Home equity skyrocketed during the first quarter of 2022

 
 

A recently published CoreLogic report found homeowners with mortgages in the first quarter of 2022 saw their equity grow by 32.2% year-over-year.

According to the data vendor, the collective equity gain was $3.8 trillion in the first quarter, or an average gain of $63,600 per borrower. CoreLogic said homeowners with mortgages account for roughly 60% of properties in the nation.

Patrick Dodd, CEO of CoreLogic, said home equity grew in tandem with home prices, which were up by 20% in March, compared to a year earlier.

“This has led to the largest one-year gain in average home equity wealth for owners and is expected to spur a record amount of home-improvement spending this year,” Dodd said in a statement.

But $63,000 was just the average gain. Per the quarterly report, published this week, homeowners in California, Hawaii and Washington saw their equity increase by more than $100,000 in the first quarter of 2022 compared to the prior year.

The upward trajectory of home prices meant some 62,000 homeowners regained home equity compared with the previous quarter, according to CoreLogic. In another report published last month, CoreLogic said the explosive pace of home price

CoreLogic also found only 2% of homeowners with a mortgage “remained underwater” in the first quarter of 2022. The data vendor labels underwater mortgages as those with negative equity, in which a borrower owes more on their mortgage than their home is currently worth.

From the fourth quarter of 2021 to the first quarter of 2022, the total number of homes with negative equity dropped by 5.3% to 1.1 million homes, according to the report.

Year-over-year, the number of underwater mortgages dropped by 23%, or close to 300,000 properties. In the first quarter of 2021, 1.4 million homes — or 2.6% of all mortgage properties — were in negative equity, CoreLogic found.

The data vendor predicts borrowers with minimum equity gains around 5% are “most likely to move out of or into negative equity as prices change.”

If home prices increase by 5%, close to 130,000 homes would regain equity. However, if home prices plummet by 5%, 167,000 properties will would move into “underwater” territory,” according to the CoreLogic report.

Read more like this on Housing Wire.

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Actually, It’s Sometimes Better to Clean Slowly — Here are 4 Ways to Figure Out How

 
 

A quick speed clean of the kitchen counters and sink can result in that immediate gratification you love, but some areas of the house need more time and attention than that.

You might have noticed those are the places you’ve been avoiding the most. Maybe the garage looks like it’s going to be a week-long project, so you save it for next spring. Or the basement seems so daunting that you feel you’ll need Marie Kondo herself down there with you for hours, days, years. 

Identifying the areas of your home that need extra time and attention can help you actually make that time by changing your expectations about how long they will take. Pam Clyde, president and professional organizer at BritLin Cleaning says, “Cleaning can be more time consuming than we think, and some underestimate how much time is actually needed.” She shares that some obstacles to cleaning include procrastinating by thinking we “work better under pressure” — like right before guests arrive — and also not knowing the most efficient ways to clean our houses. 

Here’s how she recommends identifying those areas that need some extra time and TLC.

Set a timer.

If you can’t tell which rooms will take ten minutes, versus two hours, it’s time to find out. First, Clyde recommends some light tidying up before starting the actual cleaning process of “scrubbing dirt and grime away.” Then, she recommends timing yourself cleaning each room when you aren’t under pressure, to see how long it really takes.

“How long did one room actually take you? Did you get distracted or were you able to stay focused? Were you moving your arms and legs at a rapid pace or were you scrubbing in slow motion? Sometimes just being conscious of the speed at which we scrub can save us tons of time,” says Clyde, pointing out that having fast-paced music on and no phones around to distract you can help.

Distinguish between the initial deep clean and maintenance cleans.

If you can, Clyde recommends starting by having a professional deep-clean your home to give you a fresh starting place, and then either complete biweekly cleanings yourself or have the house cleaner return on this schedule. Whichever route you go, understand that an initial clean isn’t how long it will take the next time, especially if it’s been a while since the room has been truly cleaned.

“The first clean will take up to four times as long as a room that was just cleaned two weeks ago,” she says. “So give yourself some grace, take the time to deep clean each room, then make a plan to keep things in tip-top shape.”

Make a chart.

Chore charts aren’t just for kids. Clyde recommends one to help you decide the day of the week when you can set enough time to clean the whole house (adding up your room totals from step one above), or divide up which room or two you will do each day.

“There is no right or wrong way but whatever plan you choose, stick to it,” she says. The chart can also include assignments for kids such as who will do the dishwasher, wipe down the table, sweep crumbs, tidy the living room, and other jobs. 

Work top to bottom, and in sections.

For the rooms that you notice take longer to clean after your timing activity, ensure that you are following a top to bottom process, as dust settles towards the ground as you clean. Clyde recommends dividing up the room mentally in quadrants, or sections, and only cleaning what’s in your first section before moving on to the others. 

“Pick a section of the room to start with, like the first wall to the left of the door. As you move about the room, clean everything in front of you before moving to the next slice or wall in that room,” she says. “Don’t forget things in the middle of the room like a coffee table.”

