trending news – Page 13 – Find a Broker™

Bentonville, Arkansas: The Next Residential Hot Spot?

Have you heard the buzz about Bentonville, Arkansas? Once a humble town primarily known for being the headquarters of Walmart, Bentonville is now quickly emerging as one of the most desirable places to live in the United States. With explosive growth in both population and real estate, it’s no wonder that folks are flocking to this charming city.

A Thriving Community

Let’s start with the numbers. In 2023, Bentonville’s population grew by an impressive 2.7%, making it part of a larger trend that has seen a 9.8% increase since 2020. Experts predict this growth will continue, with Northwestern Arkansas expected to house over 1 million residents by 2050, according to the Arkansas Democrat-Gazette. That’s a whole lot of new neighbors!

But what’s driving this influx of residents? A major factor is Bentonville’s thriving corporate landscape. The city is home to corporate giants like Walmart, J.B. Hunt, and Tyson Foods, all of which have attracted high-profile executives and their families to the area. In the first half of 2024 alone, nearly 4,800 homes were sold, a staggering 8.5% increase compared to the same period last year. It’s clear that Bentonville is the place to be!

The Great Outdoors

One of the biggest draws for new residents is Bentonville’s proximity to the great outdoors. Post-COVID, many people have sought refuge from bustling city life, yearning for a more balanced lifestyle that includes nature. Bentonville has answered that call with its stunning outdoor spaces and recreational activities. Did you know it’s become known as the mountain biking capital of the U.S.? That’s right—thrill-seekers can hit the trails and enjoy the beautiful scenery while staying active.

The Real Estate Market

Now, let’s talk about the housing market. It’s sizzling! With 39.5% of homes sold being new construction, the demand is clearly high. However, we’re also experiencing a shift toward a buyer’s market. Rising interest rates and uncertainty surrounding upcoming elections are impacting the real estate landscape. But don’t let that fool you—Bentonville’s growth shows no signs of slowing down.

In fact, Walmart is planning to open a new “Home Office” campus next year, which is expected to bring even more people to the area. “As Walmart keeps recruiting and all these companies here keep bringing people to live in Northwest Arkansas, we’re just going to keep growing,” said Katlyn Munch, an agent at The Agency Bentonville. With more businesses moving in, including restaurants and local shops, Bentonville is quickly becoming a vibrant community filled with opportunities.

Inventory Challenges

Despite the rapid growth, Bentonville faces some challenges when it comes to housing inventory. Many homeowners are holding onto their properties due to low interest rates from the pandemic era, making them reluctant to sell. “There’s a lot of people holding on to that COVID two-point interest rate … they don’t want to sell because they have such a great rate,” noted local expert House.

With an average of 37 new residents arriving each day, the demand for housing is palpable. Even if we closed 29 new houses a day, it wouldn’t be enough to keep up with the influx. The good news? There’s plenty of new construction happening, but the competition for those homes is fierc

Bentonville, Arkansas, is on the rise, transforming from a sleepy town into a vibrant hub of activity and growth. With a thriving economy, a love for the outdoors, and a community spirit that’s hard to beat, it’s no surprise that more and more people are calling Bentonville home. Whether you’re looking to move, invest, or just visit, keep an eye on this blossoming city. The future looks bright, and I can’t wait to see what’s next for Bentonville!

https://nypost.com/2024/10/14/real-estate/bentonville-becomes-americas-next-real-estate-hot-spot/

If you’re considering a move or investment and require a trusted Real Estate Broker, we’re here to assist you. Contact us via email at TEAM@McDanielCallahan.com, complete the form below, or give us a call at 925-838-4300. We are ready to provide expert guidance and support for all your real estate needs. Terry McDaniel DRE License #00941526

Go back

Your message has been sent

Navigating the Housing Market: Challenges and Opportunities Ahead

In recent months, many hoped for a more affordable housing market, but the reality remains complex. While there are signs of recovery, high prices and mortgage rates continue to pose significant challenges for both buyers and sellers. Let’s delve into the current landscape of the housing market and what it means for you.

High Prices and Rising Home Values

Despite expectations for a dip in housing prices, home values have risen in 84% of the largest U.S. markets, with 27 of these areas experiencing price increases of over 10%. This trend has made homeownership even more elusive for many potential buyers. The continued rise in home values indicates that the market remains competitive, leaving many prospective homeowners feeling priced out.

