Real Estate
A positive perspective on 2022 housing market
Don’t panic, this year is nothing like 2008
Without question, 2021 and early 2022 witnessed a booming housing market, where homes were sold almost as soon as they were listed – and often for even more than the asking price. As 2022 has continued, however, interest rates have risen, inflation is an ongoing concern, and many who recall the 2008 housing crisis may currently be worried that the cooling real estate market is heading in that direction again.
Whether you’re a potential buyer – or whether you find yourself on the flip side of the coin and hoping to sell, you may find yourself feeling a little worried as what was once a red-hot housing market starts to cool off slightly. These are understandable concerns, but many experts believe they are largely unfounded.
Many who know and understand the housing market and the various economic forces and factors that affect it believe that 2022 is in fact a far more favorable situation for both buyers and sellers than the state of the housing market in 2008. Here are a few reasons why that may be the case:
- Lenders are no longer as lenient: Although many circumstances contributed to the 2008 housing crisis, questionable lending practices within the financial industry were certainly a significant influence. In 2010, however, the Dodd-Frank Act was formally enacted to increase regulatory oversight of lending practices nationwide. This, in conjunction with other contributing factors, has led financial industries to be stricter about their lending practices. As a result, fewer homeowners have found themselves underwater on their mortgages, and there are far fewer foreclosures or short-sale situations of the kind that were seen in 2008.
- Supply is stable: In 2008, there was a sizeable oversupply of homes as a result of all of the foreclosures. As a result, the market froze. Today, by contrast, there is significant demand and a more moderate supply. As a result, the housing market is far more stable, and the odds of a real estate panic similar to that in 2008 are significantly lower.
- Positive Post-Pandemic Conditions: The COVID-19 pandemic certainly changed many aspects of life, and many worried that it might have a significant long-term negative effect on the housing market. The good news, though, is that despite many homeowners being unable to work because of the pandemic, loan defaults were kept to a minimum as a result of helpful mortgage forbearance programs. Those programs allowed buyers to pause payments until they could return to work, and as a result, delinquencies were lower.
- Interest rates remain historically low: Since the end of 2021, mortgage interest rates have jumped by more than 2 percentage points, climbing above 6% as of September 2022. Of course, this means that mortgage payments have risen – but it’s important to keep those increases in perspective. When compared to rates historically over the last several decades, when rates reached as high as 18 percent at one point, today’s housing market is still healthy, and interest rates are fairly low.
The good news for potential buyers is that the current state of the market means more options and less competition. No longer will most buyers have to stress over bidding wars that ultimately result in paying more – sometimes significantly more – than the list price for a home. Instead, many buyers will be able to take their time looking for homes that truly fit their needs, and potentially have the opportunity to obtain those homes at a reasonable price. For sellers, the market is healthy, potential buyers remain plentiful, and interest rates are still fairly favorable when considered from a historical perspective.
At www.GayRealEstate.com, we’re dedicated to our mission of connecting LGBTQ buyers and sellers across the country with talented, friendly, and experienced LGBTQ-friendly real estate agents who know and love the communities they serve. Finding the right agent makes all the difference between a smooth and successful real estate process and a stressful one. At www.GayRealEstate.com, we believe you deserve the very best. We would love to help you get connected with the right agent today. If you’re ready to get started, get in touch today.
Jeff Hammerberg is founding CEO of Hammerberg & Associates. Reach him at 303-378-5526.
One of the biggest headaches of the new home process is the actual moving part. By the time someone is buying a home, most people are beyond the “I just need a pickup truck, a pizza and a case of beer for my friends.”
If that is still someone’s preferred way to move, that’s great. However, many people find they need a much more robust plan. It can also trigger a lot of feelings about items one owns, what to do with them, do they have too much, should I keep this memento that I never use? Etc.
