Design March 6, 2023

5 Features of Mid-Century Modern Interior Design

Few interior design styles have captivated our imaginations like mid-century modern. Though the mid-century modern movement began to impact design culture many decades ago, we still see its lasting impact today. This vintage style remains popular for homeowners everywhere and shows no signs of slowing down. To aid your home décor efforts, let’s dig a bit deeper into what makes mid-century modern so special.

What is mid-century modern interior design?

The mid-century modern movement came to define graphic design, architecture, product development, and interior design in the 1940s, 1950s, and 1960s. Its emphasis on simplicity was a direct reaction to the more opulent styles that preceded it, heralding a shift in suburban home life. Here are a few of its signature features.

 

A mid-century modern living room with an open credenza containing cameras and books, a comfortable yellow chair with wooden peg legs, a small minimalist table, and several house plants. The colors of the furniture and plants pop against the white walls and white sheer curtains.

Image Source: Shutterstock – Image Credit: Ground Picture

 

5 Features of Mid-Century Modern Interior Design

1. Minimalism

Both mid-century modern architecture and interior design live by the maxim “less is more.” With minimal decoration, the space between objects is emphasized, giving interiors a fresh and clean look. Straight lines are a tenet of this design style, reflected in the signature pieces of the era, such as the Eames chair (pictured below). This minimalist approach to interior design maximizes each object by removing all unnecessary elements.

 

A leather Eames chair in a modern brick loft apartment with hardwood floors, an open kitchen/dining room area, and a large bookshelf decorated with accent items and house plants.

Image Source: Shutterstock – Image Credit: Karen Culp

 

2. Combining Outdoor and Indoor

The minds behind the mid-century modern movement prioritized nature and questioned how interiors could interact with the outside world. Nowadays, it’s common for homeowners incorporating this style to decorate with house plants, but the harmony with nature extends further into home design with such elements as stone materials, exposed wood beams, and floor-to-ceiling windows to maximize natural light.

3. Mid-Century Modern Color Scheme

If you’re a fan of decorating with a neutral color palette, this style is perfect for your home. With a reliance on colors like black, white, cream, and grey, a quintessential feature of this décor style is using bolder colors as accents to pop against a neutral backdrop. Primary colors create added contrast and help to lead the eye throughout a room. Experiment with dark brown or black to create different moods within the mid-century modern color spectrum.

 

A mid-century modern living room with a herringbone hardwood floor, low leather couch and matching chair with black metal framing, a minimalist bookshelf, and a small coffee table with wooden peg legs.

Image Source: Getty Images – Image Credit: gremlin

 

4. Materials and Texture

Its ability to remain popular for decades is what separates this style. Its principles are still reflected in the latest home design trends. Perhaps nowhere is this more evident than its philosophy on materials and texture. It combines natural and synthetic materials to bridge the gap between eras, creating interiors that feel simultaneously vintage and modern. Plastic and fiberglass are commonly used manmade materials, while wood, marble, and stone are typical natural elements.

5. More Space, Less Clutter

Just as the space between objects is emphasized, open floorplans are typical in mid-century modern design to create spacious environments. Decorative décor is limited to reduce clutter, and enclosed storage spaces are kept to a minimum. If you’re planning to decorate in this style, it’s an opportunity to pare down your belongings and keep only what’s essential for your lifestyle at home.

For more information on interior design, architecture styles, décor tips, and more, visit the Design category of our blog:

Windermere Blog – Design

 


­­­­­­Featured Image Source: Getty Images – Image Credit: vicnt

Buying March 1, 2023

Homeownership Terms to Know: Pre-Approval, Pre-Qualification & More

Throughout the home buying process, you’ll encounter several checkpoints. At every stop, you’ll get closer to the ultimate goal of purchasing your next home. Each one satisfies unique criteria required to become a homeowner, and each one has its own terminology. Before you begin your home buying journey, it’s helpful to know about pre-approval, pre-qualification, and proof of funds, and the role they play in a real estate transaction.

Pre-Qualification and Pre-Approval

What is pre-qualification?

Pre-qualification and pre-approval go hand in hand, but one precedes the other. Pre-qualification is a very early step in the home buying process leading to pre-approval. After sharing your financial information with your bank or lender, they’ll give you an estimate of the loan amount you can expect to qualify for. During this time, you’ll learn about the different home loans available to you to help you decide which is best. Pre-qualification usually only takes a few business days.

What is pre-approval?

