The mid-century modern movement’s impact on design reaches far and wide. Whether it’s graphic design, architecture, interior design, product development or elsewhere, we see traces of its influence in countless aspects of everyday life today. Mid-century modern homes are known for their signature look and stylistic appeal. Here’s a short guide to understanding the characteristics behind mid-century modern architecture.
Mid-Century Modern Design
Yes, mid-century modern interior design and mid-century modern architecture are two separate things. The interior design style emphasizes clean lines and minimal decoration, the use of natural elements as accents, and a base of neutral colors for decorating. MCM interior design can exist in any type of home regardless of its architectural style, and is often a popular source of inspiration for decorators fond of vintage elements and popular mid-century furniture pieces such as credenzas, teak desks, Eames chairs, etc.
What is Mid-Century Modern Architecture?
Mid-century modern architecture is the exterior counterpart of its interior design branch. Fueled by a massive need for suburban homes throughout the Unites States in the post-World War II era, the stage was set for mid-century modern’s introduction to the masses. Some of the greatest minds in modern architectural history helped develop and proliferate its presence in society, including Ludwig Mies van der Rohe and Frank Lloyd Wright. Though you’ll find unique variations within mid-century modern, there are certain tenets of the architectural style.
Mid-century modern homes have flat roofs with straight lines. This clean geometric approach in roof design is part of a larger philosophical ideal that these homes should blend in with their outdoor environments, thereby working in harmony with nature.
Glass is used heavily, and floor-to-ceiling windows are a common feature, especially in the living room.
The minimalist approach to exterior design is showcased in the easy access to outdoor spaces and the fact that mid-century modern homes are often one-story buildings.
The open spaces created by this architectural style allow for intentional decorating and the use of color splashes to bring energy into them. Mid-century modern interiors often incorporate vibrant, warm colors on top of a calmer, neutral foundation.
The following analysis of select counties of the Utah 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 Utah economy remains buoyant. Although the pace of job growth has tapered somewhat from 2021, jobs continue to be added faster than the long-term average. Over the past 12 months, the state has added 55,400 jobs, representing a growth rate of 3.4%. The counties covered in this report added almost 53,000 new jobs over the past year, representing a growth rate of 4%. The state’s unemployment rate in May was 2%, which is marginally above the all-time low of 1.9% in April of this year. The labor force continues to expand, suggesting that the region expects economic growth to remain strong. All in all, a very impressive situation.
Utah Home Sales
❱ In the second quarter of 2022, 8,501 homes sold, which was a drop of 14.4% year over year. Sales were 30.9% higher than in first quarter of the year.
❱ Year over year, sales rose in the small Morgan County area but fell in the rest of the markets included in this report. Conversely, sales rose across the board compared to the first quarter, with impressive growth in Morgan, Davis, Utah, and Salt Lake counties.
❱ Inventory levels, which had been remarkably low, rose 206.2% from the first quarter of the year. This clearly had a positive effect on the market as more choice for buyers led to more sales.
❱ Buyers appeared to shrug off the fact that mortgage rates rose more than 1.5% in the quarter, which suggests they still believe owning a home is a solid investment.
Utah Home Prices
❱ Even with more homes on the market, prices continued to rise. Home prices rose 15.4% year over year to an average of $665,697, and they were 4.2% higher than in the first quarter of 2021.
❱ I have started watching list prices, as they will be a leading indicator of whether the market is starting to feel the impacts of declining affordability due to rising financing costs. In the second quarter, the median list price in the region dropped 2.2%, but it rose in Morgan, Davis, and Salt Lake counties.
❱ All areas contained in the report except for Wasatch County saw sale prices increase by double digits compared to a year ago. Compared to the first quarter of this year, prices were higher in every county other than Summit.
❱ Higher financing costs combined with declining affordability may have started to slow the rapid pace of appreciation we’ve seen over the past two years. This is nothing to be concerned about; rather it suggests that the market is starting to return to some sense of normalcy.
Mortgage Rates
Although mortgage rates did drop in June, the quarterly trend was still moving higher. Inflation—the bane of bonds and, therefore, mortgage rates—has yet to slow, which is putting upward pressure on financing costs.
That said, there are some signs that inflation is starting to soften and if this starts to show in upcoming Consumer Price Index numbers then rates will likely find a ceiling. I am hopeful this will be the case at some point in the third quarter, which is reflected in my forecast.
Utah Days on Market
❱ The average time it took to sell a home in the counties covered by this report dropped two days compared to the same period a year ago.
❱ Homes again sold fastest in Davis County, and every county except Summit and Wasatch saw average time on market rise compared to a year ago. The greatest drop in market time was in Summit County, where it took 19 fewer days to sell a home.
