Connect with us

Real Estate

Nationwide housing trends: A look back at 2021 and ahead to 2022

After overheated year and low interest rates, a cooler market to come?

Published

on

Low inventory and interest rates made 2021 a seller’s year.

For many potential homebuyers, 2021 was a difficult year in the real estate market. Finding a home that you love at the right price – and having an offer accepted at or around the asking price, in some markets, seemed nearly impossible. On the opposite side of the coin, for sellers, 2021 was a year that, for many, meant multiple offers above the asking price, record sales prices, and the chance to make significant profits. According to a recent Forbes article, cities across the country saw rocketing sales prices – which made for some frazzled home buyers – and some very happy sellers. 

A review of housing trends in a few of the country’s larger and popular LGBTQ-friendly cities prove that this is true. 

• In New York City, the average home sale price was $429,288 in 2020 while the average list price was $579,667 in 2021, indicating an increase in average sale price of approximately 3.3%.

• The Los Angeles area saw an average sale price of $674,395 in 2020 and an average list price of $864,998 in 2021, indicating an increase in average sale price of 5.49%.

• In Seattle, the average home sale price in 2020 was $512,046 while the average list price in 2021 was $651,648, indicating an increase in average sales price of around 6.7%.

• Denver indicated an average home sale price in 2020 of $433,268 and an average list price in 2021 of $526,633, reflecting an increase in average sale price of around 4.40%. 

• San Francisco saw rising prices too, with the average home sale price in 2020 coming in and around $811,787, and the average list price in 2021 being $872,296, marking an increase in average sale price of 2.31% over the course of the year.

From a nationwide perspective, real estate statistics gathered over the course of the last year indicate that the average home sale price between February 2020 and February 2021 was $264,300 across the 97 most populated metropolitan areas in the United States and that the average list price during the same time was $301,389. Moreover, on average, cities across the country reflected a year-over-year increase in home sale prices from 2019-2020 to 2020-2021 at 5.43 percent.

Without question, 2021 saw skyrocketing prices in most major cities and fierce competition for available homes. Mortgage rates are low, and supply has also been somewhat low, increasing demand even more in most cities across the country. Although the market is still certainly a seller’s market, there are some signs here and there that it is beginning to cool down a bit, and that 2022 may see a more even playing field. Indeed, recent reports have indicated that housing inventory is beginning to increase, which will mean more options for buyers, and thus, less competition per home, and a wider selection of homes to choose from. 

While this appears to be likely, many experts are finding it unlikely that the market will turn completely.  It is thus not expected that 2022 will be a buyer’s market per se, but simply that the market will be slightly more balanced overall. Mortgage rates and financing generally are expected to remain favorable, which will also enhance the buying power of those looking to make a home purchase. While home prices are expected to rise, it’s generally assumed by financial experts that they will rise at a slower and more reasonable rate for buyers than they did this year. Ultimately, then, whether you’re a buyer or a seller, 2022 looks to be a promising year.

Without question, for much of the country, 2021 was an excellent time to sell a home, and perhaps a more difficult time to buy the one you loved at the price you wanted to pay. While that is currently the case, it’s important to remember that the truth about the real estate market is that it’s ever-changing. Trends can change from year to year or even month to month. That’s why it’s important, whether you’re a buyer or a seller, to connect with a real estate agent who understands those trends, and who can help you determine the best strategies to reach your real estate goals. 

At www.GayRealEstate.com, that’s where we come in. We are passionate about connecting LGBTQ buyers and sellers across the country with talented, experienced, LGBTQ-friendly agents who know and love their communities, and who are dedicated to helping their clients achieve their dreams. Having the right agent can make the difference between a smooth and successful real estate experience and a stressful one – and you deserve the best. We’re here to help you find it. Get in touch with us any time – we look forward to helping you soon.

Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at 303-378-5526 or  [email protected].

Continue Reading
Advertisement

Real Estate

My Best Of’s in D.C. real estate

Favorites in buyer programs, paint colors, and more

Published

on

Forget shiplap, wallpaper is back!

As I congratulate my colleagues and friends who have received the coveted Best of Gay DC awards, I thought it appropriate to share with you my own, subjective “Best of” list. 

Best Housing to Buy. With 233 of them on the market in D.C., the one-bedroom, one-bath condominium under $400,000 may be the best option for a personal residence or investment. Given a median price of $320,000 and 49 days on the market, there are deals to be made. You have your choice of areas around the city and of buildings large and small.