A sibling to pre-qualification, pre-approval takes things a step further. Once you submit a mortgage application, you’ll provide your lender with the required information to perform a financial background check to assess your creditworthiness. You’ll get a pre-approval letter showing the lender’s offer of a specific loan amount, so you’ll know how much you can borrow. You’ll also get a better understanding of what interest rate you can expect to pay on your loan. Mortgage pre-approvals are typically valid for 60 to 90 days.

More information on the benefits of pre-approval and when to get pre-approved:

Once you’ve gone through the pre-approval process, it’s helpful to know which homes you can afford. Use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price.

 

A close up shot of a real estate agent presenting a pre-approval mortgage agreement to their client. There is a calculator, a key, and a small model of a house on the real estate agent’s desk.

Image Source: Getty Images – Image Credit: Thitiphat Khuankaew

 

What is a proof of funds letter?

Simply put, in real estate, a proof of funds letter is a document that proves to the seller that you have enough money available to purchase the home. Proof of funds letters may vary depending on the terms of the transaction. For example, if you’re making an all-cash offer, your letter will prove that you have enough liquid cash to complete the deal.

For more information on the home buying process, read our blog post on searching for a home:

How to Search for a Home: Buying Guide

 


­­­­­­Featured Image Source: Getty Images – Image Credit: mixetto

Market News February 27, 2023

Renting vs. Buying a Home: The Financial Benefits of Homeownership

This video is the latest in our Monday with Matthew series with Windermere Chief Economist Matthew Gardner. Each month, he analyzes the most up-to-date U.S. housing data to keep you well-informed about what’s going on in the real estate market.


 


Renting vs. Buying a Home

One of my followers asked me about some of the financial benefits of owning your home as opposed to renting. I find this topic interesting as there really is a “laundry list” of reasons that, from a financial standpoint, owning a home is better than renting.

I’m Matthew Gardner Chief Economist at Windermere Real Estate and welcome to this month’s episode of Monday with Matthew. Let’s get to the topic at hand. Of course, I don’t have time to go through them all today but here are the ones that I think are the most compelling: wealth building and tax benefits.

The Financial Benefits of Homeownership 

The first thing to understand is that, over time, a mortgage becomes easier to afford. You see, when you buy a home, the mortgage payments themselves don’t change and, over time, your earnings rise but the mortgage payment doesn’t. Simply put, unlike renters who generally see their rents going up every year, your mortgage payment never will and because you’ll hopefully be making more money as time goes by, the share of your income that you spend on a mortgage payment becomes less & less.

The next advantage to owning your home is that it is a good long-term investment. Of course, some will say that this is not the case because we went through the housing bubble bursting back in 2006 but there have actually been very few times in history when home prices have seen any long-term downward adjustment.

Now I know some will say that investing in stocks would give you a higher long-term return. My response to that would be I’ve never seen anyone living under a stock certificate. Have you?

My next reason for believing that ownership is better than renting is rather simple, and that is because a portion of every mortgage payment you make goes toward reducing the principal amount of the loan. Of course, during a majority of the term of the mortgage most of the payment is going towards interest but, a small portion is paying down the debt itself—in essence making it a forced savings plan, building wealth along the way.

Tax Advantages of Owning a Home

But what about the tax advantages? Owning a home offers unique and substantial ways to save on your taxes every year. Firstly, you can deduct your real estate taxes every year. Now, tax reform has limited the total allowed deduction, but it is still meaningful. You can also deduct the interest you pay on your mortgage. Again, there are some limitations but, depending on where you live you could save a significant amount.

And finally, let’s talk Capital Gains Taxes. When you sell your primary residence and have seen its value grow since you purchased it, up to $250,000 of that profit (if you’re a single person) or $500,000 if you’re married and filing jointly is tax free. Now, this is only true if you meet certain requirements with the biggest one being that you have to have lived in the house for a minimum of two years during the preceding five-year period.

If that’s not enough to convince you that there are very significant advantages to owning a home over renting, I will leave you with one last datapoint that you may find of interest.

Renting vs. Owning a Home: Household Net Worth

Using Federal Reserve data as a base, I’ve been able to calculate the median net worth of a household in America who owned their homes versus a household that rents.

  • In 2022, the median household wealth of a homeowner household here in America was approximately $330,000.
  • The median household wealth for a renter household in this country last year was just $8,000.

As you can see, that’s quite the discrepancy between the two. I think it’s very clear that homeownership for a vast majority of families is how they create most of their wealth.

I hope you found this topic of interest. Of course, if you have any questions or comments please do let me know as I do enjoy hearing from you. Take care and I look forward to talking to you all again next month.