❱ During the second quarter, it took an average of 17 days to sell a home in the region. Not only did market time fall year over year, but it took 8 fewer days for homes to sell compared to first quarter.
❱ The market remains very competitive and, as mentioned earlier, appears to not yet be impacted by higher mortgage rates.
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.
The number of homes for sale in Utah has risen significantly and buyers are absorbing the additional supply. That said, higher inventory levels are forcing sellers to be a little more competitive than they were, as demonstrated by declining median list prices in several areas. I would contend that the market is not headed for any sort of correction; rather it has started to trend back to some sense of normalcy. This may be concerning to those who have become accustomed to the frenetic pace the market has experienced since the start of the pandemic, but it really is nothing to worry about.
Sellers still have the upper hand and well-positioned, appropriately-priced homes continue to attract significant interest from buyers. Given all the data discussed in this report, I have left the needle in the same position as the last quarter. Although the market still favors sellers, a shift may be on the way that would lead us toward a more balanced market.
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.
After setting a goal to reach $50 million in total donations in honor of Windermere’s 50th anniversary, the Windermere Foundation is getting closer to reaching that goal thanks to the $1.5 million that has been raised so far this year. After ending last year with a grand total of over $46 million in donations, that leaves roughly $2.5 million to hit our goal by the end of 2022. Here are some recent examples of how our offices have been raising money and helping low-income and homeless families in their communities via the Windermere Foundation.
Windermere Wedgwood
The Windermere Wedgwood office was inspired to support Lutheran Community Services—a local response organization helping refugees to find stability in the Pacific Northwest—after learning that they needed help raising money to support incoming families of Afghan refugees. After discussing the situation with Windermere Foundation Representatives from the Northgate, Sand Point, Madison Park, Eastlake, and Ballard offices, they got to work spreading the news and gathering donations. Support poured in, and when a check for $15,125 was presented to LCS, there were tears of joy.
Windermere Coast Offices
For the past ten years, the Windermere Coast offices of Gearhart and Cannon Beach, Oregon have participated in the Autism Society of Oregon – Clatsop Chapter’s 5k race/fundraising event “Color the Coast for Autism” as a way to support families with children on the autism spectrum. This year not only did the offices participate and donate $1,000, but they placed well in the race, too! Agent Katy Walstra Smith came in first place for the 5k relay, with two other agents placing inside the top 20.
Pictured L to R: Dennis O’Reilly, Cynthia O’Reilly, Katy Walstra Smith, Pam Ackley, Tobi Rates, and Brandi Lindstrom – Image Source: Pam Ackley
Windermere West Campus
Observed in April, Sexual Assault Awareness Month (SAAM) is an annual campaign to raise public awareness about sexual assault and educate communities and individuals on how to prevent sexual violence. Windermere West Campus of Federal Way, Washington directed their recent Windermere Foundation efforts toward supporting the King County Sexual Assault Resource Center by donating $1,500 to support the center’s family service programs.
Windermere Bozeman-Downtown
The Windermere Bozeman-Downtown office continues to support and spread goodwill throughout the Bozeman community. In April, they hosted a Windermere Week of Giving for five local organizations that resulted in $1,000 donations to each.
Their donation to Thrive will go toward hiring mentors for two children for an entire school year. The funds allocated to Eagle Mount paid for some of the production costs for their largest annual fundraiser, which the Bozeman staff helped put on during Community Service Day 2022. Their donation to Haven will be used to provide resources to victims of domestic and/or sexual abuse. Family Promise plans to use the funds to support families experiencing homelessness in Gallatin County. And the donations to HRDC will go toward the establishment of a new facility to provide resources and solutions to people experiencing poverty in the area.
Pictured L to R: Aidan Young, Kelly Martin, Mike Stem, Andrew Flakker, Natalie McDonald – Image Source: Natalie McDonald
Pictured L to R: Kim Stevens, Erica Coyle, Kevin Schwartz, Bobby Goodman
Windermere Mercer IslandÂ
Every year, the Windermere Mercer Island office hosts a shredding event which draws crowds of clients and community members alike. This year, they hired a local shredding company to bring a truck to the office parking lot and invited the community to safely and securely shred their old documents while getting a chance to meet some of their fellow community members. The event also served as a platform to collect donations for and raise awareness about the Windermere Foundation’s 50 in 50 campaign.
Windermere Walla Walla
In May, Windermere Walla Walla held a cartoon-themed bowling night to raise money for the local YWCA, the Christian Aid Center, and Children’s Home Society. Agents, staff, and community members came dressed as cartoon characters of all kinds, which made for a colorful and lively scene at the local bowling alley. All in all, Walla Walla collected a whopping $10,000 to support the YWCA’s resources for local women in need, the Children’s Home Society’s child and family counseling, and the Christian Aid Center’s efforts to provide emergency shelter for the Walla Walla homeless population.
