Global wealth is on the upswing following a post-pandemic fall, billionaires have bounced back from 2022’s net loss of $1.4 trillion, and the global luxury market was projected to hit $1.6 trillion in 2023, a new high. The second Gilded Age shows no sign of retreat. In the U.S., the bull market prevailed with the S&P 500 rising nearly 25% —despite political brinkmanship over the debt ceiling and a banking crisis that felled five banks. Globally, the wars in Ukraine and the Middle East added to the turmoil. As the effect of higher interest rates continues to percolate through the economy, with inflation falling and unemployment at 3.7%, many forecasters see a bullish 2024—if the nation’s and indeed the world’s economic clockwork continues to move in the right direction. Although the global economy has proved to be stable, and perhaps even sturdy, the World Bank has projected slower output growth in coming months. The Billionaire Wrap-up The number of the world’s billionaires rose by 7% in the 12 months leading to April 2023. They now total 2,544, which is smaller than the group’s peak of 2,686 in 2021, when their worth totaled $13.4 trillion. The net loss of $1.4 trillion the group experienced in 2022 was erased by a $1.5-trillion gain in 2023, according to Bloomberg. Today the world’s richest have an aggregate worth of $12 trillion, according to the World’s Billionaires List published by Forbes. The group’s recovery is due to the fortunes of European billionaires in the consumer and retail sectors, according to the Billionaire Ambitions Report 2023, compiled by UBS, which provides financial advice and solutions to private, institutional and corporate clients worldwide. The world’s largest concentration of wealth is in the Americas, but France has the largest share of billionaire wealth in Europe, the Middle East and Africa. “But the number of billionaires increased more in other Western European countries,” which includes Germany, the United Kingdom, Italy and Switzerland, according to UBS’ Billionaire report. The rising fortunes of the wealthy class tracked tech stock performance, which experienced record ascents in 2023. The zeal about artificial intelligence helped boost tech-savvy investor portfolios by $658 billion, or nearly 50%, according to Bloomberg. Private and Concierge Services Soar “There’s such a tremendous generation of wealth, a continuing sense of aspiration for finer things,” says Sherry Dewane, a UBS certified financial planner who has advised athletes and entertainers since 1997. The current rise in wealth creation has spurred the popularity of private and concierge services. “It’s really unprecedented; I personally have never seen it to this extent,” she says. The short list of blue-chip services that cater to the moneyed: concierge health care; education consulting, spa, wellness and fitness services; aviation; travel; cuisine; and business coaching. Exponential Wealth Generation In her work with elite entertainment professionals, Dewane observes an overlap in the generating of wealth within industries. For example, she cites the surging gaming industry, a behemoth with annual revenue of $187.7 billion, according to a Forbes report. “Games have been made from television or movies, and movies have been made from games,” Dewane says. “It’s a huge market.” A lot of cash has been made by the gaming industry and digital designers in the niche market for virtual fashion, Dewane says. The purchase of gamer “cosmetics” (which includes fashion, accessories and “skins” that clothe avatars) adds up to a multibillion-dollar market in itself—$40 billion according to one account. Incorporeal leopard-print capri pants paired with blazing heels that are literally on fire might seem frivolous when it comes to creating wealth (Gucci, Louis Vuitton and other luxury brands would disagree, given their gamer collabs and partnerships). But Dewane says the subject points to a larger truth. “There is tons of money, seemingly endless money, being poured into the catchall phrase known as ‘content,’” she says. “The delivery methods have changed and contracts have changed, especially in terms of name, image and likeness. That becomes quite valuable, given that money is generated each time it’s used,” including digitally. The ripple effects are felt through numerous industries. “Consider Shohei Ohtani who just signed with the Dodgers for $700 million,” Dewane says. “He’s not the only one making money. All of the attorneys, agents, business managers and the handlers involved in that deal also have cash generation.” The Wealthy Think Differently The wealthy, along with the experts and handlers who surround them, “think in a different way,” says Ranjeet Guptara, a senior vice president, certified financial advisor and senior portfolio manager at UBS. “They think across generational lines: the grandparents, parents and the succeeding generations beyond. That requires multiple and layered perspectives as well as strategies.” Inherited wealth across generations has increased in