Take two?

Plus, The numbers are in + A tale of two housing markets

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  February 26, 2022 | Issue #31

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Good morning! This week we're talking about home prices, homeownership rates and houseplants. Take two? Andrea Chronopoulos for Money Last year, Realtor.com found that more than a quarter of people who tried to become first-time homeowners failed. Thwarted by rising prices, limited inventory and deep pocketed competition, these would-be buyers were outbid or just unable to find a place that fit their needs. In that context, it's not surprising that many people decided to press pause on their house hunts, waiting for the market or their financial situations to improve.  Consider how Emily McGregor, who took a breather after three-months of searching last spring, described her decision: "We were feeling overwhelmed by the process and frustrated that we kept getting outbid. We just felt it was better for our mental health to step away." But McGregor and her partner Sam Weller, weren't willing to stay away for long. After taking some time to regroup — and, critically, to save up — they restarted their search last month and are already in contract for a four-bedroom home in Reseda, a neighborhood in the San Fernando Valley region of  L.A. thanks to an above asking price bid.  In fact, 72% of people surveyed by Realtor.com last year said they planned to try again in 2022. In her latest for Money, Aly J. Yale shares some of their stories — and the new tactics they're using to win homes this time around. For a different solution: Frustrated House Hunters Are Giving up on Buying Only to Face an Expensive Rental Market Also: Rents Are So High It's Cheaper to Own a House in These Major Cities From our sponsor The home loan experience designed for you. Presented by  Detroit-based Rocket Mortgage, the nation's largest home mortgage lender and part of Rocket Companies (NYSE: RKT), enables the American dream of homeownership and financial freedom through its obsession with an industry-leading, digital-driven client experience. In late 2015, it introduced the first fully digital, completely online mortgage experience and in 2020, closed $320 billion dollars of mortgage volume across all 50 states. Start your home buying journey with numbers you can trust. Apply for a mortgage online with Rocket Mortgage. NMLS #3030 The numbers are in The final tally of how much home prices grew in 2021 is in — and it's not pretty. Sale prices rose 18.8% last year, according to the S&P CoreLogic Case-Shiller US National Home Price Index. In some cities, prices jumped even more.  The national change is the largest gain in the 34-year history of the index and far larger than 2020's 10.4% growth. Over the last decade, home prices have increased just 7.5% per year on average.  It is possible that rising mortgage rates could begin to slow demand in the months ahead, this could eventually put downward pressure on prices. On the other hand, there are few signs that housing stock will pick up, which could keep prices high. Only time will tell. A tale of two housing markets Money; Getty Images According to a report out this week from the National Association of Realtors, there are about 6.5 million more homeowners in America today than there were in 2010. The homeownership rate in 2020 — the most recent year for which reliable data is available — was a touch higher than in 2010.  The overall rate, however, does not capture the full picture. The Black homeownership rate is actually lower than in 2010. There are lots of reasons for this: Black Americans were hit particularly hard by the Great Recession. Black households tend to have more student loan debt and less intergenerational wealth than other groups, making saving up harder.  One stat that jumped out to me: Black households who do buy have a far lower median income than white buyer households ($82,300 versus $101,900). Numbers like that make homeownership much harder to achieve — and to sustain. For more: Black Homeownership Is Lower Than It Was a Decade Ago. What's Going On? Plant parents, here's how to not kill your plants when you move Jose Velez / Money Early in the pandemic I treated myself to a few succulents from The Sill, a popular houseplant delivery service that has a store not too far from where I live. (I can confirm the company's tagline — "Plants make people happy" — is factual.) It was a chilly night and I remember worrying that my new friends wouldn't respond well to the 20-minute walk home.  Many months later, the plants are thriving, and I am contemplating a move that will take longer than 20 minutes. It turns out that many professional movers won't transport plants and some states even regulate the types of houseplants you can bring in.  I learned all this from my colleague Leslie Cook's brand new guide to moving with houseplants. Luckily, her story is full of tips to help plant parents keep their prized possessions alive — and to avoid running afoul of obscure agricultural laws. Enjoy! Happy hunting, P.S. Share plant pictures with me on Twitter @samsharf or via email at sam.sharf@money.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this e-mail or send them to the Money Moves subscription page. Money's Essential Home Buying Resources: Winter 2022 On the hunt? Check out Money's Mortgage Calculator, see The Best Mortgage Lenders and look at the latest mortgage rates Thinking of refinancing? Our list of The Best Mortgage Refinance Companies can help. You can also use our Mortgage Refinance Calculator or these refi tips Key question: How much house can I afford?

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