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Florida Real-Estate Market Update – April 23 2025: Inventory Surges, Prices Plateau

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Florida Housing-Market Update – April 23 2025

Florida’s spring market looks dramatically different from the frenzied pandemic years. Statewide inventory is rising fast, prices have flattened, and lawmakers in Tallahassee just advanced a bill that could upend industry regulation. Below are the key stats and storylines every buyer, seller and fellow agent should know.

1. Inventory up, prices holding steady

  • Active single-family listings: 17,698 in February (-7 % y/y)
  • Months’ supply: 5.3 (first “balanced” reading since 2019)
  • Median single-family price: $415,000 (flat y/y)
  • Median condo price: $315,000 (-3.1 % y/y)
  • Condo months’ supply: 9.7 – a clear buyers’ market

2. Record listings signal cooling demand

Realtor.com logged 168,717 Florida properties for sale in February – the most since tracking began and a 40 % jump versus 2024. Bradenton, Sarasota and St. Petersburg each posted triple-digit inventory gains, giving buyers room to negotiate.

3. Zillow knocks Tampa Bay out of the top 10

Zillow’s 2025 “Hottest Markets” list shows Tampa Bay plunging 19 spots to No. 29, while Orlando fell to 23 and Jacksonville to 40. Miami bucked the trend, rising to 15.

4. Price-risk flashing yellow

CoreLogic’s March U.S. Home Price Insights pegs Florida among the states with the highest probability (>10 %) of price declines in the next 12 months as affordability and insurance costs bite.

5. Industry shake-up? Bill would abolish FREC

House Bill 1461, padded with a 389-page amendment on April 7, would fold the Florida Real Estate Commission into DBPR. It passed its second committee April 15 and now heads for one final hearing. Florida Realtors is rallying opposition. :

6. What today’s market means for you

“Buyers finally have leverage again – expect concessions and rate buydowns,” says eXp Realty CEO Leo Pareja, who forecasts a modest sales uptick if rates drift below 6.5 %.

Takeaways

SegmentWho has the edge?Strategy tip
Single-family (5.3 mo. supply)NeutralPrice accurately; consider 2-1 buydown offers.
Condo-townhouse (9.7 mo.)BuyersNegotiate HOA credits & inspection repairs.
Luxury coastalSofteningInsurance quotes matter more than ever.
New-constructionBuyersBuilders are offering closing-cost help & design credits.

7. Need hyper-local stats?

Pinellas and Tampa Bay numbers diverge from statewide averages. Reach out for a SunStats deep-dive or a free pricing analysis on your property.

Questions?
Call or text The Price Group Realtors @ Coldwell Banker 727-458-4537 for tailored advice before you list or buy.

Maximizing Resale Value: Top Remodeling Projects for ROI, Enjoyment, and Marketability

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Homeowners are investing in renovations at record levels. In fact, Americans spent an estimated $603 billion on home remodeling last year (12 Remodeling Projects That Offer the Best Value at Resale), partly because the average U.S. house is now over 40 years old (12 Remodeling Projects That Offer the Best Value at Resale). If you’re planning to sell your home, strategic upgrades can boost your sale price and also let you enjoy improvements in the meantime. A new report from the National Association of REALTORS® (NAR) — the 2025 Remodeling Impact Report — reveals which projects offer the best bang for your buck at resale (12 Remodeling Projects That Offer the Best Value at Resale). This post explores three critical angles for home sellers considering renovations:

  1. Best ROI Projects: Which home upgrades deliver the highest return on investment (ROI) at resale, based on national data.
  2. Owner Enjoyment: Which upgrades bring the most homeowner enjoyment and pride (high “Joy Scores”) while still contributing to long-term resale value.
  3. Balanced Improvements: A balanced view of projects that offer solid ROI and make the home more livable, attractive, or marketable when you list it.

By understanding these angles, you can prioritize improvements that maximize your home’s value and appeal to buyers, without wasting money on projects that won’t pay off.

Top Remodeling Projects by ROI (Return on Investment)

When it comes to resale return on investment, not all projects are equal. Some expensive overhauls (like a deluxe kitchen remodel) certainly impress buyers, but smaller upgrades often recoup more of their cost. As the NAR report notes: “A fancy kitchen upgrade or bathroom renovation may have a significant impact on potential buyers. But for projects that recoup most or all of their cost, owners should think smaller,” focusing on modest improvements (12 Remodeling Projects That Offer the Best Value at Resale). In other words, the most cost-effective projects tend to be those that improve functionality or curb appeal without a massive price tag – often basic replacements rather than big luxury makeovers.

According to NAR’s 2025 Remodeling Impact Report, the following projects have the highest average cost recovery (ROI) at resale for homeowners nationally (12 Remodeling Projects That Offer the Best Value at Resale) (12 Remodeling Projects That Offer the Best Value at Resale):

Remodeling ProjectAvg. Cost Recovery (ROI)Key Benefits at Resale
New Steel Front Door100% (12 Remodeling Projects That Offer the Best Value at Resale)Boosts curb appeal and first impression; enhances security (buyers love a solid, stylish entry).
Closet Renovation83% (12 Remodeling Projects That Offer the Best Value at Resale)Improves storage and organization; makes home feel more spacious and tidy to buyers.
New Fiberglass Front Door80% (12 Remodeling Projects That Offer the Best Value at Resale)Updates look of home exterior; durable and energy-efficient upgrade for the entryway.
New Vinyl Windows74% (12 Remodeling Projects That Offer the Best Value at Resale)Increases energy efficiency; modernizes appearance; reduces drafts (a selling point for older homes).
New Wood Windows71% (12 Remodeling Projects That Offer the Best Value at Resale)Enhances home’s character (often in older or high-end homes); improves insulation and curb appeal.
Basement Conversion to Living Area71% (12 Remodeling Projects That Offer the Best Value at Resale)Adds functional living space (extra bedroom, rec room, etc.); increases square footage on paper, boosting value.
Attic Conversion to Living Area67% (12 Remodeling Projects That Offer the Best Value at Resale)Creates new usable space (often an additional bedroom or office); maximizes underutilized area and home value.
Complete Kitchen Renovation60% (12 Remodeling Projects That Offer the Best Value at Resale)Transforms the home’s most important room; high-impact upgrade that attracts buyers despite higher cost.
Minor Kitchen Upgrade60% (12 Remodeling Projects That Offer the Best Value at Resale)Refreshes the kitchen at lower cost (new countertops, appliances, etc.); gives a modern look that buyers appreciate.
Bathroom Addition (new bath)56% (12 Remodeling Projects That Offer the Best Value at Resale)Increases the bathroom count (a major selling factor); alleviates bottlenecks for larger households.
New Primary Suite Addition54% (12 Remodeling Projects That Offer the Best Value at Resale)Adds a luxury primary bedroom & bath; appeals to buyers seeking an upscale, private retreat in the home.
Bathroom Renovation (existing bath)50% (12 Remodeling Projects That Offer the Best Value at Resale)Updates an outdated bathroom with new fixtures and finishes; improves daily comfort and appeal to buyers.

