attracting more buyers and potentially driving up prices.
Moreover, changing interest rates affect homeowners with adjustable-rate mortgages (ARMs). These mortgages are tied to a benchmark interest rate, such as the prime rate, and can adjust periodically. If rates increase, homeowners may face higher monthly mortgage payments, impacting their overall financial stability and potentially leading to a rise in foreclosures.
Property taxes and insurance premiums are two additional factors that can significantly impact the real estate market. Property taxes are levied by local governments and are often based on the assessed value of a property. As property values rise, homeowners may experience a corresponding increase in property taxes. These increased costs can strain homeowners' budgets and make properties less affordable for prospective buyers.
Similarly, insurance premiums, particularly for homeowners' insurance, can rise due to various factors, including increasing property values and the growing risks associated with climate change. Insurance companies may adjust premiums to account for potential damages caused by natural disasters, such as hurricanes or flooding. Higher insurance premiums can deter buyers from purchasing properties in areas prone to these risks and potentially decrease property values in affected regions.
Global warming and the increasing occurrence of hurricanes present additional challenges to the real estate market. As climate change progresses, extreme weather events like hurricanes are becoming more frequent and intense. Areas at risk of hurricanes may experience decreased property values and a decline in demand due to the potential for property damage and increased insurance costs.
Furthermore, rising sea levels pose a threat to coastal properties. Increased flooding and erosion can lead to property damage, loss of value, and insurance complications. These risks may influence the decisions of both buyers and sellers, impacting market dynamics in vulnerable areas.
To address these concerns, homeowners and real estate developers embrace sustainable and resilient practices. Energy-efficient buildings, green infrastructure, and adaptive construction techniques can help mitigate the impact of climate change on properties. Moreover, governments and insurance companies are implementing policies and tools to incentivize resilience and ensure adequate coverage for at-risk properties.
The real estate market is intricately connected to various factors, including changing interest rates, rising property taxes, increasing insurance premiums, and concerns related to global warming and the frequency of hurricanes. Understanding the impact of these elements is crucial for buyers, sellers, and investors looking to navigate the market effectively.
When interest rates fluctuate, it affects borrowing costs and can influence both demand and property prices. Rising property taxes and insurance premiums can strain homeowners' budgets and decrease affordability, while concerns about climate change and hurricanes introduce additional risks for property owners and potential buyers.
By staying informed about these dynamics and embracing sustainable and resilient practices, individuals can make well-informed decisions in the real estate market. Furthermore, governments, insurance companies, and individuals must work together to mitigate the risks associated with climate change and ensure the long-term stability and sustainability of the real estate market.
Investors, buyers, and sellers - please feel free to contact me for help buying or selling real estate.
Allan Nielsen, Real Estate Broker2023-06-21T12:56:06-07:002023-10-09T18:58:08-07:00Allan Nielsentag:homemaxi.com,2012-09-20:36038Prices going up againAccording to recent data, real estate prices in Southwest Florida have increased from March to April. This is significant news for the region's real estate market, which has been experiencing strong growth over the past few years. However, the increase in real estate prices is happening during a time of increasing interest rates from the Federal Reserve. So, what does this mean for the Southwest Florida real estate market?
<img src="https://assets.site-static.com/userfiles/1371/image/Site_Pictures/2023-04-29_15-55-22.jpg" width="789" height="551" />
Firstly, it's important to understand why real estate prices have been increasing in the area. One reason is due to the current low inventory of homes for sale. As demand for homes in Southwest Florida increases, the limited supply has driven up prices. Additionally, the region's favorable climate, lifestyle, and booming economy have made it an attractive location for retirees, families, and businesses, further increasing demand.
Now, with interest rates increasing, the question is whether this trend will continue. Historically, interest rate increases have been associated with a decline in real estate prices. This is because higher interest rates make mortgages more expensive, which reduces the number of potential buyers in the market. As demand decreases, prices tend to follow suit.
However, it's important to note that the current interest rate increases are relatively modest and are not expected to have a significant impact on the real estate market in the short term. Additionally, the Southwest Florida real estate market has some unique characteristics that may insulate it from interest rate fluctuations.
