Owning a home with friends, family, or a loved one can be financially and socially rewarding. But co-owners have a lot to manage: things like decision-making, agreements, finances, and day-to-admin. Compared to married couples, co-owners also face unique risks. While married couple homeowners benefit from financial protections under existing regulatory, legal, and tax regimes, friends and family members who co-own a home do not. The result? Co-ownership is relatively more complex, inefficient, and risky.
Enter Shared Homeowner OS™, a new app from CoBuy. Created in 2017 by a mother-and-son founding team, CoBuy is on a mission to make co-ownership simpler, safer, and more affordable. Thousands of co-buyers from across the U.S. have used CoBuy’s platform to plan, structure, and purchase a home together. This month, CoBuy launches the new Shared Homeowner OS™, an all-in-one app to plan, manage, and collaborate on co-ownership with friends or family. A limited number of spots are available for their private beta, which includes early access, personalized support, and the chance to guide new features. Interested? Learn more and apply to the private beta at www.cobuy.io with my referral code: DonK2023. With this code, you’ll jump to the head of the line and get a 50% discount on a 1-year subscription.
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This video shows Windermere Chief Economist Matthew Gardner’s Top 10 Predictions for 2023. 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.
Matthew Gardner’s Top 10 Predictions for 2023
1. There Is No Housing Bubble
Mortgage rates rose steeply in 2022 which, when coupled with the massive run-up in home prices, has some suggesting that we are recreating the housing bubble of 2007. But that could not be further from the truth.
Over the past couple of years, home prices got ahead of themselves due to a perfect storm of massive pandemic-induced demand and historically low mortgage rates. While I expect year-over-year price declines in 2023, I don’t believe there will be a systemic drop in home values. Furthermore, as financing costs start to pull back in 2023, I expect that will allow prices to resume their long-term average pace of growth.
2. Mortgage Rates Will Drop
Mortgage rates started to skyrocket at the start of 2022 as the Federal Reserve announced their intent to address inflation. While the Fed doesn’t control mortgage rates, they can influence them, which we saw with the 30-year rate rising from 3.2% in early 2022 to over 7% by October.
Their efforts so far have yet to significantly reduce inflation, but they have increased the likelihood of a recession in 2023. Therefore, early in the year I expect the Fed to start pulling back from their aggressive policy stance, and this will allow rates to begin slowly stabilizing. Rates will remain above 6% until the fall of 2023 when they should dip into the high 5% range. While this is higher than we have become used to, it’s still more than 2% lower than the historic average.
3. Don’t Expect Inventory to Grow Significantly
Although inventory levels rose in 2022, they are still well below their long-term average. In 2023 I don’t expect a significant increase in the number of homes for sale, as many homeowners do not want to lose their low mortgage rate. In fact, I estimate that 25-30 million homeowners have mortgage rates around 3% or lower. Of course, homes will be listed for sale for the usual reasons of career changes, death, and divorce, but the 2023 market will not have the normal turnover in housing that we have seen in recent years.
4. No Buyer’s Market But a More Balanced One
With supply levels expected to remain well below normal, it’s unlikely that we will see a buyer’s market in 2023. A buyer’s market is usually defined as having more than six months of available inventory, and the last time we reached that level was in 2012 when we were recovering from the housing bubble. To get to six months of inventory, we would have to reach two million listings, which hasn’t happened since 2015. In addition, monthly sales would have to drop below 325,000, a number we haven’t seen in over a decade. While a buyer’s market in 2023 is unlikely, I do expect a return to a far more balanced one.
5. Sellers Will Have to Become More Realistic
We all know that home sellers have had the upper hand for several years, but those days are behind us. That said, while the market has slowed, there are still buyers out there. The difference now is that higher mortgage rates and lower affordability are limiting how much buyers can pay for a home. Because of this, I expect listing prices to pull back further in the coming year, which will make accurate pricing more important than ever when selling a home.