Why do these projects top the ROI list? Many are focused on core elements of the home (doors, windows, basic systems, added living space) that improve marketability without excessive cost. For example, replacing the front door is relatively inexpensive but has an outsized effect on curb appeal – often recouping 100% of its cost on resale (12 Remodeling Projects That Offer the Best Value at Resale). Similarly, new windows or modest kitchen and bath upgrades can make an older home feel updated and move-in ready, which today’s buyers greatly value, while returning a good portion of the investment when you sell (12 Remodeling Projects That Offer the Best Value at Resale) (12 Remodeling Projects That Offer the Best Value at Resale). Projects like finishing a basement or attic are larger investments, but they increase livable square footage, a key factor in home value, thus yielding 60–70% of their cost back in resale value on average (12 Remodeling Projects That Offer the Best Value at Resale).

On the other hand, notice that major luxury renovations (like a top-of-the-line kitchen or a primary suite addition) tend to have only moderate cost recovery (around 50–60%). You might spend $100k on a dream kitchen and add about $60k to your home’s value. That’s still a significant boost, but it means about 40% of the cost is for your personal enjoyment rather than pure investment return. This isn’t necessarily a bad thing – it just requires balancing your goals, as we’ll explore next.

High-Enjoyment Upgrades That Still Add Value

Not all remodeling decisions are purely financial. Homeowners also undertake projects for the joy and quality of life they bring. To measure this, the NAR report assigns each project a “Joy Score” (on a 1 to 10 scale) indicating how happy homeowners are with the results (12 Remodeling Projects That Offer the Best Value at Resale). Many owners plan to enjoy their improvements for a few years before selling, so these scores matter. Interestingly, the report found a gap between personal joy and resale value for certain projects (12 Remodeling Projects That Offer the Best Value at Resale) – some upgrades make owners very happy even if they don’t fully pay back in dollars. As NAR’s deputy chief economist Jessica Lautz explains, “what remains intriguing is the disparity between the joy experienced post-remodel and the actual cost recovery” (12 Remodeling Projects That Offer the Best Value at Resale).

(12 Remodeling Projects That Offer the Best Value at Resale) The chart above from NAR’s Remodeling Impact Report shows remodeling projects with the highest Joy Scores (homeowner satisfaction). Several upgrades — like adding a new primary bedroom suite, a kitchen remodel, or a new roof — earned a perfect Joy Score of 10/10, meaning homeowners were completely satisfied after the project. By contrast, practical replacements like a front door or garage door (which have top ROI) scored lower on joy. This highlights how enjoyment and resale value can differ (12 Remodeling Projects That Offer the Best Value at Resale). Owners might adore their new luxury suite or gourmet kitchen, even if those projects don’t recoup every dollar at sale.

For sellers, the key is to choose projects you’ll love living with that also add some resale value down the line. Here are a few examples of high-joy upgrades and how they contribute:

  • Adding a Primary Bedroom Suite: This remodel earned a Joy Score of 10/10, as homeowners relish having a spacious, private retreat. It’s an expensive project that recoups only about 54% of its cost on resale (12 Remodeling Projects That Offer the Best Value at Resale), but if you plan to stay in your home for a while, you’ll personally enjoy the luxury every day. And when you do sell, that new suite does boost your home’s value and appeal (buyers love an upgraded owner’s suite, even if it doesn’t pay back dollar-for-dollar).
  • Kitchen Remodel or Upgrade: A kitchen renovation (minor or major) delivers huge satisfaction – nearly 10/10 Joy Score for a minor kitchen update. Who doesn’t love a beautiful new kitchen? While a full remodel yields ~60% ROI on average (12 Remodeling Projects That Offer the Best Value at Resale), the intangibles are big: you get a stunning, functional kitchen to enjoy, and down the road, an updated kitchen is a top selling point for buyers. If a full renovation is too pricey, even a minor kitchen upgrade (new hardware, countertops, or appliances) can refresh the space and makes daily cooking more enjoyable, with the same ~60% cost recovery at resale (12 Remodeling Projects That Offer the Best Value at Resale).
  • Bathroom Renovation: Modernizing an old bathroom (new tile, fixtures, vanity, etc.) greatly improves comfort and pride of ownership – homeowners gave it a 9.8 Joy Score. About 50% of the cost is recovered in resale value on average (12 Remodeling Projects That Offer the Best Value at Resale). That may sound low, but consider that bathrooms are high-traffic, personal spaces; this upgrade can make your daily routine more pleasant and your home more attractive to future buyers (who often appreciate updated bathrooms). It’s an investment in both your lifestyle and your home’s marketability.
  • Fresh Interior Paint: Something as simple as painting interior rooms can have an outsized effect on enjoyment and saleability. Owners who repaint in colors they love often report a Joy Score in the 9+ range. A fresh coat of paint revitalizes your living space, making it feel clean and new. Importantly for resale, neutral, freshly painted walls are a big draw for buyers – it gives the whole home a cared-for, move-in-ready feel at a relatively low cost. While new paint isn’t tracked as a high-cost item, it’s often cited by agents as a must-do for prepping a home for market (more on that below), indicating its high perceived value.

In short, if you expect to live in your house for a few years before selling, don’t hesitate to pursue upgrades that bring you joy. You’ll reap daily enjoyment and still get a portion of your investment back when you sell. Just be aware of the trade-offs: some highly personal or luxury projects won’t pay off fully in cash – you’re doing them for you first and the market second. By aiming for a balance (e.g. a design you love that also has broad appeal), you can have the best of both worlds.

Balancing ROI with Livability and Marketability

Ideally, home sellers want improvements that do double duty: making the home more enjoyable now and more attractive to buyers later. The good news is, many of the projects with strong ROI also improve a home’s comfort, efficiency, and appeal. And even those that don’t top the ROI rankings can be crucial for making your property market-ready. Here we take a balanced view – focusing on upgrades that offer solid returns and enhance the home’s livability or saleability:

