Are mortgage rates holding back the market?
I get asked this question regularly. The chart below covers the last 3 years, and shows that since September 2022 the 30-year FRM has been mostly between 6% and 7% with 3 spikes over 7%, and one drop to 6% in the fall of 2024.The current rate of 6.5% is in the middle of the range for most of the last 3 years.
10 Value-Adding Home Improvements You Can Do for $1,000 or Less
A farmhouse sink. LED lighting. A pot filler. You might think these relatively low-cost home upgrades wouldn’t add much value, but our research shows that these and other home upgrades with modest price tags could pay for themselves — or even generate big returns — when you sell your home.
A Zillow analysis of more than 350 features in the listing descriptions of more than 2 million homes listed for sale in 2024 found that some home improvements are associated with higher than expected sales prices. The features analyzed won’t guarantee that your home will sell for more if you include them in a for-sale listing. But the following upgrades — gleaned from those listings — offers a good starting point for moderately priced home renovation ideas that could add value to your home while making life a little sweeter.
This article from Zillow lists 4 upgrades uber $500, 5 under $1,000, and 2 over $1,000. Click on more after the second upgrade to read the full article.
Under $500
1. Upgrade your kitchen features
If you’re looking for a place to start, you might want to begin with the kitchen. Sellers poured a lot of love into their kitchens, with special consideration given to cooking and eating outdoors.
Appliances and features for home cooks are among the list of features associated with a price premium in 2024. Among them: new appliances, which ranked among the top 10 improvements, with a potential price premium of 2.2% in listings that mentioned them.
Homes with pizza ovens sell for 2% more than expected. Prices vary wildly for the ovens: a commercial grade oven can run you upwards of $10,000, and a residential kit for an outdoor oven can run about $3,000. But you can find some smaller portable units you can incorporate into an outdoor kitchen for several hundred dollars. Tapping some cold beverages to go with those pizzas can also pay off: Homes with a beverage center — a designated chilling space for drinks — sold for 1.7% more than expected while those with an ice machine brought in 2% more.
2. Entertain outdoors
Why settle for four walls when you can bring some of the comforts of home outdoors? Fire pits or outdoor fireplaces were associated with a 1.1% price premium. If s’mores aren’t your thing, try an outdoor television or sound system, each of which comes with a premium of about 1%.
3. Go with LED lighting
Switching out older light figures for more energy efficient LED fixtures can save you money on your electric bill and could help you net a higher price when you sell. Homes with listings that mentioned LED lights sold for 1.3% more than expected.
4. Paint a floor
Few things can drag down a room more than dated floor tiles or beat up wood floors. Replacing either with new versions of the same can run you thousands. That makes painting them an affordable way to freshen up a space and give it a more modern look. Doing so is associated with a 1.6% sales price premium. This option is especially cost-effective as a DIY project, but it’s important to recognize your level of skill and that paint is less durable than tile or wood and will likely require touchups. Preparing floors for paint — and choosing the right paint — is critical for a longer-lasting result that won’t start chipping or peeling. Also, it’s best done in low traffic areas of the home.
Under $1,000
5. Install radiant heat
Few things feel as glorious as stepping onto a heated floor after a shower, which may be why homes that include heated floors or radiant heat in their listings sell for a 1.9% premium. Installing radiant heat can be an expensive undertaking, but adding it as part of a bathroom remodel could bring luxurious comfort and eventually pay for itself. Kits consisting of a 120-volt mat that covers a small area of flooring are available to help make this DIY friendly. The mats, which require a thermostat, must be connected to an electric source, so you might consider bringing in an electrician to help with the wiring.
6. Try luxury vinyl floors
Plank-style vinyl flooring, which can be purchased for as little as $2 square foot, can mimic the look of wood, ceramic tile or stone. It’s become popular with homeowners because of the durability, ease of installation and the relatively inexpensive cost compared to other types of flooring. Homes that included it in their listing description sold for 0.9% more than expected.