The “Lock-In Effect”

One significant factor contributing to the current market dynamics is the “lock-in effect.” Many homeowners who secured low mortgage rates before the pandemic are reluctant to sell their homes and enter the market again, where current rates are considerably higher. This hesitancy has resulted in a limited inventory, keeping many homes off the market and exacerbating the affordability crisis.

Signs of Recovery

Despite these challenges, there are signs of recovery that offer a glimmer of hope for both buyers and sellers. Recently, mortgage rates have experienced a slight decline, making financing more accessible for those looking to purchase a home. Additionally, the inventory of available homes is beginning to increase, which could alleviate some of the pressure on buyers.

However, it’s essential to note that while these improvements are promising, they do not solve the overarching issue of affordability. Many buyers are still grappling with the financial realities of a high-cost market.

Regional Differences and the Slow Path to Recovery

The housing market is not monolithic; regional differences continue to play a significant role in shaping the experience of buyers and sellers. Some areas may see more significant recovery or activity than others, depending on local economic conditions and demand. Experts anticipate that the recovery will be slow, with more activity expected in the spring. However, both buyers and sellers remain cautious, making it difficult to predict the market’s trajectory.

While the current housing market presents challenges, there are also opportunities on the horizon. For buyers, understanding the nuances of local markets, being flexible in your search, and being prepared for potential competition can increase your chances of success. For sellers, considering the current market dynamics and pricing your home strategically will be crucial in attracting buyers.

Navigating the housing market today requires patience and informed decision-making. While affordability remains a pressing concern, emerging signs of recovery suggest that the landscape may soon shift, offering renewed opportunities for those ready to act. Stay informed, stay prepared, and you may just find the right opportunity amidst the complexities of the current market.

https://www.msn.com/en-us/news/news/content/ar-AA1rWTLR?ocid=sapphireappshare

Go back

Your message has been sent

The 10 U.S. Cities with the Lowest Risk of Climate Disasters: A Safer Haven for Homebuyers

As extreme weather events become more frequent and severe, homebuyers are increasingly concerned about the safety of their investments. Hurricanes, floods, wildfires, and other natural disasters not only threaten property but also inflate insurance rates and decrease property values. In light of these growing concerns, finding a home in an area with a low risk of climate disasters is becoming more important than ever.

According to the Realtor.com® 2024 Housing and Climate Risk report, nearly 45% of U.S. homes are exposed to some form of extreme weather. However, there are still regions across the country that offer refuge from these risks. Here’s a look at the top 10 U.S. cities with the lowest risk of climate disasters, where homebuyers can find safer, more stable environments.

1. Akron, OH

Share of homes at the lowest risk: 91.1%
Total value of properties at the lowest risk: $55.4 billion

Akron leads the pack as one of the safest places to live in the U.S. when it comes to climate-related risks. With over 91% of homes facing minimal risk from hurricanes, floods, and wildfires, Akron offers peace of mind for those looking to invest in a secure location.

2. Cleveland, OH

Share of homes at the lowest risk: 89.3%
Total value of properties at the lowest risk: $163.5 billion

Cleveland, another Ohio city, ranks high in safety from climate disasters. Its inland location shields it from hurricanes, and its relatively mild weather makes it a low-risk area for natural calamities.

3. Seattle, WA

Share of homes at the lowest risk: 88.4%
Total value of properties at the lowest risk: $784.2 billion

Seattle may be known for its rainy reputation, but when it comes to climate disasters, it fares well. With a high percentage of homes at low risk, Seattle offers a solid market for homebuyers concerned about extreme weather threats.

4. Columbus, OH

Share of homes at the lowest risk: 87.7%
Total value of properties at the lowest risk: $197.6 billion

Ohio continues to dominate the list with Columbus ranking as another low-risk city. Its inland location keeps it safe from coastal threats like hurricanes, and the city’s flood protection measures further add to its appeal.

5. Cincinnati, OH

Share of homes at the lowest risk: 87.7%
Total value of properties at the lowest risk: $199.3 billion

Cincinnati boasts nearly 88% of homes at low risk from climate disasters, making it an attractive option for buyers seeking security. The city’s efforts to protect against flooding have helped it maintain this status.

6. Dayton, OH

Share of homes at the lowest risk: 87.2%
Total value of properties at the lowest risk: $57.8 billion

Dayton’s strong infrastructure and natural protection from hurricanes and wildfires have earned it a spot on the list of safest cities. Its lower housing prices compared to other cities on this list make it an affordable option for homebuyers prioritizing safety.

