REAL ESTATE TRENDS: WHAT’S DRIVING FLORIDA BUYER DEMAND?

2022 Real Estate Trends: Millennials are prime homebuyers for years to come and interest rates will rise. This year’s wild cards? Inflation and unexpected virus variants.

 

What trends should consumers, Realtors® and policymakers watch for when it comes to Florida real estate over the next year? Drivers for homebuyer demand include demographic shifts, changes in consumer housing preferences – like location, home size and lot size – still-low mortgage rates and rapidly rising rental prices, Florida Realtors® Chief Economist Dr. Brad O’Connor told more than 300 Realtors® during the 2022 Florida Real Estate Trends Summit.

“The biggest wave of millennials is now in their mid-30s and they’ll be in prime homebuying years for some time to come,” O’Connor said. “And who are they buying from? The Gen Xers – and there are a lot more millennials than Gen Xers. And, here in Florida, retirees are a pretty big deal – combined with the millennials, that puts pressure on the market.”

The event was part of this year’s Florida Realtors’ Mid-Winter Business Meetings at the Renaissance SeaWorld Orlando. In addition to O’Connor, the summit featured Dr. Jessica Lautz, vice president of demographic and behavioral insights at the National Association of Realtors® (NAR). She shared her thoughts on buyer demand via a recorded Q&A. It also included a panel discussion on buyer motivation featuring Deanna Armel, broker-owner, Armel Real Estate; John Boyd, principal, The Boyd Company; Melanie Schmees, director of business and economic research, Greater Naples Chamber of Commerce; and Kelly Smallridge, president and CEO, Business Development Board of Palm Beach County.

Dr. Brad O’Connor, Florida Realtors chief economist

Analysts are waiting to see what will happen with inflation and how that will impact interest rates long term, O’Connor said, noting that some predictions call for the 30-year fixed rate mortgage to be as high as 4.5% by the end of the year. “That’s what we experienced a few years ago, and if that happens, it will certainly impact buyer demand and financing. We’ll see the market change and return to similar conditions,” he said.

Homebuilding and supply will also be a factor to watch when it comes to buyer demand.

“It’s a long-run problem; we have a long way to go when it comes to building,” O’Connor noted. “We need construction workers. Builders continue to face constraints but have been building at the fastest pace in recent memory. However, high prices and low rates of starter home construction will remain a challenge.”

Looking at 2021, Florida Realtors latest housing data shows that Florida’s housing market had more than 528,000 sales of existing homes (all types), up 19% year-over-year – a total dollar volume of about $241 billion – despite the ongoing COVID-19 pandemic.

“In terms of sales, 2021 could also be called ‘The Year of the Condo’,” O’Connor said. “Over 160,000 existing homes in the condo and townhouse category sold in 2021, marking a more than 34% increase over 2020’s total. In contrast, the over 350,000 sales in the single-family home category, while over twice the size in number, represented only about a 13% increase year-over-year.”

The lack of inventory impacted the housing market statewide over the year.

“We got our hopes up for inventory, but except for a few months, that didn’t happen,” he said. “We started the year with a 1.6-month’s supply of existing single-family homes, but we ended 2021 with a 1-month’s supply – and in many of your local markets, it’s down to a half-a-month’s supply. For years, Florida has had more existing condos than single-family homes, but by the end of the year, existing condos and townhomes are down to a 1.3-month’s supply, which is very close to the single-family category.”

Dr. Jessica Lautz, NAR vice president of demographic and behavioral insights

The median age of a first-time homebuyer is 33 years, the same age it has been for several years, Lautz said, noting NAR research found that first-time buyers usually are in a tight age range of 28-33 years.

“However, the age of typical repeat buyer has increased significantly,” she said. “Repeat buyers’ median age is 56 years, and some may be looking to downsize, which can be added competition for the first-time buyers.”

At the beginning of the pandemic, there was a quick uptick in multigenerational buyers as older parents came to live with their adult children and their families, who also may have had college age or older children come back home, according to Lautz. It has since leveled off to about 11%.

When asked about research on buyers and sellers working with real estate brokers and agents, Lautz noted that “agent use is trusted.”

“People are embracing technology and using technology with real estate professionals,” she said. “Agent use is extremely high now; 87% of buyers today are working with real estate agents, and the youngest buyers out there are using agents at the highest rates. For sellers, 90% are using an agent, and they’re working with someone who will be a one-stop shop for them with a broad range of expertise who will handle it all.”

She added that FSBOs (For Sale By Owner) are at historic lows at just 7% today.

Finally, more people see the real estate industry as “a refuge” right now. It’s attracting people seeking flexibility and independence – especially more women, according to Lautz.

“We see this wave of more Realtors entering NAR membership (1.5 million) than ever before,” she explained. “And we’re seeing more women agents and brokers. It’s a pretty stark change from 1978 to today.”

 

Source: Florida Realtors®

2021 FLORIDA HOUSING MARKET: STRONG GAINS DESPITE COVID

Florida Realtors®’ Dec., 4Q and 2021 data: Year-end single-family sales up 12.9%, median prices up 20% ($348K); condo sales up 34.2%, prices up 17.2% ($252K).

 

Despite the ongoing COVID-19 pandemic and continuing economic stressors over the year, Florida’s housing market wrapped up 2021 with more sales, higher median sale prices and more new listings compared to 2020, according to the latest housing data released by Florida Realtors®.

Year End 2021

Florida Realtors® Chief Economist Dr. Brad O’Connor pointed out that 2021 was a notable year for the state’s housing market.

“In all, there were over 528,000 total sales of existing homes (all types) in 2021 – an increase of 19% over 2020’s total,” he says. “The dollar volume of these sales totaled nearly $241 billion, which, because prices also swelled in 2021, represented an increase of over 48%.”

Statewide closed sales of existing single-family homes totaled 350,516 at the end of 2021, up 12.9% compared to the 2020 year-end level, according to data from Florida Realtors’ research department in partnership with local Realtor boards/associations. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

The statewide median sales price for single-family existing homes at year’s end was $348,000, up 20% from the previous year. The median is the midpoint; half the homes sold for more, half for less. New pending sales for existing single-family homes rose 5.7% at the end of 2021 compared to the previous year, while new listings for single-family homes were up 7.1% from a year ago.

Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 160,177 units sold statewide in 2021, up 34.2% over 2020. The statewide median price for condo-townhouse properties at the end of the year was $252,000, up 17.2% from the previous year. New pending sales for condo-townhouse units for the end of 2021 increased 29.2% compared to a year ago, while new listings for condo-townhouses rose 5.5% from year-end 2020.

Statewide, the number of cash sales doubled year-over-year in both property type categories at the end of 2021, up 53.2% for single-family existing homes and 50.2% for condo and townhouse units.

According to Florida Realtors’ data, at the end of 2021, in December 2021 and also for 4Q 2021, inventory (active listings) for single-family homes stood at a 1.0-months’ supply, while inventory for condo-townhouse properties was at a 1.3-months’ supply.