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.Â
Hello there, I’m Windermere’s Chief Economist Matthew Gardner and welcome to this month’s episode of Monday with Matthew. You know, one of the many things I love about being an economist is that it is a remarkably humbling profession. You see, just when we start to believe that our models are close to perfection, something comes along to remind us that forecasting isn’t an exact science.
And if you’re wondering what I am talking about, I recently took a look at the 2022 mortgage rate forecast I put out at the start of the year and…well, let’s say that rates rose at a far faster pace than I had anticipated. I thought that now would be a good time to take another look at rates and share my thoughts on the direction that they will likely take during the rest of the year and my reasoning behind it. And that means we need to talk about inflation.
So, a quick look back. As you can see, there wasn’t much to celebrate in 2018, with rates rising from 3.95% to 4.94% before pulling back and ending the year at around 4.5%. In 2019, rates fell following the Feds’ announcement that they were likely done with raising the Fed Funds Rate, and the mortgage market also reacted positively to the announcement from the White House that they were going to impose tariffs on select Chinese imported goods. We saw an uptick in late summer, but that was mainly due to news related to BREXIT.
In 2020, rates were dropping but spiked very briefly when COVID-19 shut the country down and bond markets panicked. But with the Fed jumping in with an emergency rate cut and announcing that they would start buying a significant number of treasuries and mortgage-backed securities, rates tumbled to an all-time low of just 2.66%. In 2021, rates rose as new COVID infections plummeted, but then dropped again as the Delta variant took hold, but ultimately trended modestly higher in the second half of the year.
And then we get to 2022. Rates started the year at just over 3.1% but have since skyrocketed to over 5.8% before a small pullback that started a few weeks ago. In as much as economists expected rates to rise this year, nobody anticipated how fast they would rise. So, what went wrong? Well, there’s actually a rather simple answer.
Even though we expected rates to trend higher in 2022, there were two things we hadn’t built into our forecast models.
Russia’s invasion of the Ukraine
Inflation continued to climb for far longer than we expected
So, how do things look for the rest of the year? To explain my thinking, it’s important to remember that the bond market and, by implication, mortgage rates hate nothing more than high inflation because when inflation is running hot, it limits demand for bonds which, in turn, forces the interest rate payable on bonds to rise and this pushes mortgage rates higher.
But what’s been fascinating to watch is that over the past couple of weeks, rates have actually been dropping which is certainly counterintuitive given where inflation is today. And the only reason I can see for this is that bond traders were thinking that inflation might be topping out.
But then we got the June CPI numbers, and it certainly didn’t suggest that inflation was slowing, in fact it showed the opposite. But even though the total inflation rate hasn’t yet peaked, I believe that a shift has actually started and that we are closer to a peak in inflation than you may think.
Indicators of Inflation: Consumer Spending
The June CPI report showed the headline inflation rate still trending higher but look at the core rate which excludes the volatile food & energy sectors. That has actually been pulling back for the past three months. And consumer spending when adjusted for inflation fell 0.4% in May. That’s the first monthly drop since last December, and I expect the June number when it comes out at the end of the month to show spending dropping even further.
This is a very important dataset that often gets overlooked but it is starting to tell me that the economy is slowing because of inflation and slower spending acts as a headwind to further price increases.
The core PCE price index is up 4.7% year-over-year, but this was the smallest annual increase since last November and you can see that it is also starting to roll over. This index is actually the Fed’s favored measure of inflation as it’s more comprehensive that the CPI number as it measures the change in spending for all consumers, not just urban households.
Indicators of Inflation: 5-Year Breakevens and Producer Price Index
The five-year “inflation breakeven” has plunged more than a full percentage point since peaking at just under 3.6% in late March. And this number is important as it lets us know where bond traders expect the average inflation rate to be over the next five years.
The Producer Price Index measures inflation at the wholesale, not retail, level and even though the total rate rose as energy costs continue to impact the manufacturing sector, the core rate has been pulling back for the past three months. Now let’s look at some commodity prices and see what’s going on there.
The price for natural gas is down over 34% from its recent high
Copper prices are down 26%Â from the recent June peak and down substantially from March
Soybean prices are down 10%
Despite the war in Ukraine, wheat prices are down 27% from June
Retail Gas Prices: West Coast, West Coast Excluding CA, U.S.
It appears as if gas prices have also rolled over. Of course, here on the West Coast it’s more expensive than the nation even when you take California out of the equation.
U.S. Treasury Yields: 10-Year and 2-Year Constant
And finally, to cap things off, traders must also be pondering the same numbers as I am because bond yields themselves have been tumbling at both the long and short ends of the yield curve with the 10-year note still yielding less than 3% even after the CPI report and two-year yields, while still elevated, are still down from 2.42% just two weeks ago.