  • Boost Curb Appeal with Small Investments: First impressions matter. Replacing your front door is a prime example of a win-win upgrade. A new steel or fiberglass door can transform your home’s curb appeal, projecting a well-maintained look, and it recoups around 80–100% of its cost on resale (12 Remodeling Projects That Offer the Best Value at Resale). It also improves security and energy efficiency – benefits you enjoy while living there. Likewise, simple exterior projects like updating the garage door or adding nice landscaping (though not in the NAR top 12 list) can make your home more attractive to buyers without a huge expense. These curb appeal enhancements might not all return dollar-for-dollar, but they prevent buyers from getting a negative first impression. Remember, if a house looks great, buyers are more likely to pay top dollar.
  • Prioritize Necessary Repairs (Roof & Paint): No buyer wants to inherit maintenance problems. That’s why real estate agents often recommend painting and roof replacement (if the roof is old) before listing a home (12 Remodeling Projects That Offer the Best Value at Resale). While a new roof might not dramatically boost your sale price by itself, an aging, leaky roof can kill deals or force price cuts. Investing in a new roof gives you peace of mind (many owners get a 10/10 Joy Score from knowing their home is protected) and makes your property far more marketable. Similarly, fresh paint, as mentioned, is one of the top agent-recommended projects because it makes the home feel clean and updated (12 Remodeling Projects That Offer the Best Value at Resale). These improvements maintain your home’s value and help it sell faster, even if their standalone ROI is hard to quantify. Essentially, they preserve your equity by preventing buyer objections.
  • Energy Efficiency and Comfort Upgrades: Replacing old windows with new vinyl or wood windows is another balanced upgrade. You’ll notice improved comfort (no drafts, quieter interiors) and lower energy bills right away. When it’s time to sell, buyers will see the newer windows as a plus — it’s one less thing they’ll need to upgrade, and they appreciate the efficiency. With roughly 70–74% of costs recovered on average (12 Remodeling Projects That Offer the Best Value at Resale), window replacements strike a nice balance between personal benefit and resale value. Upgrading insulation or HVAC systems could be considered in the same vein: you enjoy a cozier, more efficient home, and buyers favor a house with reduced future utility costs.
  • Convert Unused Spaces into Living Space: If your home has an unfinished basement or attic, converting it into living area can greatly enhance usability and add value. You gain new functional space – perhaps a family entertainment room, home office, or an extra bedroom suite – making your home more livable and enjoyable. At resale, you’re effectively increasing the home’s finished square footage, which boosts its market value. Nationally, attic and basement conversions see about 65–70% of their cost recovered in added value (12 Remodeling Projects That Offer the Best Value at Resale). Importantly, these projects can broaden your buyer pool: for example, turning a musty storage basement into a bright playroom or in-law suite might attract buyers who need more space but hadn’t considered your home before.
  • Focus on Kitchens and Baths (Smartly): It’s often said in real estate that “kitchens and bathrooms sell houses.” Buyers are particularly picky about these areas – in fact, nearly 46% of recent home buyers are unwilling to compromise on the condition of the kitchen and baths in the home they purchase (12 Remodeling Projects That Offer the Best Value at Resale). That means updating a dated kitchen or bathroom can significantly boost your home’s appeal and saleability. However, to balance ROI, you might opt for moderate upgrades over ultra-luxe remodels. For instance, refacing cabinets, updating appliances, or replacing the countertop can give a like-new look without the cost of a gut renovation. You’ll enjoy the refreshed space now, and buyers will see an updated kitchen they love (with you recouping a healthy portion of what you spent). The Remodeling Impact Report found both minor kitchen remodels and full renovations returned about 60% on average (12 Remodeling Projects That Offer the Best Value at Resale), so choose a scope that fits your budget and neighborhood. The same goes for bathrooms: focus on fixtures and finishes that make the room feel new and clean, rather than over-the-top luxury add-ons that may not pay off.
  • Storage and Functionality Improvements: Don’t overlook projects that improve your home’s function. One interesting high-ROI project was a closet renovation, which returned about 83% of its cost (12 Remodeling Projects That Offer the Best Value at Resale). By upgrading a closet (or adding a well-organized closet system), you enjoy a less cluttered life and lots of daily convenience. Come selling time, buyers will be impressed by the ample, organized storage – it’s a small detail that can set your home apart. Other functional boosts like a garage organization system, a pantry upgrade, or built-in shelving might not have hard ROI data, but they make the home feel more practical and appealing. The key is that you benefit now (through better living experience) and later by showcasing features that resonate with buyers.

Finally, remember that every home and neighborhood is different. An upgrade that’s a home run in one market might not be as critical in another. Use these national ROI numbers and insights as a starting point (12 Remodeling Projects That Offer the Best Value at Resale), but also consult with your real estate agent about what local buyers expect. As Angie Hicks (co-founder of Angi) advises, “You want to keep up with the Joneses, but you don’t want to beat the Joneses” (12 Remodeling Projects That Offer the Best Value at Resale). In other words, improve your home to match buyer expectations for your area, but don’t go so overboard that your home over-improves beyond the neighborhood norm (you likely won’t get the extra money back).

By focusing on the projects that make financial sense and also make your home more enjoyable and marketable, you can confidently invest in improvements that pay off. Whether it’s a quick facelift like a coat of paint and a new door, or a bigger project like finishing the basement, the right upgrades will not only enhance your daily living – they’ll also maximize your home’s value when you’re ready to sell. In the end, the best remodeling projects for you are the ones that strike the ideal balance between ROI and lifestyle, ensuring you get the maximum value from your home both now and in the future.

Tampa Bay Real Estate Market Update: October 2024

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As we move deeper into the final quarter of 2024, the Pinellas County real estate market continues to evolve, reflecting the broader economic environment and seasonal trends. October’s market data highlights shifts in buyer behavior, inventory levels, and pricing. Let’s explore the numbers and what they mean for buyers and sellers.

Year-Over-Year Highlights: October 2024 vs. October 2023

  1. Sales Volume:
    • Single-family homes: 1,027 closed sales (-24.3% YoY).
    • Townhouses/condos: 379 closed sales (-37.3% YoY).
      Takeaway: Sales remain lower than last year, impacted by high mortgage rates and cautious buyers.
  2. Prices:
    • Single-family homes: Median price declined slightly to $460,000 (-1.1% YoY).
    • Townhouses/condos: Median price fell to $282,500 (-6.6% YoY).
      Takeaway: Prices are softening, with condos experiencing more significant corrections than single-family homes.
  3. Inventory and Supply:
    • Single-family homes: 2,793 active listings (+29.9% YoY) with 3.5 months supply (+52.2% YoY).
    • Townhouses/condos: 3,113 active listings (+30.0% YoY) with 6.0 months supply (+81.1% YoY).
      Takeaway: Inventory is growing steadily, shifting the market closer to a balance between buyers and sellers.
  4. Market Activity:
    • Median time to contract:
      • Single-family homes: 37 days (+117.6% YoY).
      • Townhouses/condos: 65 days (+209.5% YoY).
        Takeaway: Homes are spending significantly more time on the market, reflecting a more deliberate pace among buyers.

Month-Over-Month Trends: October 2024 vs. September 2024

  1. Sales Volume:
    • Single-family homes: 1,027 closed sales (+0.1% MoM from 1,026 in Sept. 2024).
    • Townhouses/condos: 379 closed sales (+0.3% MoM from 378 in Sept. 2024).
      Takeaway: Sales volumes stabilized month-over-month, indicating a steady demand despite economic headwinds.
  2. Prices:
    • Single-family homes: Median price decreased slightly to $460,000 (-3.2% MoM from $475,000 in Sept. 2024).
    • Townhouses/condos: Median price rose slightly to $282,500 (+2.2% MoM from $276,500 in Sept. 2024).
      Takeaway: Single-family home prices dipped modestly, while the condo market saw a slight recovery.
  3. Inventory:
    • Single-family homes: 2,793 active listings (-5.3% MoM from 2,950 in Sept. 2024).
    • Townhouses/condos: 3,113 active listings (-9.4% MoM from 3,435 in Sept. 2024).
      Takeaway: Inventory levels are beginning to decline slightly, a typical seasonal trend.
  4. Market Activity:
    • Median time to contract:
      • Single-family homes: Increased to 37 days (+8.8% MoM from 34 days in Sept. 2024).
      • Townhouses/condos: Increased to 65 days (+18.2% MoM from 55 days in Sept. 2024).
        Takeaway: Properties are taking longer to go under contract as buyers weigh their options.