“Inventory levels at year’s end were dangerously low in both property type categories,” Dr. O’Connor says. “With inventory as low as it is now, early 2022 isn’t looking so great for prospective buyers in either property type category. Current homeowners, however, continue to have the opportunity of a lifetime in the strongest seller’s market in ages.”

The interest rate for a 30-year fixed-rate mortgage averaged 2.96% for 2021, down significantly from the previous year’s average of 3.11%, according to Freddie Mac.

December 2021

In December, closed sales of single-family homes statewide totaled 29,988, down 1.6% from December 2020, while existing condo-townhouse sales totaled 12,789, a slight uptick of 0.3% year-over-year, according to Florida Realtors’ data.

The statewide median sales prices for both existing single-family homes and condo-townhouse properties rose year-over-year in December. The statewide median sales price for single-family existing homes was $373,990, up 21% from the previous year. Meanwhile, the statewide median price for condo-townhouse units was $285,000, up 23.9% over the year-ago figure.

Statewide, cash sales increased year-over-year in both property type categories in December, up 27.5% for single-family existing homes and 13.8% for condo and townhouse units.

4Q 2021

Statewide closed sales of existing single-family homes totaled 85,157 in the fourth quarter of 2021, down 1.6% compared to the year-ago figure, according to Florida Realtors’ data. The statewide median sales price for existing single-family homes for 4Q 2021 was $365,000, up 19.3% from 4Q 2020.

Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 35,820 units sold statewide in 4Q 2021, remaining at relatively the same level compared to the same period a year earlier (down 0.1%). The statewide median price for condo-townhouse properties for the quarter was $272,000, up 20.4% over the previous year.

Cash sales increased year-over-year in both property type categories in 4Q 2021, up 31.2% for single-family existing homes and 13.3% for condo and townhouse units.

Looking ahead in 2022, Chief Economist O’Connor said mortgage rates trends will impact ongoing market conditions.

“With the Federal Reserve now getting serious about tapering its mortgage and bond purchases, as well as preparing to raise the federal funds rate later this year, we should expect mortgage rates to rise in the coming weeks,” he said. “This increase has been underway for a couple of weeks already. If these increases are sustained, then we should eventually expect some slowdown in the rate of price growth, which on the whole is probably a good thing as our economy continues to recover from the impacts of the pandemic.”

To see the full statewide housing activity reports, go to the Florida Realtors’ Newsroom and look under Latest Releases or download the December, 4Q or Year End 2021 data report PDFs under Market Data on the site.

 

Source: Florida Realtors®

MLK Day Honor for NAR Past President

The late Charles McMillan, a former National Association of REALTORS® president, was one of more than 100 Black veterans memorialized at a Jan. 15 event in Grand Prairie, Texas, marking Martin Luther King Jr. Day. The event took place at Antioch Life Park Cemetery, where McMillan is buried.

 

Courtesy of Kaki Lybbert

NAR Vice President of Advocacy Kaki Lybbert, right, and her husband, Roger Foster, pay tribute to the late NAR President Charles McMillan, as part of an MLK Day ceremony in Grand Prairie honoring Black veterans.

 

McMillan was NAR’s first Black president and a towering figure in the association’s history, known for his wisdom and grace in good times and bad. As 2009 president, he helped guide the association through the worst economic downturn since the Great Depression, advocating on behalf of not just REALTORS® but also the public. “Consumers need to know that we have their best interests at heart,” McMillan told REALTOR® Magazine at the start of his term. “REALTORS® are a preeminent advocate for private property rights and a natural ally for consumers.”

Many of Dallas’s first African American settlers, including former slaves, are buried at Antioch Life Park Cemetery, says Angela Luckey, president of the Grand Prairie NAACP and organizer of the event. Luckey, who also serves on the Grand Prairie Parks and Recreation board, leads the town in honoring veterans several times during the year.

Kristin Smith, a REALTOR® and the daughter of 2022 NAR President Leslie Rouda Smith, and Kaki Lybbert, 2022 NAR vice president of advocacy, were on hand to honor McMillan and lay a wreath on his gravestone. “He was a man of so much character, love, advice, and wisdom,” said Smith during the ceremony. “He was someone you could count on. We want to thank him for his service…and everything he contributed…especially to the REALTOR® family.”

McMillan served two terms in the Air Force, earning the rank of staff sergeant. He died in 2017. He would have been 70 on Jan. 11.

Majority of Americans Plan to Splurge on These Top 10 Things–After Missing Out in Pandemic

The “Roaring 20s” are just around the corner for seven in 10 Americans who plan to go all out with their finances in the coming years by enjoying what they missed out on in the last two years.

A survey of 2,000 adults found 70% are looking to have more fun with their finances over the next decade, with 84% believing those plans to spend more freely are due to having built a financial safety net during the pandemic.

Fifty-nine percent of Gen Zers (ages 18 to 24) are more likely to enjoy their money in the coming years, compared to 45% of millennials (ages 25 to 40) and 25% of Gen Xers (41 to 56).

On the other hand, 36% of boomers (57+) plan to stick to a very tight budget, while still enjoying themselves by spending some of their money.

When it comes to emergency funds, close to three-quarters (73%) have a savings account set up for when they need it most—with an average of $3,816.

Commissioned by Alliant Credit Union and conducted by OnePoll, the survey revealed 77% of millennials have retooled their budgets since the pandemic began, as compared to an average of 72% of all generations.

A third of those polled (31%) prefer spending money on experiences, and a quarter (25%) on material things.

Over the next decade, respondents want to spend more money on:

1. Traveling – 44%

2. Home goods/decor – 40%

3. Consumer electronics – 38%

4. Restaurants – 37%

5. Groceries – 37%

6. Clothing – 37%

7. Live entertainment – 37%

8. Shoes – 29%

9. Museum exhibits – 27%

“The last couple of years have helped us all realize what we value most,” said Director Chris Moore, of Alliant Credit Union. “Saving for retirement and a rainy day is incredibly important, but so is spending money on the things that bring you joy each day.”

“As long as you realistically budget for it, you can truly enjoy spending money on that next vacation or new gadget,” she added.

Still, a majority believe that with great fun comes great responsibility. Four in five of respondents are careful with their finances, with 73% of people regularly following a monthly budget.

Of all generations, Gen Xers describe themselves as the most cautious with their finances (87%), compared to seniors over 76 (84%), boomers (83%), millennials (78%) and Gen-Z (76%).

Many respondents even use spreadsheets (45%) and budgeting apps (38%) to help them stay on top of purchases.

“Every successful budget needs a ‘fun’ spending category,” assures Moore. “The key is to set realistic savings goals and budget accordingly so you know exactly how much you can spend on the things you love—and it’s OK to adjust your budget each month to spend extra on the experiences for which you’ve been missing out.”

How many home offers face bidding wars?

Three in five home offers faced bidding wars in December 2021, according to new figures from Redfin.