7. Indianapolis, IN

Share of homes at the lowest risk: 86.9%
Total value of properties at the lowest risk: $190.1 billion

Indianapolis is another Midwestern city that offers refuge from extreme weather. With minimal exposure to natural disasters, the city is an appealing choice for those seeking a safe and stable home base.

8. Pittsburgh, PA

Share of homes at the lowest risk: 84.7%
Total value of properties at the lowest risk: $183.3 billion

Pittsburgh has long been considered a safe place to live in terms of natural disasters. Its inland position and elevation protect it from many of the threats coastal cities face, making it a smart choice for safety-conscious buyers.

9. Toledo, OH

Share of homes at the lowest risk: 83.6%
Total value of properties at the lowest risk: $41 billion

Toledo, another Ohio city on the list, offers affordable housing options with low exposure to natural disasters. This city’s real estate market is a great fit for buyers looking to protect their investments.

10. Grand Rapids, MI

Share of homes at the lowest risk: 82.2%
Total value of properties at the lowest risk: $93.4 billion

Grand Rapids rounds out the top 10 with a strong showing in climate safety. The city’s inland location shields it from hurricanes and wildfires, and its flood risk is relatively low compared to many other areas in the U.S.

Why Climate-Safe Cities Matter

Living in areas with low climate disaster risk offers numerous benefits. Not only do homeowners experience reduced risk of property damage, but they also enjoy lower insurance costs, as high-risk areas like Florida and Mississippi have seen insurance premiums skyrocket. In Mississippi, rates are 30% above the national average, while Florida’s insurance costs are four times higher than the national average due to its frequent hurricane activity.

Moreover, climate-safe cities tend to offer more stable housing markets. As the threat of natural disasters increases, “climate migrants” are relocating from high-risk areas to safer regions, creating “climate abandonment areas” where property values may decrease. Choosing to live in a safer location can lead to a more secure and fulfilling lifestyle for homeowners.

How to Assess Climate Risk Before Buying

Realtor.com has introduced property-specific environmental risk scores that allow potential buyers to evaluate the level of risk for hazards like hurricanes, floods, and wildfires. These scores provide valuable insights and help homebuyers make informed decisions about where to invest.

As Realtor.com economist Jiayi Yu explains, “Living in areas with a low risk of natural disasters offers numerous benefits to homeowners, including reduced risk of property damage, lower insurance costs, and a more stable local economy.”

As extreme weather events continue to rise, it’s crucial for homebuyers to factor climate risk into their decisions. The cities mentioned above provide excellent options for those looking for a safe and secure environment, free from the constant threat of natural disasters. By considering climate risk when buying a home, you not only protect your investment but also ensure a more stable and peaceful living experience.

https://www.realtor.com/news/trends/10-cities-lowest-risk-climate-disasters/

Go back

Your message has been sent

Who Pays for What in Real Estate Transactions? A Guide for Buyers and Sellers

One of the most common questions clients ask when entering a real estate transaction is, “Who pays for what?” Understanding the financial responsibilities of buyers and sellers can be crucial in navigating the complexities of a real estate deal. This simple breakdown will help clarify these responsibilities so that you can feel more confident as you approach your next home sale or purchase.

Seller Responsibilities

As a seller, several costs are typically associated with the sale of your property. Here’s a list of the most common expenses you can expect to pay:

Document Transfer Tax
Depending on your location, you may need to pay taxes related to the transfer of property ownership.
City Transfer or Conveyance Taxes
These are additional taxes that some municipalities impose when property changes hands.
Termite Inspection and Work
A termite inspection is often required, and if issues are found, repairs (Section 1 work) are generally the seller’s responsibility. This cost is negotiable, however.
Home Warranty
Sellers may offer a home warranty as a form of insurance for buyers, covering repairs for appliances and systems. This is also negotiable.
HOA Document and Transfer Fees
If your property is part of a homeowners association, you may need to cover the costs associated with transferring ownership documents.
Notary Fees and Escrow Fees
These fees are incurred during the closing process and are typically the seller’s responsibility.
Title Insurance Premium – Owner’s Policy
This protects the seller against any title issues that may arise post-sale.

Overall, these costs generally amount to about 7-10% of the sale price, depending on local regulations. While this may sound intimidating, it’s essential to remember that when you purchased your home, the seller paid for similar expenses.