Moving is a chance for a person to “clean house” literally, figuratively, spiritually and energetically. A person can figure out which items they want to keep, and which need to go. As someone who recently moved across the country, I can speak to this experience. It’s also time for what people call “the fresh start effect.” This phenomenon, according to psychologists, can happen in little moments (like the start of a new work week) and bigger moments (such as moving from one home to the next).
The fresh start effect offers these benefits often mentioned by psychologists:
- Mental Accounting: Dates act as chapter breaks, letting you put past failures into a previous period.
- Psychological Distance: You separate your flawed past self from your aspirational future self (“That was the old me”).
- Optimism Boost: New beginnings clear mental clutter and increase your sense of agency and control
Does this mean that “the new you” will be the perfect version you envisioned? Probably not. We are humans. But it might mean you get a chance to “leave some of the old you behind” within the walls you used to live in, and now have a chance to have a new layout, a new décor, a new color pattern, new wallpaper, donate old furniture and books or magazines, throw out clothes you no longer use or fit in, and enjoy the opportunity to literally use the, “Does this spark joy?” method that was made so popular by Marie Kondo in her Netflix series.
So, for all its hassle and headache, moving is a chance to shake off the “old you” and try on the new you, to incorporate the items you would like to keep and use more of, and shed the items, habits, and ways of thinking that you feel no longer serve you.
I can speak to the experiences that several of my clients had when they moved from a previous residence to a newer one. It usually coincided with a change in relationship status, a change in employment, a change in family size, but sometimes it just seemed to correlate to a new attitude and perspective that the client was really hoping for.
I have literally had clients come to me after the fact, in tears, that they were so happy they made the decision to move out of a situation that no longer served them, and move into one that felt like a much better fit.
Change can be annoying and overwhelming at times, but usually most people come out the other side, not wanting to return to the way they were before.
Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].
Real Estate
With gas prices soaring again, a staycation is a good plan
Home can be your personal retreat and your own private resort
When airfare costs more than your monthly utility bill and a weekend road trip requires a second mortgage just to fill the gas tank, many homeowners are discovering an unexpected luxury: the staycation.
A staycation isn’t settling for less—it’s reaping the benefits of one of the biggest investments you can make: your home. Much more than a place to sleep, it’s your personal retreat, your gathering place and, with a little preparation, your very own private resort.
Whether you own a single-family home, a townhouse, or a condo, creating a memorable staycation starts with appreciating what made you fall in love with your property in the first place.
Start with a home refresh. Think about checking into a beautiful vacation rental. It’s spotless, organized, and inviting. You can recreate that same feeling by spending a day preparing your home before your staycation officially begins.
Clear away clutter, deep clean the bathrooms and kitchen, wash the windows, and put fresh linens on every bed – even if you’re not expecting guests. Fluff the pillows, light a favorite candle, and place fresh flowers on the table. These small touches instantly make your home feel more luxurious.
If your budget allows, hiring a professional cleaning service can be one of the best staycation perquisites you make. After all, vacation should begin the moment you wake up and not after you’ve spent the day scrubbing floors.
Treat your staycation like a real trip. Set away messages on your phone and out of office notices on your email. Skip unnecessary chores for a few days. Giving yourself permission to relax may be the most valuable part of the entire experience.
One of the greatest advantages homeowners have over travelers is private outdoor living space. Whether it’s a spacious backyard, a screened porch, a rooftop terrace, or a cozy condo balcony, these areas can become the centerpiece of your staycation.
Stringing lights and adding comfortable seating, colorful planters, and outdoor rugs can completely transform the atmosphere without spending thousands of dollars. Add a portable fire pit, a tabletop fountain, or a hammock, and suddenly your backyard starts competing with many resorts.
Host an evening cookout, organize a game night, invite neighbors over for dessert, or gather around the fire pit for conversation after sunset. These simple moments often become the memories we treasure most.
Inside, transform your family room into a home theater complete with popcorn and comfortable blankets. Turn your breakfast room into a morning coffee café. Designate a quiet reading corner where phones are prohibited. Create a spa-like bathroom with plush towels, candles, bath salts, and relaxing music.