For example, the region has a large number of cash buyers, which means that mortgage rates may have less of an impact on demand than in other areas. Additionally, many buyers in the area are purchasing properties as investments or second homes, rather than primary residences. These buyers may be less sensitive to interest rate changes than buyers in the primary home market.
Furthermore, interest rate increases are often a reflection of a strong economy, which can also have a positive impact on real estate prices. As the economy grows and wages increase, more people are able to afford homes, which can lead to increased demand and higher prices.
In conclusion, while interest rate increases may eventually have an impact on real estate prices in Southwest Florida, the current modest increases are not likely to have a significant effect in the short term. The region's unique real estate market and strong economic conditions may help insulate it from any negative impacts. However, it's important to keep an eye on interest rates and other economic indicators to understand how they may affect the market in the future.
Allan Nielsen, Managing Broker, HomeMaxi LLC2023-04-29T12:46:52-07:002023-10-09T18:58:41-07:00Allan Nielsentag:homemaxi.com,2012-09-20:359897 Secrets to Smart Home Devices in today’s homesSmart home devices or technology, also known as home automation, is a rapidly growing field that allows homeowners to control various aspects of their homes through the use of electronic devices. Smart home technology will enable homeowners to automate tasks that were once considered tedious or mundane, such as adjusting the temperature, turning lights on and off, and locking doors.<br /><br />In this blog post, I will discuss the different types of smart home technology available, their benefits, and their drawbacks. I will also explore the future of smart home technology and how it may change how we live our lives.
Types of Smart Home Technology
Various types of smart home technology are available, ranging from simple devices to complex systems. Some of the most common types of smart home technology include:
Smart Speakers: Smart speakers, such as Amazon Echo and Google Home, are voice-activated devices that can control other smart home devices. They can also play music, answer questions, and perform other tasks.<br />Smart Lighting: Smart lighting systems, such as Philips Hue and LIFX, allow homeowners to control the lights in their homes through their smartphones or other devices. They can also be controlled using voice commands.
Smart Thermostats: Smart thermostats, such as Nest and Ecobee, can learn the homeowner’s preferences and automatically adjust the temperature in their homes. They can also be controlled through smartphones and other devices.
Smart Security: Smart security systems, such as Ring and SimpliSafe, allow homeowners to monitor their homes and receive alerts if suspicious activity occurs. They can also control access to their homes through smart locks.<br />Smart Appliances: Smart appliances, such as refrigerators, ovens, and washing machines, can be controlled through smartphones or other devices. They can also send alerts when maintenance is required or when supplies are running low.
<img src="https://assets.site-static.com/userfiles/1371/image/website-pics/smart_control.jpg" width="350" height="234" /><br />Smart Control
Benefits of Smart Home Technology
There are many benefits to using smart home technology, including:
Convenience: Smart home technology allows homeowners to automate tasks that were once tedious or mundane. For example, a smart thermostat can adjust the temperature in a home based on the homeowner’s schedule, allowing them to come home to a comfortable environment.
Security: Smart home technology allows homeowners to monitor their homes and receive alerts if there is any suspicious activity. This can provide a sense of security and peace of mind, especially when homeowners are away from home.
Energy Efficiency: Smart home technology can help homeowners save money on their energy bills by automatically adjusting the temperature and turning off lights when not in use.
Accessibility: Smart home technology can make it easier for people with disabilities or mobility issues to control their homes. For example, a smart speaker can be used to control other smart home devices using voice commands.
Drawbacks of Smart Home Technology
While smart home technology has many benefits, there are also some drawbacks to consider. Some of the disadvantages of smart home technology include:
Cost: Smart home technology can be expensive, especially if multiple devices are required to create a complete system.
Compatibility: Not all smart home devices are compatible with each other, which can make it difficult to create a cohesive system.
Privacy: Smart home technology can raise privacy concerns by collecting data about the homeowner’s habits and routines.
Security: Smart home technology can also raise security concerns, as it can be vulnerable to hacking or other cyber threats.
