Eastside Real Estate Blog

Mortgage Rates Hit Three Percent

March 6, 2021 by Kathy Reichle Leave a Comment

Since reaching a low point in January, mortgage rates have risen by more than 30 basis points, and the impact on purchase demand has been noticeable. While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March, prior to the pandemic. However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.

Current Mortgage Rates Data Since 1971 xls

Bidding wars are off the charts, as home listings fall to a record low

February 17, 2021 by Kathy Reichle Leave a Comment

Presidents Day weekend marks the unofficial start of the spring housing market, but if you’re looking to get in this year, hold onto your wallet. Bidding wars are off the charts, even as home prices are rising rapidly.

The primary reason longtime home searchers haven’t bought a house yet is because they keep getting outbid. About 40% of potential buyers cited that in a new survey by the National Association of Home Builders. The reasons are flipped from a year earlier, when 44% said unaffordable prices were the biggest reason they hadn’t bought yet, and 19% cited getting outbid.

Well over half of all buyers, 56%, faced bidding wars on their offers in January, according to a Redfin survey. That is up from 52% in December. More than half of homes are now going under contract in less than two weeks.

“With so few new listings hitting the market, I expect bidding wars to become more common and involve even more potential buyers as we head into the spring homebuying season,” said Daryl Fairweather, chief economist at Redfin.

She advises buyers to be ready to go see properties the moment they hit the market and to get preapproved for a mortgage.

“But know when to back away if the price escalates more than you’re willing to pay,” Fairweather added.

Competition is fierce across the nation, but worst in Salt Lake City, where 9 out of 10 offers faced competition, according to Redfin’s survey of 24 major markets. It was followed by San Diego (78.9%), the Bay Area (77.1%), Denver (73.9%) and Seattle (73.8%).

The problem is supply, or lack thereof — record low supply. Sudden strong demand, driven by the stay-at-home culture of the Covid pandemic, swiftly smacked into already low inventory, due to lackluster homebuilding. Record-low mortgage rates only fueled demand even more.

Paul Legere is a buyer’s agent with the Joel Nelson Group in Washington, D.C. He says his job is only getting tougher.

“The low cost of money now has buyers able to be more aggressive and willing to overpay for properties. As a buyer’s agent, tasked with trying to help clients find value, that piece of the equation is nearly impossible to do,” said Legere. “It is a constant struggle and scramble to find desirable targets.”

Sellers have also pulled back, not wanting to go through the ordeal of putting their homes on the market during Covid. The number of newly listed homes in January was down 29% year over year, pushing the total inventory down 47%, according to realtor.com.

Home prices had appreciated at a double-digit rate each week for 26 straight weeks leading into January. The median listing price for a home was up nearly 13% compared with January 2020.

“Lower mortgage rates are making monthly payments for higher priced homes more manageable,” said realtor.com’s chief economist, Danielle Hale. “But finding a home that checks the right boxes amid limited supply, and saving up for the larger down payment needed with higher home prices, continue to be challenging, especially for first-time home buyers who haven’t accumulated home equity as prices have gone up.”

Diana Olick

3 Things You Should Be Doing To Sell A Home In 2021

January 30, 2021 by Kathy Reichle Leave a Comment

Depending on where you live, selling a home this year might be more challenging than usual. You may be in a time crunch to sell your current home and liquidate that asset. You may be in a buyer’s market with plenty of competition. You may live in an area where open houses and broker events are not possible due to the pandemic. Agents and sellers alike are dealing with a host of issues that make closing deals more difficult. But there’s good news: Homes are being sold. The market is picking up, and getting a deal you can be happy about is possible. If you want to get your home sold for the best possible price in 2021, these three tactics will make your listing stand out among the rest.

1. Make Your Home Instagram-Ready.

Video tours and social media are selling homes right now. Many people are relocating across the country and are unable to view homes in person; Others are avoiding in-person meetings out of caution and prefer to do virtual tours. In fact, many agents are finding buyers through Facebook ads now that magazines are no longer the best way to show off a listing. What does that mean for you? Make sure that you and your agent understand this market and are catering your listing to it. Use vertical listing photos (which display best on mobile phones). Next, make each space as visually appealing for a social media audience as possible. Something as simple as a collage of black and white photos on the wall creates a more eye-catching background than a solid paint color. Plants play really well on social media, too—add a ficus, fig, or orchid to liven up the room with lots of green. As we all spend more time indoors, plants really make a space feel more alive—and they also give the implication that your home gets plenty of natural light.

