The housing market wakes from the dead

 
 

The housing market is showing signs of life after veering into a dead zone late last year.

Why it matters: These green shoots are a good sign for the economy overall, and run counter to some of the dire predictions made last fall when mortgage rates were skyrocketing.

What's happening: Home buyers are making peace with higher mortgage rates, and sellers are making peace with the need to cut prices and make concessions.

  • While home prices will likely keep falling, there's reason to think a recovery in sale activity is already underway.

By the numbers: Pending home sales were up 3% in December, according to Redfin's proprietary measure. That was the first monthly increase since October 2021. (They're still down 31% since last year.)

  • In a report titled, "The Housing Market Has Started to Recover" Redfin also notes that more folks are taking home tours than during the fall.

  • The market's at a turning point, Taylor Marr, Redfin's deputy chief economist told Axios.

Zoom out: The shift is all about mortgage rates. They went up so fast, and to such a high level, it was hard for buyers to even keep up. When rates started falling back a bit, some of these prospective buyers perked up.

  • After peaking at over 7% in November and crushing demand for homes, rates then fell at the fastest pace since 2009, as the market started to feel the Fed was slowing down its rate hikes.

  • The average rate on the 30-year mortgage is now 6.13%, per Freddie Mac data out Thursday. That's the lowest level since mid-September.

  • Some buyers are even able to get rates that start with a 5 — "an important psychological threshold," Redfin notes.

Between the lines: Home buyers and sellers adjusted their expectations. What once seemed high now seems like sort of a deal.

What they're saying: When Stefanie McFall, an architect in Atlanta, started looking for homes with her husband and kids in the suburbs last March, they were outbid repeatedly — many houses sold for $250,000 over asking. By early fall, they stopped looking.

  • This year, with mortgage rates turning down, they waded back in. Success! They're closing on a five-bedroom house next month with a 5.5% mortgage — the sellers even covered some closing costs. "That would not have happened last spring," she said.

  • "We didn’t mind paying a little higher interest rate because it felt like we had a little more buying power," McFall said in a message. The house is likely $100,000 less than it would've been last year, she added.

Keep reading on Axios.

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The 10 Biggest Kids Room Trends to Know for 2023, According to Designers

 
 

To start out the year, we’re zeroing in on the trends that will dominate kids’ rooms in 2023.

We called on our favorite designers, almost all who happen to be parents themselves to ask: What kid room trends are you seeing on the rise, and why? Their answers range from a clever paint trick to an overarching trend towards safer materials. Read on to find out what these design pros are seeing in their crystal balls:

No More Neutrals

Annie Obermann, Principal Designer at Forge & Bow says she predicts pattern, pattern—and more pattern. “People have been playing it safe with neutrals for more than a decade. I think people are becoming more comfortable with bold expression, infusing multiple patterns and bold colors to create an eclectic space,” she says.

Caroline Brackett of Caroline Brackett Studio of Design agrees, “In recent years, there have been a lot of neutral kids rooms and nurseries, but that is becoming a thing of the past as bolder rooms take center stage,” she says. “We are seeing a lot of unexpected color combinations that are coming through patterned wallpaper, paint colors, and fabrics.”

Creative Room Dividers

“I predict that we’ll see more creative room divisions in the year ahead,”  says Roberto Gil, the owner of Casa Kids, a custom furniture maker based in Brooklyn. “We are getting more requests for room partitions because building managers and boards in New York City won’t allow contractors to create room partitions. Instead we make room dividers as removable cabinetry.” And the need to partition rooms is not limited to city dwellers: With many families choosing to stay put while housing prices and mortgage rates remain high, creative room divisions are likely to become more popular. 

Multi-Function Designs

“I feel like kids’ rooms are getting a lot more multifunctional,” says Ginger Curtis, founder of Urbanology Designs. “It’s not just a bedroom anymore… it has zones: Sleeping zones, work zones, organizational zones.” She points out that you also don’t need a large bedroom to get all this functionality. “There are a lot of creative ways to work with small spaces.”

Next-Level Kid Art

“Lately, we’ve gotten more and more requests from clients to incorporate their kids’ art into their bedroom in new and interesting ways,” says Julia Miller, founder of Yond Interiors, who sees parents wanting to personalize the spaces and encourage their kids’ creativity. “In 2023, we’ll see people incorporating kids’ artwork in interesting ways beyond the classic corkboard, like collages or custom screen-printed textiles.” 