What Does This Mean for Buyers and Sellers?

  • For Buyers: With inventory still higher than last year and homes taking longer to sell, you have more negotiating power. Keep an eye on softening prices, especially in the townhouse/condo market.
  • For Sellers: Pricing competitively and preparing your home for market are crucial. Be patient, as homes are taking longer to sell in this environment.

Final Thoughts

The Pinellas County real estate market is moving toward a more balanced state as 2024 progresses. While activity remains subdued compared to 2023, opportunities exist for both buyers and sellers who are prepared to adapt to these changing conditions.

If you’re considering buying or selling in Pinellas County, reach out to us for personalized insights and strategies to make the most of today’s market.

Pinellas County Real Estate Market: August vs. September 2024

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Here’s a breakdown of September 2024 market data for Pinellas County, comparing year-over-year changes (YoY) and month-over-month changes (MoM) from August 2024:

Key Metrics: September 2024 vs. September 2023 (YoY)

The real estate market in Pinellas County continues to reflect broader economic trends, with September 2024 showing notable shifts in both year-over-year (YoY) and month-over-month (MoM) metrics. Let’s dive into the latest data and uncover the story behind the numbers.

Year-Over-Year Highlights: September 2024 vs. September 2023

  1. Sales Volume:
    • Single-family homes: 1,026 closed sales (-30.1% YoY).
    • Townhouses/condos: 378 closed sales (-46.2% YoY).
      Takeaway: Sales volumes are significantly down compared to 2023, reflecting a cooling market driven by higher mortgage rates and cautious buyers.
  2. Prices:
    • Single-family homes: Median price rose to $475,000 (+2.8% YoY).
    • Townhouses/condos: Median price dropped to $276,500 (-18.9% YoY).
      Takeaway: While single-family homes have maintained modest price growth, the townhouse and condo market continues to see price corrections.
  3. Inventory and Supply:
    • Single-family homes: 2,950 active listings (+55.2% YoY) with 3.7 months supply (+60.9% YoY).
    • Townhouses/condos: 3,435 active listings (+63.8% YoY) with 6.4 months supply (+93.9% YoY).
      Takeaway: Inventory has grown significantly, signaling a shift toward a balanced or buyer-friendly market, especially in the condo segment.
  4. Market Activity:
    • Median time to contract:
      • Single-family homes: 34 days (+112.5% YoY).
      • Townhouses/condos: 55 days (+129.2% YoY).
        Takeaway: Homes are taking longer to sell, reflecting cautious buyer behavior and a slower market overall.

Month-Over-Month Trends: September 2024 vs. August 2024

  1. Sales Volume:
    • Single-family homes: Sales rose to 1,026 (+20.2% MoM).
    • Townhouses/condos: Sales fell to 378 (-27.9% MoM).
      Takeaway: While single-family sales saw a healthy rebound, the condo market faced a sharp drop in activity.
  2. Prices:
    • Single-family homes: Median price softened slightly to $475,000 (-2.0% MoM).
    • Townhouses/condos: Median price increased to $276,500 (+2.6% MoM).
      Takeaway: Prices show relative stability, with small movements in both directions.
  3. Inventory:
    • Single-family homes: 2,950 active listings (-6.8% MoM).
    • Townhouses/condos: 3,435 active listings (-3.0% MoM).
      Takeaway: Inventory levels declined modestly, consistent with seasonal patterns.
  4. Market Activity:
    • Median time to contract:
      • Single-family homes: Increased slightly to 34 days (+6.3% MoM).
      • Townhouses/condos: Improved slightly to 55 days (-3.5% MoM).
        Takeaway: The pace of sales is steady but still slower compared to peak market activity.

What Does This Mean for Buyers and Sellers?

  • For Buyers: Elevated inventory and longer time on market mean more opportunities for negotiation, especially in the townhouse/condo segment. However, prices for single-family homes remain stable, reflecting strong demand in this category.
  • For Sellers: Adjusting pricing expectations is key, as buyers are taking their time to evaluate options. Highlighting unique features and offering incentives could help properties stand out.

The Pinellas County market is adapting to a high-interest-rate environment, and while some areas see softening prices, others remain resilient. Whether you’re considering buying or selling, now is the time to work with a real estate expert who can guide you through these shifting dynamics.

Have questions or need help navigating the market? Contact us today for tailored advice! 727-851-6189

How to Choose the Right Neighborhood in Today’s Market: Tips for Homebuyers in 2024

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When buying a home, choosing the right neighborhood is just as important as selecting the perfect house. In 2024, with high mortgage rates and a fluctuating housing market, picking the right location for your future home has become more crucial than ever. The neighborhood you choose will impact your quality of life, long-term financial investment, and your overall satisfaction with your new home.

In this post, we’ll guide you through the key factors to consider when choosing a neighborhood in today’s market. We’ll also provide tips for balancing your budget, lifestyle preferences, and long-term goals to ensure you make the best decision.

1. Understand Your Budget and Desired Home Features

Before diving into specific neighborhoods, the first step is understanding what you can afford. With mortgage rates still on the higher end, it’s crucial to set a realistic budget for both your home purchase and your monthly mortgage payments.

How Your Budget Affects Neighborhood Choices:

  • Homes in Desirable Areas Cost More: Typically, neighborhoods close to good schools, amenities, and urban centers are priced higher. If your budget is limited, you might need to expand your search to more affordable, yet still appealing, areas.
  • Balance Home Features with Location: Do you need a larger yard, a specific number of bedrooms, or proximity to work? Determine which features are non-negotiable and which ones can be adjusted based on neighborhood availability.

Tip: Use online tools like mortgage calculators to figure out your potential monthly payments based on different loan amounts, interest rates, and property taxes. This will help you gauge which neighborhoods fit within your budget.

Find mortgage calculators here: Mortgage Tools

2. Research Local Amenities and Services

When evaluating a neighborhood, take the time to research nearby amenities. Proximity to essential services and conveniences can significantly impact your daily life.

Key Amenities to Consider:

  • Schools: If you have children or plan to in the future, the quality of local schools should be a top consideration. Even if you don’t have children, homes in districts with great schools typically appreciate faster.
  • Public Transportation: In today’s market, many buyers are prioritizing neighborhoods with easy access to public transportation. This is especially true in cities where commuting by car is challenging or expensive.
  • Shopping and Dining: Consider how close you are to grocery stores, shopping malls, restaurants, and entertainment. A vibrant community with easy access to daily conveniences can greatly enhance your lifestyle.
  • Healthcare and Emergency Services: Proximity to hospitals, clinics, and urgent care centers can be essential for peace of mind.