2. Create a Home-School or Home-Office Area.

Almost every family in America needs a home office right now—whether for the parents, the kids, or both. If you don’t have a spare room, find a spare nook—any space in your home that can be converted for this purpose is worth it. Creating this high-value feature that nearly every buyer needs will make your listing stand out from the rest. Buyers will love seeing there’s a dedicated home office area ready to go—both for their own practical use and (depending on the set-up) for home office tax-deduction purposes.

3. Don’t Jack Up the Price.

The majority of U.S. is experiencing a seller’s market, but that doesn’t mean you should overprice your home. It’s a common mistake to set the number high and assume someone will be willing to hit it. Here’s why: The buyer who wants the home the most will pay the most, so a smart seller lets the buyers create the market. Set a fair price that will create interest and bring in the most buyers. Then, buyers will bid against one another and drive the price up on their own. Don’t forget—interest rates are at rock-bottom right now, so many sellers will be able to go a little higher on their bid as a result.

Ryan Serhant

Preparing for a 2021 Home Purchase

January 12, 2021 by Kathy Reichle Leave a Comment

While you may have been ready to buy a home during the 2020 spring market, the uncertainties caused by the pandemic may have put a damper on your plans. At this point, you may be uncertain about your post-COVID-19 real estate goals and unsure whether the opportunity to work from home will inspire you to move to another market or another type of home.

If you’re looking to get ready for a home purchase a few months down the road, this plan will help ensure you’ve covered all your bases. From finance to logistics, it’s important to think through the changes on the horizon to streamline your 2021 home purchase.

couple discussing purchase with man at table

Preparing to finance your purchase

One of the first things you’ll want to think about is the financing for your home purchase. Talk to a real estate professional and ask for an introduction to a mortgage lender, if you don’t already have one in mind.

Talk to your lender about the pre-approval process. When it’s time to begin seriously looking for your new home, you will want to have a pre-approval in place so that you can show sellers that you are serious about any offer you may make and that you are approved for a home mortgage.

In the meantime, you’ll want to check your credit score and your credit report to ensure that there are no mistakes. If your score is less than optimal, explore strategies for raising it in the months ahead. These can include:

Paying bills on time
Having rent and utility payments added to your credit report
Paying down debt and avoiding accruing new debt

In addition, talk to your lender about the types of home mortgage products you qualify for—VA, FHA, and conventional, among others—and the credit score range you’ll need so that you can be approved for each.

Determining your price range

By working with your lender you’ll be able to come up with a ballpark price range for your home search. This will be important as it will help you to narrow down the neighborhoods, home types, and home sizes you should be considering.

Remember, just because you qualify for a certain amount, you don’t have to shop at the top of your budget. Consider your lifestyle, other debt, future plans, and disposable income needs when determining your home purchasing power.

Comparing potential markets for your search

This is a good time to begin looking at markets where you might be inclined to move. Talk to your real estate agent to find out what features you’ll find in the areas you’re considering. Determine what you are looking for so that you can narrow down your search. Do you care more about:

Recreational opportunities?
Children’s programming?
Dining and nightlife?
Convenient shopping and services?
Commute times?
Larger lot sizes?
Larger homes?
Resale potential?

If possible, spend some time in your potential neighborhoods. Shop at the stores, eat in a local restaurant, and visit a nearby attraction. Check out the people to see if they seem like good future neighbors for you and your family.

Comparing potential home styles and features

Spend some time looking over listings to determine what home styles and features are most important to you. Put together a wish list and prioritize with must-have, nice-to-have, and optional items. Determine how different updates, upgrades, and other features impact price. Consider what you might be willing to add or change after the purchase and what you’ll want to have completed before you move in.

