Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Jan. 21, 2023

ANNUAL 2022 Brevard County Market Snapshot

A quick recap of the Brevard County Residential Report for 2022:
 
  • Closed Sales are down -11.9% for 2022 in which the number of units closed was 11,083 compared to 12,581 in 2021, with a decrease in cash sales of -5.1%.
  • New Pending Sales are down -13.9% and New Listings are up 2.5%.
  • The Median Sales Price for Brevard Single Family homes is up 16.9% to $360,000 compared to a year ago, which was $308,000.
  • Months' Supply of Inventory is up 155.6% to 2.3 months, an increase from 0.9 months in 2021.
  • Traditional Sales are down -11.6% with a median sales price of $360,000.
  • Foreclosure/REO Sales are down -51.8% with 41 closed sales and a median sales price of $200,000.
  • Short Sale Closings are 0.0% with 13 closed sales and a median sales price of $296,500.
 
A quick recap of the Brevard County Townhouses/Condos for 2022:
 
  • Closed Sales are down -18.3% for 2022 in which the number of units closed was 2,867 compared to 3,511 in 2021, with a decrease in cash sales of -11.8%.
  • New Pending Sales are down -25.6% and New Listings are down -5.8%.
  • Median Sales Price for Townhomes/Condos is up 20.3% to $289,900 compared to a year ago, which was $241,000.
  • Months' Supply of Inventory is up 145.5% to 2.7 months in 2022 from 1.1 months in 2021.
  • Traditional Sales are down -18.2% with a median sales price of $290,000.
  • Foreclosure/REO Sales are down -46.2% with a median sales price of $195,000.
  • Short Sale Closings are down -50.0% with 1 closed sale in 2022 and 2 closed sales in 2021.
Posted in Market Updates
Jan. 21, 2023

Q4 2022 Brevard County Market Snapshot

A quick recap of the Brevard County Residential Report for Q4 2022:
 
  • Closed Sales are down -25.6% for Q4 2022 in which the number of units closed was 2,373 compared to 3,188 in Q4 2021, with an decrease in cash sales of -32.8%.
  • New Pending Sales are down -31.4% and New Listings are down -7.1%.
  • The Median Sales Price for Brevard Single Family homes is up 10.1% to $357,813 compared to a year ago, which was $325,000.
  • Months Supply of Inventory is up 155.6% to 2.3 months, an increase from 0.9 months in Q4 2021.
  • Traditional Sales are down -25.4% with a median sales price of $358,688.
  • Foreclosure/REO Sales are down -57.9% with 8 closed sales and a median sales price of $165,307.
  • Short Sale Closings are up 33.3% with 4 closed sales and a median sales price of $329,000.
 
A quick recap of the Brevard County Townhouses/Condos for Q4 2022:
 
  • Closed Sales are down -31.2% for Q4 2022 in which the number of units closed was 568 compared to 825 in Q4 2021, with a decrease in cash sales of -24.6%.
  • New Pending Sales are down -43.8% and New Listings are up 2.4%.
  • Median Sales Price for Townhomes/Condos is up 21.4% to $306,000 compared to a year ago, which was $252,000.
  • Months' Supply of Inventory is up 145.5% to 2.7 months in Q4 2022 from 1.1 months in Q4 2021.
  • Traditional Sales are down -31.3% with a median sales price of $307,700.
  • Foreclosure/REO Sales are up 50.0% with a median sales price of $255,000.
  • Short Sale Closings are N/A with 0 closed sales in Q4 2022 and 0 closed sales in Q4 2021.
Posted in Market Updates
Jan. 21, 2023

December 2022 Brevard County Market Snapshot

 
A quick recap of the Brevard County Residential Report for December 2022:
 
  • Closed Sales are down -24.4% for December 2022 in which the number of units closed was 831 compared to 1,099 in December 2021, with an decrease in cash sales of -27.5%.
  • New Pending Sales are down -20.5% and New Listings are down -6.6%.
  • The Median Sales Price for Brevard Single Family homes is up 8.0% to $352,540 compared to a year ago, which was $326,350.
  • Months' Supply of Inventory is up 155.6% to 2.3 months, an increase from 0.9 months in December 2021.
  • Traditional Sales are down -24.1% with a median sales price of $352,688.
  • Foreclosure/REO Sales are down -87.5% with 1 closed sale and a median sales price of $116,950.
  • Short Sale Closings are N/A with 2 closed sales and a median sales price of $389,500.
 