7. Warm up with wood
Wood is enjoying a moment, no surprise at a time when people are embracing bold, nature-inspired design choices. Wood accents appeared several times among the listing descriptions associated with higher sales premiums. Homes that included teak in their listing description commanded a 3.1% sale premium, while reclaimed wood was associated with a sales price boost of 1.8% and butcher block countertops contributed to a sales price premium of 1.2%.
8. Bring on the birds
Do you like fresh eggs and caring for animals? Then a chicken coop could be a fun option for you. Homes that included chickens in their listing description fetched 1.4% more than similar homes that did not.
9. DIY Shaker-style cabinets
Installing a whole set of new cabinets is a pricey undertaking, but you can still incorporate the popularity of Shaker-style cabinets by replacing only the cabinet doors. You can typically buy individual doors at your local hardware store or cabinet store, or even a local building salvage company. If you’re handy, you can custom create them yourself. Home listings that mentioned Shaker cabinets in the listing description fetched a 1.4% price premium.
Higher-ticket items
Home upgrades that add value don’t have to involve costly, disruptive or time-consuming renovations. But if you’re ready to go even further, these bonus-category home upgrades could also add value to your home.
10. Update your kitchen countertops
Buyers are clearly willing to pay more for an upgraded kitchen, and that includes countertops. Soapstone topped the list of countertops with a 3.5% premium, followed by quartz (2.6%) and onyx, a soft, porous, translucent stone that fetched 2.3% more in homes that advertised them.
Touches of luxury
Buyers generally also appear willing to pay more when the listing description includes these features:
• Outdoor shower, 2.8% more
• Induction stove, 1.9% more
• Pot filler, 2.2% more
• Wet room, a type of bathroom where the shower area is not enclosed, 3.3%
• Bluestone patio, 2.2%
• “She shed,” a small escape in the yard, 1.7%
If you’re ready to sell and don’t want to make upgrades yourself, a credit at closing toward the cost may help entice buyers who value these home features.
If you’re on the fence about whether to make improvements, you might also consider this: Homes with listings that included the word “remodeled” fetched 3.7% more, the highest premium on the list of features.(Zillow)
Number of Citizens’ Insurance Policies Halved since 2023
As of Friday, Citizens had 770,729 policies. As of June 30, it had 774,814 policies; the next largest property insurer, State Farm Florida Insurance Co. had 643,671, according to a state Office of Insurance Regulation report. Citizens topped 1.4 million policies in 2023, and the depopulation program has played a key role in whittling that number.
Insurance Commissioner Michael Yaworsky last week signed orders that would allow five private insurers to assume up to 87,925 policies from Citizens in November and December. That came after the state last month approved proposals by nine companies to assume up to 428,947 policies in October, November and December.
Under the depopulation program, private carriers can seek state approval to assume certain numbers of Citizens policies.(FloridaRealtors)
Major Homebuilder Sees Surprising Signs of Life in Troubled Florida Housing Market
A major homebuilder has reported recent gains in Florida, marking a surprising turnaround in the state after several years of slowing sales and falling prices.
PulteGroup, the third-largest homebuilder in the nation, said that net new orders in Florida rose 2% last quarter compared with a year earlier.
“We’re really happy with what we saw out of Florida,” PulteGroup President and CEO Ryan Marshall told investors on a call last month. “We get buyers from all over the country, all over the world that come into Florida. We also see a healthy mix of folks moving within Florida as well.” PulteGroup’s unexpected uptick in Florida sales follows years of pronounced weakness in the state, where homebuilders have been forced to slash prices and offer mortgage rate buydowns and other generous concessions in the face of weak demand.