Data revealed that 59.6% of home offers written by Redfin agents across the US faced bidding wars in December 2021 – the lowest share in 12 months and down from a revised rate of 61.3% in November, but up from 54% in December 2020.

Salt Lake City in Utah had the highest bidding-war rate of the 37 US metropolitan areas in Redfin’s analysis, with 74% of offers written by Redfin agents facing competition in December. This was followed by Tucson, Ariz. at 73.1%, San Diego, Calif. at 71.1%, Virginia Beach, Va. at 70.6% and Seattle, Wash. at 70%.

Redfin data also revealed that offers on homes in the upper end of the market faced bidding wars more often in December, with nearly two-thirds (64.6%) of offers for homes priced between $800,000 and $1 million experiencing bidding last month, the highest share of any price bucket. This was followed by homes in the $1 million to $1.5 million range (62%), and by homes priced over $1.5 million (61.7%).

“Competition has dipped in recent months partly because the housing market typically slows in the winter, with many buyers and sellers taking a break during the holidays,” Redfin said in its report. “But while the bidding-war rate has fallen from its pandemic peak of 74.6% in April 2021, the housing market remains quite competitive as house hunters grapple with a record shortage of homes for sale.”

 

NAR Report Highlights Sustainability Achievements

To make its commitment to sustainability accountable to members and the public, the National Association of REALTORS® released its first report to show its progress on multiple fronts. Its ESG+R Report highlights four categories where NAR has committed to making a difference: environment, social, governance, and resilience.

“Leading by example, NAR is driving the real estate industry toward a more efficient and sustainable future,” says NAR CEO Bob Goldberg. “As part of this responsibility, we are strengthening the association’s support of sustainability efforts and increasing engagement on policies and programs that prioritize viability, resiliency, and adaptability. We are working to generate meaningful, lasting change that will benefit both current and future generations.”

By category, NAR’s major sustainability achievements in 2021 include:

Environment: These actionable items had specific and positive impacts, including a reduced energy use and environmental footprint, and helped raise awareness through reports and educational opportunities.

• The Chicago headquarters’ Master Vision Project: Started in 2018, this project has been the first major update to NAR’s building in 60 years. Under normal operations, these changes are expected to bring up to 25% in energy savings from the installation of new mechanical systems and a 75% reduction in energy consumption from the new elevator system. Materials, resources, and waste tracking all aim to meet LEED standards.


• The incorporation of sustainability into C2EX: NAR members earning their C2EX endorsement will now have opportunities to learn about sustainability concepts and how they relate to real estate.

Social: The association led or participated in activities, initiatives, and events to engage employees and communities that promote sustainability and offer opportunities for health, equity, and well-being.

• NAR’s new core value for all employees—advance diversity and inclusion: This new core value established for all NAR employees solidifies the association’s commitment to respecting diversity throughout the organization. It also supports the commitment to an inclusive workplace environment where everyone feels safe to express their authentic self.


• NAR partnership with the Food Recovery Network: In 2021, NAR continued its partnership with FRN to donate unused food portions from major meetings to those most in need. To date, NAR has provided more than 4,170 pounds of unserved meals to local organizations. NAR is asking state and local REALTOR® associations to join this effort by pledging to donate unserved meals at events in their local communities.


• The Home Performance Counts joint initiative with NAR and the National Association of Home Builders: This initiative unites REALTORS® and builders to collaborate with clients on high-performance homes.

Governance: This reflects the introduction of sustainability concepts to members and to state and local associations, using an approach that integrates sustainability into all areas of the hierarchy.

• Partnership with National Oceanic and Atmospheric Administration: NAR and NOAA developed a partnership that keeps members informed on how weather events affect housing and markets.


• 2021 Sustainability Summit: This event, hosted virtually in 2021, included members, industry affiliates, and external partners. Select sessions were streamed to make content more available to the membership.


• Changes to NAR’s Sustainability Advisory Group: This group now includes all chairs who sit on the Public Policy Coordinating Committee and NAR’s vice presidents of advocacy and association affairs.

Resilience: This reflects short- and long-term actions that help REALTORS® and communities respond to and prepare for extreme weather and a changing climate.

• Flood Factor data on realtor.com®: Realtor.com® now includes flood risk data from Flood Factor on each listing to help assess flood risk on individual properties, allowing property owners to accurately evaluate the risk on their properties and prepare for future flooding events.


• NAR’s Smart Growth grants and Placemaking program: This program supported state and local associations in the creation of parks, trails, and community gardens. The natural surfaces of these projects enhance stormwater absorption, and gardens can provide a source of food to help to improve a community’s resiliency.


• NAR support for FEMA’s Risk Rating 2.0: On Oct. 1, the Federal Emergency Management Agency began phasing in a new flood insurance pricing system called “Risk Rating 2.0: Equity in Action.” NAR supports this new system that prices flood insurance for each home individually rather than by flood zone. The adoption of more modern insurance industry technologies, standards, and practices will allow FEMA to rate more precisely and accurately by using more flood risk factors and property-specific characteristics, NAR says. This could allow consumers to make more informed decisions about the risks and costs of insuring a property. Read more: What You Should Know About FEMA’s Risk Rating 2.0

For a complete list of 2021 NAR sustainability achievements, view the ESG+R Report.

 

Source: “ESG+R Report,” National Association of REALTORS® (Jan. 11, 2022)

ST. LUCIE MEDIAN HOME PRICE INCREASES 24.3% IN 2021

Just in! 2021 Year-End Market Reports released from Florida Realtors® detailing recent real estate activity in St. Lucie County. The reports compare year-over-year data for 2021. Here are statistics on single family homes.

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“2021 was an extremely successful year for real estate in the Treasure Coast and especially in St. Lucie County. We saw a 14.6 percent rise in closed sales to 7,302, and the median sale price increased a whopping 23 percent to $307,500. Also, homes were flying off the market. The median time to contract was 10 days, a 66.7 percent decrease from 30 days in 2020,” said Carlos A. Melendez, President of Broward, Palm Beaches & St. Lucie Realtors®.

Median sale price is our preferred summary statistic for price activity, because unlike average sale price, median sale price is not sensitive to high sale prices for small numbers of homes that may not be characteristic of the market area. Meanwhile, time to contract measures the number of days between the initial listing for a property and the signing of the contract which eventually led to the closing of the sale.

“I am proud of my Realtor® family at Broward, Palm Beaches & St. Lucie Realtors® and how quickly we were able to help our communities grow in such a short amount of time. We finished the year strong, and it is also worth noting that 698 of those sales closed during the month of December at a median sale price of $334,950. Looking back on the success of 2021, we proved that our area is one of the premier regions for real estate in the country. If you are thinking about buying or selling, contact a local Realtor® today for their expertise on the market and how they can help you accomplish your real estate goals for 2022,” continues Melendez.

