How High Inflation Is Affecting Real Estate

Rising inflation is pressing on Americans across the economic spectrum with costs for groceries to gasoline increasing. In November, consumer prices increased by 6.8% compared to a year ago, the largest annual gain in the past 40 years.

Some of the highest increases occurred for energy, shelter, cars, and food, which comprise about 61% of consumer purchases and account for 81% of inflation over the past 12 months, MarketWatch reports.

Renters may be feeling the impact. Rents are up 3% and accelerating at about 5% annually, says Lawrence Yun, chief economist of the National Association of REALTORS®.

Also, heating bills are increasing; natural gas prices have jumped by 25%.

Yun also warns that the increase in inflation is a primary reason that mortgage rates will likely rise in 2022. The 30-year fixed-rate mortgage is predicted to reach 3.7% by the end of 2022. Rates averaged 3.10% last week, according to Freddie Mac.

“One aspect of inflation is that real estate has proven to be a good hedge,” Yun says.

As he explains in a recent statement:

“In the 1970s, a high inflationary period when [the Consumer Price Index] averaged 7.1% per year, home price gains outpaced inflation with a 9.9% gain. Even when interest rates soared in the 1980s and thereby crushed home sales, home prices still held up to consumer price inflation: 5.5% versus 5.6%. That’s because rents are soaring. Other decades also show similar patterns. Therefore, for those concerned about the loss in purchasing power of money and savings, be assured that real estate has proven to be a good hedge against inflation.”

 

Source: “Instant Reaction: Consumer Price Index, December 10, 2021,” National Association of REALTORS® Economists’ Outlook blog and “Inflation Is Running Rampant in the U.S.—Here’s Where It Is, and Isn’t,” MarketWatch (Dec. 11, 2021)

Treasure Coast Weekend Happenings

Mass in A Major: A Christmas Celebration

Date: Friday December 17, 2021

Time: 12:00 am

Location: First Presbyterian Church

Address: 520 Royal Palm Boulevard, Vero Beach, 32960

Price: free; $10 donation suggested

Category: Concert / Live Music

The Music and Arts Department of First Presbyterian Church of Vero Beach, in a large collaboration with several local choirs and high school musicians, will present a Christmas Celebration of the Mass in A Major by Cesar Franck this Holiday season. Two performances are scheduled to be held in the sanctuary at 520 Royal Palm Boulevard in Vero Beach. They will be held Friday, December 17, 2021, at 7:00pm, and Sunday, December 19, 2021, at 4:00pm. Admission is free to the community; a $10 donation is suggested.

Francks mass was originally written as a large orchestral work and featured three choir parts- soprano, tenor, and bass. Likely after concerns presented by the publisher due to the size of the work, Franck adapted the mass for smaller forces only to include harp, organ, cello, and double bass. It was this version that was originally printed in 1872. Eventually, the full orchestral score was printed, along with an adaptation for 4-part vocals to account for modern-day choirs. It is this larger work with the modern-day vocal score that will be presented at First Presbyterian Church in December.

This mass en masse endeavor will feature the First Presbyterian Chancel Choir in collaboration with singers from The Vero Beach Choral Society, Sebastian River High School Choirs, Vero Beach High School Choirs, and Indian River Charter High School Choir. The Youth String Orchestra will be joined by newly formed FPC Youth Winds and Percussion ensemble under the direction of Jessica Russell, Assistant Band Director at Vero Beach High School. As such, this will be the first performance of the newly established First Presbyterian Youth Symphonic Orchestra.

For more information, please contact Ginger Lagemann, Music and Arts Administrator, at (772) 562-9088 or ginger@firstpresvero.org.

http://www.firstpresvero.org/events

 

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Historic Downtown Art Walk

Treasure Coast Events

Date: Event occurs the third Friday of every month.