Future of Smart Home Technology
The future of smart home technology is exciting and full of possibilities. I expect to see even more advanced smart home devices and systems as technology evolves.
<img src="https://assets.site-static.com/userfiles/1371/image/website-pics/Happy%20Smasrt%20Control%20User.jpg" width="350" height="234" alt="Happy Smart Device User" title="Happy Smart Device User" /><br />Happy Smart Device User
One of the most promising areas of smart home technology is the use of artificial intelligence (AI) and machine learning. AI can learn a homeowner’s habits and preferences, allowing for even more personalized and efficient automation.
<br />Another development area in smart home technology is using sensors and data analytics to monitor and optimize energy usage. For example, smart sensors can detect when a room is occupied and adjust the temperature and lighting accordingly. This can lead to significant energy savings over time.
The use of smart home technology in the healthcare industry is also an area of development. Smart sensors and wearables can be used to monitor a patient’s health, allowing for early detection of medical issues and the ability to provide proactive healthcare. This technology can also help seniors age in place by monitoring and assisting with daily tasks.
Smart homes can also integrate with smart cities, creating a more interconnected and efficient living environment. For example, smart homes can communicate with other smart devices in the community to optimize energy usage and reduce traffic congestion.
As smart home technology continues to evolve, it is essential to consider the ethical implications. For example, there are concerns about data privacy and the potential for technology to be misused or abused. Developers and policymakers must consider these issues as they continue to innovate and expand the field.
Conclusion
Smart home technology is a rapidly growing field that offers many benefits to homeowners, including convenience, security, and energy efficiency. When purchasing a home, smart technology plays a role in value and price. At HomeMaxi, we have decades of experience with technology and can help you determine the correct value of homes with or without smart technology. As technology evolves, I expect to see even more advanced and personalized systems that improve our quality of life. First, however, it is vital to consider smart home technology’s potential drawbacks and ethical implications. In my opinion, we have the opportunity to create a more connected, efficient, and sustainable world by being thoughtful and intentional in developing and using smart home technology.
Products
Here are some links to smart home technology products from popular brands:
<img src="https://assets.site-static.com/userfiles/1371/image/website-pics/smart%20speaker.jpg" width="350" height="234" alt="Smart Speaker" title="Smart Speaker" /><br />Smart Speaker
<br />Smart Speakers:<br /><a href="https://www.amazon.com/s?k=smart+home+speakers&crid=1J2YPYHO7EBEV&sprefix=smart+home+speakers%2Caps%2C129&ref=nb_sb_noss_1" target="_blank" rel="noopener" title="">Amazon Echo</a><br /><a href="https://store.google.com/us/product/nest_hub" target="_blank" rel="noopener" title="">Google Nest Hub</a>
Smart Lighting:<br /><a href="https://www.philips-hue.com/en-us/" target="_blank" rel="noopener" title="">Philips Hue</a><br /><a href="https://www.lifx.com/" target="_blank" rel="noopener" title="">LIFX</a>
Smart Thermostats:<br /><a href="https://store.google.com/us/product/nest_thermostat_2020" target="_blank" rel="noopener" title="">Nest Thermostat</a><br /><a href="https://www.ecobee.com/en-us/smart-thermostats/" target="_blank" rel="noopener" title="">Ecobee SmartThermostat</a>
Smart Security:<br /><a href="https://ring.com/security-system" target="_blank" rel="noopener" title="">Ring Security System</a><br /><a href="https://simplisafe.com/home-security-system" target="_blank" rel="noopener" title="">SimpliSafe</a>
Smart Appliances:<br /><a href="https://www.samsung.com/us/explore/family-hub-refrigerator/overview/" target="_blank" rel="noopener" title="">Samsung Family Hub Refrigerator</a><br /><a href="https://www.lg.com/us/cooking-appliances/lg-ltgl6937f" target="_blank" rel="noopener" title="">LG ThinQ Range</a>
This is just a tiny sample of the many smart home technology products available. It is important to research and compare products before making a purchase to ensure they are compatible with your other smart home devices and meet your specific needs.