what the UBS Billionaire Ambitions Report calls “a great wealth transfer.” And it’s gaining momentum. For the first time in the report’s nine editions “… billionaires have accumulated more wealth through inheritance than entrepreneurship.” It’s a trend that UBS experts see as an “increasingly material factor in the creation of new billionaires.” Different generations have different views about philanthropy, investing and business. “As they inherit their parents’ businesses, investments and foundations, heirs look to focus more on today’s major economic opportunities and challenges, such as innovative technologies, the clean-energy transformation and impact investing,” according to the report. The report found that all generations, however, have their eye on the opportunities and risks of generative artificial intelligence. “Around two-thirds surveyed saw AI as offering one of the greatest commercial opportunities to their operating business over 12 months,” the report found. The affluent also think in international terms. “Many of our clients work in multiple jurisdictions, and different parts of a family will reside in various countries,” says Guptara. “A whole team can be required to help people think in different currencies and to navigate varying interest rate regimes.” Realtors Are Part of the Planning Team In the U.S., the regime includes a marked interest rate escalation that began in March 2022, which “although fascinating and unprecedented,” Guptara says, “is not really something that should derail people from long-term planning.” Such planning includes focusing on mortgage interest rates, especially adjustable-rate mortgages, which are always a ticking clock, Guptara says. “People are also staying in homes too long, unaware of the effect of interest rates when they come to re-mortgage,” he notes. “There’s this wonderful invention for family reunions called Airbnb; the reunion doesn’t have to be held in the family mansion.” Dewane mentions a sometimes forgotten reality: “Realtors are part of the planning team, especially at the higher end of incomes,” she says. “Decisions must be made about the most favorable time to sell, and what shape a house is in, among other factors. Those who’ve lived in a house for a long time will likely have a multitude of embedded gains. Determinations need to be made about how to manage that property as well as the taxes—choices that can result in benefits for the family.” Both Dewane and Guptara agree that Realtors who finesse high-end deals must realize that they are negotiating for value and, indeed, “have the burden to prove value,” Guptara says. That’s especially crucial as the National Assn. of Realtors battles numerous legal challenges to its policies. “With VIP homes, one faces an even more difficult task in terms of finding exclusive properties and dealing with very complex and sophisticated portfolios,” he says. “Quality is something such advisors continue to prioritize, and they’re rewarded commensurately.” Changes in Tax Codes Shift Strategies Strategies include using charitable remainder trusts, which enable donors to place cash or property in an irrevocable trust that pays a fixed annual income to the donor or a designated beneficiary. A charity receives the remainder of the trust once the donor dies. “With changes in the tax code, we’re seeing far more of these,” Dewane says. “Not-for-profits are marketing them far more than they used to. In certain parts of the country, tax rates have increased, and so it can be a viable alternative for those who are charitably inclined to fulfill those desires while receiving a tax benefit.” As tax rates change and, indeed, as overall change is constant, Dewane and Guptara envision a dynamic future for today’s Gilded Age. “The pace of change will increase,” Dewane says. “No one has a crystal ball, but I don’t see quite the same thing” in terms of adjustments to current peak wealth generation, as compared with the first unprecedented round from the late 1870s to the Great Depression. Guptara, in fact, believes that “we’re on the cusp of something even more exciting.” Given the rising impact of artificial intelligence, related manufacturing digitization and big data, “we’re now in the fourth industrial revolution,” he says. “It’s only just starting to impact a majority of industries. Legacy processes are going to see a creative disruption and repurposing. That can only be a good thing. Hopefully there will be cross-fertilization wherein everybody benefits.” ----------------- Source: Forbes