2021 Market Reports: Single Family (Opens as PDF.) | Townhouses/Condos (Opens as PDF.)

December Market Reports: Single Family (Opens as PDF.) | Townhouses/Condos

US foreclosure activity falls to all-time low

Foreclosures and repossessions in the US dropped to their lowest ever levels in 2021, a new report issued jointly by ATTOM and RealtyTrac has found.

 

Figures from the property analytics firm and RealtyTrac, a marketplace specializing in foreclosure and distressed properties, show that the number of properties in foreclosure last year dropped by 29% compared to 2020 and by a staggering 95% from a peak of almost 2.9 million in 2010, representing the lowest level since records began in 2005.

The Year-End 2021 US Foreclosure Market Report gathered data over the course of 2021, based on publicly recorded and published foreclosure filings collected in more than 3,000 counties across the country, accounting for more than 99% of the US population.

In total, there were 151,153 properties with foreclosure filings. These included default notices, scheduled auctions and bank repossessions.

The report also revealed that repossessions in 2021 dropped to the lowest ever level. Lenders repossessed a total of 25,662 properties through foreclosure last year, representing a 49% drop compared to 2020. This was 98% down from a peak of more than one million properties in 2010.

According to Rick Sharga, executive vice president at RealtyTrac, the figures show that predictions of massive foreclosures had been wide of the mark.

He said: “The COVID-19 foreclosure tsunami that some people had anticipated is clearly not happening. Government and mortgage industry efforts have prevented millions of unnecessary foreclosures, and while it’s likely that we’ll see a slight increase in the first quarter, we probably won’t see foreclosure activity back to normal levels before the end of 2022.”

However, he pointed out that the government’s foreclosure moratorium and the mortgage forbearance program had kept foreclosure starts “artificially low over the past year”.

He said: “While the recovering economy should prevent a huge increase in defaults, we should see a gradual increase in foreclosure activity as these programs expire, and servicers exhaust all loan modification options for delinquent borrowers.”

The report included new data for December, showing there were 17,971 US properties with foreclosure filings, down 8% from the previous month but up 65% from a year ago.

Sharga added: “We believe that repossessions will continue to be lower than normal throughout 2022. Homeowners have a record amount of equity – over $23 trillion – and over 87% of homeowners in foreclosure have positive equity. This means that most borrowers will have an opportunity to sell their house at a profit rather than lose everything to a foreclosure auction.”

Broken down by states, Illinois, Florida and California reported the largest number of properties in foreclosure (REOs), respectively.

Metropolitan areas with a population greater than one million with the greatest number of REOs included Chicago, Illinois (1,733 REOs); St. Louis, Missouri (1,255 REOs); and New York (814 REOs).

Foreclosure starts were also at a record low throughout the country, down by 30% from 2020 and 96% from a peak in 2009.

Only four states bucked the trend with an annual increase in foreclosure starts – South Dakota (up 20%); Vermont (up 36%); North Dakota (up 71%); and Nevada (up 85%).

Additionally, three metropolitan areas with a population greater than one million saw an annual increase. They included Birmingham, Alabama (up 4%); Miami, Florida (up 17%); and Las Vegas, Nevada (up 142%).

MPA spoke to a number of brokers about the data. None were surprised by the figures, and all coincided with Sharga’s views regarding positive equity.

Yury Shraybman (pictured top), broker at Innovative Mortgage Brokers in Philadelphia, said: “People have a lot more equity in the property than they did before. The average person has only about 40% or so on the loan, so there’s approximately 60% equity in the property.

“Because of that they’re not going to allow foreclosure or repossession – they’re going to sell that property and take a profit. That’s the reason why those numbers are low, and it totally makes sense,” he said.

Kirk Tatom (pictured immediately above), the president of Dallas-based Tatom Lending, agreed that homeowners’ equity had helped to stave off foreclosures.

He said: “The more skin you got in the game, the less likely you are to walk away from that property. They’ll default on their credit cards, they’ll stop eating out, they will take a second job or start selling their belongings – they’ll do whatever it takes.

“When you have such an increase in property values, as we have had over the last 36 to 48 months, people will not walk away from that, they just can’t lose that money.”

Dalton Elliott, director of sales and customer experience at Lima One Capital, said the major difference this time around was that people had been financially cushioned from the worst aspects of a health crisis.

“Much of that is tied back to the multiple lifelines that the government threw out over the last 18 months. That allowed people to have enough money in their pocket. Pumping money into the economy made sure we didn’t cross the line from recession to depression,” he said, adding that in his view it had been “a positive thing for the US economy”.

Florida Company Offering Workers a Home in Giveaway

The “Great Resignation” has become a pressing threat to companies, who have been witnessing a large number of their workforce leave. More companies are offering bonuses or higher pay to keep employees from leaving. One central Florida company believes they found the perfect hook to keep their workforce in place: A home giveaway. The company will offer two newly built homes– mortgage-free.

Mechanical One, a newly opened air conditioning and plumbing company of about 100 employees in Altamonte Springs, Fla., says it will hold a drawing and two employees will win the free houses. The company has purchased two lots for three-bedroom, two-bath homes. They’re allocating $500,000 for the project.

“My passion is really trying to reinvent employee appreciation,” Jason James, president and CEO, told the Orlando Sentinel last month about the drawing. “Our business model is really, if we take care of our people, they are going to do more for us than any marketing budget.”

James said a home incentive seemed more luring than a car or vacation giveaway. “Many of our employees own a home already, but a lot of them rent,” he adds.

Eligible employees for next December’s drawing must be with the company for a full year. They also must take a financial literacy class, which will be paid for by the company, and complete 20 hours of community service at a nonprofit of their choosing.

Anthony Mitchell, an operations manager for Mechanical One, said employees are excited about the chance to win a free home. “There’s nothing like coming home to the wife and saying, ‘Honey, I’m bringing home a new house,’” he said.

 

Source: “Workers Who Stick With This Company Could Get a Mortgage-Free Home,” Orlando Sentinel (2021) [Log-in required.] and “Florida Company Offers 2 Free Homes to Lure, Keep Workers,” The Associated Press (2021)

US home sale price surges to new high

The median US home sale price surged to an all-time high last week, according to new data from Redfin.

The firm revealed that the median home sale price increased by 16% year-over-year to $365,000 during the week ending January 09.

Redfin pointed to lingering supply issues and increasing demand as reasons for the surge in prices.  “Prices keep climbing because the supply drought keeps deepening while demand increases,” the firm said in a statement. “The number of homes for sale fell to a new low as listings hit the market at a slower rate than they did early last year. Yet homebuyer activity—as measured by the Redfin.  Homebuyer Demand Index—jumped 9%. Mortgage rates rose to 3.45% during the seven days ending January 13, making homebuying more expensive as overall inflation hit a 40-year high.”

 

“Homebuyers are touring nearly every home that comes on the market, waiving every contingency, offering $100,000 over asking price, and still losing out to 9+ other offers,” said Jennifer Ciacci, a Redfin real estate agent in Portland, Ore. “As competitive as the market is right now, I advise buyers not to write an offer on a home they don’t really like. The home needs to work for what they want and need, and if it checks off those boxes, that’s when you go all-in and take your best shot. But protect your heart; this isn’t an easy market.”