Allan Nielsen, Managing Broker, HomeMaxi LLC2023-02-20T12:26:00-07:002023-10-09T19:09:16-07:00Allan Nielsentag:homemaxi.com,2012-09-20:9457Fla. Court: Airbnb Doesn’t Pay Tourism Tax – Hosts Do
<img src="https://assets.site-static.com/userfiles/1371/image/Bobcat_Community_Center.jpg" width="300" height="200" style="margin: 5px 15px; float: right;" />Ryan CallihanMANATEE – A lawsuit against Airbnb spearheaded by Manatee County Tax Collector Ken Burton Jr. has been dismissed by a local judge, citing an identical case in Palm Beach County. Both cases stemmed from a desire to force Airbnb – an online sh
A Manatee County court cited a previous decision from a Palm Beach County court: Airbnb can’t be held liable for tourism taxes since it’s only a conduit for hosts.
MANATEE – A lawsuit against Airbnb spearheaded by Manatee County Tax Collector Ken Burton Jr. has been dismissed by a local judge, citing an identical case in Palm Beach County.
Both cases stemmed from a desire to force Airbnb – an online short-term rental company that allows homeowners to market their homes or apartments as hotel alternatives – to collect tourism taxes and pay them to the county, but judges found that Airbnb could not be held liable for those taxes because the service is only a “conduit” for hosts who make their homes available to renters.
<a href="https://www2.floridarealtors.org/news-media/news-articles/2019/10/fla-court-airbnb-doesnt-pay-tourism-tax-hosts-do" target="_blank">More here.......</a>
2019-10-30T12:20:00-07:002019-10-30T12:24:22-07:00Allan Nielsentag:homemaxi.com,2012-09-20:8670Existing Home Sales Down
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WASHINGTON (May 21, 2019) – Existing-home sales saw a minor decline in April, continuing March’s drop in sales, according to the National Association of Realtors®. Two of the four major U.S. regions saw a slight dip in sales, while the West saw growth and the Midwest essentially bore no changes last month.
Total existing-home sales1, <a href="https://www.nar.realtor/existing-home-sales" data-di-id="di-id-d9ee9840-dd2d145e">https://www.nar.realtor/existing-home-sales</a>, completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 0.4% from March to a seasonally adjusted annual rate of 5.19 million in April. Total sales are down 4.4% from a year ago (5.43 million in April 2018).
Lawrence Yun, NAR’s chief economist, said he is not overly concerned about the 0.4% dip in sales and expects moderate growth very soon. “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” he said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”
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<a href="https://www.nar.realtor/sites/default/files/2019-04-ehs-housing-snapshot-infographic-05-21-2019-750w-800h.png" data-di-id="di-id-a155b685-11e259e7"><img typeof="foaf:Image" src="https://www.nar.realtor/sites/default/files/styles/inline_paragraph_image/public/2019-04-ehs-housing-snapshot-infographic-05-21-2019-750w-800h.png?itok=LByZt0xN" width="750" height="800" alt="" /></a>
<a href="https://www.nar.realtor/infographics/infographic-existing-home-sales-housing-snapshot" data-di-id="di-id-e91fb56f-905fd3de">See and share this infographic</a>.
The median existing-home price2 for all housing types in April was $267,300, up 3.6% from April 2018 ($257,900). April’s price increase marks the 86th straight month of year-over-year gains.
Total housing inventory3 at the end of April increased to 1.83 million, up from 1.67 million existing homes available for sale in March and a 1.7% increase from 1.80 million a year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, up from 3.8 months in March and up from 4.0 months in April 2018.
“We see that the inventory totals have steadily improved, and will provide more choices for those looking to buy a home,” Yun said. He notes that sellers have to realize that price growth has moderated. “When placing their home on the market, home sellers need to be very realistic and aware of the current conditions.”
Properties remained on the market for an average of 24 days in April, down from 36 days in March and down from 26 days a year ago. Fifty-three percent of homes sold in April were on the market for less than a month.
Yun says that college student debt continues to hinder millennial homebuyers. “Given the record high job openings in the construction sector, some may want to take a gap year to work there and save, and thereby lessen the student debt burden.”