Buyer Responsibilities

On the flip side, buyers also have their share of financial obligations. Here’s what you can typically expect to pay when purchasing a home:

Title Insurance Premium – Lender’s Policy
Buyers usually need to pay for this type of title insurance to protect the lender against any title issues.
Notary Fees and Escrow Fees
Like sellers, buyers are responsible for these fees during the closing process.
Lender Document Preparation Fees
If applicable, these fees cover the preparation of necessary loan documents.
Recording Changes for All Documents in Buyer’s Name
There may be fees associated with recording the change of ownership.
Tax Proration
Buyers will be responsible for property tax proration from the date of acquisition.
Loan Origination Fees
Depending on your lender, you may incur fees for processing your loan application.
Interest on New Loan
Interest on the new loan will be owed from the date of funding until the first payment is due, usually about 30 days later.
Home Inspection
While not a requirement, a home inspection is highly recommended to identify any potential issues with the property.
Homeowner’s Insurance Policy
Buyers are required to obtain insurance for the property to protect against potential damages.

The costs associated with buying a home can vary significantly based on the type and amount of your home loan. It’s crucial to work closely with your lender and real estate professional to get a clear picture of what to expect.

Clarity is Key

Understanding who pays for what in a real estate transaction can help alleviate some of the stress associated with buying or selling a home. By being aware of these financial responsibilities, both buyers and sellers can better prepare themselves for the costs involved in their respective transactions. If you have any questions or need assistance estimating these costs, don’t hesitate to reach out to a real estate professional who can guide you through the process. Knowledge is power, and being informed is the first step toward a successful transaction!

Go back

Your message has been sent

Your Home’s Exterior Creates the Prospective Buyer’s First Impression

When it comes to selling your home, first impressions matter immensely. The exterior of your property is the first thing prospective buyers will see, and a well-maintained exterior can set the tone for their entire viewing experience. A little time and effort invested in sprucing up your home’s curb appeal can pay off significantly when it comes time to close the sale. Here’s a checklist to ensure your home’s exterior looks its absolute best before you list it.

1. Keep the Lawn in Top Shape

A well-cut lawn is inviting and showcases your attention to detail. Make sure the grass is neatly trimmed, especially around sidewalks, walkways, and the driveway. Consider edging for a clean finish, and perhaps even a fresh mow just before showings.

2. Tidy Up Flower Gardens

A weed-free flower garden can enhance the overall aesthetics of your home. Spend some time weeding and planting colorful seasonal flowers to add vibrancy and life to your outdoor space.

3. Trim Shrubs and Trees

Overgrown shrubs and trees can create an unkempt appearance. Trim them back, removing any dead branches or trees to make your yard look more manicured. This not only improves curb appeal but also showcases the beauty of your landscaping.

4. Clear Clutter and Debris

Take a walk around your property and remove any debris, such as leaves, sticks, or trash. Store toys and lawn equipment out of sight to create a tidy and organized appearance.

5. Repair and Repaint Fences and Gates

If you have fences or gates, ensure they are in good condition. Repair any damage and consider repainting them if necessary to enhance their appeal. A fresh coat of paint can work wonders in making your home look well-cared-for.

6. Check the Roof and Gutters

Inspect your roof for any missing shingles or signs of wear. Ensure gutters and downspouts are in good repair and free of debris. A well-maintained roof is crucial not only for aesthetics but also for potential buyers’ peace of mind.

7. Clean Driveways and Sidewalks

Driveways and sidewalks should be clean and well-maintained. Wash them down to remove any dirt or stains, and check for cracks or crumbling. A smooth, clear path leads the way to a welcoming entrance.

8. Replace Cracked Windows and Screens

Prospective buyers will notice cracked windows or torn screens. Replace these items and ensure all windows and window sills are clean and free from grime. This small detail can make a significant difference in the overall impression.

9. Clean Doorknobs and Hardware

Make sure the doorknobs and hardware are clean and shiny. These often-overlooked details can leave a lasting impression, as they indicate how much care you’ve put into maintaining your home.

10. Ensure Lights and Doorbell Work

Lastly, check that the doorbell and front lights are functioning properly. Replace any burnt-out bulbs, and consider upgrading fixtures to modern designs. Well-lit entrances create a warm and inviting atmosphere for potential buyers.

The effort you put into enhancing your home’s exterior can lead to a smoother selling process and potentially a higher sale price. By following this checklist, you can ensure your home is inviting, well-maintained, and ready to impress prospective buyers. Remember, a little bit of work today can yield significant dividends when it’s time to close the sale!