“The stage is now set for the most competitive January housing market in recorded history,” said Daryl Fairweather, chief economist at Redfin. “Buyers are pouring into the market to claim a home before mortgage rates rise further as new listings slow to a trickle. The conditions are becoming increasingly challenging for first-time homebuyers, who will have to compete against more experienced buyers who are willing to do whatever it takes to win. But I expect that by the time mortgage rates increase to 3.6%, competition will settle down quickly to levels similar to late-2018.”

I have a Dream: In honor of Dr. Martin Luther King Jr.

I have a dream that one day on the red hills of Georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood.

I have a dream that one day even the state of Mississippi, a state sweltering with the heat of injustice, sweltering with the heat of oppression will be transformed into an oasis of freedom and justice.

I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character. I have a dream today.

I have a dream that one day down in Alabama with its vicious racists, with its governor having his lips dripping with the words of interposition and nullification, one day right down in Alabama little Black boys and Black girls will be able to join hands with little white boys and white girls as sisters and brothers. I have a dream today.

I have a dream that one day every valley shall be exalted, every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made straight, and the glory of the Lord shall be revealed, and all flesh shall see it together.

This is our hope. This is the faith that I go back to the South with. With this faith, we will be able to hew out of the mountain of despair a stone of hope. With this faith we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood. With this faith we will be able to work together, to pray together, to struggle together, to go to jail together, to stand up for freedom together, knowing that we will be free one day.

This will be the day when all of God’s children will be able to sing with new meaning: My country, ’tis of thee, sweet land of liberty, of thee I sing. Land where my fathers died, land of the pilgrims’ pride, from every mountainside, let freedom ring.

And if America is to be a great nation, this must become true. And so let freedom ring from the prodigious hilltops of New Hampshire. Let freedom ring from the mighty mountains of New York. Let freedom ring from the heightening Alleghenies of Pennsylvania. Let freedom ring from the snowcapped Rockies of Colorado. Let freedom ring from the curvaceous slopes of California. But not only that, let freedom ring from Stone Mountain of Georgia. Let freedom ring from Lookout Mountain of Tennessee. Let freedom ring from every hill and molehill of Mississippi. From every mountainside, let freedom ring.

And when this happens, and when we allow freedom ring, when we let it ring from every village and every hamlet, from every state and every city, we will be able to speed up that day when all of God’s children, Black men and white men, Jews and Gentiles, Protestants and Catholics, will be able to join hands and sing in the words of the old Negro spiritual: Free at last. Free at last. Thank God almighty, we are free at last.

 

Which states are the best and worst to raise a family?

Experts urge affordable housing programs in bid to attract young families

 

Personal-finance website WalletHub has released its report on 2022’s Best and Worst States to Raise a Family.

The survey compared all 50 states across 51 key indicators, including life expectancy, neighborhood support, annual family income and unemployment rates. Housing affordability was also evaluated, and those polled were asked about housing costs and mortgage debt.

Massachusetts came top overall with a score of 65.21 out of 100, followed by New York (61.81) and Vermont in third place. The worst performing states were Louisiana, New Mexico and Mississippi (30.47), respectively.

Iowa, Nebraska and North Dakota were the three states with the best access to affordable housing, while Colorado, Oregon and New York were ranked as the most expensive or least affordable.

Among the most salient points, Utah reported the lowest separation and divorce rates, which were up to 1.7 times lower than in Nevada, the highest at just over 26%.

New Hampshire had the lowest share of families living in poverty, while Mississippi accounted for the highest at 15.5%.

South Dakota reported the lowest average annual cost of early childcare – up to 1.8 times lower than in Nebraska.

Maine listed the fewest number of violent crimes (per 1,000 residents) – up to 7.7 times fewer than Alaska, the state with the most along with Arkansas, Louisiana, New Mexico and Tennessee.

Unsurprisingly, the poorest states also had some of the worst crime, divorce and infant mortality rates.

WalletHub asked a panel of experts for their views, and all welcomed President Biden’s proposals on paid family leave and childcare.

Professor Aruna Jha, from the University of Wisconsin, said banking agreements allowing the purchase of low-cost first homes, as well as access to affordable rental properties, should be high on the list of priorities for states in their efforts to attract young families.

Easy access to amenities, along with a safe downtown area, good governance and jobs that provided “a decent living wage” would also make states more attractive for this demographic group.

In her estimation, employment and economic stability, affordable and ample housing, and healthcare should be the top three priorities for young families.

Patty Kuo, assistant professor of child, youth and family studies at the University of Nebraska, welcomed President Biden’s national proposal to provide access to paid leave, saying it “would benefit the Americans who are currently being left out” as well as those who “have to make impossible choices between a paycheck or physically caring for a child/family member when they need them the most”.

Professor Heidi Stolz, from the University of Tennessee, in Knoxville, was asked how authorities could make states more attractive to young families.

She said: “States can invest in education, and cultivate and feature other family-friendly resources for which they would like to be known.

“But the real issue is providing high-quality building blocks to the families who already reside in the state, and particularly to those who were not able to select a resource-rich community.”

She was highly critical of the US government’s record on social care. “You have to leave the states to understand what a truly terrible job we do of supporting families here.

“Although competition and capitalism are the threads of the cultural fabric of America, resource inequality during childhood is bad for absolutely everyone, in the present, and the future.”

Theresa J. Russo, professor of human development and family studies at the State University of New York, ranked employment opportunities and affordable, safe, and quality housing as the top two indicators to evaluate the best states.

Preston A. Britner, professor of human development and family sciences at the University of Connecticut, said mobility in the US had decreased over the past four decades, despite probably having higher rates of geographic mobility than other industrialized nations.

“The reality is that most families do not move across municipal boundaries, much less state lines,” he said.

By contrast, Steven Meyers, professor of psychology at Roosevelt University, noted that the COVID pandemic had led many people to re-assess where they lived.

He said: “Many people have questioned whether they want to remain in their current jobs, and remote working arrangements have disconnected employment locations from their residences. This has allowed families to reconsider long-held assumptions on where the best place to reside would be.”

Fannie Mae unveils free homeownership education course for first-time homebuyers

Fannie Mae has launched a new homeownership education course in an effort to remove the cost barrier for lower-income borrowers to meet the education requirement for more affordable mortgages.

The free online course, called HomeView, provides comprehensive, easy-to-understand content and resources designed to prepare first-time homebuyers for all stages of the homebuying process.

First-time homebuyers are required to take a homeownership education course that meets the national industry standards to qualify for certain mortgage products, including low down-payment loans. The mortgage giant said it has teamed up with consumers and industry experts (housing counselors, mortgage insurers, government organizations) to ensure HomeView content aligns with these standards.