One of the highlights of traveling is experiencing new food. Instead of dining out every night, create themed dinners inspired by your favorite destinations. Prepare homemade Italian pasta one evening, Caribbean grilled seafood another, or a backyard Texas barbecue over the weekend. For a touch of whimsy, dress the part.
Pair each meal with music and libations from the region and enjoy dinner outdoors whenever possible. Suddenly, your dining room becomes part of the vacation experience instead of just another place to eat.
Families with children can turn a staycation into an adventure by seeing their home through a child’s eyes. Set up a backyard camping experience with a tent, flashlights, and s’mores around the fire pit. Transform the living room into an indoor campground complete with sleeping bags and a movie under a blanket “fort.” Organize a backyard Olympics with relay races, water balloon tosses, scavenger hunts, or miniature golf using household items.
Encourage children to plan a family picnic in the backyard or on the patio, choose a theme for a movie marathon, or help prepare meals inspired by countries they’d like to visit someday. The goal is to create experiences your children will remember long after summer is over.
Enjoy the amenities you already pay for. Condominium communities and many planned neighborhoods offer amenities that residents often overlook.
Swimming pools, fitness centers, tennis and pickleball courts, walking trails, clubhouses, grilling stations, and community gardens are designed to enhance your lifestyle. During your staycation, make a point of exploring everything your community offers. You may discover you’ve been living beside your own private resort all along.
Real estate professionals often talk about resale value, appreciation, and return on investment. While those things certainly matter, there’s another return that’s harder to measure: the enjoyment you get from living in your home every day.
You don’t need a boarding pass to recharge. You don’t need a hotel reservation to make memories. Sometimes the perfect getaway is the one you already own.
Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH @properties. Call or text her at 202-246-8602, email her at [email protected] or follow her on Facebook at TheRealst8ofAffairs.
Real Estate
When buying a home, it’s decisions, decisions, decisions
Keeping notes on the process makes for an informed purchase
When looking to buy a home, there are lots of details to consider. Many of my clients would come to me and say, “Joe I want to buy a place, but I haven’t decided which neighborhood to buy in.” And the struggle was real. A few clients had everything decided from the color of the hallway walls to the cabinet handles and sometimes which three square blocks they wanted to look at.
But other clients were occasionally looking at properties in areas as distinct as Union Market/NOMA, Brookland, Logan Circle, and then we would even go across the river to look at a property in Shirlington or the Van Dorn areas of Virginia, which all have their own unique flavor and characteristics.
Sometimes clients would tell me, “I only want to look in Mount Pleasant or Adams Morgan.” Or, “don’t even show me any properties west of this street or south of that street.” My job wasn’t to convince people where to live. It was to just take the parameters they set for me and find as good of a property in that zone as I could, coordinate the showings and, if necessary, offer the strategy.
One can see that buyers often had more decisions to make than a seller. From a seller’s perspective, the house was where it was, and we just had to make the best of it. But working with a buyer could mean looking at five different neighborhoods, and then being a “thought partner” to help them figure out which were the top two or three areas they had seen, and then further distilling those down into what was available and weighing those options against each other.
One house could have the dream bathroom but also be located six blocks further from a Metro stop, walkable shopping and dining, and “just too far away from my friends.” Another house could have all the neighborhood options a client was looking for, but was just not in turnkey condition, and would require an additional $30,000 of upgrades once purchased to make it into the dream home they envisioned.
One activity I often asked buyers to do was to keep an active list in their heads of the properties they liked, and to keep a running rank of the top three. I often encouraged them to bring a notebook along on the journey where they could take notes and write down questions they thought of as they looked. It was an important decision, and sometimes the largest purchase of their lives. Why not take it a little seriously, and take notes? This could often help the buyer later when they felt it was time to decide.
The point here is, keeping a notebook handy can sometimes help a person with what feels like an overwhelming process. It provides a space to explore how one feels, jot down important details to remember, and then use that to make an informed decision.
Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].