Time: 5:00 pm – 8:00 pm

Location: Treasure Coast Events IRC

Address: , , FL,

Price: Free

Category: Cultural

Every 3rd Friday, the rendezvous is at Downtown Fort Pierce, 5-8 PM! Join your local arts community on March 19 for the next Art Walk. Artists will line up the historic streets, and musicians and other performance artists will further entice you to visit art galleries and businesses. Plus, get discounts from participating retailers and much more. Mark your calendar! 3/19/21

https://artstlucie.org/event/march-art-walk

 

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Heathcote’s Garden of Lights

Date: Friday December 17, 2021 through Saturday December 18, 2021.

Time: 5:30 pm – 9:00 pm

Address: 210 Savannah Rd

Price: $10 adults children 6-12 $ 3.00 under 3yrs old free

Category: Christmas & Holiday

Garden of Lights visitors will enjoy enchanted gardens that feature favorite light displays from last year, as well as new additions to dazzle audiences. A sparkling blue River and Waterfall forms the centerpiece of the Garden, along with a kaleidoscope of colorful flower beds, potting benches, vegetables, a vineyard pathway and more to amaze guests at every turn. Purchase tickets online on our website or at the gate.

Heathcote’s Garden of Lights

 

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The Jazz Market

Fort Pierce Jazz & Blues Society

Date: Event occurs every Saturday of every month.

Time: 8:00 am – 1:00 pm

Location: Historic Downtown on the Waterfront

Address: 200 N Indian River Dr

Category: Festival

Every Saturday, the Fort Pierce Jazz & Blues Society hosts a Jazz Market “featuring creative arts & crafts” in Historic Downtown Fort Pierce on the waterfront of the Indian River. Original hand made crafts, stained glass, Highwaymen paintings, hand-painted glassware and much, more are available for purchase. Funds raised support education programs and local scholarships.

The Fort Pierce Jazz & Blues Society Jazz Market is a year-round event.

The Jazz Market summer hours are 8:00 a.m. – 1:00 p.m.

Although we enjoy promoting our local Fort Pierce and St. Lucie County resident artists and crafters, our market is open to all crafters who wish to participate, given space available and our Market Managers discretion. If you are interested in displaying or selling your items, download the The Jazz Market Guidelines and Vendor Application.

If you are an interested new vendor, applications are now being accepted.

Print and fill out an application and return it with pictures of your items to:

P.O. Box 1086, Fort Pierce, FL 34954-1086

For more information, please email: JazzMarket@jazzsociety.org

Fort Pierce Jazz & Blues Society

 

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Outdoor Greet Market in Tradition

Date: Event occurs every Saturday of every month.

Time: 9:00 am – 1:00 pm

Address: 87 Village Pkwy, Port St. Lucie, 34987

Price: Free

Category: Food Special

Come for a nice stroll through the Tradition Green Market every Saturday from 9am to 1pm. Completely outdoors and perfect for social distancing.

Over 30 different vendors on one long strip with organic fruits, vegetables, mushrooms, fresh produce, raw local honey, free-range organic eggs, kombucha, fresh juices, baked goods, gluten-free bread, pastries, desserts, spices, marinades, jams, marmalades, plants, herbs, flowers, orchids, fresh local beef.

We also offer home decor, custom jewelry, fabric masks, clothes, shoes, custom and handmade products, arts and crafts, unique gifts, goods, services and so much more.

Our vendors and farmers rotate so we don’t always have the same products but we’ll always have something good every Saturday.

Brunch food trucks too!!

Come spend the morning with us, and support your local vendors and small business, we’ll have a nice gourmet coffee and warm breakfast waiting for you every Saturday from 9am to 1pm “Rain or Shine”

“Tradition Neighborhood Market “ is located in the parking lot across from Target and Michael’s in Tradition – Port St Lucie.

Free Parking-Free Parking lot and Pets are always welcome !!!