Preparing for associated expenses

Buying a home brings with it a large number of expenses before, during, and after the purchase process. It’s important for you to have an idea of these ahead of time so you can ensure that your savings are adequate. Remember, you won’t be able to run up additional debt while your mortgage is in underwriting, so it’s important to have a budget in mind before you begin.

Expenses for your home purchase may include any or all of the following:

Earnest Money Deposit (EMD): 1–5% of the purchase price
Down Payment: Generally 3–20% of the purchase price
Closing Costs: Variable (discuss with a real estate professional or lender)
Moving Costs: Variable
New furniture and design elements
Needed repairs and improvements

Planning for your upcoming move

Once you’ve determined where you’re moving and the type of home you’ll move into, you’ll need to begin planning for the move itself. If you’re in a rental home, check with your landlord to determine how much notice you’ll need to give before ending your lease as well as what information needs to be included in that notice. You’ll also want to check on month-to-month rental options, in case you are not ready to close at the end of your current lease.

You’ll want to save up money for your upcoming move but the budget can vary widely depending on the services you require. While you may be able to manage a do-it-yourself move for only the cost of a rental truck, a professional move can cost thousands of dollars. This price can be further increased depending on the distance of the move as well as services like packing and unpacking.

If you’re moving with children, you’ll want to spend some time preparing them for the emotional impact. If possible, take them to visit their new neighborhood, play in the park, or spend a day with classmates at their new school. The more you can do to communicate and demystify the process, the more comfortable (and excited) the youngest members of your family will be on moving day.

Mortgage Rates Remain Near Record Low Heading Into 2021

January 2, 2021 by Kathy Reichle Leave a Comment

MCLEAN, Va., Dec. 31, 2020 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.67 percent.

“All eyes have been on mortgage rates this year, especially the 30-year fixed-rate, which has dropped more than one percentage point over the last twelve months, driving housing market activity in 2020,” said Sam Khater, Freddie Mac’s Chief Economist. “Heading into 2021 we expect rates to remain flat, potentially rising modestly off their record low, but solid purchase demand and tight inventory will continue to put pressure on housing markets as well as house price growth.”

News Facts

30-year fixed-rate mortgage averaged 2.67 percent with an average 0.7 point for the week ending December 31, 2020, up slightly from last week when it averaged 2.66 percent. A year ago at this time, the 30-year FRM averaged 3.72 percent.
15-year fixed-rate mortgage averaged 2.17 percent with an average 0.7 point, down from last week when it averaged 2.19 percent. A year ago at this time, the 15-year FRM averaged 3.16 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.71 percent with an average 0.4 point, down from last week when it averaged 2.79 percent. A year ago at this time, the 5-year ARM averaged 3.46 percent.

The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

Overcoming Barriers in the Home Search Process

December 16, 2020 by Kathy Reichle Leave a Comment

This year has been a long one for both buyers and sellers in markets all around the world. Disruptions to the spring real estate market, economic uncertainty, and, of course, the threat of illness caused unprecedented upheaval for anyone who was trying to make smart decisions about a home sale or purchase. If you’ve been looking for a new home to buy, you could be forgiven for feeling anxious and frustrated right now.

However, there is no reason to give up on your goals and there are plenty of ways to ensure that you can still find the right home for you and your family. With a little flexibility and a willingness to recalibrate, you and your real estate professional will be able to help you achieve your goals and make the move that you’ve been dreaming about throughout 2020.

Why buying a home is harder right now

If you started out looking for a home during the early spring of 2020, chances are you may still be on the hunt. COVID-related disruptions slowed down and complicated many home searches just like yours. Here’s why you may have been struggling with multiple offers and a protracted search process.

Low inventory

COVID-19 brought with it many uncertainties including economic anxiety, job loss, and fears for physical safety. For many homeowners, this translated into an unwillingness to put their house on the market since they were initially unsure of how safe home tours and moving processes would be and whether a job disruption might interfere with their ability to purchase a new home. This led to low inventory in markets across the country, especially in specialty sectors like the luxury home market.