Hanging Chairs

Hanging chairs are huge in tween rooms right now, according to mom of two Bethany Adams, the founder of Bethany Adams Interiors. “Hanging chairs look super-cool and will impress their friends, which is sometimes the point of tween rooms,” she laughs. But Adams also loves installing a classic swing into a younger kid’s room, if there’s the space to do so safely. “Just be sure to have a qualified handyman or contractor install the hardware into the ceiling joists above and be clear about proper swinging form!” she adds.

Bunk Beds Are Back

Rozit Arditi, Principal at Arditi Design, predicts design firms will be installing more bunk beds in 2023. “Bunk beds are often seen as a small space solution, which is true, but they can be used for kids’ rooms big or small to maximize the floor space and create additional sleeping areas for sleepovers.” (Pssst … if you are thinking about a bunk, Cubby’s got you covered with this guide to bunk beds. We’ve got great bunk accessory ideas, too.)

Low VOC Is Key

Kristin Bartone, founder of Bartone Interiors sees sustainable, “clean” furnishings as an important and rising trend in kids rooms. “Environmental toxins have a disproportionately high effect on children,” Bartone points out. “Organic, natural materials like sustainably-sourced cotton and the natural fibers are key in keeping your kids’ space toxin-free from the start.”

Colorful Millwork and Trim

Leigh Anne Schurr, special projects manager at Marguerite Rodgers Interior Design, points to a very specific trend: colorful millwork and trim. “A kid’s room is an area of your home where you can experiment with color and playful patterns,” says Rodgers. “Our clients are forgoing the traditional white trim and millwork and using a contrasting color instead.” Alison from @houseabovetheriver painted the millwork in her kid’s room, as shown above.

Non-Binary Design 

Wallpaper has been trending in kids rooms for years, but Michael Cox, principal at foley&cox, sees a shift towards “modern, sophisticated, and abstract wallcoverings.” He notes, “Broader color options are available to address gender neutral and non-binary considerations. Plus, the abstract patterns allow the foundation of the room to evolve as the child grows—simple updates of art and accessories can now take a room from newborn to preteen.”

Cozy Spaces

“We are seeing a need for a smaller, safe spaces,” says Samantha Struck of StruckSured Interiors. Struck believes that kids had a rough time coping with COVID and that their space can help them “truly rest, process, and hide from the world.” Think elements like hammocks, bunk beds that can be closed with curtains, and bed canopies to enclose their sleeping space. “Any chance to re-enforce security within the space will be huge for helping kiddos feel at peace and a sense of calm.” Cozy bed nooks fit in here, too!

Get more on Apartment Therapy.

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Population drain persists in big cities

 
 

People aren't moving to big city centers like they used to, even as employers ramp up calls to return to the office.

 
 

Why it matters: Affordability is still drawing folks to less dense and cheaper areas, particularly those in the booming Sun Belt.

Driving the news: A new report from the National Association of Realtors showed that major metro areas like New York, San Francisco, and Chicago saw more people leaving than moving in.

  • Instead, people fled to cities in Florida, Texas, North Carolina and South Carolina.

  • The Miami metro area experienced the largest inbound increase from before the pandemic, which saw gains of nearly 60% in 2022 compared to 2019. Houston experienced the highest move-in rate for 2022.

What they're saying: "Pre-pandemic, we had a different trend. People wanted to move to big city centers," Nadia Evangelou, senior economist and director of real estate research at the National Association of Realtors, tells Axios.

  • More people are moving to those cities compared to 2021 but "we're not there yet," Evangelou says of metro areas regaining the population that fled.

Between the lines: Across the board, the report found, fewer people moved last year, continuing a trend from 2021.

  • The report analyzed the United States Postal Service’s change-of-address data to spot migration trends.

  • Nearly 70% of U.S. ZIP codes posted fewer inbound moves in 2022 compared to 2021, according to the data.

  • The slowdown has persisted as droves of people sought more space and cheaper cost of living during the pandemic.

Keep reading.

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Rents Are Still Rising—but Not By Much. Are the Steep Hikes Finally Over?

 
 

The rent may still be too damn high, but at least it isn’t skyrocketing anymore.

That’s the message from the Realtor.com® monthly rental report, which shows a welcome cooling-off after the craziness of the COVID-19 pandemic period.