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Hot Weelz 6th Annual Tokyo Car Show

MIDFLORIDA Credit Union Event Center

Date: Saturday December 18, 2021

Time: 12:00 pm – 10:00 pm

Location: MIDFLORIDA Credit Union Event Center

Address: 9221 SE Event Center Pl, Port St. Lucie , FL, 34952

Price: Free

Category: Arts / Exhibits

Hot Weelz presents the 6th Annual Tokyo Car Show and Toy Drive!

The event is free and open to the public! The car show will take place in the Event Center parking garage.

Cars, trucks and bikes welcomed. Over 100 trophies to give away!

https://hotweelz.com/

 

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Winter Solstice Drum Circle

Date: Sunday December 19, 2021

Time: 6:00 pm – 8:00 pm

Location: Savannas Preserve State Park Main Entrance

Address: 2541 SE Walton Road, Port St Lucie

Price: $6/person

Category: Concert / Live Music

Celebrate the beginning of Winter with local drumming enthusiasts at the 8th annual Winter Solstice Drum Circle hosted by the Savannas Preserve State Park and Kevin Beatkeeper!

Savannas Preserve State Park is going to host a drum circle on the evening of December 19, 2021 from 6 pm to 8 pm. Tickets can be pre-purchased online or can be purchased at the event entrance with cash only (no credit card or checks). Cost is $6 per person (infants and toddlers are free).

The drum circle will take place out front of the Education Center of the Savannas Preserve State Park. You are encouraged to bring your own chair. You are welcome to bring your own drum or borrow an instrument during the event. A variety of musical instruments will be available for sale for cash or credit. You can also just come and enjoy the sights and sounds of the drums in this beautiful and natural Preserve.

Come celebrate the Winter Solstice with us at the Savannas Preserve State Park located at 2541 SE Walton Road, Port St Lucie, FL 34952. Questions about the event can be directed to the Education Center at 772 398 2779.

https://www.friendsofsavannas.org/

Choices for 2022 Color of the Year: Green Is Gold

Another green hue has been selected as the hottest color for the new year. Sherwin-Williams announced its 2022 color of the year: evergreen fog, an earthy gray-green tone.

The paint firm’s announcement comes on the heels of two other paint companies that this year chose gray-green shades as their 2022 leading color picks. PPG chose olive sprig, while Behr selected breezeway.

Sherwin-Williams says evergreen fog is a calming color with nods to nature that could make a neutral backdrop not only for interiors but also for commercial spaces’ entry areas and lobbies.

 

© Sherwin-Williams

 

“Evergreen fog is a sophisticated wash of color for spaces that crave a subtle yet stunning statement shade,” said Sue Wadden, director of color marketing at Sherwin-Williams. “Create depth and texture with a mix of natural-looking textiles. Add a little gleam with a fusion of metals—champagne gold, warm brass, or inky black.”

This is olive sprig, PPG’s 2022 color of the year.

 

© PPG Paints

 

This is breezeway, Behr’s 2022 color of the year.

 

© Behr Paint

More color inspiration: 2021’s Most Popular Paint Colors in Pictures 

Source: Sherwin-Williams

Contractors Hard to Find Amid Renovation Boom

Homeowners have been busy sprucing up their properties during the pandemic. Even as the year winds down, their desires aren’t fading. More than 70% of U.S. homeowners recently surveyed say they are planning or considering a home renovation project before the end of the year, according to a survey from Dewalt, a tool manufacturer and Stanley Black & Decker brand. They’re focused on bathrooms, kitchens, bedrooms, porches, patios, decks, and landscaping projects in that order, the survey shows.

But finding a contractor to help do the job has become a pressing challenge. Also, material shortages abound. Both issues are delaying many projects and making them more expensive.

Eighty-four percent of consumers surveyed say they plan to use a professional contractor for their project. But more than half of survey respondents—56%—who’ve reached out to a contractor say they were told they’d have to wait at least three months for work to start.