 

Data combined and calculated by Windermere Economics


About Matthew Gardner

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Living February 24, 2023

7 Tips for Cleaning Your Appliances

Your appliances help your home run like a well-oiled machine. But without the proper cleaning and maintenance, they can make your life more complicated. When thinking about the most helpful cleaning tips around the house, we often center our efforts on open, high-foot-traffic areas. However, spending some time cleaning your appliances will have your home feeling fresher than ever.

7 Tips for Cleaning Your Appliances

1. Cleaning Your Refrigerator

Your refrigerator is the lifeblood of your food supply. A clean refrigerator equates to fresher food and a healthier household. Start by clearing the shelves and bins so you can access the tough-to-reach spots and corners. Wipe everything down with soap and warm water or try an equal-parts mixture of vinegar and water as a cleaning solution. This is also a good time to reorganize your refrigerator to cut down on food waste.

2. How to Clean Your Microwave

One simple cleaning hack can have your microwave looking brand new. Fill a microwave-safe bowl or container with water and heat it up until it starts to boil. Turn off the microwave and let the heated water sit for at least five minutes, then safely remove it. By heating up the water, the food particles caked on the walls of your microwave will be much easier to wipe away. To eliminate germs, disinfect your microwave’s handle and buttons.

3. Espresso Machine / Coffee Maker

If your coffee maker is kaput, your whole morning routine gets thrown off. Whether you use a stovetop coffee maker, French press, espresso machine, or a good old coffee pot, performing regular maintenance will decrease bacteria and mold growth. Periodically separate the removable parts of your coffee maker and wash them thoroughly with warm soap and water. If you have a coffee press, run the parts through the dishwasher occasionally to prevent buildup in the mesh.

 

A closeup shot of a person’s hands. Wearing yellow rubber gloves, they clean the face of an electric stove and oven range.

Image Source: Getty Images – Image Credit: kirstyokeeffe

 

4. Dishwasher Cleaning Tips

If your dishwasher isn’t clean, your dishes won’t be either. Get it in pristine condition with a few simple cleaning tips. After cleaning all food scraps and gunk from the drain, wipe down the gaskets with warm soapy water. Though there are a variety of dishwasher cleaning products available, you can give your appliance a thorough deep cleaning with vinegar and baking soda. Fill a dishwasher safe container with one to two cups of vinegar and place it in the top rack. Run a cycle without dishwasher detergent nor other dishes. Once the cycle is complete, sprinkle roughly a cup of baking soda along the bottom rack and run another cycle.

5. How to Clean Your Stove Top

No matter how tidy you are as you cook your stove top will collect debris and buildup from splattering oil, butter, and food particles. Throw on some rubber gloves and get ready to give it some elbow grease. Soaking food buildup with warm water will break it down and make cleanup easier. Use a hard plastic scraper to get gas or electric stove tops totally clean, and use a warm, soapy sponge to make your glass top range sparkle. If your stove has removable burners, remove them and soak them in water to make them shine like new.

6. Cleaning Your Washing Machine

Seeing stains in your freshly washed loads of laundry? It’s time to give your washing machine some TLC. Fortunately, your washing machine can do most of the cleaning work itself. Add a little vinegar to the drum and run a cycle on your machine’s hottest setting. Many newer models come with self-cleaning features and higher energy efficiency ratings to save water on each load.

7. Dryer Cleaning Tips

Don’t forget about your dryer, too! Dryer maintenance is largely a matter of cleaning out the lint traps regularly (after each use) and vacuuming the mesh. Without proper maintenance, your dryer can get clogged, leaving your washed clothes damp. And if enough dryer lint builds up, it could start a fire.

For more helpful cleaning tips, read our blog post on commonly missed cleaning spots throughout your home:

6 Commonly Missed Cleaning Spots

 


­­­­­­Featured Image Source: Getty Images – Image Credit: dusanpetkovic

Selling February 22, 2023

Deciding to Sell Your Home

Deciding when to sell your home can depend on a variety of factors. Perhaps your local market conditions are favorable to sellers, or you’ve recently changed jobs, or your family is growing and you need to upsize. Whatever the case may be, making the decision to sell your home is the first step in your selling journey

Deciding to Sell Your Home

Once you know it’s time to sell your home, it’s natural to feel a wave of emotions. A home is an integral part of a homeowner’s life. They provide countless memories and, for many homeowners, are their greatest investment. But once you’ve decided to sell, it’s important to look at your home with an objective eye to appeal to a wide variety of buyers.

Which repairs should I make before selling my home?

