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Homebuyers Are in the Mood to Buy Today

According to the latest FreddieMac Quarterly Forecast, mortgage interest rates have fallen to historically low levels this spring and they’re projected to remain low. This means there’s a huge incentive for buyers who are ready to purchase. And homeowners looking for eager buyers can take advantage of this opportune time to sell as well.

There’s a very positive outlook on interest rates going forward, as the projections from the FreddieMac report indicate continued lows into 2021:

“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”

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Is the Economic Recovery Already Underway?

The Wall Street Journal just released their latest monthly Survey of Economists. In an article on the findings, they reported:

“The U.S. economy will be in recovery by the third quarter of this year, economists said in a survey that also concluded the labor market will fare better than previously expected following the effects of the coronavirus pandemic.”

Clearly, the latest jobs report from the U.S. Bureau of Labor Statistics confirmed the labor market is outperforming expectations, as it revealed that 2.5 million jobs were added. Directly before the release, experts forecasted that we would lose over 8 million jobs.

A second revelation indicating the economy is already about to turn around was also somewhat unexpected. More than 9 out of 10 economists surveyed believe the recovery has already begun this quarter or will begin in the third quarter. Here are the results of the survey question asking when the recovery will begin:Is the Economic Recovery Already Underway? | Simplifying The MarketThe survey also asked what type of recovery the economists expect.

More than 8 out of 10 believe it will be a form of a ‘V’ recovery:

  • A true ‘V’ with a sharp drop and a sharp rebound
  • A ‘Nike Swoosh’ with a sharp drop and a more gradual recovery, coined after the company’s logo

Some experts, possibly concerned about a second wave of COVID-19, call for a ‘W’ recovery – a double dip recession.

Others call for a ‘U’ with a prolonged bottom.

A very small percentage project the dreaded ‘L’ recovery, which is no recovery at all for the foreseeable future (think of the Great Recession).

Here’s the breakdown:

Bottom Line

Though we still have a long and difficult journey ahead, it appears the worst for both the economy and the unemployment situation may be in our rearview mirror.

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Real Estate Tops Best Investment Poll for 7th Year Running

Every year, Gallup conducts a survey of Americans to determine their choice for the best long-term investment. Respondents are asked to select real estate, stocks/mutual funds, gold, savings accounts/CDs, or bonds.

For the seventh year in a row, real estate has come out on top as the best long-term investment. Gallup explained:

“Real estate remains the most favored investment to Americans, as has been the case since 2013, when the housing market was on the rebound. More than a third of Americans have named real estate as the top investment since 2016.”

This year’s results indicated 35% of Americans chose real estate, followed by stocks at 21%. The full results covering the last decade are shown in the chart below:

Bottom Line

The belief of the American people in the stability of housing as a long-term investment remains strong, even through the many challenges our economy faces today.

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Is a Recession Here? Yes. Does that Mean a Housing Crash? No.

On Monday, the National Bureau of Economic Research (NBER) announced that the U.S. economy is officially in a recession. This did not come as a surprise to many, as the Bureau defines a recession this way:

“A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”

Everyone realizes that the pandemic shut down the country earlier this year, causing a “significant decline in economic activity.”

Though not surprising, headlines announcing the country is in a recession will cause consumers to remember the devastating impact the last recession had on the housing market just over a decade ago.

The real estate market, however, is in a totally different position than it was then. As Mark Fleming, Chief Economist at First American, explained:

“Many still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.”

Four major differences in today’s real estate market are:

  1. Families have large sums of equity in their homes
  2. We have a shortage of housing inventory, not an overabundance
  3. Irresponsible lending no longer exists
  4. Home price appreciation is not out of control

We must also realize that a recession does not mean a housing crash will follow.  In three of the four previous recessions prior to 2008, home values increased. In the other one, home prices depreciated by only 1.9%.

Bottom Line

Yes, we are now officially in a recession. However, unlike 2008, this time the housing industry is in much better shape to weather the storm.

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Real Estate Will Lead the Economic Recovery

With more U.S. states reopening for business this summer, and as people start to return to work, we can expect the economy to begin improving. Most expert forecasts indicate this economic recovery will start to happen in the second half of this year. As we get back to work and the financial landscape of the country begins to turn around, many experts also agree that real estate has the potential to lead the way in the recovery process.

According to Ivy Zelman of Zelman & Associates:

 “Housing will fare better than expected during this severe downturn.”

In addition, CNBC notes:

“Mortgage demand from home buyers shows unexpectedly strong and quick recovery…The quick recovery has surprised most forecasters.”