Pro Tip: Map out the commute time to your workplace or any places you frequent regularly. Long commutes can add stress and cost, especially when gas prices are high.

3. Consider the Future Growth and Development of the Area

One of the most important factors when selecting a neighborhood is its potential for future growth and development. Investing in an up-and-coming area can offer long-term financial rewards, as property values are likely to appreciate over time.

How to Gauge Neighborhood Growth:

  • Local Development Plans: Research if the city or county has plans for infrastructure improvements, new schools, or public transportation options in the area. This can signal future growth.
  • Look for Emerging Neighborhoods: Some areas may be undergoing gentrification or revitalization, offering the chance to buy in at a lower price before the neighborhood becomes fully developed.
  • Rising Property Values: Check property value trends in the neighborhood. Are home prices rising steadily, or have they plateaued? Rising home prices can indicate increasing demand.

Tip: Speak to local real estate agents who specialize in the area. They can provide insights into neighborhoods that are about to undergo significant changes or improvements.

4. Assess the Safety and Crime Rates

Safety is a critical factor in choosing the right neighborhood. No matter how beautiful a neighborhood may appear, if it has high crime rates, it can significantly impact your quality of life and long-term investment.

How to Research Safety:

  • Crime Data: Use online tools like local police department websites or apps like NeighborhoodScout and CrimeReports to review crime statistics for different areas.
  • Talk to Locals: Whenever possible, visit neighborhoods and talk to residents to get a sense of the community’s safety. Residents are often the best source of information when it comes to understanding the true safety of a neighborhood.
  • Look for Community Watch Programs: Some areas have active neighborhood watch programs, which are a good sign of a community that values safety.

Pro Tip: If you’re considering a neighborhood with high crime rates, ask about the local law enforcement presence and whether the area is part of any ongoing community safety initiatives.

5. Evaluate the Neighborhood’s Overall Aesthetic and Vibe

The aesthetic of a neighborhood can significantly influence your happiness living there. It’s important to choose an area where you feel comfortable and aligned with the neighborhood vibe.

What to Consider:

  • Architectural Style: Does the neighborhood have a specific architectural style that appeals to you, whether it’s modern, historic, or suburban?
  • Community Feel: Does the neighborhood feel welcoming, with active local groups and social events? A friendly community can help you build connections and make you feel more at home.
  • Outdoor Spaces: Check if the area has parks, walking trails, or other green spaces. If you value outdoor activities, this can make a big difference in your quality of life.

Pro Tip: Walk around the neighborhood at different times of the day and night to get a feel for the area. Visit parks, shops, and cafes to see how residents interact and whether it aligns with your lifestyle.

6. Evaluate Property Taxes and Homeowners Association (HOA) Fees

Property taxes and HOA fees can vary significantly from one neighborhood to another, and they should be factored into your overall budget when considering a home.

How Taxes and Fees Impact Your Decision:

  • Property Taxes: High property taxes in certain areas can increase your monthly payments. Research the average property tax rate in the neighborhoods you’re considering and see how it affects your homeownership costs.
  • HOA Fees: Some neighborhoods have homeowners associations (HOA), which may charge monthly or yearly fees. While these fees often cover things like neighborhood maintenance, security, and amenities, they can also add up quickly.

Tip: Always ask about property tax rates and HOA fees during your home search to avoid surprises later on.

Conclusion: Finding the Right Neighborhood in 2024

Choosing the right neighborhood in today’s market requires balancing your budget, lifestyle preferences, and long-term investment goals. By considering factors such as amenities, future growth potential, safety, and local vibe, you can find a neighborhood that not only meets your immediate needs but also serves as a solid investment for your future.

Remember, the right neighborhood is more than just a location—it’s a place where you’ll build memories, grow roots, and invest in your future. So take your time, do your research, and choose wisely!

Helpful Resources:

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How to Get Pre-Approved for a Mortgage: A Step-by-Step Guide for 2024 Homebuyers

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Buying a home is one of the biggest financial decisions you’ll make, and securing the right mortgage is a crucial step in that process. Whether you’re a first-time homebuyer or looking to refinance, understanding how mortgages work and the steps to get pre-approved can save you time, money, and stress.

In this step-by-step guide, we’ll walk you through everything you need to know about securing a mortgage in 2024. From pre-approval to closing, we’ll cover each stage of the mortgage process and give you tips for making the process as smooth and efficient as possible.

Step 1: Understand What a Mortgage Is and How It Works

A mortgage is a loan used to purchase a home. In exchange for lending you the money to buy the property, the lender places a lien on the home, which means they have the right to take ownership of it if you fail to make payments.

There are several types of mortgages, but the most common are:

  • Fixed-Rate Mortgages: The interest rate remains the same throughout the life of the loan, which means your monthly payments won’t change.
  • Adjustable-Rate Mortgages (ARMs): The interest rate changes after an initial fixed period, usually 5, 7, or 10 years, which could lead to lower payments initially but higher payments in the future.
  • FHA Loans: A government-backed loan designed for first-time homebuyers or those with less-than-perfect credit, often requiring a lower down payment.
  • VA Loans: Available to veterans and active-duty military personnel, offering no down payment and competitive interest rates.

Pro Tip: Understand which type of mortgage is best for your financial situation before moving forward. Fixed-rate loans provide stability, while ARMs may offer lower rates initially, but with more risk over time.

Step 2: Check Your Credit Score and Financial Health

Your credit score plays a significant role in determining the interest rate you’ll receive. A higher score often means a better interest rate, which can save you thousands of dollars over the life of your loan.

Steps to Check Your Financial Health:

  • Obtain Your Credit Report: Request a free credit report from the three major bureaus (Experian, TransUnion, and Equifax). You can get one free report every year at AnnualCreditReport.com.
  • Review Your Credit Score: A score of 700 or higher is typically considered good, but you may still qualify for a mortgage with a lower score, depending on the type of loan.
  • Assess Your Debt-to-Income Ratio (DTI): Lenders will also look at your DTI, which is the percentage of your income that goes toward paying off debt. Most lenders prefer a DTI of 43% or lower.

Tip: Pay down high-interest debts like credit cards before applying for a mortgage to improve your credit score and DTI.

Step 3: Determine How Much You Can Afford to Borrow

Before applying for a mortgage, it’s essential to determine how much house you can afford. This will depend on your income, existing debts, down payment savings, and credit score.

Key Factors to Consider:

  • Down Payment: The larger your down payment, the less you’ll need to borrow. Traditionally, 20% is recommended to avoid private mortgage insurance (PMI), but many buyers opt for lower down payments, especially with FHA loans.
  • Monthly Payment: Your monthly mortgage payment should ideally not exceed 28-30% of your gross monthly income.
  • Other Expenses: Don’t forget to budget for property taxes, homeowner’s insurance, maintenance, and utilities.