To get your house in top selling shape, identify its outstanding repairs. As you fill out your list, separate the projects into categories which are DIY-eligible and which require a professional. This will help you to budget for your overall repair expenses and build a reasonable timeline. Some of the most important repairs to make before listing your home include fixing appliances, making sure your sinks and faucets work properly, repairing any cracks or holes in the walls, fixing all leaks and water damage, and ensuring that all systems in the home are functioning properly. Making repairs before you list your home will bode well for home inspections, negotiations, and can even give your home an advantage over other listings. Your agent may suggest a pre-listing inspection to make your home more competitive in a seller’s market.

Which upgrades should I make before selling my home?

When you sell your home, you’re inevitably competing against other listings in your area. The aesthetics of a house play a significant role in its ability to catch buyer’s attention, which emphasizes the importance of improving your curb appeal as you prepare to hit the market. Landscaping projects, new exterior paint, and upgrading your front entry are just a few ways you can spruce up the outside of your home.

And what about the interior? Consider upgrading to energy-efficient appliances, which are known for their high ROI potential. This is a great time to repaint your home’s interior as well. Consider using a neutral color palette to make it as appealing as possible to a wide-array of buyers. It’s also a good idea to identify rooms in which the flooring should be replaced or repaired. When remodeling your home’s flooring, choose a material that is within budget and has good resale value.

Working With an Agent

Listing agents are trained professionals who work with homeowners to sell their homes. Your listing agent will be there to answer any questions you may have throughout the selling process and will negotiate with buyer’s agents to get the best price for your home. But their value doesn’t stop there. A listing agent will list the home, coordinate showings and open houses, and market the home. When searching for a real estate agent, find someone with whom you are compatible both emotionally and professionally, and who cares about the goals of you and your household.

What’s my home worth?

Homeowners can get a general idea of how much their home is worth by using online home value estimators, like Windermere’s free Home Worth Calculator. Though these tools can provide some context behind the value of your home, nothing compares to the in-depth analysis of an agent’s Comparative Market Analysis (CMA). Using a CMA, an agent can accurately price your home to get it sold quickly.

 

For more information on your local housing market and how to sell your home, connect with a Windermere agent today by clicking on the button below. 

 


Featured Image Source: Getty Images – Image Credit: Inside Creative House

Buying February 15, 2023

How to Search for a Home

The right home is out there, you just have to find it. This may seem like an oversimplification of the home search process, especially for first-time home buyers who haven’t been through it before. But once you’ve figured out your budget and discussed your needs with your real estate agent, you’ll be off and running. Here is a quick guide to help you get started on your home buying journey.

How to Search for a Home

Which houses can I afford?

Before you go perusing pages and pages of listings online, you’ll want to know your budget. Remember that while a home’s listing price is the main character in the list of home buying expenses, it’s not the only cost you’ll encounter. Knowing the full spectrum of the costs associated with buying a home will help you paint a clear picture of what you can afford. Once you’re familiar with these costs, you can strategize ways to save money to buy a house and plan to make a down payment.

To get an idea of what’s affordable, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different down payment amounts to get estimates of your monthly payment for any listing price.

 

Mortgage Pre-Approval

Another way you can supercharge your home search efforts is to get pre-approved for a mortgage. Pre-approval has several benefits for prospective home buyers. It helps you understand the different types of home loans available to you and what interest rate you can expect when the time comes to lock in your mortgage. It also streamlines the home buying process once you’ve found the property you’d like to pursue.

 

A young heterosexual Caucasian couple view real estate listings on their laptop at the dining room table. The home is decorated with modern furniture and house plants.

Image Source: Getty Images – Image Credit: Georgijevic

 

How do I find the right home?

Understanding your needs as a homeowner will help you narrow your selection pool. Before you start your home search, make a list of must-have and nice-to-have home features. This will inform your discussions with your real estate agent. Once they know what you consider a dealbreaker, they can pinpoint the right candidate homes.

So, where can you find available homes? Yes, driving around your neighborhood looking for “For Sale” signs is one way to go about it, but a vast majority of home shopping occurs online. Real estate websites like Windermere.com have advanced home search tools that allow you to filter by location, price, number of bedrooms and bathrooms, etc., plus helpful features like virtual tours, professional photography, maps, and more. Use our online search tool to get started:

 

What are the different house styles?

Familiarizing yourself with the different architectural styles will help to inform your home search. Understanding the differences between a Craftsman home and a Cottage home can make a big difference when you’re house hunting. Each style has its own unique characteristics, perspective on space, and flair. Knowing what kind of architecture and home design you’re drawn to will also help your agent conduct more efficient home searches.

