It’s hard out there for a homeowner

Plus, ask your grandparents for home design advice

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  April 22, 2023 | Issue #89

Good morning! This week we’re talking about housing supply, property taxes and “grandpa chic.” This issue of Money Moves was written by Aly J. Yale.   How hopeless is housing supply? Getty Images Low supply has been the story of the housing market for years now. It’s why home prices skyrocketed during the high-demand days of the pandemic and why, even today — with mortgage rates above 6% — it’s still a seller’s market in most parts of the country. Up until recently, though, most of that shortage had to do with homebuilders — and their lack of activity coming out of the housing crash. Now, existing homeowners share a lot of the blame. According to a new report from real estate brokerage Redfin, a whopping 85% of homeowners have a mortgage rate “far below” 6%. That’s made the bulk of existing homes more or less unlistable. As Redfin’s Dana Anderson explains, “People are reluctant to sell because they don’t want to give up their low mortgage rate.” The evidence is everywhere you look. New listings are now down 25% compared to one year ago, and in some cities, it’s even worse. In Sacramento and Oakland, California, for example, there are 47% fewer listings. With the Fed set to meet in just a few weeks, there’s a chance lower mortgage rates (and more listings) are on the horizon, but according to Redfin’s chief economist Daryl Fairweather, rates would need to drop quite a bit to move the needle. “Even if the Fed chooses not to hike rates next month … the limited supply of homes for sale would remain a major obstacle for would-be buyers,” she notes in the report. Thinking of selling?: 10 Features That Can Increase Your Home's Sale Price, From Pizza Ovens to 'She Sheds' The spring housing market: Why Seasonality Doesn't Matter in the Housing Market This Spring   Homeownership costs keep rising Last week we talked about home insurance premiums — and the $150 increase the average homeowner is going to see this year. Today, we’re covering yet another rising cost of homeownership: Property taxes. Before even reading Mary Ellen Cagnassola’s latest story, I was all too familiar with this trend. Just last month, I got my property tax appraisal for my Houston home. And the value? It’s jumped an eye-popping $80K. I’m not sure how much more cash that will translate to when my tax bill comes later this year — but I’m guessing it won’t be pretty. Sadly, I won’t be alone. As Mary Ellen found, the typical homeowner is going to see a 3.6% increase in property taxes this year — more than twice the jump seen in 2021. Take a look at where homeowners are going to pay the most this year … and the least.   Goodbye, getaways Eddie Lee / Money; Getty Images Remember when homes in sunny vacation spots were flying off the shelves? When pandemic closures and forced quarantines had stir-crazy Americans snapping up second homes in far-off getaways for remote work, open air and room to roam? Those days are far behind us, it seems. According to Sarah Hansen’s latest story — and more data from Redfin — demand for second homes is now 71% lower than it was in January 2022 and 52% below pre-pandemic norms. This stark about-face comes down to a number of factors, like: More consumers returning to the office Declining interest in short-term rentals Higher inflation and costs in general Higher mortgage rates That last one is key, writes Redfin’s Taylor Marr in a blog post. “With housing payments near their all-time high, a lot of people can’t afford to buy one home right now, let alone a second.” For more: People Aren't Buying Vacation Homes — and That's a Bad Sign for the Housing Market Mortgage rate update: What Happened with Mortgage Rates This Week   To grandfather's house we go Getty Images Can’t decide how to deck out your new space? Just borrow a few things from your grandparents. According to Better Homes & Gardens, “grandpa chic” is a real-life design approach — and one that’s trending, too. Also called “country club grandpa,” this style meshes old and new, with a laid-back, acquired-over-time look (no matchy-matchy sets here). One designer even told BHG writer Maggie Gillette that it’s “one of the key design trends to watch” this year.   Happy hunting, P.S. Spot a weird or unique home listing? Share it with me on Twitter, where I’m @alyjwriter, or via email at alyjyale@gmail.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this email or send them to the Money Moves subscription page.   Money’s Essential Home Buying Resources: Spring 2023 On the hunt? Check out Money’s Mortgage Calculator, list of 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?   This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money. Privacy Policy • Advertise With Us • We're Hiring! To stop receiving these emails, unsubscribe or manage your email preferences. Copyright ©2023 Money Group, LLC. All rights reserved. Metro Office Park Calle 1, Building 7 Suite 204, Guaynabo, Puerto Rico 00968, USA