<a href="https://research.realtor.com/reports/hottest-markets/" data-di-id="di-id-14a63351-2d06622d">Realtor.com®’s Market Hotness Index</a>, measuring time-on-the-market data and listing views per property, revealed that the hottest metro areas in April were Boston-Cambridge-Newton, Mass.; Lafayette-West Lafayette, Ind.; Spokane-Spokane Valley, Wash.; Columbus, Ohio; and Sacramento--Roseville--Arden-Arcade, Calif.
According to Freddie Mac, the <a href="http://www.freddiemac.com/pmms/pmms30.html" class="ext" data-di-id="di-id-75bb769d-db5eb6ac">average commitment rate(link is external)</a> for a 30-year, conventional, fixed-rate mortgage decreased to 4.14% in April from 4.27% in March. The average commitment rate across all of 2018 was 4.54%.
“I think the market had a bit of a slow start in the Fall, but Realtors® all over the country have been telling me that April was a nice rebound. We’re hopeful and expect that this will continue heading into the summer,” said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. “Homes over the last month sold quickly, which is not only a win-win for buyers and sellers, but it’s also great for the real estate industry.”
First-time buyers were responsible for 32% of sales in April, down from the 33% reported last month and one year ago. NAR’s 2018 Profile of Home Buyers and Sellers—<a href="https://www.nar.realtor/newsroom/single-females-remain-a-force-in-market-while-first-time-buyers-continue-to-struggle-according-to" data-di-id="di-id-78bc77ba-4e54ceae">released in late 2018</a>4—revealed that the annual share of first-time buyers was 33%.
All-cash sales accounted for 20% of transactions in April, down from March and a year ago (21% in both cases). Individual investors, who account for many cash sales, purchased 16% of homes in April, down from March’s 18%, but up from a year ago (14%).
Distressed sales5—foreclosures and short sales—represented 3% of sales in April, equal to the 3% in March and down from 4% in April 2018. One percent of April 2019 sales were short sales.
Single-family and Condo/Co-op Sales
Single-family home sales sat at a seasonally adjusted annual rate of 4.62 million in April, down from 4.67 million in March and down 4.0% from 4.81 million a year ago. The median existing single-family home price was $269,300 in April, up 3.7% from April 2018.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 570,000 units in April, up 5.6% from the prior month and down 8.1% from a year ago. The median existing condo price was $251,000 in April, which is up 3.4% from a year ago.
Regional Breakdown
April existing-home sales numbers in the Northeast decreased 4.5% to an annual rate of 640,000, 4.5% below a year ago. The median price in the Northeast was $277,700, up 0.9% from April 2018.
In the Midwest, existing-home sales saw relatively no percentage change from the month prior, as the annual rate remained 1.17 million, which is 7.9% below April 2018 levels. The median price in the Midwest was $210,500, an increase of 5.5% from a year ago.
Existing-home sales in the South modestly dropped 0.4% to an annual rate of 2.27 million in April, down 1.7% from a year ago. The median price in the South was $236,800, up 4.4% from a year ago.
Existing-home sales in the West grew 1.8% to an annual rate of 1.11 million in April, 5.9% below a year ago. The median price in the West was $395,100, up 1.3% from April 2018.
The National Association of Realtors® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.
1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR rebenchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.
Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.
The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.
3Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90% of transactions and condos were measured only on a quarterly basis).
4Survey results represent owner-occupants and differ from separately reported monthly findings from NAR’s <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" data-di-id="di-id-80ef5627-e3b75014">Realtors® Confidence Index</a>, which include all types of buyers. Investors are under-represented in the annual study because survey questionnaires are mailed to the addresses of the property purchased and generally are not returned by absentee owners. Results include both new and existing homes.
5Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" data-di-id="di-id-80ef5627-e3b75014">Realtors® Confidence Index</a>, posted at nar.realtor.
NOTE: NAR’s Pending Home Sales Index for April is scheduled for release on May 30, and Existing-Home Sales for May will be released June 21; release times are 10:00 a.m. ET.
2019-05-21T17:42:00-07:002019-07-13T17:24:16-07:00Allan Nielsen