So, given all the charts we have looked at, I hope that you too are seeing some light at the end of the tunnel when it comes to the likelihood that inflation is about to start easing.
No doubt, the headline inflation number for June wasn’t one that anyone wanted to see but, if the trends we have looked at continue, I still expect inflation to start slowly creeping lower, which will push bond prices higher, yields will start to pause—if not drop—and that will allow mortgage rates to hold at or close to their current levels for the time being. Although we could see rates coming down, though they will still start with a five for the foreseeable future. I hope that you have found my thoughts of interest.
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.
This blog post contains excerpts of the “Remodeling 2022 Cost vs. Value Report” (costvsvalue.com).1
As you prepare to sell your home, one of the major considerations you may face is whether to remodel, and if so, how to allocate your remodeling budget. Remodeling can help differentiate your home from competing listings in your area, but this competitive advantage comes at a price.
The following information provides insight on which remodeling projects deliver high ROI. To maximize the value of your remodel, talk to your agent about what buyers in your area are looking for and align your efforts accordingly.
High ROI Remodeling Projects to Increase Home Value
It’s no secret that buyers want to see a home with curb appeal and attractive interior spaces. But as a seller, you’ll only have so much budget to work with and you want to get the most return on your investment. As laid out below, here are the five highest ROI remodeling projects nationwide as found in the Remodeling 2022 Cost vs. Value Report (www.costvsvalue.com).1
Remodeling Project
Cost of Remodeling Project (2022)
Resale Value of Remodeling Project (2022)
ROI
Garage Door Replacement
$4,041
$3,769
93.3%
Manufactured Stone Veneer
$11,066
$10,109
91.4%
Minor Kitchen Remodel (Midrange)
$28,279
$20,125
71.2%
Siding Replacement (Fiber – Cement)
$22,093
$15,090
68.3%
Window Replacement (Vinyl)
$20,482
$13,822
67.5%
This data shows that for a given remodeling project a higher expenditure doesn’t necessarily equate to higher ROI. It’s interesting to note that only one indoor project—the minor kitchen remodel—placed in the Cost vs. Value Report’s top five.
So, does this mean you should replace your garage door before selling your home bar none? Not necessarily. Again, your remodeling priority list should target the areas of your home that need attention while aligning with local buyer interest. Your agent can provide guidance on what competing listings in your area are offering and refer you to trusted remodeling contractors in your area.
Though smaller scale home makeovers don’t have the value-adding power of larger remodeling projects, they can still make a difference when selling your home.
Instead of an upscale kitchen remodel, you can focus more on making minor improvements in several areas. For example, repainting or refinishing your cabinets, swapping out your drawer pulls and hardware, and installing new appliances can make your kitchen feel brand new with a smaller budget. When remodeling your bathroom, tasks like refinishing your tub, installing new lighting, and a new backsplash can make a strong impression on buyers.
There’s a first time for everything. As a first-time home buyer, navigating the uncharted territory of the home buying process can be challenging to say the least. Although every home purchase is unique, there are certain knowns that can help you manage your expectations. Once you’re ready to buy, knowing a bit more about how to approach the market will have you well on your way to getting the keys to your first home.
Managing Expectations as a First-Time Home Buyer
Local Market Conditions
Your local housing market conditions will loom large in the buying process. In a competitive market (i.e. a seller’s market), prices are being driven up by demand, sellers have the leverage during negotiations, and it may take a long time to find the right home. In such a market, you can expect to compete against multiple buyers where everyone is trying to sweeten their offer to make it stand out. This usually takes the form of waived contingencies, escalation clauses, and all-cash offers. Buying in a competitive market is challenging for any buyer, let alone a first-time home buyer. Having greater buying power and getting pre-approved for a mortgage are two key paths to bolstering your financial standing and improving your chances of submitting a winning offer.
Though finding the right home is never a cakewalk, the conditions of a buyer’s market will be in your favor. In such market conditions, sellers are competing for the attention of a limited pool of buyers and are more flexible during negotiations. With less competition around you, you can afford to be more patient and selective when pursuing available listings.
Which homes can you afford?
It’s easy to fall in love with a home based on its listing photos, but one look at the price tag can break the spell. By knowing which homes are in your budget, you’ll be able to focus your time and effort on listings that are financially feasible. And remember, there are a myriad of costs to buying a home beyond the listing price to include in your budget.
To get an idea of what 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 home price. By using the Home Monthly Payment Calculator, you can make a well-informed estimation of whether it’s the right time to buy.