A quick recap of the Brevard County Townhouses/Condos for December 2022:
 
  • Closed Sales are down -26.0% for December 2022 in which the number of units closed was 213 compared to 288 in December 2021, with a decrease in cash sales of -15.7%.
  • New Pending Sales are down -44.9% and New Listings are up 38.2%.
  • Median Sales Price for Townhomes/Condos is up 13.1% to $303,000 compared to a year ago, which was $268,000.
  • Months' Supply of Inventory is up 145.5% to 2.7 months in December 2022 from 1.1 months in December 2021.
  • Traditional Sales are down -26.4% with a median sales price of $304,000.
  • Foreclosure/REO Sales are N/A with a median sales price of $261,000.
  • Short Sale Closings are N/A with 0 closed sales in December 2022 and 0 closed sales in December 2021.

 

Posted in Market Updates
Jan. 18, 2023

Think Twice Before Waiting for 3% Mortgage Rates



Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, mortgage rates jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% last October. Hopeful buyers experienced a hit to their purchasing power as a result, and some decided to press pause on their plans.

Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Macshares:

“While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”

That’s potentially great news if you’re a buyer aiming to jump back into the housing market. Any drop in mortgage rates helps boost your purchasing power by bringing down your expected monthly mortgage payment. This means the lower mortgage rates experts forecast this year could be just what you need to reignite your homebuying goals.

While this opens up a window of opportunity for you, remember: you shouldn’t expect rates to drop back down to record lows like we saw in 2021. Experts agree that’s not the range buyers should bank on. Greg McBride, Chief Financial Analyst at Bankrateexplains:

“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.

It’s important to have a realistic vision for what you can expect this year, and that’s where the advice of expert real estate advisors is critical. You may be surprised by the impact even a mild drop in mortgage rates has on your budget. If you’re ready to buy a home now, today’s market presents the opportunity to get a more affordable mortgage rate, find your dream home, and face less competition from other buyers.

Bottom Line

The recent pullback in mortgage rates is great news – but if you’re ready to buy now, holding out for 3% is a mistake. Work with a local lender to learn how today’s rates impact your goals, and let’s connect to explore your options in our area.

Posted in Buyers
Jan. 18, 2023

What Past Recessions Tell Us About the Housing Market



It doesn’t matter if you’re someone who closely follows the economy or not, chances are you’ve heard whispers of an upcoming recession. Economic conditions are determined by a broad range of factors, so rather than explaining them each in depth, let’s lean on the experts and what history tells us to see what could lie ahead. As Greg McBride, Chief Financial Analyst at Bankratesays:

“Two-in-three economists are forecasting a recession in 2023 . . .”

As talk about a potential recession grows, you may be wondering what a recession could mean for the housing market. Here’s a look at the historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession could mean for the housing market today.

A Recession Doesn’t Mean Falling Home Prices

To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at recessions going all the way back to 1980, home prices appreciated in four of the last six of them. So historically, when the economy slows down, it doesn’t mean home values will always fall.

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would be a repeat of what happened to housing then. But today’s housing market isn’t about to crash because the fundamentals of the market are different than they were in 2008. According to experts, home prices will vary by market and may go up or down depending on the local area. But the average of their 2023 forecasts shows prices will net neutral nationwide, not fall drastically like they did in 2008.

A Recession Means Falling Mortgage Rates

Research also helps paint the picture of how a recession could impact the cost of financing a home. As the graph below shows, historically, each time the economy slowed down, mortgage rates decreased.

What Past Recessions Tell Us About the Housing Market in 2023 | MyKCM

Fortune explains mortgage rates typically fall during an economic slowdown:

Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

In 2023, market experts say mortgage rates will likely stabilize below the peak we saw last year. That’s because mortgage rates tend to respond to inflation. And early signs show inflation is starting to cool. If inflation continues to ease, rates may fall a bit more, but the days of 3% are likely behind us.

The big takeaway is you don’t need to fear the word recession when it comes to housing. In fact, experts say a recession would be mild and housing would play a key role in a quick economic rebound. As the 2022 CEO Outlook from KPMG, says:

“Global CEOs see a ‘mild and short’ recession, yet optimistic about global economy over 3-year horizon . . .

 More than 8 out of 10 anticipate a recession over the next 12 months, with more than half expecting it to be mild and short.”

Bottom Line 

While history doesn’t always repeat itself, we can learn from the past. According to historical data, in most recessions, home values have appreciated and mortgage rates have declined.

If you’re thinking about buying or selling a home this year, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.

Posted in Buyers, Homeowners, Sellers
Jan. 7, 2023

Wondering How Much You Need To Save for a Down Payment?