Go back

Your message has been sent

Navigating the New Landscape of Real Estate Contracts

Real estate contracts is undergoing a significant transformation, particularly for home buyers. Following a landmark $418 million settlement with the National Association of Realtors (NAR), new rules now require buyers to sign agreements with their agents that detail fees and services before beginning their property search. This change aims to demystify the complex commission structures that have long defined the industry, but it also brings new challenges. Here’s what you need to know as you navigate this evolving landscape.

Understanding Buyer Representation Agreements

Buyer Representation Agreements (BRAs) are now a crucial part of the home-buying process. These contracts specify what services your agent will provide and how much they will charge. The new rules, which went into effect on August 17, have already led to a slight decrease in average commissions—from 2.62% to 2.55%—according to a Redfin report. However, this shift places the onus on buyers to negotiate their agent’s compensation, a significant departure from the traditional model where sellers covered both agents’ commissions.

Key Considerations for Home Buyers

Clarify Commissions: It’s essential to understand how you will compensate your agent. You can negotiate a flat fee or a percentage of the sale price, but these terms must be clearly outlined in your contract. This transparency will help avoid misunderstandings later in the process.
Cash Payments: Be aware of any cash payments included in the deal, often referred to as “concessions,” “bonuses,” or “incentives.” These payments can significantly impact your overall costs and should be disclosed upfront. Understand who these payments are going to and how they might affect your financial obligations.
Conflict of Interest: Dual agency agreements allow an agent to represent both the buyer and seller, which can create a conflict of interest. If you’re considering such an arrangement, ensure that this conflict is disclosed and discuss how your agent plans to manage it. You may prefer to seek an independent agent for a more balanced perspective.
Termination Clauses: Life changes, and sometimes you may want to switch agents mid-search. However, the fine print in many contracts can complicate this. Understand the termination clauses and any penalties that may arise if you decide to back out. Some contracts may label your withdrawal as a breach, leading to potential fees.
Default Fees: When you make an offer on a property, you typically put down earnest money. If you withdraw from the deal without meeting specific contingencies, you risk losing this deposit and may be liable for the agent’s fees. Ensure your sales contract includes detailed contingency language to protect yourself in unforeseen circumstances.
Arbitration Agreements: Some BRAs may include clauses that limit your right to pursue legal action, forcing disputes into arbitration instead. Be cautious about signing such agreements, as they can limit your options in case of a dispute.
Additional Fees: Keep an eye out for extra fees, such as administrative, transaction, or retainer fees, which may not be covered by the agent’s commission. Understanding these costs upfront can prevent financial surprises down the line.

The Bottom Line

The real estate landscape is changing, and these new buyer-centric agreements empower home buyers like never before. However, they also require you to be vigilant and informed. By thoroughly reviewing and negotiating your Buyer Representation Agreement, you can avoid common pitfalls and ensure you receive the representation you deserve.

As you embark on your home-buying journey, remember: knowledge is your greatest ally. Take the time to understand these agreements, ask questions, and don’t hesitate to seek guidance from consumer advocates, realtors, or legal professionals. With the right preparation, you can navigate this new era of real estate with confidence and clarity.

Go back

Your message has been sent

https://www.washingtonpost.com/business/2024/09/24/new-real-estate-contracts-buyers/

The Fed’s Rate Cuts and What It Means

The Federal Reserve recently made headlines with its decision to cut rates by half a percentage point, a move signaling the start of six to eight rounds of further rate cuts expected to continue into 2025. With the next rate cut anticipated after the Presidential election, this trend reflects cooling inflation and slower job growth. While the Fed is taking action, how will these cuts impact the housing market and, more specifically, mortgage rates?

Mortgage Rates Have Already Adjusted

Mortgage rates are always a hot topic for home buyers, and it’s essential to understand that while the Fed’s rate cuts influence the broader economy, they don’t directly control mortgage rates. In fact, the 30-year mortgage rate has already dropped by 150 basis points since the start of the year. This means mortgage rates have largely priced in the Fed’s future actions.

What does this mean for prospective home buyers? While more rate cuts are on the horizon, any further decrease in mortgage rates will likely be minimal. And despite lower rates, the huge federal budget deficit could reduce the amount of capital available for mortgage lending, further limiting the impact of Fed cuts.