Low interest rates

One of the federal government’s first initiatives to offset the financial impact of COVID-19 was to lower interest rates to unprecedented levels. This has continued throughout the year since March and has resulted in truly extraordinary buyer demand. Coupled with low inventory, this demand has meant multiple offers and homes selling for well above both asking price and appraised value.

Logistics

Simply put, it can be difficult to look for a home right now, especially in highly competitive and desirable markets. Homeowners are less willing to allow in-person open houses or tours, meaning that some of your options may only be available via a virtual viewing. In addition, high demand may make it more difficult to schedule tours, informational inspections, and other aspects of the search and purchase process.

How to overcome a frustrating home search

If your home search has been protracted, you may be starting to struggle with the emotional and psychological impact. However, in order to achieve your goal, it can be helpful to take a step back and reposition yourself for a new strategy. Here’s how.

Reevaluate your priorities

What did your wishlist look like when you first started looking for a home? Did you insist on a turnkey space? Were you focused on a very narrow choice of acceptable styles or neighborhoods? Did you require that all of the updates and upgrades be made before you would consider a particular home? It may be time to re-evaluate your requirements and work with a real estate professional to formulate a new list of priorities.

Here are some of the things to take into account as you rethink your home search:

Some of the most previously in-demand neighborhoods may be less desirable if you are now able to work from home permanently and if you will no longer have to commute to work each day.
Many home buyers are currently conducting information-only home inspections with no required repairs prior to closing. If you’ve been holding out for a turnkey property, you may now be willing to take on some of the improvements yourself in order to facilitate a successful home purchase.
How has your lifestyle changed since the pandemic began? Some of the things you thought you needed may be different now. Perhaps the second home office is more important than the upgraded kitchen you previously required. Consider whether you need to revise some aspect of the size or layout of your space in order to expand your list of possibilities.

Reexamine your options

While you may have previously been looking for a single-family home, now you may be thinking about bringing an elderly relative to live in your household. You may be considering buying a duplex or a home with an attached apartment or carriage house, suitable for either short-term or long-term rental. Either of these options may provide additional income which would allow you to increase your budget and broaden your search.

Talk to the experts

A real estate professional knows what is working for other clients in today’s market, and what markets are becoming more in demand and where inventory is a little more plentiful. In addition, a real estate professional may know of pre-market listings that offer you a better opportunity for a successful purchase.

A mortgage lender may be aware of more favorable loan terms which would allow you to work with a larger budget so that you can increase your number of potential properties. A contractor may have ideas about how you can turn an as-is fixer-upper into your dream home more affordably than you ever thought possible.

By talking to the people who know the market best, and letting them help guide you to think outside the box, you may just find that your assumptions and requirements have been holding you back. Work with the experts to come up with alternative solutions to help you get into the home of your dreams.

BY CHRISTY MURDOCK EDGAR

Moving from the City to the Suburbs

November 28, 2020 by Kathy Reichle Leave a Comment

One of the unexpected side effects of the COVID-19 pandemic has been a growing population shift from the city centers to suburban and rural areas. Driven in part by the availability of work-from-home job opportunities, many individuals and families are also motivated by the promise of more open space, outdoor living, and increased privacy. If your homebuying plans include a move away from your small, in-town apartment or condominium, here are some of the things to take into consideration as you prepare to make that transition.

Homebuying in the Suburbs

Even if you grew up in the suburbs, if you’ve spent most of your adult life living in the city, you’ll experience a bit of a learning curve. Buying and maintaining a suburban home can bring with it a number of new challenges and you’ll want to be prepared both logistically and financially.

Choosing the right neighborhood

It’s important to determine what your most important deciding factors will be as you choose the neighborhood that will be home for you and your family. Perhaps you are looking for award-winning school systems or magnet schools with specific programs. Maybe you want larger lot sizes and an emphasis on outdoor living. Maybe you’re moving to the suburbs in order to be closer to family members. Whatever your purpose, you’ll want to communicate it to your real estate agent or broker at the outset of your search.

In addition, think about the amenities that you currently enjoy most and look for suburban enclaves that offer them. If you’re a major foodie, look for an area with an exciting local restaurant scene. If your day is dependent on a great cup of coffee, look for an area with one or two exceptional local roasteries. Exurban and suburban areas aren’t just the big-box, generic locations they used to be. Many of them have their own unique culture and their own local charms, so choose the one that’s right for you and your family.