Rental prices in the largest metropolitan areas across the country rose 11.6% for the full year in 2022 but downshifted steadily throughout the year. By December, prices were only 3.2% higher, compared with the same month a year earlier.

Nationally, the median monthly rent was $1,712 in December—down $69 from the peak in July.

However, the national numbers mask enormous differences in metros around the country, where the locations people are moving to and from are reversing. And instead of embarking on costly, cross-country moves or striking out on their own, many renters are staying put.

“Inflation is high, living costs are high,” says Realtor.com economist Jiayi Xu. “Instead of people looking for a new place, they may be staying where they are or maybe moving in with their families. The formation of [new] renter households is decreasing.”

Notably, some of the hottest metro areas during the pandemic are now experiencing annual price drops. Take Tampa, FL, for example. Rents were down 4.3% year over year in December in the Florida metro. Prices also slipped 4.5% in the Las Vegas metro area.

Slower price gains and even declines are a welcome change, Xu notes. But she points out that prices in many pandemic hot spots are still elevated, raising affordability concerns. The median monthly rental price in Tampa—for homes of all sizes—was $1,760 in December, for example. In Miami, it was $2,682.

Even as the Sun Belt cools, some of the big cities that people fled in the early days of 2020 are heating back up. In December, rental prices were up 12.2% in the New York City metro and a whopping 17.5% in metro Chicago.

The biggest rent growth in 2022 was seen among studio apartments, the report found—a reversal of the 2021 trend in which larger units commanded the biggest increases, as folks were stuck inside and clamoring for more space. Studios are much more common in bigger cities like New York City, Chicago, and Boston, where people are now flocking.

Rich Harty, who co-owns Harty Realty Group in Chicago, isn’t surprised that Windy City prices are through the roof.

“There’s so little inventory, and people have nowhere to go,” Harty says.

Chicago has gotten a boost in recent years from some high-profile corporate tenants, including Google and McDonald’s. The latter transferred its headquarters from the suburbs into the trendy West Loop neighborhood in 2018.

Those moves have attracted plenty of professionals to the city, particularly to higher-end rentals. This might be helping to skew some of Chicago’s numbers higher, Harty believes.

Keep reading on Realtor.com

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Here’s a Creative, Rental-Friendly Way to Repurpose Old Clothing Into Home Decor

 
 

Clothes and fabric — much like trinkets from travels, pieces of furniture, and cards from birthdays past — can hold a ton of sentimental value.

Whether it be a T-shirt from a favorite concert, a scrap of sample fabric from a project long-since completed, or an article of clothing from a loved one, people cling to certain pieces much longer than others. But what do you do when that item no longer fits? Sure, you could tuck it in the back of a drawer or store it high up in the closet. What if I told you there’s a clever, rental-friendly DIY project you can use if for instead, though? That’s right. Two words: fabric wallpaper.


“I love using vintage fabric as wallpaper,” says Gretchen Raguse of her Portland, Oregon home, which features this crafty hack in more than one spot. Where’d she get her inspiration? None other than Apartment Therapy! “I came across this idea on Apartment Therapy a few years ago and knew I needed to try it out in my own space,” says Raguse. “I started with an accent wall in my kitchen, meant to visually divide the area for my office. Repurposing a dress my mom made in the ’70s, I cut and pasted the fabric together to form a repeating pattern.”

Raguse only had enough material to cover a small section of wall, so she added trim and beadboard to round out the wall, which created the pretty patterned panel you see above. “Fabric as wallpaper quickly became an obsession of mine and made its way through my apartment,” she adds. “After the accent wall, I added it to my hallway ceiling and bedroom (as shown below). Even my friend’s place got a fabric makeover!”


If you’re ready to try this idea out yourself, I’d recommend checking out this in-depth tutorial, but here’s the gist: You start by positioning your chosen fabric on a freshly-cleaned wall with tape, lining up any edges. Lift up the fabric and roll a nice layer of liquid starch onto the wall, then smooth the fabric out onto the wall, removing any bubbles or wrinkles as you go. Next, add another thick layer of liquid starch on top of the fabric, ensuring it’s totally saturated through to the wall. Finally, cut the excess fabric off with a utility knife. When you’re ready for a change, the fabric will come right off with a soapy sponge bath. Genius, no?

Read more.

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