Get more tips like this.

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Everything You Need to Know About Working from Home with a Pet

 
 

By year three of the pandemic, many people have probably figured out the basic rules of work-from-home etiquette. But what about when you add a new pet to the equation?

We spoke with experts about how to make working from home an enjoyable, productive experience for you and a new animal companion. Follow the tips below — and remember that it might take some time to fully figure things out. But, important reminder: When you work remotely, a doggie head scratch or kitten cuddle is only steps away on a stressful day, and that could make the whole balancing act more than worth it!

Set a Routine

Many pets, especially dogs, thrive on regularity and pay close attention to what their humans are doing. If your work-from-home routine is, well, nonexistent, your dog will likely pick up on that and figure he or she can just interrupt at any old time. 

“Routine helps your dog know when to relax, and what’s expected of them and when,” says Ali Smith, founder of Rebarkable. “If you know you have, say, a coffee break at 11 for yourself, make sure to bring your dog and enjoy that time together.”

For Indiana-based PR professional Natalie Bickel, creating a routine that worked for both her lifestyle and her 7-year-old beagle mix Otis was an important step at the beginning of the pandemic. “We made the mistake of feeding him lunch, and then he began to expect it,” Bickel remembers, noting that Otis would then often interrupt afternoon work time. So Bickel cut out lunch, and instead incorporated a walk into her morning routine to give Otis a little exercise before she sat down for work.

Durham, North Carolina-based software developer Marcus Southern also found that bringing along 6-year-old Border Collie mix Matilda on his daily walks to drop off his son at daycare helped to tire her out. “Having structure has helped the most,” Southern says.

Reinforce Positive Behaviors

This is another key to maintaining a balance between focusing on work and what your pet needs. And Smith has a tip for if you have a particularly anxious or needy pet: “Keep a jar of medium or low value treats, like a biscuit or even some of their regular kibble, on your desk,” suggests Smith. “Then, throughout the day, when they’re relaxed, give a little praise and drop or throw a treat! This reinforces to your dog that they’re doing something you like. The more they get that reinforcement? The more they’ll relax.”

Conversely, beware of encouraging behaviors that could cause distractions. Trainer Stephanie Zikmann gives the example of cuddling (sorry!). “Remember, if you let the cat or dog lie on your lap once, then they will think it’s acceptable to do that again,” Zikmann says. “Be consistent and never punish.” 

Establish Boundaries

Zikmann says that, if you’re able to, designating an office area that your pet can’t access could be useful. “This can be as effective as being at an office elsewhere if approached correctly,” says Zikmann. “For example, setting up an office in the front of the house and having the pet’s space to the back can give just enough distance to keep work and personal [space] separate during working hours.”

If you live in a smaller space and cannot always physically separate from your pet, Zikmann suggests providing them with multiple activities and distractions so that they can focus on their tasks while you focus on yours. This could include scratching posts, toys filled with treats, and even putting together what Zikmann calls an in-house “Sniffari” — a series of textures, scents, games, and rewards to sniff out and explore around the room.

Know Your Work Culture

Some companies are much more casual than others. It’s important to communicate early and clearly with your supervisors and colleagues to understand what’s expected of you at your specific job.

“Dogs are a common presence in Zoom calls for me,” says Rory Hadley, an HR and benefits manager from Seattle. “I think the answer to whether it’s acceptable largely depends on your job function and company culture. If you’re having a regular team meeting or chatting with a colleague, dogs [could] be a welcome addition to the conversation. If you’re having a sales call or working with a client, or are in HR and are having a difficult conversation with an employee, maybe pop the dog on the sofa with a chew toy for a bit.”

The same holds for mid-day breaks for non-work activities, such as feeding your cat or walking your dog. Hadley, who works in the tech industry and notes that his particular employer is fairly flexible when it comes to breaks, notes that the same might not hold true for other employers. “Some jobs or companies are inflexible in terms of breaks,” he says. “A customer care agent working their way through a queue of callers likely has very regimented breaks due to the demands of their function.”

Prepare Now So You Can Avoid Separation Anxiety Later

If you’re bringing home a new pet while working from home but might return to the office either part- or full-time at a later date, you may encounter some serious separation anxiety from your pet at that time. In order to try to steer clear of that in the future, make sure you give your pet alone time each day. For example, Zikmann says she incorporated time outside of the house with her family, sans pets, during the height of the pandemic in order to reinforce that alone time was acceptable.

Want to start this now with an already-anxious dog? Smith recommends building up to longer periods apart. “Start by popping your dog into their dog-proofed space with a long-lasting chew, or a Kong. Head to the door, walk outside calmly, and return,” Smith says.

Be Patient and Flexible with your Pet – and Yourself

Lastly, and perhaps most importantly, both Zikmann and Smith say that adjusting to working from home with pets isn’t an overnight process.

“Patience, time, and consistency — these three things will get you really far with any animal,” says Smith.

Read more like this on Apartment Therapy.