Planning for your new commute

If you’re used to walking to work or taking reliable public transportation, you’ll need to figure out how your new life in the suburbs will affect your commute time. Even if you’ve been able to work from home during the pandemic, if you’re planning to return to the office next year, you’ll need to get a sense of the timing involved.

At some point when you have narrowed down the neighborhood for your home search, you’ll want to drive to and from work during rush hour in order to get a sense of traffic patterns and the length of your commute. Keep in mind that in many areas, traffic density has still not returned to pre-COVID levels, so you’ll only get a rough approximation of your new commuting time.

Cost Considerations

Many people are attracted to the suburbs because they get more for their money in terms of both square footage and the reduced cost of living. Items like groceries and gas are indeed cheaper in the suburbs, but there are other costs associated with suburban living that you’ll need to take into account.

Homeowner’s Association fees

Remember when you are working with your mortgage calculator to keep an eye on HOA fees and include them in your budget. Remember, too, that some HOAs cover a variety of resort-style amenities, while others only pay for common space maintenance and upkeep. Determine what services you’re looking for and find out what will be covered in the neighborhood that you choose.

Recreation and amenities

What kind of lifestyle do you plan to adopt once you’ve moved out of the city? Will the kids be playing travel sports? Will you want to maintain your workout routine? Are you hoping for additional recreational activities, like more time to golf or improve your tennis skills? Putting more time and effort into recreational activities can involve a major financial outlay for new equipment, coaching or instruction, membership fees, and other expenses. Factor these in as you put together your monthly budget.

Lawn care and upkeep

If part of the charm of suburban living is mowing the lawn and raking leaves on the weekend, your only lawn care cost may be a good mower and some work gloves. If you want to outsource your yard maintenance, however, you’ll add a fair amount to your bottom line. Take into consideration both the potential maintenance costs of your new home and your willingness to actively participate in the upkeep process.

Furnishings and decor

If you’re moving from a small flat in the city to a larger suburban home, you’ll have a fair amount of shopping to do. From additional furnishings to fill all of those larger rooms to rugs, window treatments, and other items, you’ll need to spend some money before you feel truly settled in. Remember to wait until you have closed on your new home before making any major purchases, especially if you’re planning to finance them, as that can affect your mortgage underwriting process.

Commuting and travel

If you have been living in the city car-free, you’ll need to factor in the cost of a new vehicle for you and your spouse as well as all of the associated expenses. In addition, if your commute involves tolls and parking in the city or light rail travel, you’ll need to calculate those costs as well. If you enjoy travel and have been used to taking the subway to the airport, you may need to begin to add on the costs of long-term parking or other ground transportation to your travel budget.

Outdoor living costs

Many people are fleeing the cities to take up residence in the suburbs in large part because of the access it gives them to outdoor spaces and activities. Maintaining a pool, outdoor kitchen, and other outdoor spaces can add significantly to your costs, both during the purchase process and in terms of monthly upkeep and utilities. Be sure to add these in as you plan your monthly expenses.

Why This Winter’s ‘Slow’ Home-Selling Season May Be Hotter Than Ever

November 9, 2020 by Kathy Reichle Leave a Comment

Winter is traditionally real estate’s slow season. Between the cold weather and the holidays, the housing market typically plunges into a hibernation of sorts, with both buyers and sellers shelving any major real estate moves until spring.

This winter’s real estate market, however, is shaping up to be unlike any other before it—and, contrary to what some may have feared, is slated to be an excellent time to sell a home. In fact, Lawrence Yun, chief economist at the National Association of Realtors, predicts “it will be one of the best winter sales years ever.”

So if you’ve assumed you should put your home-selling plans on hold until spring, read on for a surprising reality check on all the reasons this winter could be a great time to put your house on the market.

Pandemic lockdowns have created pent-up buyer demand

While spring is typically real estate’s busy season, the “silent spring” of 2020 saw the housing market grind to a near halt amid pandemic-mandated lockdowns. This, in turn, created pent-up demand to purchase property that is only now being unleashed.

