Ilyce Glink's Love, Money + Real Estate #006
Welcome 2022, New Year's Resolutions, Real Estate News and More
Happy New Year! It’s hard to believe we’re already well into 2022. Feels like we should be done with the Pandemic, and yet, Omicron reigns.
(Sigh.)
Here’s hoping you sailed through the end of 2021 with your health and wealth intact.
My family took a quick trip to New Orleans (photos below) to meet up with some of our cousins. As we were walking around the French Quarter, it struck me that I was looking at a lot of properties for sale.
As of last week, Zillow revealed around 90 homes for sale. Prices range from $169,000 for a studio in a townhouse to $3.9M for a townhouse with 6,122 square feet, five bedrooms, eight bathrooms and a large courtyard with a restored bar, wine cellar, cocktail pool and space for two cars to park. And, some lovely crystal chandeliers, a feature we saw in many restaurants, retail establishments and hotels we visited. This photo was taken at Gus’s World Famous Fried Chicken (apparently, this Memphis chain recently opened at Fulton Market, in Chicago).
I don’t know about your neck of the woods, but active listings are down 27% from a year ago, according to a new Redfin report. Their report found:
The median home sale price increased 14% YOY to $358,460, just shy of an all-time high
Pending home sales rose 3.5% YOY
The share of homes that went under contract in the first two weeks of being listed was 40%
29% of homes had an accepted offer within one week
41% of homes sold above list price
Knowing all this made it so much more notable that the French Quarter seemed to have plenty of homes for sale. Not so in the Garden District, where only 11 homes are listed for sale, priced from a one bedroom/bathroom condo for $289,000 to a magnificent 11,000 square foot mansion.
What’s your neighborhood like?
Real estate news for the New Year
A year ago, mortgage interest rates were at a record low of 2.65% for a 30-year fixed-rate mortgage. Homeowners were still about to refinance for about that at the end of the year. This week, the 30-year rated jumped to 3.22% and the National Association of Realtors forecast mortgage rates would end the year at 3.7%.
In other predictions, the Realtors say 2022 will be a robust year for sales, with 5.9 million homes expected to be sold, a 10% increase from 2021.
Realtor.com agrees with the Redfin report that listings are down about 27% YOY but adds that they’re down 57.1% from Dec 2019. Other changes from Dec 2019: Median list price is up 25%, median list price per square foot is up 32.4% and the median days on market is down 26%. Tough times for buyers.
A Magnify Money survey found that nearly one in 5 Americans didn’t save any money in 2021.
As part of Fannie Mae’s National Housing Survey (Special Topic on Financial Education Q3 2021), economists asked what information homeowners and renters are most interested in as they prepare for their journeys. Homeowners said they want cost-effective home repair options, refinancing options, household budgeting techniques and access to a mortgage counselor.
(Image is part of a larger Fannie Mae infographic, (C) 2022 Fannie Mae.)
Do mortgage denials influence neighborhood crime? The Urban Institute says yes, and research shows structural racism embedded in housing policies has been damaging in unexpected ways to affected neighborhoods and its residents.
Zillow says sustainability is a top priority for young homeowners. They’re looking for environmentally-friendly features like solar power. The good news for home sellers? If you can find a way to put “eco” and “green” into your listings, your home will sell an average of 2 days faster. Listings that include drought-resistant features sell an average of 13 days faster.
(Given that there are a lot of homes going under contract in less than 14 days, could an eco-friendly, drought-resistant, sustainable home sell before it’s listed? Asking for a friend.)
And, while we’re on the topic of Climate Change…
Take a look at this new graphic from Statista:
It was another expensive year for natural disasters. These were the most costly global disasters, although the topline number includes others, like wildfires and tornadoes. The cost of a pandemic? Incalculable.
What readers are reading
Here’s a look at the most popular stories at ThinkGlink.com and BestMoneyMoves.com, and LawProblems.com:
Can a Buyer Cancel a Purchase Agreement? And under what circumstance would you refund their good faith deposit?
Well, 2022 looks to be a crazy year. I’m grateful you’ve join the growing Love, Money + Real Estate community. Please feel free to forward this email to anyone who enjoys learning about the minutia of relationships, real estate and money.
Until next time,
Ilyce