If you’re getting ready to buy your first home, you’re likely focused on saving up for everything that purchase involves. One cost that’s likely top of mind is your down payment. But don't let a common misconception about how much you need to save make the process harder than it could be.

Understand 20% Isn’t Always the Typical Down Payment

Freddie Mac explains:

“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.

Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize. According to the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. In fact, the median down payment today is only 14%. And it’s even lower for first-time homebuyers at just 6% (see graph below):

Wondering How Much You Need To Save for a Down Payment? | MyKCM

Learn About Options That Can Help You Toward Your Goal

If saving for a down payment still feels like a challenge, know that there’s help available. A real estate professional and trusted lender can show you options that could help you get closer to your down payment goal. According to latest Homeownership Program Index from Down Payment Resource, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.

Plus there are even loan types, like FHA loans, with down payments as low as 3.5%, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

To understand your options, be sure to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like Down Payment Resource. Then, partner with a trusted lender to learn what you qualify for on your homebuying journey.

Bottom Line

Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your down payment options.

Posted in Buyers
Jan. 7, 2023

3 Best Practices for Selling Your House This Year



A new year brings with it the opportunity for new experiences. If that resonates with you because you’re considering making a move, you’re likely juggling a mix of excitement over your next home and a sense of attachment to your current one.

A great way to ease some of those emotions and ensure you’re feeling confident in your decision is to keep these three best practices in mind.

1. Price Your Home Right

The housing market shifted in 2022 as mortgage rates rose, buyer demand eased, and the number of homes for sale grew. As a seller, you’ll want to recognize things are different now and price your house appropriately based on where the market is today. Greg McBride, Chief Financial Analyst at Bankrateexplains:

“Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”

If you price your house too high, you run the risk of deterring buyers. And if you go too low, you’re leaving money on the table. An experienced real estate agent can help determine what your ideal asking price should be.

2. Keep Your Emotions in Check

Today, homeowners are living in their houses longer. According to the National Association of Realtors (NAR), since 1985, the average time a homeowner has owned their home has increased from 5 to 10 years (see graph below):

3 Best Practices for Selling Your House This Year | MyKCM

This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your loved ones grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.

For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.

3. Stage Your Home Properly

While you may love your decor and how you’ve customized your home over the years, not all buyers will feel the same way about your design. That’s why it’s so important to make sure you focus on your home’s first impression so it appeals to as many buyers as possible. As NAR says:

“Staging is the art of preparing a home to appeal to the greatest number of potential buyers in your market. The right arrangements can move you into a higher price-point and help buyers fall in love the moment they walk through the door.”

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. A real estate professional can help you with tips to get your house ready to sell.

Bottom Line

If you’re considering selling your house, let’s connect so you have the help you need to navigate through the process while prioritizing these best practices.

Posted in Homeowners, Sellers
Dec. 21, 2022

Homeowners Still Have Positive Equity Gains over the Past 12 Months



If you’re a homeowner, your net worth got a big boost over the past few years thanks to rapidly rising home prices. Here’s how it happened and what it means for you, even as the market moderates.

Equity is the current value of your home minus what you owe on the loan.

Because there was a significant imbalance between the number of homes available for sale and the number of buyers looking to make a purchase over the past few years, home prices appreciated substantially.

And while home price appreciation has moderated this year, and even depreciated slightly in some overheated markets, that doesn’t mean you’ve lost all the equity you gained during the pandemic frenzy.

To prove you still have equity you can use, the latest Homeowner Equity Insights from CoreLogic finds the average homeowner equity has actually grown by $34,300 over the past 12 months.

That’s right, despite the headlines, the average homeowner still gained positive equity over the last year in just about every market. While the gains aren’t as dramatic as they were in the previous quarter due to home price moderation, they’re still significant. And if you’ve been in your home for longer than a year, chances are you have even more equity than you realize.

While that’s the national number, if you want to know what happened over the past year in your area, look at the map below from CoreLogic:

Homeowners Still Have Positive Equity Gains over the Past 12 Months | MyKCM

Why This Is So Important Right Now

While equity helps increase your overall net worth, it can also help you achieve other goals, like buying your next home. When you sell your current house, the equity you’ve built up comes back to you in the sale, and it may be just what you need to cover a large portion – if not all – of the down payment on your next home.

So, if you’ve been holding off on selling because you weren’t sure what the headlines meant for your bottom line, rest assured you’ve still gained equity in recent years, and it can help fuel your move.

Bottom Line

If you’re planning to make a move, the equity you’ve gained over time can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, let’s connect.

Posted in Homeowners
Dec. 21, 2022

What To Expect From the Housing Market in 2023



The 2022 housing market has been defined by two key things: inflation and rapidly rising mortgage rates. And in many ways, it's put the market into a reset position.