Why? Chalk it up to a perfect storm of low mortgage interest rates, sparse housing inventory, plus a pandemic that’s fundamentally changed how, when, and where buyers are shopping for homes.

“We currently see buyers sticking around in the housing market much later than we usually do this fall,” says Danielle Hale, chief economist at realtor.com®. “If that trend continues, we will see more buyers in the market this winter, too. So this winter is likely to be a good time to sell.”

“There are plenty of people in the pipeline ready to hit the market this late autumn and winter,” Yun agrees.

Many real estate agents have noticed this glut of eager buyers first-hand.

“Winter is usually a slower season, but this year we’re not seeing any sign of letting up,” says Matt van Winkle, a real estate broker and owner of Re/Max Northwest Realtors in Seattle. “The selling season was delayed because of COVID lockdowns and stay-at-home orders, so several months of usual busy sales periods were delayed.”

This buyer demand likely won’t wane anytime soon.

“We will see an extended purchase season in 2020 and into 2021,” says Shelby McDaniels, channel director of corporate home lending at Chase.

Lockdowns are forcing many buyers to upsize their homes

COVID-19 has not only created pent-up demand, but many buyers are also in the market purely because they’re working/schooling from home and realizing their space is no longer big enough—particularly now that the temperature’s dropping so they can’t easily escape to their back patio to catch up on emails alone.

“With people spending so much time in their homes, including working from home and virtual schooling, there’s a great emphasis on being happy there,” says Matt Curtis, owner of Matt Curtis Real Estate, in Huntsville, AL. Lack of space is a complaint agents hear more often now.

And if people are allowed to continue working from home rather than commuting to an office, they might also realize that they can shop for homes farther outside cities—great news for home sellers who live in more remote areas.

Housing inventory is low

Although buyers are plentiful, the number of homes for sale is way lowerthan usual. According to realtor.com’s Monthly Housing Market Trends Report, in September, national housing inventory declined 39% over last year.

“Because the number of homes available is currently at a record low, even if we see some improvement, which I expect, there will still be relatively few homes for sale,” Hale says. “That will keep upward pressure on home prices and help ensure that homes continue to sell quickly.”

“Inventory is low, so the overall advantage is with the seller,” agrees Yun.

Tracy Jones, a real estate agent with Re/Max Platinum Realty in Sarasota, FL, says buyers have so few homes to choose from these days that they’re feeling forced to make quick decisions about whether to make an offer, or risk losing out on the chance. Nationally, homes spent an average of 54 days on the market in September, 12 fewer days than last year, according to the realtor.com trends report.

“The buyers I have worked with this year only had a handful of homes to look at,” Jones says. “They had no time to wait and talk about it, and they had to fight other buyers if they wanted to buy them.”

Sellers can get top dollar for their homes

It’s simple supply and demand: Low supply and high demand are bound to drive up home prices, so sellers stand to make a killing.

Across the country, median home listing prices jumped 11.1% in September compared with a year ago, to $350,000, according to realtor.com. Price per square foot increased by 13.9%.

“Sales prices and home values remain strong,” McDaniels says. And since there are so many offers on the table, “sellers can call the shots regarding terms of contract and repairs.”

The only challenge sellers face with such low inventory—if you can even call it a challenge—is dealing with too many offers at once, says Curtis.

“The challenge they face is navigating multiple offers and not accepting an offer too quickly to help ensure they get the most money for their home,” he says.

Mortgage interest rates are low

Although buyers will face stiff competition, it’s not all bad news for them. For one, despite high home prices, record-low interest rates mean they’ll save a ton of money.

Interest rates on a 30-year fixed-rate loan were 2.8% as of Oct. 22, according to Freddie Mac.

This “boosts buyer home purchasing power,” Hale says. “In fact, despite double-digit increases in home prices this year compared to last year, today’s home buyers are likely actually paying slightly less on their mortgage each month, thanks to much lower mortgage rates.”

The Federal Reserve has continued to lower interest rates this year to keep the economy going during the COVID-19 crisis, says McDaniels.