Working with a Real Estate Agent

Your real estate agent will be your greatest resource during your home search. They have access to the Multiple Listing Service (MLS), the largest network of homes on the market. Your agent will use the MLS to create customized searches for available listings and can easily connect with sellers’ agents to coordinate next steps.

For answers to your home buying questions, connect with an experienced, local Windermere agent today:

 

 


­­­­­­Featured Image Source: Getty Images – Image Credit: mapo

Selling February 8, 2023

Simple Tips to Make Your Move Easier

Your needs as a homeowner change over time, and you need the right home to fit those needs. Accordingly, it’s highly likely that at some point in your future you will experience another moving day. While moving can be challenging, the following moving tips will make it easier. If you are remaining in your current area, your Windermere agent can continue to be a valuable resource on schools, utilities, transportation, recreational opportunities, and more.

If you are moving out of the area, your agent can help you with a referral to another reputable agent in your new community. Many agents also have relationships with real estate-related service companies in their area whom they can call upon for information regarding title, escrow, mortgages, temporary housing while you sell your home, and moving services. They can also help guide you in your search as you learn more about new communities and relocation services.

Helpful Moving Tips

Once you have decided to sell your home, it’s time to gather information and get organized. Begin by creating a “moving” file to keep track of your estimates, receipts, and other pertinent information. If you’re moving for a job, some expenses may be deductible, so you’ll want the paperwork when tax time comes.

If you are moving out of the area, start researching your new community and ask your agent for help in finding a referral agent. You’ll also want to determine whether you want to rent first or buy immediately. Your new agent should be able to help you with your decision. Once you know where you’re going, you’re also ready to get estimates from moving companies.

 

A middle-aged Caucasian woman explores quotes from moving companies on her phone in her living room. She is surrounded by moving boxes.

Image Source: Getty Images – Image Credit: svetikd

 

Moving to Your New Home

After you have chosen a moving date and either hired a moving company or reserved a rental truck, it’s time to wrap things up in your old neighborhood and start establishing relationships where your new home is located. This is particularly important if you are moving to a new town/city. You may want to ask your current doctors, dentists, etc. if they have any referrals on care providers in your new location. Be sure to check their recommendations on your insurance company’s online provider search list. Once you arrive, you may also want to ask new coworkers, friends, or the school nurse for their recommendations.

Contact your children’s school and/or day care and arrange for their records to be transferred. Call your insurance agent about homeowners insurance coverage. Remember to contact utility companies to disconnect, transfer or end service in your current home and turn on service in your new home.

You’ll want to file a change of address form with the U.S. Postal Service, either online or at your local office. If you don’t know your new address, have them hold your mail at the post office in your new locale. Don’t forget to cancel or transfer magazine and newspaper subscriptions as well.

If you belong to a health club or other association, contact them about ending or transferring your membership. Some clubs require written notice before cancellation. Finally, contact your bank or credit union to transfer or close accounts; if you have a safe-deposit box, don’t forget to clean it out before you leave.

Preparing for Moving Day

With moving day in sight, it’s time to get organized. Here are a few moving tips to check off your list before you start packing:

  • Tie up loose ends. Be sure to send out an email or change of address cards with your new contact information to family, friends, and associates. Return library books and any other borrowed items you may still have.
  • Triage your possessions. Determine what you are taking with you, what you are giving away to friends, family, or a favorite charity, and what is going to the dump or recycling center. If you have time, you can hold a garage sale or post items for sale online.
  • Clean up. Drain all gas and oil from your mower, other machinery, gas grills, kerosene stoves and lamps, etc., before loading them onto a moving truck. Empty, defrost, and clean your refrigerator at least 24 hours before your move, and prepare other appliances for moving as well.
  • Have your car serviced. This is especially important if you are driving to your new home.

Moving Tips: Packing Strategies

If you are doing your own packing, start collecting boxes and/or buy them from your movers. It may take a few days to do your packing, so be sure to pack non-essential items first and label them carefully. If you have any valuables, it’s recommended that you take them with you as opposed to packing them. You risk the chance of losing those items if they’re packed away in boxes. It’s also smart to take along a box of essentials, including items such as toilet paper, paper towels, tape, soap, scissors, pens, paper, and your toiletries. That way you won’t have to track these items down once you’ve arrived in your new home.

For more information on how to make your move easier, visit our Moving Checklist here:

Moving Checklist: A Step-by-Step Guide

 


­­­­­­Featured Image Source: Getty Images – Image Credit: Edwin Tan

Living February 6, 2023

What’s a Home Warranty and Why Do You Need One?

To be a homeowner is to understand that things can change at a moment’s notice. It’s only a matter of time before the systems in your home break and your appliances are on the fritz. But this inevitable truth isn’t meant to be all doom and gloom. Fortunately, you can protect yourself against these events with a home warranty.