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Big cities saw population declines during pandemic

 
 

More than half of the country's 15 largest cities saw population decreases during the coronavirus pandemic, according to new U.S. census data released Thursday measuring city growth from July 2020 to July 2021.

 
 

Driving the news: The switch to remote work during the pandemic enabled many people to move, prompted desires for cheaper cost of living or lifestyle changes.

By the numbers: Although New York remains the nation's largest city, its population decreased by more than 305,000 people during the pandemic, about 3.5% of its population.

  • Los Angeles, the second largest city in the U.S., lost more than 40,000 people, roughly 1% of its population.

  • Chicago, the third largest city, shrunk by more than 45,000 people, about 1.6% of its 2020 population.

  • San Francisco experienced the highest percentage population loss, shrinking by 55,000 residents, 6.5% of its 2020 level, per AP.

  • Cities including Houston, Philadelphia and San Jose also saw losses.

Meanwhile, of the nine cities in the country with more than 1 million people, only two saw population increases: Phoenix and San Antonio. However, each registered only small gains, the data shows.

Between the lines: Chicago and San Francisco's populations have now dropped to close to their 2010 levels, the Wall Street Journal reported.

Keep reading on Axios.

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When Will Be a Good Time to Buy a House?

 
 

There won’t be a perfect moment anytime soon—but that shouldn’t stop you if you’re ready.

So far, shopping for a home in the 2020s has been obscenely competitive. Here are three statistics that capture just how zany the housing market has been:

From late 2020 to late 2021, American home prices increased an average of 17.5 percent—more than twice as much as in a typical year during the 2010s. (In some places, such as Boise, Idaho, and Austin, Texas, prices went up more than 30 percent.)

In late 2019, the median number of days that a house was on the market was 51, according to the real-estate site Redfin. In late 2021, that number was 24.

Meanwhile, almost two-thirds of people who bought a home in 2020 told Redfin that they submitted an offer on at least one house without having seen it themselves.

In other words, houses have been selling at higher prices, more quickly—and buyers haven’t been able to find much relief by broadening their search to other areas, because this is happening in much of the country. “This is one of the more universal periods of zaniness that we’ve seen,” Issi Romem, the founder of the economic consultancy MetroSight, told me.

Under these conditions, many first-time buyers are likely wondering: When will the housing market settle down? And if I want to buy a house soon, is it wisest to dive in now or wait? Based on my conversations with housing experts, the short answers are: “It’ll probably calm down a bit this year (but it’ll still remain kind of wild)” and “You don’t have to wait (but don’t do something rash because of the frenzied market).”

Even though home prices soared during the pandemic, the pandemic wasn’t the underlying cause—there’s been a longer-brewing imbalance between supply and demand. On the supply side, the number of houses being built in the 2010s was about half of what it was in the early 2000s, which means fewer houses available now. On top of that, Baby Boomers are staying in their homes relatively late in life, which further restricts supply. Meanwhile, demand has been propped up by low interest rates (which make it cheaper for buyers to borrow money) and demographics (Millennials, who are aging into their peak home-buying years, are a relatively large generation).

Take these together, and you end up with more people wanting to buy houses than there are houses to buy. Freddie Mac, the government housing-finance company, has estimated that at the end of 2020, the country was some 3.8 million homes short of meeting the demand of both buyers and renters.

The pandemic didn’t produce this imbalance, but it did exacerbate it. Supply was temporarily hindered by a coronavirus-related pause in construction and by supply-chain-related shortages of building materials. And demand for spacious suburban houses was pushed upward as many Americans, especially remote workers, turned their attention away from downtown urban areas.

But even as some of those factors fade in importance, the underlying shortage of housing will persist. For that reason, the experts I spoke with recently didn’t expect that prices would stop climbing anytime soon, though they did expect prices to climb less steeply in 2022. Indeed, the latest projection from the National Association of Realtors, a trade group, is that price increases this year will be about one-third of what they were last year.

One thing that could somewhat dampen price increases—as well as the bidding wars that have pleased homeowners and exasperated buyers—is a rise in interest rates, which is expected to happen this year. If that rise is sharp, “that will take away one of the fuels for this fire,” Chris Herbert, the managing director of Harvard’s Joint Center for Housing Studies, told me. The idea is that higher rates make borrowing more expensive, which reduces the amount people are able to spend, which in turn pulls home prices down. (Herbert also noted that if a recession were to hit, that would probably dent home prices—though that would obviously come alongside other bad effects.)

If you could magically choose what the market is like when you buy a house, you’d maximize your wealth and minimize your stress by picking a time when prices are low and going to shoot up in the future, when interest rates are low, and when you don’t have to make a rushed decision or enter a bidding war. The competitiveness of today’s market means that now is not that magical moment. But realistically, identifying the perfect time to buy is impossible because perfect timing is clear only in retrospect. “It’s hard to game the market—you’re bound to fail a lot of the time,” Romem, of MetroSight, said.

Keep reading on The Atlantic.

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