Working with Your Agent
Fortunately, you don’t have to take on the home buying process on your own. A buyer’s agent will help to manage your expectations from start to finish by helping you look for homes, make an offer, negotiate with the seller and their agent on your behalf, and provide clarity on the closing process. Beyond their ability to get down to brass tacks and help you purchase a home, your agent will be there to answer your questions, validate your emotions, and connect you to their network of helpful resources.
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.Â
Hello there, I’m Windermere’s Chief Economist Matthew Gardner and welcome to this month’s episode of Monday with Matthew.
If you’ve listened to me at all over the past several years, you’ll know that I am pretty passionate about one subject: housing affordability. And, given the significant price growth that we’ve seen over the past decade, as well as the recent spike in mortgage rates, I wanted to talk a little bit about what might be done to address this very serious issue.
The Growing Housing Affordability Problem
Now, when we think about housing affordability and how it might be solved, a lot of people get tied up in the minutiae when, quite frankly, it really isn’t that hard a problem to solve. You see, there’s one very simple way to address this: to build more housing units. But, as easy as that may sound, there are a lot of obstacles that are holding new supply back. But before I get to that, I want to share some data with you that might help to demonstrate how serious an issue we all face.
Every quarter, the National Association of Homebuilders puts out its affordability numbers for metro areas across the country. An analysis of sales and incomes allows them to show the number of homes—both new and existing—sold in a quarter that were affordable to households making median income.
Housing is Increasingly Unaffordable
Here you will see numbers from just a few of the 240 metropolitan areas across the country and the share of sales in the first quarter of this year that were “technically” affordable. I think you’ll agree that it’s eye opening.
Although I am only showing you a few of the U.S. markets I will tell you that the ten least affordable US housing markets were all in California. The Golden State is also home to 21 of the top 25 least affordable markets in the country. But what you might also find interesting is that our primary cities aren’t the only ones that are suffering from affordability issues, with markets like Bend, Oregon; Boise, Idaho; and even Las Vegas, Nevada becoming increasingly unaffordable for a lot of households.
And it’s worth mentioning that that 48 of the 69 markets where less than half of the homes sold were affordable were in states that have at some point in the past implemented comprehensive planning and growth management legislation. And when governments mandate where homes can and cannot be built, one thing happens: it pushes land prices higher which makes new homes more expensive and limits the amount of new supply that builders are able to provide. So, what can be done?
Well, I will start out by saying that states who have implemented growth management plans, which they generally did to slow or stop suburban sprawl, remain disinclined to move these boundaries, and that means it becomes paramount to not look further out but to concentrate within the urban growth boundaries and decide whether it’s time to think about removing single-family zoning altogether.
This is a fascinating thought, but I must add that I am not suggesting that we do away with single-family homes. Absolutely not! What I am thinking about is the ability for a market to decide what makes the most sense. In order to do so, single-family zones need to allow for the development of denser housing, but also allow the market to decide what’s best. Areas that have implemented such change has given rise to a movement in order to address what is being referred to as “missing middle housing.” For those of you who are unfamiliar with this term let me try and explain.
Missing Middle Housing
This is a great image courtesy of Opticos, a team of urban designers, architects, and strategists who are passionate about adding sorely needed housing options.
They came up with the term “missing middle” as it describes housing types that were actually very common prior to World War II where duplexes, row-homes, and courtyard apartments were in high demand. Unfortunately, however, they are now far less common and, therefore, “missing.”
And the key function of this type of housing is to meet the rising demand for walkable neighborhoods, respond to changing demographics, and provide housing at different price points. You see, rather than focusing on the number of units in a structure—think high rise apartments or condominiums—this type of housing emphasizes scale and heights that are appropriate for and sympathetic to single-family or transitional neighborhoods.
The Decline of Missing Middle Housing Construction
And to show you how supply of these types of units has changed, this chart shows the number of duplexes to eight-unit buildings built over the past almost half-century and you can clearly see that up until the late 1980s they were being built in decent numbers, but the 1990s saw a significant shift toward traditional single-family home ownership and builders followed the demand and this type of product started to become scarcer.
Almost 16% of total new homes built in America in the early 1980s were of this style, but that number has now shrunk to just 1.4%—or a paltry 19,000 units.
But I see demand for these housing types growing as we move forward and that buyers or renters, young and old, will be attracted as it will meet their requirements not only in regards to the type of home they would want to live in but, more importantly, it can be built cheaper than traditional single-family housing and therefore it will be more affordable.
But although this sounds like it’s a remarkably simple solution that can solve all our woes, in reality it’s not that easy for two very specific reasons. The first is that many markets are already essentially built out, meaning that in order to develop this type of product, a builder would have to purchase a number of existing homes and raze them in order to rebuild. But given current home values, it’s very hard for a builder to be able to make such a proposal financially.