“Even before the COVID-19 pandemic, economists and real estate professionals predicted mortgage interest rates would remain below 4% in 2020,” she says. “This means buyers that might have waited will consider entering the market this year.”

Any economic shift likely won’t be felt until spring

Although unemployment continues to rise due to COVID-19 layoffs, Hale says this could affect the real estate market, but the effects likely won’t be felt for a few months.

“A worsening unemployment rate would lead to a slowdown in the housing market and home sales, but I don’t expect that to happen immediately, more likely in the spring,” Hale says. This could create a slower start to the spring home-buying season.

Plus, if another round of stimulus money appears, this would fuel consumer spending.

“This would be a good thing for the housing market and the economy at large,” Hale says.

By Erica Sweeney

GIVE YOUR KITCHEN A MAKEOVER WITHOUT SPENDING A FORTUNE

October 29, 2020 by Kathy Reichle Leave a Comment

HANGING YOUR COOKWARE

One of the easiest changes to make is to take your pots and pans out of the cupboard and hang ‘em high. Not only does it look great and add a rustic touch, but there are also actually practical benefits to this as well. Not only is it better for your back to not be bending up and down to access low cupboards, but stacking your cookware can lead to scratches and chips. Hanging your pots and pans makes for an aesthetically pleasing position that both the cookware and your back will thank you for in the long run. Sit back and daydream about your own private chef from Food Fire + Knives taking over in the kitchen.

QUAINT COOKBOOKS

It’s no secret that the only new recipes being used in most home kitchens these days are being read off a smartphone or tablet screen, but that can actually work in your favor for this next tip. As old cookbooks are rendered obsolete, more are piling up in thrift stores and charity shops waiting to be found cheap. There’s a certain charm in these old (once quite pricey) tomes that a small, carefully curated collection in your kitchen can pull a lot from.

REPLACING CUPBOARD HANDLES

It’s amazing how much the look of a room can be changed with even the smallest of updates. If you’re lucky enough to work with a partner like Econstructioninc.com to do a full kitchen remodel, go for it. Or, cupboard handles are one of the easiest upgrades that anyone can do, and renters can rejoice at this 100% reversible renovation. And you’re not just limited to the selection at the local hardware store, smaller retailers offer great options.

FRESH COAT OF PAINT

This is easily the most costly item on this list, but if the colors aren’t right, there’s only so much the surface updates will be able to influence in the room. This doesn’t just go for the kitchen walls, either – check out how easily a repainted cabinet can transform the entire space. If you’re a renter, you’ll of course want to check in with the landlord before you start getting the paint brushes ready, but often it’s just a matter of promising to repaint it back to the original when the lease is over.

With all of these tips you can be sure to breathe a new lease of life into your kitchen, ensuring some fresh vibes to go with the food you’ll be preparing. What’s more, with a stylish kitchen, you’ll be wanting to show it off and invite some friends over for dinner. Dig in!

Five Ways The Pandemic Has Influenced Interior Design Trends In 2020

October 13, 2020 by Kathy Reichle Leave a Comment

The pandemic has changed life as we know it in every way, but especially how we live in our homes. In a short period, the home has become a place to work, exercise, relax, and even attend school. This has been the single biggest influence on design trends this year.

While many people have moved or are beginning to renovate, most of us are simply doing the best with what we have. After all, due to shutdowns, shortages, and demand for design-related services, there really isn’t an alternative. From the reality of COIVD life, to creating as pleasant an environment as possible, here are five ways the pandemic has influenced interior design trends in 2020.

Open Floor Plans Are On The Way Out

Had most homeowners, real estate agents, and interior designers been asked in January if they thought the open concept was here to stay, the answer would likely have been a resounding yes. But if you asked the same group in September, the answer might have been a little different. While open floor plans aren’t falling entirely out of fashion, they’re no longer as practical and desirable as they once were. “[My clients] still want big kitchens that open on to a family room—but home offices, outdoor spaces, and Zoom rooms (or at least a dedicated space for Zoom meetings) are big on wish lists,” interior designer Caitlin Scanlon of Caitlin Scanlon Design tells me.