Best First-time Buyer Program. D.C.’s Housing Purchase Assistance Program (HPAP) is by far the best option to use if you are eligible. This program is based on household income and size and can provide up to $84,000 toward the purchase of a D.C. personal residence. For example, to receive the full amount, the income of a party of two is limited to a total of $51,600, 50% of the median family income for D.C. Other requirements may apply.

Best Tax Reduction Program. If you qualify, you may be able to take advantage of the DC Tax Abatement Program. Using the example of our party of two working adults buying a personal residence for less than $516,800, the income limit is $79,020 or $113,500 in designated Economic Development Zones.

Approval for the program exempts buyers from paying property taxes for up to five years and reduces the closing costs for the purchase by eliminating the buyer-paid recordation taxes and distributing the seller-paid transfer taxes to the buyer instead of to the DC tax office. For the buyer of that $516,800 personal residence, that can mean a savings of nearly $15,000 in closing costs.

Best Neutral Paint Color. First it was Builder Beige, then Gray was OK, then they blended into Good Grief Greige. While neutrals can be bland and boring, these days, expect to see a variety of off-whites gracing the walls of homes for sale. Sherman Williams 7008, Alabaster, did the trick for my most recent sellers. 

Best Wall Décor. Sponge paint and other effects are long gone. Forget shiplap unless you live in a house at the beach or on an actual ship. Distressed wood may still be suitable for a cabin in the woods, but in a modern, urban setting, wallpaper is back, baby! 

This is not your grandmother’s wallpaper. No chickens, tiny prints, borders, or faux grass cloth are in sight. Today’s wallpapers are bold, geometric, or a throwback to mid-century modern and are primarily used on an accent wall so they’re not overwhelming. Love vs. Design (lovevsdesign.com) can create custom wallpaper to match your color scheme in a peel and stick application that eschews the mess of wallpaper paste.

Best Indoor Plant. For us plant growing novices, the award goes to The Easy Care Bundle at The Sill (thesill.com). For only $45, you get two potted succulents that are very hard to kill, a Snake Plant and a ZZ Plant. 

You can also set yourself up on a subscription. $60 plus a $10 shipping charge buys a medium sized plant-of-the-month with a black or cream-colored planter. Choose classic plants or select pet-friendly, non-toxic plants for only $5 more with a 3-month minimum subscription. You can even purchase these as gifts.

Best Balcony Plant. For homes with a balcony or a deck, the winner is a potted Winter Gem Boxwood. It’s an evergreen that will turn a golden shade in the winter then green again in the spring. It also grows in both full and partial shade – almost a set it and forget it type of shrub – needing water only once a week or twice in hotter climates. Cut it as a topiary à la Edward Scissorhands for a little architectural interest.

Best Freestanding Refrigerator. I would be remiss if I didn’t include a best appliance category.An upscale fridge with see-through doors and built-in versions of computers, televisions and smart home elements holds a certain appeal until one of the glitzy attractions breaks and you spend as much for a new motherboard as you would for a whole new refrigerator. 

The winner of this category, therefore, is Samsung’s model RF28R7351SR. This bad boy is available in both standard and counter depth and features a French door top with external water and ice, a pull-out freezer with dual baskets, and a middle drawer that can be set to one of four temperatures to accommodate food or wine.

There you have it. Now, if you’ll excuse me, I’m off to judge the Best of Blake Miniature Schnauzers category. I’m thinking a 4-way tie is in order.

Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH Real Estate. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs

Continue Reading

Real Estate

Helpful tips for homebuyers in seller’s market

2021 has been a great year for home sales

Published

on

COVID-19 housing market, gay news, Washington Blade

Without question, 2021 was a great year for home sales. Sellers across the country, in many cases, found themselves listing their homes and quickly having not just one, but multiple offers, many of which were at asking price or above. With limited inventory and high demand, it has been an ideal year to sell—and conversely, often a difficult year to buy. Buyers who are interested in a particular home, or even in a specific neighborhood, often find themselves facing stiff competition to have offers accepted. 