6. Workers Return to Work (Sort of)
The pandemic’s impact on where many people could work was profound, as it allowed buyers to look further away from their workplaces and into more affordable markets. Many businesses are still determining their long-term work-from-home policies, but in the coming year I expect there will be more clarity for workers. This could be the catalyst for those who have been waiting to buy until they know how often they’re expected to work at the office.
7. New Construction Activity Is Unlikely to Increase
Permits for new home construction are down by over 17% year over year, as are new home starts. I predict that builders will pull back further in 2023, with new starts coming in at a level we haven’t seen since before the pandemic.
Builders will start seeing some easing in the supply chain issues that hit them hard over the past two years, but development costs will still be high. Trying to balance homebuilding costs with what a consumer can pay (given higher mortgage rates) will likely lead builders to slow activity. This will actually support the resale market, as fewer new homes will increase the demand for existing homes.
8. Not All Markets Are Created Equal
Markets where home price growth rose the fastest in recent years are expected to experience a disproportionate swing to the downside. For example, markets in areas that had an influx of remote workers, who flocked to cheaper housing during the pandemic, will likely see prices fall by a greater percentage than other parts of the country. That said, even those markets will start to see prices stabilize by the end of 2023 and resume a more reasonable pace of price growth.
9. Affordability Will Continue to Be a Major Issue
In most markets, home prices will not increase in 2023, but any price drop will not be enough to make housing more affordable. And with mortgage rates remaining higher than they’ve been in over a decade, affordability will continue to be a problem in the coming year, which is a concerning outlook for first-time buyers.
Over the past two years, many renters have had aspirations of buying but the timing wasn’t quite right for them. With both prices and mortgage rates spiraling upward in 2022, it’s likely that many renters are now in a situation where the dream of homeownership has gone. That’s not to say they will never be able to buy a home, just that they may have to wait a lot longer than they had hoped.
10. Government Needs to Take Housing More Seriously
Over the past two years, the market has risen to such an extent that it has priced out millions of potential home buyers. With a wave of demand coming from Millennials and Gen Z, the pace of housing production must increase significantly, but many markets simply don’t have enough land to build on. This is why I expect more cities, counties, and states to start adjusting their land use policies to free up more land for housing.
But it’s not just land supply that can help. Elected officials can assist housing developers by utilizing Tax Increment Financing tools, whereby the government reimburses a private developer as incremental taxes are generated from housing development. There are many tools like this at the government’s disposal to help boost housing supply, and I sincerely hope that they start to take this critical issue more seriously.
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.
Many have made the switch from gas-powered to electric vehicles (EVs). They help to make a household more sustainable by reducing its carbon footprint, cut down on gas costs, and present a variety of technological solutions for modern home life. With more EVs being produced by a greater number of auto manufacturers than ever before, their driving range is constantly improving; most models can travel hundreds of miles with a full charge. As a homeowner, there’s a specific to-do list you’ll want to complete before welcoming an EV into your home.
Preparing Your Garage for an Electric Vehicle
By giving your garage a simple makeover, you’ll be set up for success as an electric vehicle owner. An EV is nothing without a charged battery, so your home charging station should take precedence when reorganizing the space. As EVs continue to grow in popularity, more remote charging stations are popping up across the country. However, it is advised not to rely solely on remote charging. Having a charging station at home is simply more convenient and will ensure that your vehicle is never far from the power it needs.
Image Source: Getty Images – Image Credit: 24-K Production
Setting Up a Charging Station
To charge your vehicle, you’ll need the proper electrical setup. You’ll have two options: either a 120- or 240-volt amp outlet.
Though 240-volt outlets are more expensive and require a more involved installation process that includes applying for and obtaining a permit, they charge faster than 120-volt outlets. 240-volt outlets also put added strain on a property’s electrical supply, so you may need to hook up a new service line to accommodate for the added voltage.
It is common for garages to already have a 120-volt outlet installed, so no additional installation work may be needed if you decide to go that route. Electrical installation is usually outside the realm of DIY home projects, so be sure to talk to a local licensed electrician for advice.
Follow manufacturer instructions for installing your EV charger. In general, it’s preferable to have the charger three to four feet off the ground and no more than four feet from the outlet.