A recent surge in construction of single-family homes could offer more opportunities for home buyers in the new year. Existing-home sales posted a slight gain last month, breaking a streak of five consecutive monthly declines and foreshadowing what is expected to be a more favorable real estate market in 2024. The National Association of REALTORS® reported Wednesday that existing-home sales, which are completed transactions for single-family homes, townhomes, condos and co-ops, rose 0.8% in November. That figure is likely to grow in the coming months as borrowing costs fall, says NAR Chief Economist Lawrence Yun. Mortgage rates averaged 6.95% last week after reaching nearly 8% earlier this fall. Still, November existing-home sales were down 7.3% from a year earlier, NAR reports. Home prices, which are still rising due to low inventory, are pressing on buyers’ budgets. Prices were up 4% year over year in November, reaching a median of $387,600. “Only a dramatic rise in supply will dampen price appreciation,” Yun says. More Supply Could Be Coming Home buyers continue to face limited options on the market, and many homeowners who locked in ultra-low mortgage rates in recent years remain reluctant to sell. That’s helping to keep housing inventory at historical lows. Total inventory in November was down 1.7% month over month but was up 0.9% year over year. With existing inventory so low, homebuilders are ramping up construction to woo more buyers. Single-family home construction surged 18% in November compared to the prior month and was up 42% compared to a year earlier, the Commerce Department reported this week. New-home sales have risen this year despite higher mortgage rates this fall. Builders have been offering more incentives, such as buying down interest rates or offering co-op commissions to buyer’s agents, Yun says. “Lower interest rates and a lack of resale inventory helped to provide a strong boost for new-home construction in November,” says Alicia Huey, chairperson of the National Association of Home Builders. “And while these higher starts are consistent with our latest builder survey, which shows a rise in builder sentiment and future sales expectations, home builders continue to contend with elevated construction and regulatory costs.” Still, home builders are forecasting a 4% increase in single-family starts in 2024, banking on expectations that mortgage rates will fall lower and inflation will drop in the new year, says Robert Dietz, the NAHB’s chief economist. “Even more homebuilding will be needed with the housing shortage persisting in most markets,” Yun says. “Another 30% rise in home construction can easily be absorbed in the marketplace, especially in light of the plunge in mortgage rates in recent weeks.” Resilient Buyers Are Standing Ready Despite higher home prices and mortgage rates, bidding wars continue as consumers compete for limited inventory on the market. Homes are selling fast: 62% of properties sold in November were on the market for less than a month, NAR reports. Properties typically remained on the market for 25 days in November. First-time buyers are reemerging, comprising 31% of existing-home sales in November, up from 28% a year ago, according to NAR’s data. Also, more consumers are buying a home with cash, leveraging the proceeds from a previous home sale and bypassing higher mortgage rates altogether. Twenty-seven percent of transactions in November were cash sales. Individual investors and second-home buyers tend to make up the biggest bulk of cash sales, comprising 18% in November, up from 14% a year earlier, according to NAR’s data. Home sales remain strong, particularly in the South and Midwest. NAR has identified several markets in the South and Midwest as having the most pent-up homebuyer demand heading into 2024. Leading its list of top 10 markets to watch in 2024 were the metro areas of Austin and Dallas–Fort Worth, Texas; Dayton, Ohio; and Durham–Chapel Hill, N.C. Here’s a closer look at how existing-home sales fared across the country in November, according to NAR’s latest housing report: Northeast: Sales fell 2.1% compared to October, reaching an annual rate of 470,000. Home sales were down 13% compared to a year earlier. Median price: $428,600, up 4.8% from the prior year. Midwest: Sales increased 1.1% from the previous month, reaching an annual rate of 940,000. Existing-home sales were down 8.7% from one year ago. Median price: $280,800, up 4.9% from November 2022. South: Sales rose 4.7% from October, reaching an annual rate of 1.77 million. Existing-home sales decreased 4.3% compared to the prior year. Median price: $351,500, up 3.4% from last year. West: Sales fell 7.2% from a month ago, settling in at an annual rate of 640,000. Sales were down 8.6% from one year ago. Median price: $603,200, up 5.3% from November 2022. -------------------- Source: NAR