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The Shocking News in the Unemployment Report

Last Friday, the U.S. Bureau of Labor Statistics released their May Employment Situation Summary. Leading up to the release, most experts predicted the unemployment rate would jump up to approximately 20% from the 14.7% rate announced last month.

The experts were shocked.

The Wall Street Journal put it this way:

“The May U.S. jobless rate fell to 13.3% and employers added 2.5 million jobs, blowing Wall Street expectations out of the water: Economists had forecast a loss of 8.3 million jobs and a 19.5% unemployment rate.”

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Plantation Bay Ormond Beach Florida Gated Community Homes For Sale under $350K

Plantation Bay Ormond Beach Florida Gated Community Homes For Sale under $350,000

These are the best deals in Plantation Bay here in Ormond Beach. If you’re looking to move to Florida and live in a gated community why not the best? Plantation Bay in Ormond Beach. I have sold a lot of homes in this community. I would love to help you with your next home right here in Plantation Bay as well.  Give me a call, let’s talk about live in Florida! Let’s talk about what it’s like to drive over to the beach just 8 minutes from the front gate. Lets talk about you new life here in sunny Ormond Beach FL.

I’m here to help you find your new home! Check out the complete list of everything for sale in Plantation Bay

View All Homes For Sale In The Gated Community Of Plantation Bay

View the latest homes for sale in Plantation Bay below!

Top 10 Current Most Expensive Condos For Sale

Luxury Condos For Sale In The Greater Daytona Beach Area.

Here are the Top 10 Current Most Expensive Condos For Sale in the greater Daytona Beach area. Find your new luxury oceanfront condo at a fraction of the price of the bigger cities in Florida. Check out what so many people looking for affordable luxury oceanfront condos choose the Daytona Beach area.

View Luxury Condos Below

View more photos of this oceanfront condo unit

This condo is a 4 bedroom, 4 bathroom home in the community of Ponce Inlet. $1,250,000
Click here to see more information and photos of this luxury condo.

CUSTOM ONE OF A KIND 4 BEDROOM 4 BATH. OVER 4400 SQ FEET. This is an exclusive property where two units were combined into one during construction of the building. This open spacious residence is truly one of a kind where you have two private spacious balconies overlooking the Atlantic and a family room facing the Intracoastal Waterway. All of this nestled in the quaint and quiet town of Ponce Inlet The towns peaceful charm will quickly transport you to the lifestyle you are searching for. All of this sits on a lush barrier island midway between the Atlantic Ocean and the Halifax River. As you enter this sandcastle you will find the expansive family room that is over 30 feet wide and a living room that is 39 feet wide.…

 

View more photos of this oceanfront condo unit

This condo is a 3 bedroom, 3 bathroom home in the community of Daytona Beach Shores. $1,100,000
Click here to see more information and photos of this luxury condo.

SOUTHEAST CORNER***FULLY FURNISHED WITH 3 DIRECT OCEANFRONT MASTER BEDROOM SUITES***3 ASSIGNED PARKING SPACES ***The iconic residences at Ocean Villas! A chance to own a dream! The very embodiment of ultra-luxe Atlantic Coast living. Rare and coveted direct oceanfront 5th floor corner unit. As you walk into this home, it will take your breath away! Astonishing views of the beach and Atlantic Ocean. This corner unit is flooded with natural light! Wood, Tile and granite throughout. Gas flame fireplace in living room. The gourmet kitchen has granite countertops, tile backsplash,GE Profile stainless appliances, Sub-Zero refrigerator and a Wolfe cook top. Wine chiller too. 3 direct oceanfront master bedroom suites with walk in closets. Jacuzzi tub in Master. Full laundry room with tub.…

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Fla. Moves a Step Closer to ‘Normal’ Under Phase 2 Reopening

Gov. DeSantis announced that Phase 2 of the state’s 3-step reopening plan will go into effect on Friday morning. It doesn’t change real estate services that were already deemed essential, but it could give hope to some buyers and sellers who pulled back during the pandemic.

ORLANDO, Fla. – Florida Gov. Ron DeSantis announced that Phase 2 of the state’s 3-step reopening plan will go into effect on Friday morning through Executive Order 20-139.

It doesn’t change real estate services that were already deemed essential, but it should give hope to some buyers and sellers who pulled back during the pandemic. The changes don’t apply to the South Florida counties of Miami-Dade, Broward and Palm Beach, but the order allows some businesses in the counties to reopen “after each county seeks approval with a written request from the County Mayor or if no mayor the County Administrator.” Continue reading…

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