Cold temperatures can adversely affect charging times, so it’s important to properly insulate your garage. Insulate as necessary before purchasing your EV so everything is squared away by the time your vehicle arrives.
Keep the charging station easily accessible by clearing out any other items or clutter in the area.
Security Measures
An EV charger is a valuable item, which is all the more reason to make sure your garage is protected. If your home is already well equipped from a safety and security standpoint, you’ll want to extend coverage to your garage to protect your new investment. Home security cameras and alarm systems will help to ensure that, at the very least, you’ll be notified of a break-in.
For more information on sustainable living, tips on organizing your home, cleaning hacks, and more, visit the Living section of our blog:
Snuggly tucked into a private woodland setting, this light-filled modern cabin-esque retreat is just minutes from a full menu of urban amenities for easy living. Rich wood finishes, vaulted ceilings, skylites & big picture windws create warm relaxing living spaces with airy views of blue sky and lush greenery. Updated systems & designer touches inspire “show it off” and low maint. living. Swanky granite kitch w/ bar seating, dbl windws, wrap around deck, arboretum-like gardens & patios, 400amp electric service, copper plumbing, 2022 heat pump, A/C. Superb location, quick access to I-5, 405, 167, Renton, Georgetown, parks, forest trails, Lk WA & more. Relax. Unwind. Enjoy your very own nature preserve-let the birds do the entertaining.
The holidays bring joy and peace, but they can also bring package thieves, fire hazards, and the inevitable injury from trying to get the last decoration on top of the tree. From tried-and-true security methods to basic safety best practices, taking the appropriate precautionary measures will help keep your home and your loved ones safe this holiday season.
Home Security During the Holidays
Upgrade Your Locks
A poorly installed deadbolt can make it easy for an intruder to break in. Start by making sure that your door frames are in good condition and then look into getting a higher quality deadbolt. You’ll find everything from classic models with keys to digital options that require passcodes or a fingerprint.
It’s also a good idea to check all the locks on your windows. Older window locks can be easy to jimmy open with a little wiggling. For ground floor windows, you may want to consider installing double locks for added security.
Exterior and Interior Home Lighting
Having your exterior lights on timers or motion sensors is a good way to deter nighttime lurkers. Add sensor lights at your home’s key entry points including the front door, back door, and/or basement. If you have an unused side yard, consider lighting that area as well. Keeping your home well-lit makes unwanted visitors weary of being seen.
Traveling during the holidays is common. If you plan to be gone from your home for an extended period, consider using timed lighting options in your home to make it appear someone is around. You can select timers for bedrooms or living areas. Also, you can program a radio or smart home sound system to turn on and off.
Alarm Systems
You have many alarms to choose from, varying from motion detection kits you can install DIY to full-service home security systems. If you choose to do-it-yourself, you’ll want to prioritize installing motion detectors on doors and windows—especially those that can be easily accessed on the ground floor. In most cases, these kits also offer a 24-hour call service for an extra fee.
Full-service security systems can include everything from an alarm system and panic buttons to an integration with your smoke detectors/fire prevention system. These services are expensive up front but usually have a reasonable monthly rate. And keep in mind: having a home security system installed can also reduce your insurance rates.
Security Cameras
Security cameras are widely available for home installation; install them in high-visibility areas to deter burglars. You can either install DIY or purchase a professional system, many of which come with support services. Nowadays, it’s common for these products to sync with your smartphone, making it easy to monitor your home while you’re away.
Build Your Community
Online community pages, Facebook groups, and programs like Neighborhood Watch can help you build close-knit relationships with your neighbors and help a community feel safe at home knowing its members are all looking out for each other.
Candles create the perfect ambience at home during the holidays but having more open flames in the house means you’ll want to take a few additional precautions. Test your smoke detectors and replace their batteries. Make sure you have a functioning fire extinguisher nearby, preferably in the living room or kitchen where you can access it at a moment’s notice. For more ways to prepare in case of a fire, read How to Prepare for a Fire at Home.