The contractors most in demand are electricians, flooring installers, plumbers, window contractors, and structural work contractors, the Dewalt survey finds.

Why Renovations Are Growing

Home renovations are being motivated for multiple reasons, from making homeowners happier with their current home to adding extra space to even make a home more sellable.

“In the short term, many homeowners who deferred projects—both large and small—in 2020 are expected to complete those renovations once the pandemic is over,” Kermit Baker, director of the remodeling futures program at the Joint Center for Housing Studies, said in a report this spring, Improving America Housing 2021. “Additionally, there has been an upturn in homeownership as younger households look to purchase homes, the number of multigenerational households has been growing, and remote work has given people more locational flexibility and the desire to modify their homes.”

Many recent renovations also are being driven by natural disasters, too, such as hurricanes and tornadoes. The U.S. had 22 disasters that caused a record high of $1 billion or more in damages last year.

 

Source: “Renovation Boom Drives Demand for Contractors,” Austin Business Journal (Dec. 13, 2021)

Home equity gains reach record $3.2 trillion

It’s one thing to sense huge equity gains for homeowners amid a surge in refinancing, but it’s quite another to see the actual number. According to analysts at CoreLogic, US homeowners with mortgages – representing some 63% of all properties – amassed collective gains of $3.2 trillion in the third quarter alone.

The findings are contained in CoreLogic’s Homeowner Equity Report, which shows a 31.1% increase from last year’s comparable period. The amount represents an average gain of $56,700 per homeowner since

It’s one thing to sense huge equity gains for homeowners amid a surge in refinancing, but it’s quite another to see the actual number. According to analysts at CoreLogic, US homeowners with mortgages – representing some 63% of all properties – amassed collective gains of $3.2 trillion in the third quarter alone.

The findings are contained in CoreLogic’s Homeowner Equity Report, which shows a 31.1% increase from last year’s comparable period. The amount represents an average gain of $56,700 per homeowner since

Frank Nothaft, chief economist for CoreLogic, attributed home price growth as the principal driver of home equity creation. According to the report, home prices were up 17.7% for the past 12 months ending in September. Price growth has proven to be the fuel spurring record gains in home equity wealth, the economist added.

The latest data shows steadily increasing equity growth from previous reports.

The Q1 report showed an equity increase of 19.6% year over year, representing a collective equity gain of more than $1.9 trillion. The average gain then was $33,400 per borrower in the 2020 comparable period.

The upward trend was seen in this year’s second quarter, when the nation’s homeowners saw a 29.3% increase in equity gains to $2.9 trillion. The average gain was $51,500 per borrower, the previous report indicated.

The gains are hardly surprising in light of robust home price growth, Selma Hepp, CoreLogic’s deputy chief economist, told Mortgage Professional America.

“The tremendous gains in equity we’ve seen over the last year are not surprising given home price growth has surpassed 20% in some regions in the same timeframe,” Hepp said. “While considerable home price growth has not been favorable for first-time homebuyers, or buyers with budget constraints, it has created wealth stability for existing homeowners.”

To achieve its findings, CoreLogic surveyed more than 3,000 consumers to check the pulse of the housing market.

Yet amid the rosy assessment, analysts warn of potential negative equity should home prices take a modest dive next year. Because home equity is affected by home price changes, analysts explained, borrowers with equity positions near (+/-5%) the negative equity cut-off are most likely to move out of or into negative equity as prices change, respectively. Stated another way: “If home prices increase by 5%, 145,000 homes would regain equity; if home prices decline by 5%, 191,000 would fall underwater.”

 

 

SURVEY: SELLERS WAITING OUT PANDEMIC ARE READY TO LIST IN NEW YEAR

Owners who postponed selling during the pandemic – perhaps waiting for a sign that price increases were slowing – appear ready to list their home within the next six months. Many, however, plan to overprice it – and they expect bidding wars to push the final price even higher.