In recent months, however, there are signs that Florida’s housing market is getting closer to equilibrium, with inventory stabilizing and price declines slowing. (more…)
Storm Losses and Attorney and Public Adjuster Fees in Florida
“While hurricanes have become more frequent and severe in recent years, the threat of damage from catastrophic weather events is not the only factor driving a decrease in capacity and increased insurance costs in the state. Increased legislation has increased the cost of claims. The Florida Office of Insurance Regulation reports that Florida accounts for only 9% of the nation’s homeowners’ claims but 79% of homeowners insurance lawsuits. The Florida Office of Insurance Regulation states that over a 10-year period, 71% of the $51 billion paid by Florida insurers went to attorneys’ fees and public adjusters. In total, these parties have received more claims settlement money than policyholders. In 2023, the industry posted collective underwriting losses of $190.8 million, marking the eighth straight year of losses, according to S&P Global. As a result, insurance in Florida continues to be scarcer and more expensive. (more…)
How’s the Market in Bonita Springs in 2025?
This is, naturally, the most asked question by both buyers and sellers.
While there are always anecdotal stories – about both high- and low-priced sales – I try in this blog to focus on facts, actual sales data, albeit recognising that sales take place 4-8 weeks after a contract is signed. So sales are a lagging indicator; but they are neither selective nor influenced by emotion.
While I normally focus on quarterly numbers in less seasonal markets, here in Southwest Florida the market fluctuates so much with the calendar – more higher-priced take place during “the season” – that I report monthly figures for the overall area.
Here are the charts showing median prices since 2022 for all areas of Bonita Springs, broken down by property type. In broad terms the median price peaks each year in the early months, drifts lower in the summer months and recovers in the Fall. The Condo market is showing signs of weakness beyond the seasonal.
Single family sales
SFH sales have been generally in the $700,00-800,000 range:
Villa Sales (more…)
How’s the Condo Market in Pelican Bay in 2025?
As a follow up to my post How’s the Market in Naples in 2025? I have produced a simlar report for Pelican Bay Condos. As Condo sales account for 80% or more of all sales in Pelican Bay, I have not produced the charts for Single Family and Villa sales. Because of the much smaller number of those sales, they are more appropriately monitored on a quarterly basis and are included in my quarterly reports. Because there were only 3 very high-prices sales in November 2024 I have excluded that month from the chart. In general, the median price in recent years has been in the $1.1-1.5 million range, with the usual seasonal variations: Higher early in the year when more buyers of higher-priced properties are here, dropping in the summer and picking up again in the Fall.
Read Politics, Financial Markets and The Magnificent Seven
How’s the Market in Naples in 2025?
This is, naturally, the most asked question by both buyers and sellers.
While there are always anecdotal stories – about both high- and low-priced sales – I try in this blog to focus on facts, actual sales data, albeit recognising that sales take place 4-8 weeks after a contract is signed. So sales are a lagging indicator; but they are neither selective nor influenced by emotion.
While I normally focus on quarterly numbers in less seasonal markets, here in Naples the market fluctuates so much with the calendar – more higher-priced take place during “the season” – that I report monthly figures.
Here are the charts showing median prices since 2022 for all areas of Naples, broken down by property type. In broad terms the median price peaks each year in the early months, drifts lower in the summer months and recovers in the Fall. (more…)
Politics, Financial Markets, and The Magnificent Seven
At the end of The Magnificent Seven (1960) Yul Brynner says: “…only the farmers won. We lost. We always lose.” (The “we” refers to the gunslingers hired to protect a Mexican village from bandits.)
I am reminded of this quote whenever politicians try to take on financial markets – the markets are the farmers, and the politicians are the gunslingers.
Let us look at two recent examples – I asked my best buddy ChatGPT for non-political commentaries.
UK 2022
When Prime Minister Liz Truss announced large, unfunded tax cuts in September 2022, it triggered a sharp loss of confidence in the UK’s financial markets. Here’s a non-political explanation of what happened and how it was resolved, focusing purely on economic and financial mechanisms:
What Happened:
1. The Announcement:
In late September 2022, the UK government (under PM Liz Truss and Chancellor Kwasi Kwarteng) announced a “mini-budget” featuring around £45 billion in tax cuts — the largest since 1972 — without detailing how these would be funded.