Lights Safety Best Practices
Before you string up your holiday lights, check all cords and outlets for signs of damage and make replacements as needed. Turn your lights off when leaving the house and before you go to bed—it’s safer and more energy efficient. You can either meter your light usage manually or with a smart home lighting device.
Safe Storage Tactics
It seems that a holiday season rarely passes without a decorating-related injury. Broken ornaments can be hazardous, especially if you have young children. Prevent accidents by securely storing your holiday decorations in easily accessible areas. Investing in high-quality containers will also extend the shelf-life of your décor.
Ladder Safety
Your holiday decorating will inevitably lead you to the hard-to-reach nooks and crannies of your home, both indoors and outdoors. Ladder safety is paramount, especially if your local winters come with freezing temperatures and icy conditions. If that old rickety ladder in the garage is on its last leg, consider investing in a newer model. When decorating trim, ceilings, and the roof, it’s best to have another person stabilizing the ladder below you.
To learn more about home safety and security best practices, smart home technology, and more, read our Home Safety and Security blog post.
Different real estate transactions have different conditions based on the status of the listing. The following information is meant to clarify some common real estate terms that describe a home for sale and its position in the closing process.
For sellers, understanding this terminology will inform your conversations with your agent when it comes time to sell. And for buyers, it helps to be familiar with these terms when searching for your next home and how they factor into making an offer.
What is the difference between pending and under contract?
Pending: When a home is listed as “pending” it means the seller has accepted the buyer’s offer and the sale will most likely be finalized after a successful final inspection and the buyer securing financing. For sellers, reaching the pending stage means the finish line is within reach, but your home is still not officially off the market.
Buyers who notice homes listed as pending should know that an agreement between the seller and another buyer has already been reached and that they are headed for closing. However, even though the chances are unlikely, it is still possible that the buyer backs out and the deal falls through.
Under Contract: A home that’s listed as “under contract” is not as far along in the selling process as a home that’s pending. It means the seller has accepted a buyer’s offer, but there are certain contingencies that must be met before the deal goes final.
Buyers who see a home listed as “under contract” may still reach out to the seller’s listing agent to make a backup offer, unless the contract that’s already in place contains a clause preventing it.
Contingencies dictate what must happen in a real estate transaction for the contract to become legally binding, giving the buyer or seller the right to back out of the contract if their conditions aren’t met. A property listed as “contingent” means that the seller has accepted an offer, but the deal still hinges on the buyer satisfying certain contingencies to continue. And once those contingencies have been met, the sale can go through as planned.
There are a variety of contingencies that protect buyers and sellers against the bumps in the road along their journey of buying or selling a home. A home sale contingency, for example, allows a buyer to tie their offer on a new home to the successful sale of their existing one. This contingency is beneficial to those who are buying and selling a home at the same time. It’s important for buyers to work with their agent to determine the strongest offer considering the market conditions in the area.
What is closing in real estate?
Closing refers to the homestretch of a real estate agreement between a buyer and seller, leading to the transfer of ownership. Both parties agree on a closing date and see the deal through to its completion. During closing, the buyer will deposit their earnest money in an escrow account, a home inspection is performed, the buyer secures financing to purchase the home, and both parties pay their respective closing costs. For more information on what to do while your home is on the market, visit our Home Selling Guide:
Cat owners are often faced with many considerations as they fill their homes with toys and cat trees to appease the kings and queens of the household. One such consideration is how to best use the space. Adding a catio to your home will help keep your cat entertained and safe and can be easily customized to fit the needs of any living space.
A catio can offer a wide range of benefits for you and your cat, including daily enrichment opportunities. Catios provide easy access to the outdoors where they can stimulate their senses. By providing this connection to the outside world, cats can independently spend their days as they please with a wide variety of options to choose from.
Catios also keep your feline friends safe from the dangers that lurk outside. While they’re able to enjoy the outdoors, the enclosed space keeps them nearby while keeping predators out. This prevents accidents with cars on a busy street and run-ins with potentially harmful animals found in residential areas such as raccoons, and in certain areas, coyotes. It also keeps out other cats, preventing exposure to diseases and accidental pregnancies.