Gavin Brodin of Brodin Design Build has received similar feedback. His clients have been looking for ways to create luxury upgrades to transform their homes into sanctuaries with amenities like meditation and massage rooms as well as secret gardens. But they want to limit the amount of money they spend on these projects. “During this time, many clients need to stay on a budget, so it’s a challenge to make a space beautiful and stay within a practical budget,” he tells me.

But the pandemic has truly had the biggest impact on those living in smaller spaces such as apartments. “All of the activities that we’re doing at home have kind of changed the game a little bit,” says Home Director of Apartment Therapy, Danielle Blundell. “[We’re] looking to actually have defined spaces again, and some semblance of privacy and compartmentalization for things like working from home, exercising and people being home at the same time and taking calls.”

Blundell has also noticed that when it comes to sectioning off spaces— people are becoming a lot more creative, using everything from divider screens to curtains and partitions to carve out dedicated zones.

Home Offices Are Now Just Offices

While some people have gone back to their regular offices at least part of time, most of us are still working from home, including CEO and founder of Manna Kadar Cosmetics, Manna Kadar. She has no plans to return and wants her employees to remain home as well. “We will eventually get back into the office in the safest way possible, but we have adapted to this new normal and won’t rush into it,” she tells me.

Manna Kadar's home office — Manna Kadar’s home office

MANNA KADAR

Kadar has also used this time to make a few upgrades to her home office “It’s been important to make my at-home working environment just as beautiful as my office: an aesthetically pleasing clean, private area to focus!”

In addition to rearranging her furniture, Kadar added additional warm neutral elements and plants to the space. She also likes to work with her pets by her side.

Virtual Interior Design Is Booming

Lisa Landers, stylist, and owner of Swirl, a popular southern California clothing boutique chain closed on her new home just as the shutdown was beginning. She needed new furniture and realized that using a virtual interior design service wasn’t just a practical choice, it was essentially her only choice because all the stores were closed.

“Modsy seemed like the next best option,” she tells me. “After submitting multiple photos of our space, links to furniture we already had that we wanted to incorporate, and filling out a thorough design questionnaire, our beautiful plans were submitted to our inbox.”

Landers collaborated with her designer over the phone, as well as online. “We could swap out pieces in the actual plans and see exactly how they would look in our space.”

She ended up incredibly happy with the results. “We loved this experience so much that we would do it again.”

But virtual interior design isn’t limited to using services like Modsy, or it’s major competitor Havenly. Scalon, along with many other independent interior designers is getting plenty of requests for Zoom consultations and e-design services.

Happiness Is A Decorating Choice

It’s not a surprise that many people are trying to create uplifting moods environments in their homes right now. This is especially true when it comes to decor and accessories. “Maybe it’s a wallpaper with a vibrant pattern or a ceramic face that’s sort of a silly, squiggle shape. It’s nostalgia that could be a retro-inspired refrigerator or even a modern quilt. It can be that things can touch every room in the home, and furnishings that just bring you comfort and joy,” says Blundell.

While we’re not exactly saying bye to black, rich pops of color are very much on-trend right now. For example, Scanlon’s clients have requested bolder hues. “After hunkering down looking at the same (mostly white walls) I’m using a lot saturated paint colors—moody for some rooms, bright and uplifting for others. Clients are craving variety in their experience of home!

Retailers including Alix Greenberg, who is the founder of ArtSugar have also noticed an increase in demand for bright, kitschy items. “My customers want things that are happy and uplifting! And I understand this too! Because while we are all stationed at home, there is nothing like a pop of color on your wall to make your day a little brighter.”

During the pandemic, ArtSugar’s top selling products have been their bright and colorful acrylic trays, as well as acrylic mountable smilie faces and gem stone wall art. In addition to that, the Home Sweet Home Cutting Board has also been incredibly popular.

Home Is More Important Than Ever

Being forced to stay at home has made many of us realize just how important interior design really is. “I personally was able to realize how much I could do from home within my own business,” says Landers. “With Amazon, virtual meetings, workouts, and food delivery it really made being at home all the time more palatable and we are willing to invest more into making it our sanctuary because home is not only where the heart is…it’s where everything is now.”

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