Increased Purchasing Power for Home buyers

The good news is that current mortgage rates are much lower than they were in the spring, providing a significant boost to home buyers’ purchasing power. For those budgeting around $2,000 per month for a mortgage payment, the decrease in rates has increased their potential buying power by roughly $50,000.

This adjustment could bring new buyers into the market, especially those who were previously priced out due to higher rates earlier this year. It’s an excellent opportunity for those looking to buy a home, as lower rates can make home ownership more accessible without increasing monthly expenses.

What to Expect Going Forward

With more rate cuts anticipated, some home buyers may hold out for even lower rates. However, it’s important to recognize that the remaining impact on mortgage rates is expected to be limited. The combination of future Fed actions and the federal government’s large borrowing needs will likely keep rates from dropping much further.

If you’ve been waiting for a window to purchase a home, now may be the time to take action. Mortgage rates are currently at more favorable levels than earlier in the year, and the potential savings from these lower rates may be as good as they get.

The Federal Reserve’s ongoing rate cuts are part of a larger strategy to combat inflation and stabilize the economy. While these cuts have indirectly contributed to lower mortgage rates, future cuts may have less of an effect due to economic factors like the federal budget deficit. With mortgage rates already providing an advantage for buyers, now is an excellent time to capitalize on the increased purchasing power and re-enter the housing market.

Whether you’re a first-time home buyer or looking to upgrade, these favorable rates could make a significant difference in your home search. Keep an eye on economic conditions…

https://www.nar.realtor/blogs/economists-outlook/instant-reaction-fed-rate-cut-september-18-2024

Go back

Your message has been sent

Mountain Property for Sale: Invest in Paradise

37186 Rock Creek Rd, Duchesne, UT 84021

42.31+/- acres nestled in the heart of the mountains, where breathtaking views and nature’s beauty converge. This property is an investor’s dream, perfect for creating a destination that attracts couples seeking a romantic wedding venue, families looking for a unique getaway, or outdoor enthusiasts craving adventure. With ample space for gatherings and events, Rock Creek can easily be transformed into a stunning backdrop for any occasion. Don’t miss this rare opportunity to own a slice of paradise in the mountains. Whether you’re looking to invest, create a family retreat, or host unforgettable events, Rock Creek offers the perfect blend of natural beauty and adventure. Embrace the mountain lifestyle and make this dream property yours today!

For more pictures and details: https://www.utahrealestate.com/2021400

Go back

Your message has been sent

Listed by: Cherlyn Jarvis and Paige Steckling, Real 6975 Union Park Avenue
Suite 600 Cottonwood Heights, UT 84047

The Condo Market Slows Down: What’s Behind the Decline?

If you’ve been considering buying a condo as a more affordable alternative to a single-family home, you might be surprised to learn that the condo market is facing significant challenges. While condos have often been viewed as an entry point into homeownership, recent trends show that condo sales are slumping more than those of single-family homes.

In July 2024, condo sales were down 12% compared to a year ago, while sales of single-family homes dropped by just 1%, according to the National Association of Realtors® (NAR). This shift isn’t limited to any one region; it’s happening across the country. Let’s take a closer look at what’s behind this downturn in the condo market and what it means for buyers and sellers.

Why Are Condo Sales Slowing?

There are several key reasons behind the decline in condo sales:

1. Rising Costs of Ownership

Owning a condo often comes with additional costs like homeowners association (HOA) fees, which cover the maintenance of shared spaces, building insurance, and other services. These fees have been rising steadily. Currently, the average HOA fee for condos listed on Realtor.com is $650 per month. In addition to monthly fees, condo owners are sometimes hit with large assessments for building repairs and upgrades, especially as buildings age.

Many condo buildings constructed in the late 1970s and early 1980s are now over 40 years old and in need of significant maintenance. The tragic collapse of the Champlain Towers South in Florida in 2021 highlighted the importance of keeping up with these repairs. As a result, buyers are more wary of potential assessment costs and the rising insurance premiums that accompany older condo buildings.

2. Higher Per-Square-Foot Costs

While condos may seem like a cheaper option based on the overall list price, the price per square foot can actually be much higher than that of single-family homes. In July 2024, the median list price for condos was $296 per square foot, compared to $218 per square foot for single-family homes. This premium is especially pronounced in urban areas where condos are often located.

Buyers looking for “more bang for their buck” are increasingly opting for single-family homes, even if they have to stretch their budget. The higher price per square foot of condos makes them less appealing, especially in a market where home prices and mortgage rates remain high.