 

Many homeowners hunkered down during the pandemic, and some feared the housing market because selling might be easy but finding a new home? Not so much.

A survey conducted by HarrisX for realtor.com, however, suggests that many of those people might be planning to list their home in 2022, with 65% of them planning to do so this winter and spring. The survey of 2,583 consumers was conducted online in September-October 2021.

Many sellers, however, want to set an asking price higher than they think their home is worth, and they expect buyer bidding wars.

“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception,” says George Ratiu, manager of economic research for realtor.com.

“Buyers should be ready for high asking prices and offer deadlines as seller expectations of the upcoming market are greater than in the spring, but an increase in new sellers could mean some relief from the inventory crunch,” he says, saying price growth has moderated some, and many sellers will likely wait until after the holidays to make a move.

However, early 2022 home listers may have an advantage, he adds. “As buyers race against the clock of rising mortgage rates, sellers who price their homes in line with today’s market and stick to their plans will likely see their expectations met.”

When will sellers list?

• 
  

  Among homeowners who seem prepared to enter the market in the next year, 65% will do so within six months, including 19% who have already listed their home.

  
  


• 
  

  Compared to the spring (76%), more prospective sellers (93%) have already taken steps toward listing their home, including working with an agent (28%).

  
  


• 
  

  More than one-third of prospective sellers (36% each) have researched the value of their home and others in their neighborhood, and started making repairs or decluttering.

  
  

 

Top reason for selling? More time at home during COVID

• 
  

  Compared to the spring (15%), nearly two-times as many prospective sellers (33%) want different home features.

  
  


• 
  

  With more sellers having children at home this winter (65%) than in the spring (43%), family considerations are a top reason behind homeowner decisions to enter the market: 37% of prospective sellers say their home no longer meets their family’s needs and 32% want to move closer to friends and family.

  
  


• 
  

  The rise in remote work is also a key driver: 23% of sellers want a home office and 19% don’t need to live near work, up from 6% in March.

  
  

 

Seller expectations

• 
  

  Nearly half of today’s prospective sellers want to take advantage of the current market and think they can make a profit (45%), nearly doubling from the spring (24%).

  
  


• 
  

  When asked about current market impacts, 42% said they plan to list their property for more money than they think it’s worth, and 29% will push for a quick close.

  
  


• 
  

  Compared to the spring, more prospective sellers anticipate buyer bidding wars, more offers above asking price, and more buyers willing to forgo contingencies like inspections and appraisals.

  
  

 

Price range changes

• 
  

  Sellers with homes at the core of the market ($351,000-$750,000) remained the same over March (29%). However, more sellers plan to list in the $500,000-$750,000 price range.

  
  


• 
  

  More than three-quarters (77%) of prospective sellers would be willing to accept a lower offer to close quickly versus just over half in March (54%).

  
  


• 
  

  Compared to spring sellers, a higher number plan to take alternative routes to moving out, such as living with family initially (19%) or temporarily renting their home back from the buyer (29%).

  
  

 

“For homeowners who do feel ready to sell, getting pricing right from the start is key to a fast and successful home sale in any market – take the Goldilocks approach,” says Lexie Holbert, home and living expert at realtor.com.

 

Source: Florida Realtors®

What's Going On This Weekend

Heathcote’s Garden of Lights

Date: Friday December 10, 2021 through Saturday December 11, 2021.

Time: 5:30 pm – 9:00 pm

Location: Heathcote Botanical Gardens

Address: 210 Savannah Rd

Price: $10 adults children 6-12 $ 3.00 under 3yrs old free

Category: Christmas & Holiday

Garden of Lights visitors will enjoy enchanted gardens that feature favorite light displays from last year, as well as new additions to dazzle audiences. A sparkling blue River and Waterfall forms the centerpiece of the Garden, along with a kaleidoscope of colorful flower beds, potting benches, vegetables, a vineyard pathway and more to amaze guests at every turn. Purchase tickets online on our website or at the gate.