If your listing has expired and your house didn’t sell, it’s completely normal to feel a mix of frustration and disappointment. Understandably, you’re probably wondering what may have gone wrong. Here are three questions to think about as you figure out what to do next. Did You Limit Access to Your House? One of the biggest mistakes you can make when selling your house is restricting the days and times when potential buyers can tour it. Being flexible with your schedule is important, even though it might feel a bit stressful to drop everything and leave when buyers want to see it. After all, minimal access means minimal exposure to buyers. ShowingTime advises: “. . . do your best to be as flexible as possible when granting access to your house for showings.” Sometimes, the most determined buyers might come from far away. Since they’re traveling to see your house, they may not be able to change their plans easily if you only offer limited times for showings. So, try to make your house available as much as you can to accommodate them. It’s simple – if no one’s able to look at it, how will it sell? Did You Make Your House Stand Out? When you’re selling your house, the old saying matters: you never get a second chance to make a first impression. Putting in the work to make the exterior of your home look nice is just as important as how you stage it inside. Freshen up your landscaping to boost your home’s curb appeal so you can make an impact upfront. As an article from U.S. News says: “After all, if people drive by, but aren’t interested enough to walk through the front door, you’ll never sell your house.” But don’t let that impact stop at the front door. By removing personal items and reducing clutter inside, you give buyers more freedom to picture themselves in the home. Plus, a fresh coat of paint or thorough floor cleaning can work wonders in sprucing up the house for potential buyers. Did You Price Your House at Market Value? Setting the right price is key. While it might be tempting to push the price higher to maximize your profit, overpricing your house can actually turn off potential buyers and slow down the selling process. Forbes notes: “Pricing a home too high could lead to a slower sale or force the seller to drop their price.” If your house is priced higher than others like it, it may discourage buyers, resulting in increased time on the market. Pay attention to the feedback people give your agent during open houses and showings. If lots of people are saying the same thing, it might be a good idea to think about lowering the price. For all these insights and more, rely on a trusted real estate agent. A great agent will offer expert advice on relisting your house with effective strategies to get it sold. Bottom Line It’s natural to feel disappointed when your listing has expired and your house didn’t sell. Connect with a reliable real estate agent to determine what happened, and what changes you should make to get your house back on the market. ----------------- Source: KeepingCurrentMatters

No other phrase has defined the 2023 housing market as much as the “mortgage rate lock-in effect” – a phenomenon that brought the industry to a standstill, putting downward pressure on everything from inventory levels to home sales. The pandemic-era sub-5% mortgage interest rates that 85% of mortgage holders are locked in to kept homeowners from selling their home and buying another at elevated interest rates, which peaked at 7.79% the week ending Oct. 26, according to Freddie Mac. But will things change this year? There are signs that market conditions will be improving. Mortgage rates dropped steadily over the past seven weeks, averaging 6.61 % for a 30-year fixed mortgage, the week ending Dec. 28. The lower mortgage rates provided a boost to existing-home sales which grew in November, up 0.8% from October and breaking a streak of five consecutive monthly declines, according to the National Association of Realtors. Year-over-year, sales fell 7.3% (down from 4.12 million in November 2022). “A marked turn can be expected as mortgage rates have plunged in recent weeks,” says National Association of Realtors Chief Economist Lawrence Yun. Housing shortages will continue One thing most experts don’t expect to see is an end to shortage of homes for sale. Danielle Hale, chief economist for realtor.com “Despite this, households will have more options in 2024 from a small uptick in single-family home construction, and the completion of the large number of multifamily units that are under construction, the vast majority of which are destined to be rental homes,” says Danielle Hale, chief economist for Realtor.com . The additional inventory of new construction homes and apartments will curb the uptick in home and rental prices even as long-running shortages keep prices from slipping too far. Today’s acute supply shortage will be hard to undo, says Odeta Kushi, deputy chief economist at First American. "While single-family housing starts have steadily increased throughout 2023, it will take years of accelerated new home construction to narrow the supply shortage gap from more than a decade of underbuilding," she says. Home price growth will vary from market to market Against this backdrop, nationwide sales are expected to see only a modest uptick in 2024 over 2023's long-term low. Real estate activity will vary significantly from market to market with some top-growth areas expected to see double-digit increases, according to Hale. Combined sales and price activity are expected to be highest in two major groups of markets. The first are affordable markets in the Midwest and Northeast like Toledo, Ohio, Rochester, New York, says