Users who complete the interactive course and get a score of 80% or higher will receive a certificate of completion, which they can share with their lender to meet the education requirement. There is no limit to the number of times users can take the HomeView modules or access the available resources.

“Fannie Mae is committed to creating equitable and sustainable homeownership opportunities for more people. With HomeView, we are providing aspiring homeowners with free tools and information that will demystify the home buying process and put sustainable homeownership within reach,” said PJ McCarthy, vice president of affordable lending and housing equity at Fannie Mae. “Broadening access to quality, trustworthy homeownership education is a proven first step to empowering homebuyers to become successful homeowners. HomeView puts people on the path to buying a home while preparing them for long-term success.”

The pre-purchase homeownership course includes seven interactive learning modules:

• Knowing When You’re Ready


• Saving for Homeownership


• Understanding the Mortgage Loan Process


• Shopping for a Home with a Real Estate Agent


• Making an Offer on a Home


• Getting Ready to Close on Your Loan


• Welcome to Homeownership

 

In addition to the modules, Homeview also provides access to tools such as checklists and calculators, as well as a link to find HUD-approved local housing counselors for consumers who would like additional support. At the time of launch, HomeView content is available in English, with additional language options to be added in the future.

“Having a reliable, single source of information in common, everyday language can make the difference for aspiring homeowners, no matter where they are on their housing journey. That’s why we’re so proud to launch HomeView,” McCarthy said. “As a leader in US housing and mortgage finance for more than 80 years, Fannie Mae is able to provide intuitive, credible, on-demand learning to enable all consumers to become more engaged and informed homeowners. We are investing in a full-lifecycle education portal that will continue to be updated and tested, offering additional resources and support.”

The Most-Read Home Design Stories of 2021

Just how important is the bathtub for resale? From home cosmetic enhancements to spotting serious foundation defects, find what’s creating all the buzz in home design over the past year. The following are the most-read articles in home design at REALTOR® Magazine.

Guide to Residential Styles

Can you tell a Cape Cod from a bungalow? Check out REALTOR® Magazine’s breakdown of common house styles. Learn to highlight the details that give a home character, history, and romance.

Just How Important Is a Bathtub for Resale?

It’s long been believed that every home needs at least one bathtub to attract the widest group of buyers. But with increased interest in big, well-equipped, walk-in showers, does a tub really matter that much?

A Myriad of Home Trends to Gain Momentum in 2021

As homeowners continue to stay in, avoiding the latest spikes in coronavirus infection numbers, many seek new ways to improve their abode’s function, aesthetics, and sense of fun.

7 Fixes to Avoid Major Foundation Problems

Water can damage a foundation in countless ways, so homeowners should look to experts for the dos and don’ts.

9 Decor Trends That Are In and Out

Find out what attracted buyers’ eyes in 2021, and what looks have grown outdated.

 

Source: REALTOR® Magazine

Low Housing Supply Presses on Contract Signings

Pending home sales dropped in November as many markets continued to face a limited supply of homes for sale. Economists, however, are optimistic for more opportunities for buyers in the new year.

The National Association of REALTORS®’ Pending Home Sales Index—a forward-looking indicator of home sales based on contract signings—dropped 2.2% in November, reversing from last month’s increase. All major regions of the U.S. posted declines last month. Pending home sales are also down 2.7% compared to a year ago.

Lawrence Yun, NAR’s chief economist, attributes November’s dip in contract signings to the low housing supply and to home buyers who may be growing more hesitant due to rapidly increasing home prices. The omicron variant may also be creating more hesitancy in the housing market, Yun adds.

Still, he says buyers’ overall appetite for housing remains high. Homes placed on the market go on sale from listed status to under contract in about 18 days, he says.

“Buyer competition alone is unrelenting, but home seekers have also had to contend with the negative impacts of supply chain disruptions and labor shortages this year,” Yun says.“These aspects, along with the exorbitant prices and a lack of available homes, have created a much tougher buying season.”

Yun expects more openings in the housing market in the new year. “While I expect neither a price reduction nor another year of record-pace price gains, the market will see more inventory in 2022 and that will help some consumers with affordability,” he adds.

 

Source: National Association of REALTORS®

7 REASONS TO WORK WITH A REALTOR®

REALTORS® are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics. When you’re buying a home, here’s what an agent who’s a REALTOR® can do for you.

 

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1. 
   

   Act as an expert guide. Buying a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. A knowledgeable real estate agent will know what’s required in your market, helping you avoid delays and costly mistakes. Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.

   
   


2. 
   

   Offer objective information and opinions. A great real estate agent will guide you through the home search with an unbiased eye, helping you meet your buying objectives while staying within your budget. Agents are also a great source when you have questions about local amenities, utilities, zoning rules, contractors, and more.

   
   


3. 
   

   Give you expanded search power. You want access to the full range of opportunities. Using a cooperative system called the multiple listing service, your agent can help you evaluate all active listings that meet your criteria, alert you to listings soon to come on the market, and provide data on recent sales. Your agent can also save you time by helping you winnow away properties that are still appearing on public sites but are no longer on the market.

   
   


4. 
   

   Stand in your corner during negotiations. There are many factors up for discussion in any real estate transaction—from price to repairs to possession date. A real estate professional who’s representing you will look at the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs and allows you to do due diligence before you’re bound to the purchase.

   
   


5. 
   

   Ensure an up-to-date experience. Most people buy only a few homes in a lifetime, usually with quite a few years between purchases. Even if you’ve bought a home before, laws and regulations change. Real estate practitioners may handle hundreds or thousands of transactions over the course of their career.

   
   


6. 
   

   Be your rock during emotional moments. A home is so much more than four walls and a roof. And for most buyers, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you when emotions threaten to sink an otherwise sound transaction.

   
   


7. 
   

   Provide fair and ethical treatment. When you’re interviewing agents, ask if they’re a REALTOR®, a member of the National Association of REALTORS®. Every member must adhere to the REALTOR® Code of Ethics, which is based on professionalism, serving the interests of clients, and protecting the public.

   
   

HUD ALLOCATES $2M FOR FLORIDA VETERAN HOUSING

The money goes to 10 local agencies across the state. Nationwide, HUD is providing $18M to support U.S. vets facing or experiencing homelessness.

The U.S. Department of Housing and Urban Development (HUD) awarded over $18 million in HUD-Veterans Affairs Supportive Housing (HUD-VASH) vouchers to 103 Public Housing Agencies (PHAs) in 33 states. The funding supports veterans experiencing homelessness.

In Florida, 10 local agencies have been allocated over $2 million ($2,021,110) of that money, or about 11% of the total.