3. Slower Appreciation Rates

From an investment standpoint, single-family homes tend to appreciate faster than condos. While both types of homes saw significant price increases during the pandemic, condo prices have started to decline. Condo list prices in July were down 5.4% compared to a year ago, while single-family home prices edged up slightly by 0.2%. As a result, condos are becoming less attractive to buyers seeking a return on their investment.

Real estate experts note that buyers are increasingly getting “stuck” in their condos, unable to sell them as quickly or for as much profit as they could a single-family home. This slower appreciation, combined with the rising costs of ownership, is making the condo market less appealing to potential buyers.

4. More Inventory, Less Demand

As demand for condos wanes, the supply is increasing. In July 2024, condos made up 21.2% of active real estate listings, up from 19.5% a year earlier. This surplus of inventory is another sign that the condo market is cooling off.

With more options available, condos are sitting on the market longer. The average time on the market for a condo in July was 58 days—eight days longer than single-family homes. This extended time on the market can create headaches for sellers and drive down prices even further.

Regional Variations in the Condo Market

The condo market slowdown isn’t just a Florida issue, although Florida’s market has been affected by rising insurance costs and new laws increasing assessment fees. Across the country, condo sales are down significantly:

The Midwest saw a 17% decline in condo sales over the past year.
The South experienced a 15% drop.
The West had an 11% decline.
Only the Northeast remained relatively stable, with flat sales numbers.

While some areas in Florida, like Fort Myers, saw condo sales rise, other markets, like Daytona Beach, have seen sales fall sharply. This inconsistency makes it difficult to predict how the condo market will evolve in specific regions.

What This Means for Buyers and Sellers

If you’re considering buying a condo, now might be the time to negotiate a better deal. With more inventory on the market and prices beginning to drop, buyers could find themselves in a stronger position to ask for concessions from sellers.

However, it’s essential to factor in the additional costs of condo ownership. Higher HOA fees, potential assessments for maintenance, and rising insurance premiums can make a condo more expensive over time than a similarly priced single-family home. Be sure to carefully review the condo association’s financial health and any upcoming assessments before making a purchase.

For sellers, the cooling market may mean a longer wait to find a buyer and potentially lower offers. Pricing competitively and being transparent about fees and assessments will be crucial to attracting interest in a slower market.

Navigating the Changing Condo Market

The condo market is currently in a slump, with sales down and costs rising. For buyers, this could present an opportunity to purchase a condo at a lower price, but it’s important to weigh the long-term financial implications, including HOA fees and future assessments. For sellers, the market may be more challenging, with condos spending more time on the market and fetching lower prices than single-family homes.

Whether you’re buying or selling, understanding the current trends and adjusting your strategy accordingly can help you navigate the shifting landscape of the condo market.

If you’re unsure about your next steps in this unpredictable market, working with an experienced real estate agent can provide valuable insights and guidance tailored to your specific needs.

Go back

Your message has been sent

https://www.realtor.com/news/trends/condo-market-sales-slowdown/

Submit Your Real Estate Questions

Are you navigating the complex world of real estate and have questions you just can’t find the answers to? Whether you’re a first-time homebuyer, an investor looking to expand your portfolio, or someone interested in understanding the nuances of the housing market, we’re here to help.

At Find a Broker, we believe that informed decisions are the best decisions. That’s why we’re opening up our platform to answer your most pressing real estate questions.

How It Works:

Submit Your Question: Send us your real estate questions—no matter how big or small.
Get Experienced Answers: Our team of experienced brokers will select questions to answer in upcoming blog posts, providing you with expert insights and advice.
Join the Conversation: Engage with the community by commenting on the blog posts and sharing your own experiences.

Why Ask?

Real estate can be overwhelming, but you don’t have to go through it alone. By submitting your questions, you’re not just helping yourself—you’re helping others in the community who might have the same queries. Plus, you’ll gain valuable knowledge that could save you time, money, and stress in the long run.

What to Ask About?

Home buying and selling tips
Market trends and predictions
Investment strategies
Understanding contracts and legalities
Finding the right broker for your needs

Whatever your question, we’re here to provide the answers you need to make informed decisions in the real estate market. Don’t hesitate—submit your question today, and let’s navigate the world of real estate together!

Submit your question now and stay tuned for expert advice in our upcoming posts!

Whether you’re a seasoned pro or just starting out, there’s always something new to learn in real estate. Let’s explore it together.

Go back