Heathcote’s Garden of Lights

 

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4th Annual Treasure Coast Puerto Rican Day Parade

MIDFLORIDA Credit Union Event Center

Date: Saturday December 11, 2021

Time: 11:00 am – 10:00 pm

Location: MIDFLORIDA Credit Union Event Center

Address: 9221 SE Event Center Pl, Port St. Lucie , FL, 34952

Price: Free

Category: Arts / Exhibits

Live Entertainment, Cultural Activities, Food, Art , Activities for the whole Family. The parade starts at 1:00 p.m.

Entrance & Parking is FREE.

http://https://www.facebook.com/tcprdayparadeweepa/?ref=page_internal

 

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Christmas Holiday Bazaar

MIDFLORIDA Credit Union Event Center

Date: Saturday December 11, 2021

Time: 2:00 pm – 8:00 pm

Location: MIDFLORIDA Credit Union Event Center

Address: 9221 SE Event Center Pl, Port St. Lucie , FL, 34952

Price: Free

Category: Arts / Exhibits

3rd Annual, CHRISTMAS HOLIDAY BAZAARChristmas Holiday bazaar

FREE Admission! FREE Parking!

An event that you’re going to love. Events 4 All will provide an evening of fantastic shopping from local shops, educational resources, giveaways and swag, food and drinks, all while connecting business, family, and friends with our local community.

Over 80 booths of art & craft inspiration and creativity by exhibitors from all Treasure Coast!

Handmade, one-of-a-kind Christmas and holiday gifts! -Paintings, Contemporary & Wood Art, Handmade Clothing, Handmade Soaps, Handmade Jewelry, Metal Art, Shell Art, Handmade Home Décor, Baked Goods, Handmade Candles, Glass Art, just to name a few! Expect the unexpected at the Christmas Holiday Bazaar! and prepare to be inspired!

Music, Kids Zone, Food, Adult Beverages and a lot of Fun!!!

https://www.facebook.com/events/915546632722530?acontext=%7B%22event_action_history%22%3A[%7B%22surface%22%3A%22page%22%7D]%7D

 

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Breakfast with the Grinch

Date: Sunday December 12, 2021

Time: 8:00 am – 11:00 am

Location: Sons of Italy-PSL

Address: 466 SW PSL BLVD STE.112-113

Price: $10-15

Category: Fund Raiser

December 12th 8am-11am

Adults $15

Children 3-10 $10

2 and under Free

Tickets www.eventbrite.com by Dec.7th

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Cookies with Santa

The Children’s Museum of the Treasure Coast

Date: Sunday December 12, 2021

Time: 1:00 pm – 3:00 pm

Location: The Children’s Museum of the Treasure Coast

Address: 1707 NE Indian River Drive, Jensen Beach, FL, 34957

Category: Christmas & Holiday

“Celebrate the holiday season at our Cookies with Santa event! Join us on December 12 from 1-3 p.m. for a meet and greet with Santa, cookie decorating, and a very special story time with Santa himself! See you soon and Happy Holidays!

https://www.childrensmuseumtc.org/

 

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Port Saint Lucie Sports Cards & Collectibles Show

Date: Event occurs the second Sunday of every month.

Time: All Day Event

Location: St. Lucie Mets Convention Center

Address: 8555 Commerce Centre Dr. Port Saint Lucie, FL 34986

Price: Free Admission

Category: Expo

The Port Saint Lucie Baseball Card Show is held on the 2nd Sunday every month at the St. Lucie Mets Convention Center at Barons Real Estate. 8555 Commerce Centre Dr. Port Saint Lucie, Florida 34986.

Show Hours: 9:00 AM to 3:00 PM

Collectible Trading Cards & Memorabilia!

Baseball, Football, Other Sports, Comics & Non-Sports!

FREE ADMISSION!

BRING THE KIDS!

https://cardshowpsl.com/