Florida HUD-VASH recipients

• 
  

  West Palm Beach Housing: $97,690

  
  


• 
  

  Housing Authority of the City of Lakeland: $60,370

  
  


• 
  

  Housing Authority of the City of Miami Beach: $181,395

  
  


• 
  

  Ocala Housing Authority: $110,691

  
  


• 
  

  Hialeah Housing Authority: $527,460

  
  


• 
  

  Tallahassee Housing Authority: $308,607

  
  


• 
  

  Broward County Housing Authority: $325,002

  
  


• 
  

  Delray Beach Housing Authority: $315,656

  
  


• 
  

  Indian River County Board of County Commissioners: $ 43,056

  
  


• 
  

  Citrus County Housing Services: $51,183

  
  

The round of allocations will support 2,050 HUD-VASH vouchers nationally, bringing the total number of current HUD-VASH vouchers to 106,704.

The HUD-VASH program provides housing and support services to veterans experiencing homelessness by combining rental assistance from HUD with case management and clinical services provided by the U.S. Department of Veterans Affairs (VA).

“The HUD-VA Supportive Housing program (VASH) has been a flagship of HUD and VA’s effort to end veteran homelessness,” says HUD Deputy Secretary Adrianne Todman. “Since its inception, VASH has helped tens of thousands of veterans move from homelessness into permanent housing and receive supportive services along the way.”

Source: Florida Realtors®

FLORIDIANS MORE OPTIMISTIC ABOUT THE FUTURE

UF’s monthly sentiment index ticked up 2.6 points in Dec. Current attitudes were mixed, but people showed increased optimism about the economy later this year.

 

After four months of consecutive declines, consumer sentiment among Floridians rose to 72.2 in December, up 2.6 points from November’s revised figure of 69.6. That increase was also reflected in a study of national consumers.

“Though consumer sentiment among Floridians ended 2021 on a positive note, the continuing declines experienced during the second half of the year have left a 10-point gap between this month’s figure and December of last year,” says Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research. “In fact, consumer confidence has been declining over the past two consecutive years.”

Among the five components that make up the total index, four increased and one decreased.

Current conditions: Floridians’ opinions about current economic conditions were mixed. Views of personal financial situations now compared with a year ago decreased slightly, two-tenths of a point from 65.0 to 64.8. In contrast, opinions as to whether it’s a good time to buy a major household item like an appliance increased 2.9 points from 58.3 to 61.2.

UF says that upward trend is shared by all Floridians, and it’s “particularly strong” among people with an annual income above $50,000.

Future expectations: All three components that measure Floridians’ opinions about the future rose this month:

• 
  

  Expectations of personal finances a year from now increased 3.4 points, from 83.9 to 87.3

  
  


• 
  

  U.S. economic conditions over the next year rose 5.1 points, from 68.1 to 73.2

  
  


• 
  

  The outlook for U.S. economic conditions over the next five years increased 2.2 points, from 72.5 to 74.7

  
  

According to UF, those rosier future expectations applied to almost all Floridians except for people age 60 and older, who have pessimistic viewpoints regarding both their personal finances a year from now and the nation’s economic outlook over the next five years.

Attitudes appear to have improved along with other Florida economic indicators.

Florida’s labor market continued to recover in the final months of the year. In November, the state’s unemployment rate was 4.5%, down 0.9% from a year ago. Similarly, new applications for unemployment benefits have remained low. However, inflation accelerated in November reaching a 39-year high.

“The increasing cost of everyday essentials such as food and gasoline could reduce spending elsewhere, thus slowing the economic recovery,” Sandoval says.

“Floridians’ optimistic opinions about the national economy over the next year suggest that they anticipate improved economic prospects in 2022. Nevertheless, the rising Covid-19 cases due to the fast-spreading omicron variant are expected to slow economic activity in the short run, as demonstrated by the recent disruptions in air travel. As a result, we expect consumer confidence to remain weak in the first months of 2022,” Sandoval adds.

 

Source: Florida Realtors®

STUDY SUGGESTS MORE OWNERS READY TO LIST

The current market favors sellers, but owners see slowing price increases and buyers being priced out of the market. Many who held off may decide it’s time to sell.

 

Some possible good news for buyers – more inventory could be headed to the South Florida market in the coming months, as sellers become more willing to list their homes.

A survey of 1,300 consumers by realtor.com, conducted in fall of 2021, revealed that 65% of homeowners across the country planned on selling their home within the next six months, while 26% of homeowners planned on selling their home within the next year.

“Sellers are recognizing that the markets are leaning heavily in their favor, with millions of millennials entering their 30s and seeking to buy their first home while taking advantage of low interest rates,” said George Ratiu, manager of economic research at realtor.com.

It may be good news for buyers, who have been dealing with record low inventory in South Florida over the past year-and-a-half. According to October numbers from the Broward, Palm Beach and St. Lucie Realtors, single family home inventory dropped 53% in Palm Beach County to 1.3 months of inventory. For Broward County, inventory of single family homes plummeted 44% in October compared to the previous year to 1.4 month’s worth of inventory. In Miami Dade County, inventory in the county dropped 40% year over year to 2.2 month’s worth of inventory.

The realtor.com survey also indicated that 2021 saw an increase in listings over time. In spring, 9% of sellers said they’d already listed their home when surveyed. That number jumped to 19% in the fall. The survey was conducted on a national level, so South Florida housing market and sellers may react differently.

It’s not uncommon for sellers to list more actively in the beginning of the year, as it’s usually a high point for new listings, said Bonnie Heatzig, executive director of luxury sales at Douglas Elliman in Boca Raton.

For Heatzig, she said she’s seeing sellers who are slightly more open to the idea of selling their home now than they were earlier in 2021. She notes that any reluctance that they may have is tied to worries that they may not be able to find a suitable home in their price range in today’s current market.

“The most compelling reason I am hearing from those willing to sell … is that they want to capitalize on the higher sale prices, coupled with the fact that their homes no longer fit their needs or desires,” added Heatzig.

Sellers’ desire to capitalize on the market grew from the spring to the fall, too, according to the realtor.com survey. A little under 25% of sellers wanted to sell to take advantage of the current market in the spring, with the number rising to 35% in the fall. Around 13% of sellers wanted to sell because they saw news it was a seller’s market, according to the spring survey. But in fall, that number jumped to 30%.

Jeff Grant with ReMAX Realty in Palm Beach Gardens said that while he has seen a steady stream of sellers, he expects to see single family home listings increase in January, with more condos being listed in the spring, adding that many potential sellers are trying to capitalize on high seasonal rent prices currently.

It remains to be seen if these national numbers would play out in South Florida. Demand is so high that it may not make much of a difference in alleviating current pressure on the housing market, local real estate agents say. Home prices in South Florida are expected to increase at a slower pace in the new year, by about 5.8%.

“I think that the current backlog of buyers will continue to put pressure on the market and any new inventory will be absorbed quickly in multiple offer situations,” said Grant.

 

Source: Sun Sentinel & Florida Realtors

Housing Market Likely to Normalize in 2022

Experts: Housing Market Likely to ‘Normalize’ in 2022

While strong homebuyer demand and inventory shortages will continue into 2022, the housing market is unlikely to repeat this year’s dizzying heights, in which existing-home sales reached their highest point in 15 years with an estimated 6 million sales. Slower growth in home prices, decelerating inflation, and multiple interest rate hikes by the Federal Reserve could contribute to a more normal housing market in the new year, National Association of REALTORS® Chief Economist Lawrence Yun said Wednesday during NAR’s virtual Real Estate Forecast Summit. Yun presented a consensus real estate forecast based on a survey of 20 leading economists.