What is a home warranty?

A home warranty and homeowners insurance both protect homeowners against unexpected events. A standard homeowners insurance policy typically covers your home, your belongings, injury, or property damage to others, and living expenses if you are unable to live in your home temporarily because of an insured disaster.

The policy likely pays to repair or rebuild your home if it is damaged or destroyed by disasters, such as wildfires, a winter storm, or lightning. Your belongings, such as furniture and clothing, are also insured against these types of disasters, as well as theft. Some risks, such as your home flooding, are routinely excluded from homeowners insurance policies.

A home warranty picks up where homeowners insurance leaves off by covering some or all of your HVAC, electrical systems, plumbing, and major appliances. A home warranty contract pays for the repair costs associated with these household items. However, if something in your home has not been properly maintained, your home warranty likely won’t cover it. Clarify the specifics of your policy’s language regarding proper maintenance with your warranty provider to avoid potential disagreements. Most home warranties are good for one year with the ability to renew annually.

What does a home warranty cover?

Home warranty policies vary by provider and location. Different coverages offer different protections among your home’s systems and appliances, or a combination of the two. Fees vary as well, based on your plan’s coverages and applicable service fees.

 

A young interracial heterosexual couple sits at their dining room table in the open concept kitchen of their new home reviewing their home warranty policy printed out with their laptop open.

Image Source: Getty Images – Image Credit: PeopleImages

 

Why do you need a home warranty?

Home warranties have several benefits both for buyers and sellers. For buyers, you can rest assured that your appliances are covered if and when they break down. This saves you from unexpected repair bills from having to hire a contractor. And when selling your home, a home warranty can serve as a way to differentiate your property over other listings. When buyers know a home is protected with a warranty, they can buy with confidence.

Finding the Right Home Warranty

As with anything in the home buying or selling process, it’s important to shop around when searching for the right home warranty policy. During your discovery process, ask questions about the policy’s costs, its dollar amount limit, which items it covers, and its applicable fees including service calls. Talk to your agent about trusted warranty providers in your area.

For more information on protecting your home, visit the Living section on our blog:

Windermere Blog – Living

 


­­­­­­Featured Image Source: Getty Images – Image Credit: Pekic

Market News February 3, 2023

Q4 2022 Northern California Real Estate Market Update

The following analysis of select counties of the Northern California real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

 

Regional Economic Overview

Total employment in the Northern California counties covered by this report rose 64,800 over the past 12 months. Though this was a significant slowdown from earlier in the year, it’s not surprising given the expectation of a possible national economic slowdown in 2023 and its impact on hiring decisions. The regional unemployment rate fell from 3.9% to 3% between November 2021 and November 2022. The lowest jobless rate was in Santa Clara County at 2.4% and the highest rate was in Shasta County at 4.3%. I expect the region to continue adding jobs in 2023, but I believe the pace of growth will slow.

Northern California Home Sales

In the final quarter of 2022, 8,388 homes sold, a significant drop from the more than 14,000 homes that sold in the fourth quarter of 2021. Sales were 26.8% lower than in the third quarter of 2022.

Year over year, sales fell across the board. The largest drop was in Santa Clara County but the decline in sales was pronounced across the region.

Listing inventory was down more than 31% from the third quarter of 2022, but increased over 46% compared to the fourth quarter of 2021. Potential buyers have more choice in the market than they have seen in several years.

Pending home sales fell 35% from the third quarter, suggesting that the market continues to soften.

A bar graph showing the annual change in home sales for various counties in Northern California from Q4 2021 to Q4 2022. All counties have a negative percentage year-over-year change. Here are the totals: Shasta at -36.3%, Placer at -37.9%, Alameda at -40.8%, San Luis Obispo at -43.1%, Contra Costa at -43.2%, Solano at -43.4%, Napa at -45.1%, and Santa Clara at -45.8%.

Northern California Home Prices

Higher financing costs continue to impact sale prices. The average price of a home sold in the region dropped 5% from the same period in 2021. Sale prices were 6.6% lower than in the third quarter of 2022.

Median listing prices in the region fell in all markets other than Contra Costa and San Luis Obispo counties compared to the third quarter. The market with the biggest drop was Napa County, where the median list price fell 4.2%.

Year over year, prices increased in Napa and San Luis Obispo counties but fell in the balance of the region. Only San Luis Obispo County saw prices increase compared to the third quarter of 2022.

With falling prices and growing inventory across most of the region, the market is clearly starting to reflect the higher mortgage rate environment.