And the second issue is that current residents within these “transition” areas—which have been developed as traditional single-family neighborhood—simply don’t want to see change. But is this type of product bad? Here are some examples.
This shows row-homes in Brooklyn on the left and traditional “triple-deckers” in Massachusetts on the right:
This is a bungalow court project in California:
Here are some Live/Work Units in Colorado:
These are some amazing mews homes in Utah:
And finally, a new terrace housing project that will be built in Washington DC:
Don’t get me wrong, I’m sure that some of you who simply aren’t inspired by this type of architecture, and that is understandable. But can we simply stick with the status-quo? I don’t think so. And some state legislators have already implemented significant zoning amendments in order to try and encourage this type of development.
Back in 2018, Minneapolis was the first city to allow this type of development inside single-family zoned areas. This was followed by Oregon State in 2019. Senate Bill 9 was signed by Governor Newsom of California last year which made it legal for property owners to subdivide lots into two parcels and turn single-family homes into duplexes, effectively legalizing fourplexes on land previously reserved for single-family homes. So, we are starting to see some change.
This is a good start but as I mentioned earlier in areas that are already built out, even this type of forward-thinking legislation will not be the panacea that some want. But I’m not giving up hope.
Addressing the “missing middle housing” would allow for homes of all shapes and sizes, for people of all incomes including workers who are essential to our economy and community. Here I am talking about our teachers, firefighters, administrative assistants, childcare providers, and nurses—just to name a few!
There are currently 45 million Americans aged between 25 and 34 and most aspire to homeownership. However, the massive price growth which, by the way, many of us have benefitted from over the past several years, has simply put a “starter home” out of their reach.
I will leave you with one last statistic. Over 28% of American households today are made up of a single people living alone, and it is anticipated that up to 85% of all U.S. households will not include children by the year 2025. Finally, by 2030, one in five Americans will be over the age of 65.
Are we going to meet the needs of the country’s changing demographic going forward? I certainly hope so, but it will take a lot of work for us to get there. As always, if you have any questions or comments about this particular topic, please do reach out to me but, in the meantime, stay safe out there and I look forward to visiting with you all again next month.
Written by: Samantha Enos – Vice President of Diversity, Equity, and Inclusion, Windermere Real Estate
Since our company committed to affecting change with regards to diversity, equity, and inclusion (DEI) nearly two years ago, we’ve established several initiatives that have helped us move the needle toward making Windermere a more diverse organization and homeownership more equitable. Guided by our four DEI pillars—community, home ownership, leadership, and culture—we remain focused on finding paths to address discrimination, racism, and inequity within the real estate industry.
Some of our DEI efforts over the past two years:
Hired a VP of DEI who is charged with advancing Windermere’s DEI efforts, as well as supporting Windermere offices with their DEI strategies, planning, and programs
Developed a committee of Windermere agents, staff, and owners to discuss Windermere’s efforts and to provide input on the direction of our DEI strategies
Conducted ongoing DEI training for the Windermere leadership team, as well as for franchise owners and managers
Engaged with state and local REALTOR® associations to audit our developing DEI training and educational opportunities offered to agents through our Professional Development department
Produced instructional documents to educate homeowners on the history of racially restrictive language in property deeds and how to strike/remove such language from their chain of title
Launched a “Race + Real Estate” playlist on the Windermere Spotify channel that offers a selection of podcasts that explore how members of marginalized communities have historically been denied access to homeownership
Sam Smith “Hi Neighbor” Homeownership Fund
Launched in early 2022 through our partnership with non-profit lender HomeSight, the Sam Smith “Hi Neighbor” Homeownership Fund is designed to help low-to-moderate-income home buyers who have been historically underserved by traditional lenders. Through donations from the Windermere Foundation, U.S. Bank, and JP Morgan Chase, the Sam Smith fund is helping to reduce barriers to homeownership by funding loan products for Black/African American first-time home buyers in Washington State.
We have formed a Board of Directors made up of six agents to help manage the program and drive fundraising. As of May 2022, the Sam Smith fund has raised over $127,000 for first-time home buyers, including a personal donation of $50,000 from the Jacobi family to help seed the fund, with over $58,000 raised this year alone. We are actively seeking partnerships with down payment assistance programs in other states to expand our efforts.
Aspire Internship
Formed in partnership with the University of Washington College of Built Environments in July 2021, the inaugural Aspire Internship program produced eight interns, all of whom completed the program and received a $5,000 scholarship. We’ve already seen real-world impact stemming from Aspire, with one of the group project proposals contributing to the creation of an agent scholarship program (see WIN below), and in the hiring of an Aspire alumnus at a Windermere office in Seattle. The program is expanding in summer 2022, with nearly double the number of students participating.