Fortunately, this doesn’t mean that many buyers haven’t had successful and rewarding home buying experiences—just that doing so often means making an extra effort and taking helpful steps to make an offer the most competitive that it can be. With that in mind, let’s take a look at a few helpful tips for buyers in a seller’s market:

  • Plan ahead with mortgage pre-approval: While there are certainly a wide variety of strategies that real estate agents and financial advisors may recommend, and while those strategies might vary depending upon the buyer and the circumstances of a particular market, one thing almost all experts agree on is that obtaining a mortgage preapproval is a smart decision. A mortgage preapproval is an ideal way to reassure sellers that a reputable lender has verified your credit and approved your buying power up to a certain limit. If you’re caught in a bidding war with another potential buyer, having preapproval establishing that you are ready, willing, and able to buy just might give you the advantage you need in a competitive market.
  • Be willing to look under budget so you can bid higher: In this highly competitive market, many home buyers find themselves in a situation where they are in a bidding war with another—or even several other—buyers. In that situation, you may find yourself having to make an offer at, or even in many cases, above, the asking price. This means that you may want to adjust your budget—and bidding—accordingly. Choosing to make an offer on a home that has an asking price that is already at the top of your budget may mean that you simply don’t have much wiggle room when it comes to making an offer over that price. Choosing a home slightly under the top of your budget means you’ll have more flexibility to make a bid that is more competitive and likely to be accepted.
  • Consider offering non-price-oriented incentives: Without question, making a highly competitive offer is going to be the key to increasing your chances of having that offer accepted. It’s important to remember that there is more to an offer than just price, however. Buyers may want to consider increasing the appeal of an offer by supplementing it with other incentives beyond just the dollar amount itself. Examples of such incentives might include things like foregoing the seller-paid home warranty that is often offered as part of the process, offering a shorter closing period, not making the purchase contingent upon the sale of a currently-owned home, or other such incentives. Doing so may give you the edge you need to have your offer selected over other competitive bids.
  • Retain the right real estate agent: Often, for LGBTQ buyers, especially in a competitive market, this piece of the puzzle is particularly important. In many, although certainly not all, cases LGBTQ buyers are drawn to specific areas of a city or community where other LGBTQ individuals live. That means that in a market where inventory is already limited and going quickly, there can be even fewer homes available upon which to bid. When that is the case, you will need a real estate agent who knows the community that you’re interested in, and who can quickly help you identify and take action toward making offers on homes that fit your needs. Having the right agent can make all the difference between a smooth and successful home-buying experience, and a stressful one

Jeff Hammerberg (he/him/his) is the Founding CEO of Hammerberg & Associates, Inc. Reach him at 303-378-5526, [email protected] or GayRealEstate.com

Continue Reading

Real Estate

Help, I’m under contract!  They accepted my offer?!

Buyer and seller need to work as a team

Published

on

What are the most common questions real estate agents, title companies and lenders get once a client is under contract? Well, luckily on my team we send out a next steps letter to all of our clients once an offer has been accepted and this helps them to know what to do the first week, the second week, and in any subsequent weeks before the settlement.  

For example, the letter will go out and say, “Make sure to get your EMD check to the title company in the agreed upon amount of time.” The EMD is your earnest money deposit, and most contracts have a buyer write a check for several thousands of dollars that will go the title company as sort of a “security deposit” on a contract that later gets applied to the buyers’ closing costs.

The letter will also instruct a buyer to contact their lender and confirm with them that they are under contract and to get the contract over to the lender so they can start preparing the loan and order the appraisal. The letter also states that later in the process the buyer will get the wiring instructions from the title company where settlement will be held for the down payment money. If there is to be a home inspection, we will also get that scheduled, usually in the first week after going under contract also.  

If selling, the letter is a different one with information about moving companies and getting any staging out of the listing. Both parties will receive instructions on how to change the utilities from the seller to the buyer the week of settlement. The title company will also follow up with the buyers and sellers to get any needed info. They will ask any questions necessary to possibly help the buyer to get any deductions or credits they might qualify for that could lower their closing costs. A good lender will do this also.

What each buyer and seller needs is good teamwork to make the dream work whenever a house is changing hands and a large transaction is going to be handled. For more information, you can contact me to attend my next Homebuyer’s Seminar on Oct. 12 in the evening, which will be on Zoom.  

Joseph Hudson is a Realtor at the Rutstein Group of Compass. Reach him at 703-587-0597 or at [email protected].

Continue Reading
Advertisement
Advertisement

Follow Us @washblade

Sign Up for Blade eBlasts

Popular