A map showing the real estate home prices percentage changes for various counties in Northern California. Different colors correspond to different tiers of percentage change. Alameda and Santa Clara have a percentage change in the -6.5% to -4.2% range, Shasta and Solano are in the -4.1% to -1.7% change range, Contra Costa and Placer are in the -1.6% to 0.8% range, and Napa and San Luis Obispo are in the 3.4%+ change range.

A bar graph showing the annual change in home sale prices for various counties in Northern California from Q4 2021 to Q4 2022. Napa County tops the list at 6%, followed by San Luis Obispo at 5.7%, Contra Costa and Placer at -0.6%, Solano at -2.1%, Shasta at -3.1%, Alameda at -6.2%, and Santa Clara at -6.5%.

Mortgage Rates

Rates rose dramatically in 2022, but I believe that they have now peaked. Mortgage rates are primarily based on the prices and yields of bonds, and while bonds take cues from several places, they are always impacted by inflation and the economy at large. If inflation continues to fall, as I expect it will, rates will continue to drop.

My current forecast is that mortgage rates will trend lower as we move through the year. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. Even as the cost of borrowing falls, home prices in expensive markets will probably fall a bit more to compensate for rates that will likely hold above 6% until early summer.

A bar graph showing the mortgage rates from Q4 2020 to the present, as well as Matthew Gardner's forecasted mortgage rates through Q4 2023. After the 6.79% figure in Q4 2022, he forecasts mortgage rates dipping to 6.27% in Q1 2023, 6.09% in Q2 2023, 5.76% in Q3 2023, and 5.42% in Q4 2023.

Northern California Days on Market

The average time it took to sell a home in the Northern California counties in this report rose 12 days compared to the final quarter of 2021.

Year over year, the length of time it took to sell a home was static in Napa County but rose across the rest of the region. Compared to the third quarter of 2022, market time rose across all counties except Placer County, where it fell 13 days.

It took an average of 44 days to sell a home during the fourth quarter, which was 9 more days than in the third quarter of 2022.

As we’ve seen over the past several months, the increase in homes for sale is allowing buyers to be more selective. Moreover, there are likely buyers waiting until the spring in the hopes that prices and mortgage rates may be more favorable.

A bar graph showing the average days on market for homes in various counties in Norther California for Q4 2022. Santa Clara County has the lowest DOM at 28, followed by Alameda at 31, Contra Costa at 33, San Luis Obispo at 35, Placer at 41, Solano at 48, Napa at 57, and Shasta at 82.

Conclusions

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Employment continues to grow, but the pace of growth is slowing, which may be acting as a modest headwind to the housing market. Buyers have not disappeared completely, but the market is continuing to move away from the frenetic pace of the pandemic period. Home values in the region will likely continue to fall due to the highest mortgage rates in more than 15 years. That said, I expect rates will pull back as we move through 2023. Although they may be higher than buyers would like to see in the coming months, I believe the market will find stability later this year. As rates get closer to 5%, more buyers will start to look for a home.

A speedometer graph indicating a balanced market in Northern California in Q4 2022.

Given all the data discussed here, I am moving the needle further in favor of buyers and into what can best be described as a neutral position.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Market News February 2, 2023

Q4 2022 Nevada Real Estate Market Update

The following analysis of select counties of the greater Las Vegas real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

 

Regional Economic Overview

The Las Vegas area continues to add new jobs and employment is at its lowest level ever. There are now 1.075 million people working, 50,000 more than a year ago, which represents an annual growth rate of 4.9%. Even with such a robust employment market, the unemployment rate has started to notch just a little higher. This is a function of growth in the labor market as more people look for work. The non-seasonally adjusted unemployment rate in November was 5.6%, up from 5.3% a year ago. The seasonally adjusted rate was 6%, up from 5.7% a year ago.

Nevada Home Sales

A total of 4,945 homes sold in the final quarter of 2022, which was a drop of 52.4% compared to the fourth quarter of 2021 and down 24.3% from the third quarter of 2022.

Sales fell significantly in every neighborhood covered by this report compared to the same period in 2021. All areas also reported fewer sales than in the third quarter of 2022.

Listing activity continues to grow significantly. The number of homes for sale was up 151% year over year but was down 7.2% from the third quarter of the year.

Pending sales, which are an indicator of future closings, fell 25.3% from the third quarter, suggesting that the market may not see much improvement in the first quarter of 2023.