Pro Tip: Use an online mortgage calculator to get an estimate of your potential monthly payments based on your loan amount, interest rate, and down payment.

Step 4: Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage is one of the most important steps in the home-buying process. It shows sellers that you’re a serious buyer and gives you a clear idea of how much you can afford.

What’s Involved in Getting Pre-Approved:

  • Submit Financial Documents: Lenders will ask for proof of income (e.g., pay stubs or tax returns), proof of assets (bank statements), and details about any current debts.
  • Credit Check: The lender will conduct a hard inquiry into your credit score to assess your financial history and current debt load.
  • Pre-Approval Letter: If everything checks out, the lender will provide a pre-approval letter stating how much they are willing to lend you. This letter is often required when submitting an offer on a home.

Tip: Pre-approval is different from pre-qualification. Pre-qualification is based on self-reported information, while pre-approval involves a more thorough review of your financial situation.

Step 5: Shop Around for Mortgage Lenders

Once you have a pre-approval letter, it’s time to start shopping for lenders. Interest rates can vary significantly from one lender to another, so it’s essential to compare options to find the best deal.

How to Compare Mortgage Lenders:

  • Compare Interest Rates and Fees: Look at the interest rate, but also consider other fees such as origination fees, underwriting fees, and closing costs.
  • Ask About Loan Terms: Make sure the loan term (e.g., 15, 20, or 30 years) aligns with your goals, and inquire about any special programs for first-time buyers or lower down payments.
  • Customer Service: Choose a lender with good customer reviews and a track record of communication. The mortgage process can take months, and you want a lender who will be responsive and helpful throughout.

Pro Tip: Get quotes from at least three lenders to ensure you’re getting the best possible deal. Don’t just settle for the first offer you receive.

Step 6: Lock in Your Mortgage Rate

Once you’ve selected a lender and the loan terms are finalized, you’ll have the option to lock in your interest rate. Locking in your rate ensures that it won’t change before you close on your home, even if market conditions fluctuate.

How to Decide When to Lock:

  • Lock When Rates Are Favorable: If interest rates are low or stable, locking in early can save you money over the life of the loan.
  • Consider Market Trends: If you believe rates will go lower, you might choose to wait, but this comes with the risk that rates could increase before you close.

Tip: Some lenders offer a rate float-down option, which allows you to lower your rate if it drops during the process. Ask your lender about this option.

Step 7: Complete the Underwriting Process

Underwriting is the process where the lender reviews your application, financial documents, and property details to ensure you qualify for the loan. This can take anywhere from a few days to a few weeks.

What Happens During Underwriting:

  • Document Verification: The underwriter will double-check all your financial documents to ensure everything is accurate.
  • Appraisal: The lender will require an independent appraisal of the property to ensure its value matches the loan amount.
  • Approval or Denial: If all goes well, the underwriter will approve your loan. If there are any issues, they may request additional documentation or clarification.

Tip: Be responsive to any requests from your lender during underwriting to avoid delays in the process.

Step 8: Close on Your Mortgage and Move In

Once your loan is approved, it’s time to close. This is the final step in the process, where you’ll sign the mortgage agreement, finalize the loan terms, and officially become a homeowner.

What Happens at Closing:

  • Review the Closing Disclosure: This document outlines your loan details, including the interest rate, monthly payment, and closing costs. Make sure everything matches what you’ve agreed to.
  • Sign Documents: You’ll sign the mortgage agreement, promissory note, and other closing documents.
  • Pay Closing Costs: You’ll need to pay any closing costs, which can range from 2-5% of the loan amount.
  • Get the Keys: After everything is signed and finalized, you’ll receive the keys to your new home!

Tip: Before the closing day, review all documents carefully and ask your lender about any fees or terms you don’t understand.

Conclusion: Navigating the Mortgage Process in 2024

Securing a mortgage in 2024 might seem overwhelming, but with the right preparation and knowledge, you can navigate the process confidently. By following these steps—from understanding mortgage options to locking in a rate and closing the deal—you’ll be well on your way to homeownership.

Remember, every step matters, so take your time, ask questions, and choose a lender who can guide you through the process. We have some great lender partners, feel free to connect with us for a referral today 727-851-6189

How to Buy a Home in 2024 Despite High Mortgage Rates: Expert Strategies for Homebuyers

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Buying a home in 2024 comes with its challenges—most notably, high mortgage rates. With interest rates still elevated, many prospective buyers are wondering if it’s even possible to buy a home without breaking the bank. While these conditions may feel daunting, the right strategies can help you secure a home that fits your needs and budget, even in a high-rate environment.

In this blog, we’ll explore 6 proven strategies that can help you navigate the current housing market and make homeownership achievable, despite high mortgage rates. Whether you’re a first-time buyer or looking to upgrade, these tips will equip you with the tools you need to move forward confidently.

1. Consider Adjustable-Rate Mortgages (ARMs) to Lower Your Initial Payments

If you’re finding fixed mortgage rates too high, an adjustable-rate mortgage (ARM) may be the solution you’re looking for. ARMs typically offer lower initial interest rates than fixed-rate loans, which can be a great way to save money on monthly payments during the first few years of your mortgage.

Why ARMs Are a Smart Option in 2024

  • Initial Lower Rate: ARMs often offer lower rates than fixed-rate loans in the first 5, 7, or 10 years, which could help reduce your monthly payments.
  • Potential for Savings: If you plan to move or refinance before the rate adjusts, an ARM could save you thousands in interest payments.

Important Tip: While the rate adjusts after the initial period, ARMs can be riskier if interest rates increase significantly over time. Make sure to assess your risk tolerance and consider your long-term plans before choosing this option.

Explore more about ARMs: Adjustable-Rate Mortgages Explained from CFPB.

2. Lower Your Interest Rate by Buying Points at Closing

A less common, but effective strategy to manage higher mortgage rates is to buy down your rate at closing. Many lenders allow you to pay upfront to reduce the interest rate, often referred to as “buying points.”

How Buying Points Can Help You Save

  • Lower Your Rate: Each “point” is equivalent to 1% of the loan amount and typically reduces your interest rate by 0.25% to 0.5%.
  • Long-Term Savings: This strategy makes sense if you plan to stay in the home for many years, as it could lead to significant savings over time.

Example: On a $300,000 loan, buying 2 points could cost you $6,000 at closing, but it may save you hundreds of dollars per month in mortgage payments.

3. Explore Down Payment Assistance Programs for First-Time Buyers

Affordability remains a top concern for homebuyers in today’s market, especially with high mortgage rates. Fortunately, there are many down payment assistance programs (DPA) available to help reduce upfront costs, making homeownership more attainable.

