There are two big picture inflation reports in US that address consumer prices: CPI and PCE. Of the two, PCE is broader and more highly regarded by policymakers. The downside is that it comes out about 2 weeks later for the same month of price data. PCE is also easier to forecast due to other inflation data being out earlier in the month. As such, it’s less common to see big deviations from forecasts and today was no exception with all monthly and annual numbers perfectly hitting expectations. Unsurprisingly, bonds haven’t really changed from opening levels.

One of the only interesting developments (debatably, perhaps) is that the “supercore” reading (core services inflation excluding housing) was 0.1% lower in PCE versus the figures reported by bloomberg that were extrapolated from CPI 2 weeks ago. Supercore is still slightly elevated and has been trending higher, but 0.390 is a lot better than 0.481 (reported with CPI) when it comes to inflation staying out of the way of a Fed rate cut.

Florida property valuations often rely on mass appraisal techniques, which can lead to inaccuracies at the individual property level. The margin of error in valuations can be substantial, with some studies suggesting discrepancies of up to 20% or more. Factors contributing to inaccuracies include infrequent reassessments (often annually), reliance on comparable sales data that may not be truly comparable, and inadequate consideration of unique property characteristics. The assessed value is used to calculate property taxes, which are a primary source of revenue for local governments. Homestead exemptions and other property tax limitations, like Save Our Homes, can create significant disparities in assessed values between similar properties. Legal challenges to property tax assessments are common in Florida, particularly when owners believe their property is overvalued. Market values are also important; recent surges in property value impact assessed valuation accuracy in relation to current market conditions.

* **Market Shift:** Florida’s real estate market is transitioning from a seller’s market to a more balanced or buyer’s market in many areas.
* **Inventory Increase:** Statewide, housing inventory is significantly higher than previous years, leading to increased competition among sellers.
* **Days on Market (DOM):** Average days on market are increasing, indicating homes are taking longer to sell.
* **Price Reductions:** A higher percentage of listings are experiencing price reductions, suggesting sellers need to price competitively.
* **Professional Photography/Virtual Tours:** High-quality visuals are critical for attracting online buyers.
* **Staging Importance:** Staging homes effectively can help them stand out and command higher offers.
* **Negotiation Skills:** Sellers must be prepared to negotiate offers and potentially make concessions.
* **Appraisal Gaps:** Increased likelihood of appraisal gaps, requiring sellers to be flexible or buyers to cover the difference.
* **Seller Disclosures:** Full and accurate property disclosures are essential to avoid legal issues.
* **Interest Rate Impact:** Rising interest rates are affecting buyer affordability and demand.
* **Property Taxes & Insurance:** High insurance costs and increasing property taxes impact affordability for potential buyers.