For 2022, the group of experts predicts that annual median home prices will increase 5.7% and inflation will rise 4%. “Overall, survey participants believe we’ll see the housing market and broader economy normalize next year,” Yun said. In addition, Yun expects existing-home sales will decline to 5.9 million in 2022 and housing starts will increase modestly to 1.67 million as the pandemic’s supply chain backlogs subside.

Housing affordability remains a concern. Even if the market begins to settle down, affordability issues likely will continue to dampen homebuying prospects for many would-be owners. Housing affordability had already reached crisis levels before the pandemic added to the strain, said Todd M. Richardson, general deputy assistant secretary at the Department of Housing and Urban Development’s Office of Policy Development and Research.

However, the Biden administration’s Build Back Better plan offers several programs that have the potential to increase housing access for all. The bill provides $10 billion in down payment assistance for first-generation home buyers, $24 billion for housing choice voucher rental assistance, and $15 billion for the Housing Trust Fund to build and preserve over 150,000 affordable homes for low-income households. “Our programs are about unlocking possibilities,” said Richardson. “Support is needed most for housing in low- to moderate-income communities.”

Manufactured housing offers a potential source of inventory that could help ease the housing crunch. Affordable entry-level homes continue to be among the units in shortest supply, and modern manufactured housing—with its high-quality factory construction and lower per-unit cost—could help fill in some of the gaps, said Lesli Gooch, CEO of the Manufactured Housing Institute. In addition, manufactured homes could offer wealth-building opportunities for buyers. “Research by LendingTree shows that, from 2014 to 2019, the median value of manufactured homes increased by 40%—six points above site-built homes,” said Gooch.

Naa Awaa Tagoe, acting deputy director at the Division of Housing Mission and Goals at the Federal Housing Finance Agency, seconded the call for more affordable housing and shared her agency’s strategies in 2022 for increasing equitable access to homeownership and rentals. Appraisal efficiency, small-balance mortgage purchases and refinances, and low-income housing tax credits are among the division’s top priorities for 2022, said Tagoe.

Regional differences could affect the housing market. Housing prices are likely to moderate nationwide, but regional variation could occur in 2022. Overpriced areas with lower predicted population growth will experience a greater slowing of prices compared to those with higher predicted growth, said Ken H. Johnson, associate dean of graduate programs at Florida Atlantic University. “Everyone will experience moderation, but there will be differences,” he said.

Strong building starts in the suburbs could be good news for first-time buyers. Businesses are competing for workers right now, said realtor.com® Chief Economist Danielle Hale, and that means buyers could have more flexibility in choosing where they live. In contrast to Yun, who saw “hidden gem real estate markets” in the South, Hale counseled would-be buyers to look further north. “The Mountain West, pockets of the Northeast, South, and Midwest are all locations where affordability creates incentives,” said Hale.

Demographics offer insight into the future. Jessica Lautz, NAR’s vice president of behavioral insights and demographics, offered highlights from the 2021 Profile of Home Buyers and Sellers, noting several demographic trends that will continue to affect the housing market into 2022 and beyond:

• Baby boomers want to age in place and will continue to hold onto their homes, contributing to the ongoing inventory shortfall.


• Millennials are the largest generation of potential buyers, but they face significant headwinds, such as low inventory, high prices, and student loan debt.


• A drop in the birth rate to a 100-year low could contribute to continued stagnation in the market: The birth of a child is often a motive to buy, and a child moving out is often an impetus to downsize and sell.

Commercial offers opportunities for growth. Commercial experts on the panel offered their predictions for 2022:

• Multifamily: Rents will likely continue to increase, though part of that accounts for a continued correction from the declines in 2020. Rental units, like single-family homes, are in short supply, and ramping up construction could alleviate some of the strain.


• Industrial: Despite a drop in cap rates, industrial will continue to thrive, with retailers leasing more warehouse space to hold inventory and manufacturers increasing production in the U.S.


• Retail: Brick-and-mortar stores will attract foot traffic with innovations such as livestreaming of products, custom concierge services, and curated local offerings.


• Hotels and lodging: Hotels will continue to struggle with a labor shortage that is affecting capacity. The industry needs to get out the message that hotel jobs are steady, provide good pay, and offer upward mobility.


• Office: This sector is still in the middle of its recovery. The stage is set for growth in the second half of 2022, with central city cores emerging as important hubs for workers commuting from greater distances.

The History of New Year’s Resolutions

The custom of making New Year’s resolutions has been around for thousands of years, but it hasn’t always looked the way it does today.

The ancient Babylonians are said to have been the first people to make New Year’s resolutions, some 4,000 years ago. They were also the first to hold recorded celebrations in honor of the new year—though for them the year began not in January but in mid-March, when the crops were planted. During a massive 12-day religious festival known as Akitu, the Babylonians crowned a new king or reaffirmed their loyalty to the reigning king. They also made promises to the gods to pay their debts and return any objects they had borrowed. These promises could be considered the forerunners of our New Year’s resolutions. If the Babylonians kept to their word, their (pagan) gods would bestow favor on them for the coming year. If not, they would fall out of the gods’ favor—a place no one wanted to be.

A similar practice occurred in ancient Rome, after the reform-minded emperor Julius Caesar tinkered with the calendar and established January 1 as the beginning of the new year circa 46 B.C. Named for Janus, the two-faced god whose spirit inhabited doorways and arches, January had special significance for the Romans. Believing that Janus symbolically looked backwards into the previous year and ahead into the future, the Romans offered sacrifices to the deity and made promises of good conduct for the coming year.

For early Christians, the first day of the new year became the traditional occasion for thinking about one’s past mistakes and resolving to do and be better in the future. In 1740, the English clergyman John Wesley, founder of Methodism, created the Covenant Renewal Service, most commonly held on New Year’s Eve or New Year’s Day. Also known as known as watch night services, they included readings from Scriptures and hymn singing, and served as a spiritual alternative to the raucous celebrations normally held to celebrate the coming of the new year. Now popular within evangelical Protestant churches, especially African American denominations and congregations, watch night services held on New Year’s Eve are often spent praying and making resolutions for the coming year.

Despite the tradition’s religious roots, New Year’s resolutions today are a mostly secular practice. Instead of making promises to the gods, most people make resolutions only to themselves, and focus purely on self-improvement (which may explain why such resolutions seem so hard to follow through on). According to recent research, while as many as 45 percent of Americans say they usually make New Year’s resolutions, only 8 percent are successful in achieving their goals. But that dismal record probably won’t stop people from making resolutions anytime soon—after all, we’ve had about 4,000 years of practice.

https://www.history.com/news/the-history-of-new-years-resolutions