Government Programs to Help You Buy

  • FHA Loans: With a down payment requirement as low as 3.5%, FHA loans are an excellent option for buyers with less-than-perfect credit.
  • Learn more: FHA Loans Overview
  • State-Specific Programs: Many states offer DPAs for first-time homebuyers, including grants or low-interest loans. Check your state’s housing website for details.
  • Find available programs: State Homebuyer Assistance Programs
  • VA Loans: For military service members and veterans, VA loans offer competitive interest rates and require no down payment at all.
  • Explore VA Loan benefits: VA Home Loan Program

Pro Tip: Make sure to research local and state programs for down payment assistance, as they can vary by region and eligibility criteria.

4. Refinance Your Mortgage When Rates Drop

If you decide to buy now and face high mortgage rates, keep an eye on future opportunities to refinance. Rates are unlikely to stay high forever, and refinancing your mortgage when rates drop can lead to significant savings in the long term.

How Refinancing Can Benefit You

  • Lower Your Monthly Payments: If mortgage rates drop significantly after you purchase, refinancing allows you to secure a lower rate.
  • More Options: If you initially took an ARM, refinancing to a fixed-rate mortgage may make sense once rates stabilize.

Important Reminder: Refinancing does come with costs (e.g., closing fees, appraisals), so make sure the savings outweigh the fees before moving forward.

Learn more about refinancing: Guide to Refinancing.

5. Focus on Affordable Homes and Budget Wisely

In a market where mortgage rates are high, it’s essential to be realistic about what you can afford. Rather than stretching your budget to buy your dream home, consider focusing on more affordable options and building equity over time.

How to Make Your Home Search More Affordable

  • Set a Budget: Just because you’re approved for a larger loan doesn’t mean you should max out your budget. Focus on homes with a monthly payment you’re comfortable with.
  • Consider Suburban or Emerging Markets: If you’re willing to expand your search to suburban or less-expensive neighborhoods, you may be able to find a home that offers better value for your money.
  • Negotiate with Sellers: In a high-rate market, sellers may be more willing to negotiate on price or cover some of the closing costs, helping you save money.

6. Stay Patient and Flexible with Your Home Search

It may be tempting to rush into buying a home, especially if you’ve been saving for a long time. However, in a high-rate environment, patience can be a virtue. If you’re flexible on timing, waiting for rates to stabilize or drop could help you secure a better deal in the near future.

Why Patience Pays Off

  • Future Rate Changes: If rates do drop in the next year or two, you may be able to refinance at a lower rate, saving you money.
  • Improved Inventory: As the market adjusts, more homes may become available, offering more options and less competition.

Keep an eye on rate forecasts from trusted financial sources like the Federal Reserve and Mortgage Bankers Association.

Conclusion: Don’t Let High Mortgage Rates Keep You from Homeownership

While high mortgage rates may present challenges for homebuyers, they don’t mean it’s impossible to buy a home in 2024. By exploring options like adjustable-rate mortgages, leveraging down payment assistance programs, and staying patient, you can still find success in today’s competitive market.

Remember, working with an experienced real estate agent and mortgage lender can help you navigate these challenges more easily and ensure you make the best financial decision for your future.

Helpful Resources:

Next Steps:
If you’re ready to begin your home search or need personalized real estate advice, don’t hesitate to contact us for expert guidance. Let’s find the perfect home for you in 2024, despite the high mortgage rates! Start your home search at https://search.pricegrouprealtors.com/search or call 727-851-6189

Pinellas County Real Estate Market Data August 2024

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Introduction:
The Pinellas County real estate market continues to evolve in 2024. Single-family homes are seeing shifts in pricing, inventory, and buyer behavior, signaling a transition in the market. In this post, we’ll break down the latest data for August 2024 and explore what these changes mean for buyers and sellers.

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1. Home Prices: A Slow Climb with Recent Dips

As of August 2024, the median sale price for single-family homes in Pinellas County stands at $484,500, reflecting a 1.2% increase from August 2023. While this suggests that home values continue to rise on an annual basis, it’s important to note the month-over-month trend. Prices have dipped slightly compared to July 2024, which could indicate early signs of a market cooldown. View US housing data from NAR

2. Inventory is Rising Rapidly

One of the biggest changes in the market is the surge in inventory. Active listings have jumped by a staggering 98.1%, bringing the total number of homes for sale to 3,164. This substantial increase is giving buyers more options, and it marks a shift away from the highly competitive, low-inventory market that characterized much of the pandemic era.

This increase in inventory is likely a result of more sellers coming to market and homes staying on the market longer. For sellers, this means adjusting expectations, as they may face more competition and longer sales cycles.

3. Homes Are Taking Longer to Sell

Another telling trend in the August 2024 data is the longer time to contract. The median time it takes for homes to go under contract has increased by 113.3%, from 15 days last year to 32 days this year. This indicates a market where buyers have more leverage, are taking their time, and may be negotiating harder.

4. A Shift Toward a Balanced Market

With the months supply of inventory growing to 3.9 months (up 105.3% from last year), Pinellas County is moving toward a more balanced market. Traditionally, a balanced market has around 5.5 months of inventory. While we aren’t quite there yet, the increased inventory signals a move away from the strong seller’s market of recent years.

This shift suggests that while sellers are still benefiting from price gains, they may need to be more flexible with pricing and negotiations to secure a deal in this cooling market.

5. Sales Are Still Strong

Despite the signs of a cooling market, the number of closed sales increased by 9% year-over-year, with 1,146 sales in August 2024. This highlights that there is still strong demand, even with more homes on the market and longer sales cycles. Buyers continue to enter the market, taking advantage of the growing inventory and slightly moderating prices.

Conclusion:

In summary, the Pinellas County single-family home market is transitioning from the rapid growth of recent years to a more balanced state. While home prices are up year-over-year, the month-over-month decline suggests a softening. Rising inventory and longer time to sell indicate that buyers are gaining more control, though sellers are still benefiting from price increases.

For buyers, this might be an opportune moment to act before the market balances out further. Sellers, meanwhile, should remain realistic about pricing and be prepared for longer negotiations as the market shifts. It’s never been more important to hire an experienced Realtor who can guide you through the changing market call one of our seasoned professionals today, click the link to view our team Price Group Team

Pinellas County Real Estate Market July 2024

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July 2024 Real Estate Market Update for Pinellas County

The latest data from Steller MLS reveals some intriguing trends in the Pinellas County housing market. The number of active homes for sale has increased by just 1% over the past month, but compared to July 2023, active inventory is up by a significant 54%. This expansion in inventory is great news for buyers, who now have more options to choose from. Over the past four years, limited inventory and fierce competition forced buyers to make quick decisions. While competition persists in certain price ranges, particularly for homes under $700,000 or those updated in high-demand areas, the market dynamics are shifting.

Demand in the housing market has slowed, largely due to higher interest rates and the anticipation of potential rate cuts by the Federal Reserve. Many buyers appear to be holding back, waiting to see how the situation unfolds. This cautious approach could be beneficial—or it could lead to missed opportunities. To illustrate, when the COVID-19 pandemic hit and the Fed slashed rates to 0.25%, mortgage rates dropped to below 2.8%. This made homes more affordable, causing prices to surge nationwide, not just in states where buyers flocked. For example, a $400,000 home at a 5% interest rate would have a monthly principal and interest payment of $2,150. At a 2.8% rate, that same payment could afford a $525,000 home, explaining the rapid increase in home prices during that time.

