How to decorate an area in my home?

We have moved into a new house and the upstairs has hardwood floors and a beautiful bay window with an empty space in front of it.

I'd create a separate reading area in that space, and build in a window seat. Bay windows are a great place to put window seats.

If you have the seat created for you, I'd put shelves below to store books or knick-knacks. I'd put a large, puffy cushion on the seat and several throw pillows to make it comfy for reading. If you have the space along the sides, get a couple of built ins for extra storage.

On your floor, add a space defining area rug. Area rugs are a must have for hardwood floors, as they add extra comfort and separate your areas. A contemporary area rug  is a great addition to any room.