Image Source: Getty Images – Image Credit: ahloch
In addition to the benefits catios provide for your furry friend, you will also improve the livability of your home by reducing the damage to your furniture and rugs or carpet. When your cats can enjoy that space, they are less likely to exert their pent-up energy on your carpeted and upholstered pieces.
For those cats who act on their hunting instincts, a catio is also a great way to keep local wildlife out of your home. From their perch in their enclosure, they will get to smell and watch birds, mice, and rabbits, but they won’t have the opportunity to hunt them. Saving these lives helps your neighborhood’s ecosystem and saves you from having to clean up the mess afterwards.
Providing a litter box outside can also improve your indoor air quality by reducing smells, chemicals, and bacteria associated with cat litter. Of course, it’s not wise to replace an indoor litter box with an outdoor one, but by adding another one that’s nearby, your cat will use the indoor box less.
What Can You Do with a Catio?
The simple answer: anything you want. Catios are customizable for your space and your cat’s interests. Answering these two questions will help you start the process of designing or choosing a design to build.
How much space can you offer to the enclosure?
How will the cat(s) enter the enclosure from the house?
You may also want to consider what kind of exposure to the elements you’re comfortable with, whether it’s open air or if you need a little more protection from the elements with a solid exterior. While in some areas wire fencing might be all that’s needed, regions with harsher climates may require a more robust setup, such as insulated windows.
Catio Options
If you have a smaller space, you may consider a catio attached to a window, which won’t take up any additional square footage. Much like a garden box, you can attach a small shelf-like enclosure just outside your window and stretch it as far out as desired. The entry point can be the window, making it easy to open and close.
If you have a yard, you can give your cat a tunnel. A simple addition to the home, attach an elongated box that juts out into the yard for your cat to explore and get a 360-degree view of the elements. You can attach this to an existing cat door or add a cat door on an exterior wall.
For those with a larger space, or if you already have a patio set up, you can build out a catio like an extension on your home. Attach the large enclosure to the exterior and use either a window or cat door for entry. Use the structure to offer a multitude of options on the outermost walls, like shelves, ramps, and hammocks. Customize it with your cat’s favorite things, like scratching posts and pet-safe plants. You can even add a chair for yourself in there if you want!
For more ideas on caring for your pets, home maintenance, and more, visit the Living category of our blog:
Equestrian properties are not your typical residential homes. The land serves a purpose beyond addressing the homeowner’s needs, and everything on the premises revolves around making sure the horses are at their best. And horses are not your average domestic pets. Tending to them is a full-time job that consists of constant hard work. When it comes to buying and selling these properties, it’s important to work with an agent who understands these facets of equestrian life and everything they entail.
The Importance of Working with an Experienced Equestrian Real Estate Agent
Real estate agents who either grew up around horses or have many years’ worth of experience working with equestrian buyers and sellers are uniquely qualified to understand your needs as a buyer or seller of an equestrian property.
A particular region’s climate, for example, will present unique challenges for equestrian buyers looking to build out their property to accommodate their specific riding discipline. Only an experienced equestrian agent can provide the proper guidance on property additions and maintenance, as well as how those recommendations align with local zoning regulations. For those looking to sell their equestrian property, it’s imperative that they work with a listing agent who understands the property and how to market it to the right buyers.
Equestrian advisors also understand the emotions that come with equestrian property ownership. Taking care of horses is a significant undertaking, financially and emotionally. Buyers and sellers may set logic to the side and make decisions based on emotions, rightfully so, given how heavily invested they are in the wellbeing of their animals. Equestrian advisors know how to interpret the emotions behind these decisions and guide their clients toward logical solutions throughout the buying/selling process.
Helpful Questions to Ask an Equestrian Real Estate Agent
Finding the right agent to sell your equestrian property or finding the right buyer’s agent takes time, but you can set yourself up for success by knowing which questions to ask. The following list of questions will help you identify a candidate with equestrian experience.
Did you ride / were you around horses growing up?
Do you have experience working on an equestrian property?
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