So, what can we expect when interest rates eventually come down? Will home prices decrease, or will they rise again?

In July, new listings entering the market cooled by 2% compared to the previous month but were up 12% from July 2023. Pending sales increased by 3%, and while the number of sold homes remained flat compared to June, it was up 2% year-over-year. The average days on market decreased by 2% from the previous month but increased by 38% compared to last year, reflecting the growing inventory and the choices buyers now have.

Interestingly, the average sales price dropped by 5% compared to last month but is up 1% from a year ago. This could explain the slowdown in activity, as buyers anticipate further price reductions. However, it’s essential to consider the broader context: with over 60% of homeowners holding mortgages with rates below 3%, many sellers are staying put, enjoying their low rates. Until interest rates drop to a level that makes moving financially viable, these homes are unlikely to hit the market, keeping inventory tight.

What Should You Do if You’re Looking to Enter the Pinellas County Real Estate Market?

The answer depends on your situation. If you only plan to stay in your home for 1-2 years, it might be wise to wait unless you’re open to renting the property after you move. However, if you’re planning to stay long-term, history suggests that buying now could be a smart move. You could potentially refinance as rates decrease to levels similar to what we’ve seen over the past 10-15 years (around 4% to 5.5%).

Interested in a Personal Consultation?
Call Price Group Realtors at 727-851-6189 to discuss your real estate needs.

Understanding Mortgage Interest Rates Over the Past 30 Years

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Mortgage interest rates have always been a crucial factor for homebuyers, influencing their purchasing power and the overall cost of homeownership. Over the past three decades, these rates have seen significant fluctuations, reflecting broader economic trends and policy changes. Today, as we see rates around 6.9% for a 30-year fixed mortgage, it’s helpful to put this into historical context and understand what it means for prospective homebuyers.

Historical Mortgage Rates: A 30-Year Overview

To appreciate the current mortgage rates, let’s take a look at their trajectory over the past 30 years. Historically, mortgage rates have varied widely:

**1990s:** Mortgage rates in the early ’90s started high, around 10%, but gradually decreased to about 7% by the end of the decade.

**2000s:** Rates fluctuated between 5% and 7%, impacted by the economic boom and subsequent recession.

**2010s:** The aftermath of the 2008 financial crisis led to historically low rates, often below 4%, with a significant dip in 2020.

**2020-2023:** The COVID-19 pandemic caused rates to plummet to unprecedented lows, with averages around 2.875% in 2020. However, rates began to climb again due to inflation and economic recovery efforts.

To put today’s rate of 6.9% in perspective, we can compare it to the average rate over the past 30 years, which hovers around 5.5%.

The Impact on Home Prices: Pinellas County Case Study

Let’s consider a typical homebuyer in Pinellas County, where the average home price is currently around $460,000. How do different mortgage rates affect the affordability of such a home?

1. **Today’s Rate (6.9%):**

   – **Home Price:** $460,000

   – **Loan Amount (assuming 20% down payment):** $368,000

   – **Monthly Payment (excluding taxes and insurance):** Approximately $2,431

2. **Low of 2020 (2.875%):**

   – **Home Price:** $460,000

   – **Loan Amount:** $368,000

   – **Monthly Payment:** Approximately $1,529

3. **30-Year Average Rate (5.5%):**

   – **Home Price:** $460,000

   – **Loan Amount:** $368,000

   – **Monthly Payment:** Approximately $2,092

As evident, the mortgage rate significantly impacts the monthly payment. At today’s rate of 6.9%, the monthly payment is substantially higher compared to the lows of 2020 and the 30-year average. This underscores the importance of timing in the real estate market and the benefits of securing a lower mortgage rate.

Visualizing the Trends

For a detailed visual representation of mortgage rates over the past 30 years, you can refer to this comprehensive chart provided by Freddie Mac

Conclusion

Understanding the history of mortgage rates can help prospective buyers make informed decisions. While today’s rates are higher than the historical average, they are still lower than the peaks seen in the early ’90s. For those looking to buy in Pinellas County or elsewhere, keeping an eye on economic trends and mortgage forecasts is crucial for maximizing affordability and securing the best possible rate.

Advice for Homebuyers: Should You Buy Now or Wait?

Navigating the housing market can be challenging, especially with current mortgage rates around 6.9%. Many prospective buyers are left wondering whether it’s better to buy now or wait until rates potentially drop. Here’s a strategic look at the options:

Buying Now and Refinancing Later

With the Federal Reserve predicting that mortgage rates could decrease to around 5% by 2026, one strategy is to purchase a home now and plan to refinance when rates drop. Here are the pros and cons:

Pros:

  1. Locking in Current Home Prices: Home prices in Pinellas County are rising by about 3% annually. Buying now allows you to lock in today’s prices before they potentially increase further.
  2. Building Equity: By purchasing a home now, you start building equity sooner, which can be advantageous when refinancing.
  3. Homeownership Benefits: Enjoy the benefits of homeownership, such as stability, potential tax deductions, and the freedom to personalize your space.

Cons:

  1. Higher Initial Payments: With current rates at 6.9%, your monthly mortgage payments will be higher initially, impacting your budget.
  2. Refinancing Costs: Refinancing involves additional costs, such as closing fees, which need to be considered.

Waiting for Rates to Drop

Another approach is to wait until mortgage rates potentially decrease to around 5% by 2026. Here are the pros and cons of waiting:

Pros:

  1. Lower Monthly Payments: Waiting for lower rates means potentially lower monthly mortgage payments, making homeownership more affordable.
  2. Reduced Interest Over Time: Lower rates mean you’ll pay less in interest over the life of the loan, saving money in the long term.

Cons:

  1. Rising Home Prices: As home prices are expected to increase by about 3% annually, the cost of homes will be higher in a few years. For example, a home priced at $460,000 today could cost around $502,000 in 2026.
  2. Missed Equity Growth: By waiting, you miss out on several years of potential equity growth and homeownership benefits.

Making the Decision: Factors to Consider

  1. Financial Readiness: Assess your current financial situation. Do you have a stable income, sufficient savings for a down payment, and a good credit score?
  2. Market Conditions: Keep an eye on market trends and economic forecasts. If home prices are rising steadily, the benefit of lower rates may be offset by higher purchase prices.
  3. Personal Circumstances: Consider your personal and family needs. If you need a home now due to life changes, waiting might not be practical.

Conclusion

Deciding whether to buy now or wait is a personal choice that depends on various factors, including your financial readiness, market conditions, and personal circumstances. Buying now with the intention to refinance later can be a viable strategy, especially in a market with rising home prices. However, if you can afford to wait and anticipate lower rates, it might be worth considering. Consulting with a financial advisor or real estate professional can provide tailored advice to help you make the best decision for your situation.