As the Federal Reserve (the Fed) made moves this year to try to lower inflation, mortgage rates more than doubled – something that’s never happened before in a calendar year. This had a cascading impact on buyer activity, the balance between supply and demand, and ultimately home prices. And as all those things changed, some buyers and sellers put their plans on hold and decided to wait until the market felt a bit more predictable.

But what does that mean for next year? What everyone really wants is more stability in the market in 2023. For that to happen we’ll need to see the Fed bring inflation down even more and keep it there. Here’s what housing market experts say we can expect next year.

What’s Ahead for Mortgage Rates in 2023?

Moving forward, experts agree it’s still going to be all about inflation. If inflation is high, mortgage rates will be as well. But if inflation continues to fall, mortgage rates will likely respond. While there may be early signs inflation is easing as we round out this year, we’re not out of the woods just yet. Inflation is still something to watch in 2023.

Right now, experts are factoring all of this into their mortgage rate forecasts for next year. And if we average those forecasts together, experts say we can expect rates to stabilize a bit more in 2023. Whether that’s between 5.5% and 6.5%, it’s hard for experts to say exactly where they’ll land. But based on the average of their projections, a more predictable rate is likely ahead (see chart below):

What To Expect from the Housing Market in 2023 | MyKCM

That means, we’ll start the year out about where we are right now. But we could see rates tick down if inflation continues to drop. As Greg McBride, Chief Financial Analyst at Bankrateexplains:

“. . . mortgage rates could pull back meaningfully next year if inflation pressures ease.

In the meantime, expect some volatility as rates will likely fluctuate in the weeks ahead. If we see inflation come back under control, that would be good news for the housing market.

What Will Happen to Home Prices Next Year?

Homes prices will always be defined by supply and demand. The more buyers and fewer homes there are on the market, the more home prices will rise. And that’s exactly what we saw during the pandemic.

But this year, things changed. We’ve seen home prices moderate and housing supply grow as buyer demand pulled back due to higher mortgage rates. The level of moderation has varied by local area – with the biggest changes happening in overheated markets. But do experts think that will continue?

The graph below shows the latest home price forecasts for 2023. As the different colored bars indicate, some experts are saying home prices will appreciate next year, and others are saying home prices will come down. But again, if we take the average of all the forecasts (shown in green), we can get a feel for what 2023 may hold.

What To Expect from the Housing Market in 2023 | MyKCM

The truth is probably somewhere in the middle. That means nationally, we’ll likely see relatively flat or neutral appreciation in 2023. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”

Bottom Line

The 2023 housing market is going to be defined by mortgage rates, and rates will be determined by what happens with inflation. The best way to keep a pulse on what experts are projecting for next year is to lean on a trusted real estate advisor. Let’s connect.

Posted in Buyers
Dec. 21, 2022

November 2022 Brevard County Market Snapshot

A quick recap of the Brevard County Residential Report for November 2022:
  • Closed Sales are down -32.3% for November 2022 in which the number of units closed was 671 compared to 991 in November 2021, with a decrease in cash sales of -36.3%.
  • New Pending Sales are down -37.1% and New Listings are down -12.9%.
  • The Median Sales Price for Brevard Single Family homes is up 9.8% to $355,000 compared to a year ago, which was $323,333.
  • Months' Supply of Inventory is up 166.7% to 2.4 months, from 0.9 months in November 2021.
  • Traditional Sales are down -31.9% with a median sales price of $355,020.
  • Foreclosure/REO Sales are down -66.7% with 3 closed sales and a median sales price of $191,150.
  • Short Sale Closings are down -100.0% with 0 closed sales and a median sales price of (N/A).
A quick recap of the Brevard County Townhouses/Condos for November 2022:
  • Closed Sales are down -37.5% for November 2022 in which the number of units closed was 162 compared to 259 in November 2021, with a decrease in cash sales of -35.3%.
  • New Pending Sales are down -47.2% and New Listings are down -15.3%.
  • Median Sales Price for Townhomes/Condos is up 20.4% to $289,950 compared to a year ago, which was $240,800.
  • Months' Supply of Inventory is up 84.6% to 2.4 months in November 2022 from 1.3 months in November 2021.
  • Traditional Sales are down -37.4% with a median sales price of $290,000.
  • Foreclosure/REO Sales are down -50.0% with a median sales price of $95,000 and 1 closed sale.
  • Short Sale Closings are N/A with 0 closed sales in November 2022 and 0 closed sales in November 2021.
Posted in Market Updates