WIN Scholarship ProgramÂ
The WIN Scholarship Program was created after recognizing the need to build and support a diverse community of new agents. The program provides up to $2,500 for qualified new hires to be used for training, educational purposes, and relieving the financial burden of the startup costs involved with becoming a real estate agent. The program has made an impact outside of Windermere, as well. Using the WIN Scholarship as a model, Washington REALTORS® has established a pilot program in which they will sponsor one year of REALTOR® member dues, six months’ worth of MLS fees, and $400 worth of training for qualified BIPOC (Black, Indigenous, People of Color) agents.
DEI Resources
For more information on our commitment to diversity, equity, and inclusion, updates on our company initiatives, and further resources on the history of housing discrimination and its impact on our communities, visit windermere.com/dei.
Yes, the dream scenario for selling a home is that the entire process goes off without a hitch. But the reality is that sometimes there will be bumps in the road, and the best thing you can do is work closely with your agent to be prepared for them. One such obstacle is when a buyer decides to terminate their contract to purchase your home after all the terms have been agreed to. So, what’s a seller to do? Here’s a quick overview of how to prepare for this situation and the important role contingencies play when selling your home.
What Happens When a Buyer Backs Out of a Real Estate Transaction?
To be clear, a buyer can back out of a real estate transaction. The outcomes of doing so vary greatly. In certain cases, the buyer walks from the table with all their money intact. In others, they will have some fiduciary responsibility to the seller. If a buyer is hesitant about purchasing a home, the best time to back out of the deal is before their offer is accepted. As things progress, the ramifications of a buyer backing out can get messier. Once the purchase agreement is signed by both parties, it becomes legally binding, and the sale of the property can proceed.
After your agent and the buyer’s agent agree on purchasing terms, the buyer will place their earnest money—a deposit of funds to indicate that the buyer is serious about their offer and intends to pay the seller—in escrow to make sure they distribute properly when the deal goes through. Whether the buyer is on the hook for the funds in escrow depends on the terms of the contract, how far along you are in the selling process, and the corresponding state laws where the home is being sold. If a buyer backs out of the deal for a reason that was not stipulated in the real estate contract, then the funds will typically go to the seller. Still, this scenario can leave sellers scratching their heads. It’s not as if they’ve done anything wrong, and they thought they had found the right buyer, only to have the carpet ripped out from under them at the last minute. So, how can you protect yourself when selling your home?
This situation highlights the importance of contingencies. Contingencies exist to protect buyers and sellers from the unknowns of a real estate transaction. Buyers will typically include contingencies in their offer to specify the criteria that will allow them to walk away from the deal unscathed and the timeframes for doing so. As a seller, it’s critical that you work closely with your agent to understand the terms of the buyer’s offer. Read about Common Real Estate Contingencies to understand the ins and out of the different contingencies buyers will generally tie to their offer.
What to Do After a Home Buyer Backs Out
Backup Offers
Backup offers are made with the knowledge that an existing offer is already on the table. They stipulate that if the first offer falls through, the second buyer’s offer is accepted. Talk to your agent about the possibility of accepting backup offers when you sell your home. Whether a buyer backs out due to buyer’s remorse, something they discover in the home inspection process, or for any other reason, backup offers can act as a remedy for their indecision by keeping the line moving to the next buyer.
If a backup offer isn’t on the table, the seller is left with the decision of whether to sell again. It’s true that a relisted home may elicit questions from buyers. They will want to know why the home is being relisted and what went wrong with the previous offer. It’s important to coordinate your relisting strategy with your agent and discuss what disclosures are appropriate. It may be discouraging to deal with a buyer backing out but remember that selling a home is all about finding the right fit. A buyer walking away doesn’t mean your home isn’t worthy of a winning offer, it just means that you haven’t found the right buyer yet.
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.Â
Hello there. I’m Windermere Real Estate’s Chief Economist Matthew Gardner and welcome to the latest episode of Monday with Matthew. Over the past few months, analysts like myself have been starting to get our hands on early numbers from the Census Bureau and, although we won’t get the bulk of the data for another several months, I thought it would be interesting to take a quick look at some of the information that the government has put out specifically as it relates to patterns.
This is a relevant topic given the pandemic, with many people wondering if we saw a mass shift in where we choose to live because of COVID-19. This belief that we packed up and moved because of the pandemic is, at face value, quite credible, especially given that home sales in 2021 were at levels we haven’t seen since 2006. But the reality, at least from the data we have received so far, actually tells a different story.
Moving Patterns for U.S. Homeowners and Renters in 2021
We Move More Infrequently
This first chart looks at people and not households and it shows that, contrary to popular belief,  we’re actually moving less frequently now then we have done in decades, with the share of people not moving in a single year rising from just about 84% to over 91½%. Of course, we are having fewer children now than we did, but not to the degree that would change the trend.