2. Market Reaction: (more…)
NAPLES Q1 2025 MARKET REPORT
The median price of SFs and Villas sold in Q1 2025 reached record levels, while the median price of the Condos sold, while lower than in Q1 2024 was still higher than in the second half of 2024.Bear in mind that Q1 sales reflect contracts agreed in late 2024/early 2025, while market sentiment changed after that; it is likely that Q2 numbers will show a decrease.
PSF is another way of looking at the market. Q1 showed a nice cadence: $403 for SF, $351 for Villas and $307 for Condos. (more…)
BONITA SPRINGS Q1 2025 MARKET REPORT
For Bonita Springs overall, median prices were mixed in the 1st Quarter of 2025: SF higher than in Q1 2024, Villas and Condos lower. Sales continued to drop.
The median Price per Sq.Ft. was lower all round, while the pace of sales was back to pre-COVID days. (more…)
BAY FOREST 2024 MARKET REPORT and 5-YEAR REVIEW
Median Price and Sales
The median price of the properties sold in Bay Forest increased dramatically from $275,000 in 2020 to $475,000 in 2023, before retreating in 2024. Sales in 2024 recovered from the drop in 2022 and 2023.
Condos, which sell at lower prices than Villas, were a bigger share of the market in 2024 and had a larger effect on the overall median price. (more…)
IMPERIAL GOLF ESTATES 2024 MARKET REPORT and 5-YEAR REVIEW
Median Price and Sales
The median price of the Single Family homes sold in Imperial Golf Estates (Imperial) has more than doubled since 2020, while sales recovered in 2024 from the slowdown in 2022 and 2023.
The median price of the small number of Villas sold in Imperial has continued to increase year by year, while sales have been at a consistent level.
The median price of the Condos sold in Imperial in 2024 showed a small decline, but sales were just half the 2023 level.
While Inventory has increased sharply from the extremely low levels of 2022/23, it is at the low end of the pre-COVID levels at the beginning of the season.
Price per Sq Ft (PSF) and Speed of Sales (Days to Offer Accepted – DTO) (more…)
BONITA BAY MARKET 2024 MARKET REPORT and 5-YEAR REVIEW
Median Price and Sales
The median price of the Single Family homes sold in Bonita Bay more doubled from $1.1 million in 2020 to $2.5 million in 2022 and has been stable since.
Sales increased from 2019 to 2021, dropped back, and them increased in 2024.
The median price of the Villas sold in Bonita Bay has continued to increase year by year, and sales also increased last year,
The median price of the Condos sold in Bonita Bay has also continued to increase. On the surface, the median price jumped to $1.275 million in 2023, but the 41 sales at Omega boosted the median price. Without those sales, the 2023 median price would have been $820,000, meaning there was an underlying increase again in 2024. Excluding the Omega sales in 2023, the 2024 figure was steady.
While Inventory has doubled from the extremely low levels on 2022/23, it has returned to more normal levels at the beginning of the season.
Price per Sq Ft (PSF) and Speed of Sales (Days to Offer Accepted – DTO)
PSF is another way to look at prices.
The PSF has increased significantly in recent years, in line with median prices.
The pace of Sales quickened dramatically until 2022. 2024 presented mixed picture. (more…)
PELICAN BAY MARKET 2024 MARKET REPORT and 5-YEAR REVIEW
Median Price and Sales
The median price of the Single Family homes sold in Pelican Bay more doubled from $2.25 million in 2020 to $4.7 million in 2024.
Sales increased until 2021 and have since dropped back below pre-pandemic levels.
The median price of the Villas sold in Pelican Bay increased from $1.5 million in 2020 to $1.875 million in 2024, but declined from 2022/23 levels.
The number of sales increased in 2020/21, but has since dropped back to pre-pandemic numbers.
The median price of the Condos sold in Pelican Bay increased 45% from $750,000 in 2020 to $1.3 million in 2024, and was stable from 2022-24. Sales have also dropped sharply since 2021.
Price per Sq Ft (PSF) and Speed of Sales (Days to Offer Accepted – DTO)
PSF is another way to look at sales. (more…)