A bar graph showing the annual change in home sales for various sub-markets in Nevada from Q4 2021 to Q4 2022. All sub-markets have a negative percentage year-over-year change. Here are the totals: Aliante at -39.1%, Downtown at -43.6%, Northeast at -45%, The Lakes/Section 10 -46.7%, Whitney -48.2%, Green Valley at -49.5%, Henderson at -50.3%, Centennial at -50.6%, North Las Vegas at -51.7%, Anthem at -53.1, Southeast at -54.7%, Summerlin at -56.5%, Spring Valley at -57.1%, Southwest at -59%, and Queensridge at -59.3%.

Nevada Home Prices

Though there were fewer home sales than during the fourth quarter of 2021, the average sale price was up 2% to $467,794. However, sale prices were down 2.3% from the third quarter of 2022.

Higher financing costs are impacting the number of sales as well as sale prices. Sellers are starting to adjust to this new market reality, as demonstrated by lower median listing prices in all neighborhoods except Aliante when compared to third quarter of 2022.

Year over year, prices rose in ten neighborhoods but fell in the remaining five. Compared to the third quarter of 2022, prices increased in the Henderson, Queens Ridge, and Summerlin neighborhoods, but fell in all other market areas.

The Las Vegas market will likely see home prices fall given higher supply levels and higher mortgage rates, but I don’t think this will result in systemic price declines. Rather, prices will pull back to account for higher mortgage rates before they will then resume growing again, but at a far more modest pace.

A chart showing 15 sub-market areas and their corresponding zip codes in the Greater Las Vegas, Nevada area.

A bar graph showing the annual change in home sale prices for various sub-markets in Nevada from Q4 2021 to Q4 2022. Henderson tops the list at 10.2%, followed by Queensridge at 9.6%, Summerlin at 9.3%, Downtown at 7.5%, Southwest at 3.6%, North Las Vegas at 3.5%, Anthem at 2.9%, Northeast at 2.4%, Centennial at 1.1%, Aliante at 0.9%, Southeast at -0.2%, Whitney at -1.4%, Green Valley at -2.9%, Spring Valley at -5.4%, and The Lakes/Section 10 at -12.1%.

Mortgage Rates

Rates rose dramatically in 2022, but I believe that they have now peaked. Mortgage rates are primarily based on the prices and yields of bonds, and while bonds take cues from several places, they are always impacted by inflation and the economy at large. If inflation continues to fall, as I expect it will, rates will continue to drop.

My current forecast is that mortgage rates will trend lower as we move through the year. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. Even as the cost of borrowing falls, home prices in expensive markets will probably fall a bit more to compensate for rates that will likely hold above 6% until early summer.

A bar graph showing the mortgage rates from Q4 2020 to the present, as well as Matthew Gardner's forecasted mortgage rates through Q4 2023. After the 6.79% figure in Q4 2022, he forecasts mortgage rates dipping to 6.27% in Q1 2023, 6.09% in Q2 2023, 5.76% in Q3 2023, and 5.42% in Q4 2023.

Nevada Days on Market

The average time it took to sell a home in the region rose 20 days relative to the fourth quarter of 2021.

It took an average of 43 days to sell a home in the fourth quarter, which was 18 days longer than it took in the third quarter of the year.

Days on market rose in all neighborhoods compared to the same period in 2021 and the third quarter of 2022.

The combination of more choice and fewer buyers is causing the market to slow down from the frantic pace of 2021 and most of 2022.

A bar graph showing the average days on market for homes in various sub-markets in Nevada for Q4 2022. Downtown County has the lowest DOM at 36, followed by Whitney at 38, Davis at 39, Queensridge at 41, Spring Valley, Centennial, Southeast, and North Las Vegas at 42, Green Valley, The Lakes/Section 10, and Henderson at 44, Anthem at 46, Summerlin at 47, Southwest at 50, and Aliante at 51.

Conclusions

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

It is likely that a price ceiling has been reached in the Las Vegas market. Home sales are still occurring, but the frenzied nature we experienced during the pandemic has worn off. Higher financing costs have started to act as a significant headwind. While mortgage rates are likely to pull back in the coming months, they may not fall enough to result in a flood of home buyers. I expect prices to drop further before buyers start to believe that the market has bottomed. When this level is reached, mortgage rates will likely be closer to 5% than 6%, which should encourage more buyers to enter the market.

A speedometer graph indicating a balanced market in Nevada in Q4 2022.

The bottom line is that the market has to pay the price for the very rapid pace of home-price appreciation in 2021 and part of 2022. Prices have a little further to drop, but I firmly believe that conditions will stabilize this year and then resume the pace of pre-pandemic home-price appreciation. As such, I have moved the needle more in favor of buyers and into neutral territory.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.