Unsurprisingly, Renters Move More Often than Owners
And when we break this down between homeowners and renters there is quite the discrepancy between the two groups. Although the number of renters not moving has risen from 67½ percent up to 84% since 2000, the number of homeowners staying put has moved from almost 91% all the way up to 95% last year.
So, the data thus far is not suggesting that we saw any form of mass exodus following the pandemic, in fact we haven’t been moving as much for the past 2-decades, but people did move since COVID-19 hit and the reasons they did were fascinating. The following charts are broken up into four categories of movers: those who moved for family reasons; those who moved for employment related reasons; those that moved for housing related reasons; and finally, those that moved for other reasons.
Reasons to Move (1)
So, starting with family-related reasons, it was not surprising to see the major reason for both owners and renters to move was to establish a new household, nor was it surprising to see a greater share of renters headed out on their own than homeowners. Finally, the share of those moving because of a change in marital status was essentially the same between renters and homeowners. And when we look at employment related reasons for people moving last year, a greater share of renters moved because of a new job than homeowners, and more renters moved to be closer to their workplaces than did homeowners. Again, not really surprising, given that a large share of renters work in service-based industries and therefore proximity to their workplaces is important. You will also see that a greater share of homeowners than renters moved because they lost their jobs and, finally—and not at all surprisingly—far more homeowners moved because they chose to retire than renters.
Reasons to Move (2)
And when we look at housing related reasons that people moved, a large share of owners and renters moved from their current home or apartment and into a new, bigger, better house or apartment. A statistically significant share looked to move into a better neighborhood, and I do wonder whether owners were doing this because of the ability to work from home and possibly move to a better location further away from their workplaces. And even though renters tend to stay closer to their workplaces, I wonder whether these renters weren’t in white-collar industries and that the ability to work from home has led them to move into an area that they perceive to be better suited to them.
And finally, a significant share of renters moved because of the fact that rents have been skyrocketing over the past 18-months or so. This clearly impacted some homeowners, too. And finally, under the “other” category, more renters than owners moved because they were either entering or exiting a relationship with a domestic partner, and more renters left to either go to college or because they had completed their degrees.
Health-related reasons for moving had a significant impact on homeowners over renters, and I found it particularly interesting to see a lot of owners saying that “climate” was a reason for their move. Of course, I can only hypothesize as to whether people are simply looking to move to warmer climates or whether climate change is starting to have an increasingly large influence on where we choose to live. My gut tells me that climate change is becoming a far more important consideration for homeowners, although we can’t deny that a lot of people, specifically on the East Coast, moved South during the pandemic.
These next few charts break down movers not just by whether they our owners or renters but also by ethnicity.
2021 Mobility by Ethnicity & Tenure: Owners vs Renters Movers and Non-Movers
Here you can see that homeowners across these three ethnicities were pretty much uniform in their desire to stay in their existing home with only 4 to 5% moving. And renters who, as we have already seen, did move more frequently last year than homeowners, were also in a very tight range at between 83 and 85%.
2021 Mobility by Ethnicity & Tenure: Owners vs Renters Movers and Non-Movers (2)
And the same can be said about Hispanic owners and mixed race families, with about 95% not moving last year. Now this is modestly lower than White, Black, or Asian households, but the difference is very marginal. As for renters, between 83 and almost 88% of them within these three ethnicities moved last year, but you will see a bigger share of Hispanic renters stayed put as opposed to all the other ethnicities shown here.
2021 Mobility by Ethnicity & Tenure: Moves In & Out of State
Looking closer now at those who did move, even though fewer Asian households moved when compared to all other ethnicities, far more left the state than stayed, and the same was true for Asian renters with over a quarter moving out of state.
2021 Mobility by Ethnicity & Tenure: Moves In & Out of State (2)
Again, a greater share of the Hispanic homeowners who did move last year stayed in the state where their old house was, and the share of mixed households was roughly at the average for all ethnicities. And the share of Hispanic and mixed-race renters who stayed in State was also about average.
What I see from the data is that the huge shift that many expected during COVID has not been affirmed—at least not by the numbers we have looked at. That said, we are sure to see numerous revisions because of the issues that COVID 19 has posed on Census takers, so we may get a different story as more data is released and revisions posted. What I found to be most interesting in the numbers we have looked at was the massive increase in renters moving in with their “significant others.” But I am not surprised, given that there are around 48½ million people aged between 20 and 30, and this is their time!
And I was also interested in the share of the population who moved due to climate. I will be doing some more digging around in the darkest recesses of the Census Bureau website to see if I can find out more about this. Although I can’t confirm it, my gut tells me that climate—and specifically climate change—will be a factor of growing importance when people are thinking about where they want to live.
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