Hale. The second set are in Southern California where a reduction in mortgage rates could help the area bounce back from a particularly slow 2023. The median existing-home price for all housing types in November was $387,600, an increase of 4% from November 2022 ($372,700). All four U.S. regions posted price increases. “Home prices keep marching higher,” Yun says. “Only a dramatic rise in supply will dampen price appreciation.” Mortgage rates and affordability Most experts predict the average 30-year mortgage rate to linger anywhere between 6.1% to 7% range in the first quarter, then decline throughout the year. “Mortgage rates are likely to remain well above pandemic-era record lows because financial markets increasingly believe the country will avoid a recession in 2024,” says Redfin Chief Economist Daryl Fairweather. “Mortgage rates will fall to about 6.6% by the end of 2024. The gradual decline in rates combined with the small dip in prices will bring homebuyers some much-needed relief.” Election year volatility will make mortgage rates jumpy, so 30-year fixed rate estimates range would be in the mid 6% range, according to Jeff Taylor, founder and managing director at Mphasis Digital Risk. At a 7.125% rate and current median home prices, it takes $111,000 and $107,000 in household income to buy newly built and existing homes, respectively, with 5% down, says Taylor. If mortgage rates fell 1% to 6.125% and home prices rose a modest 4% as projected by the Federal Housing Finance Agency in 2024, it would take $105,000 and $99,000 to buy newly built and existing homes, respectively, with 5% down. New home construction With a decline for mortgage interest rates and an ongoing housing deficit, Robert Dietz, the chief economist for the National Association of Home Builders is forecasting a gain for single-family housing construction starts in 2024. This will be the first year of increase after declines in 2022 and 2023. “Due to low existing inventory, new construction has increased to approximately one-third of total single-family inventory in recent months when historically it was only 10% to 15%,” Dietz says. Multifamily construction will experience a significant decline. Financing conditions are very tight and there are approximately one million apartments under construction, the highest total since 1973. The level of remodeling activity will be approximately flat in 2024 compared to 2023. The housing stock is aging and requires reinvestment (the typical home in the U.S. is near 40 years old). ------------------------ Source: USA Today

The 2024 Consumer Electronics Show brought more than 135,000 attendees together to share innovative ideas centered around the future of technology. Several themes emerged around technology for the home. Research group Parks Associates hosts a day of sessions at CES called the CONNECTIONS Summit, which identified some of those hot home technology trends. Two of the most popular home technology advancements center around smart home innovations and energy management. Parks Associates collects and publishes data that validates those trends. For example, smart home devices are now staples in 42% of U.S. internet households, and the average household now has 17 connected devices. Home Energy Management Is At The Forefront One trend that is now at the top according to Parks Associates is new advances in home energy management and efficiency, driving the adoption of smart home solutions. Innovations in this area, such as the introduction of advanced control and integration products, are set to redefine home energy management. One of those technologies is the DELTA Pro Ultra whole-home generator that can deliver the highest output power ever by one single unit with up to one month of power backup. Launched by EcoFlow, an energy solutions company, it also offers a plug and play home solar system that can be added to create a completely energy-independent home. EcoFlow also announced the Smart Home Panel 2 that can fully integrate DELTA Pro Ultra with any home to optimize energy use, reduce costs and extend backup efficiency with intelligent analysis and solar utilization all controlled via an app. The DELTA Pro Ultra can be charged through AC power, solar panels, and gas generators, offering maximum flexibility and extended backup time. This creates a highly resilient energy solution that is increasingly desired with today’s more chaotic and damaging weather events. The DELTA Pro Ultra is available now on the company’s website and on Amazon.com . Energy Tracking At Any Price Point Some people have been shying away from smart energy solutions, assuming they will be too expensive to implement. But global home and building management solutions leader Nice has identified options that match any budget. “Consumers can take action to lower their environmental footprint by using technology to gain the knowledge needed to understand their energy consumption,” said Paul Williams, who is the managing director of Nice’s home management business unit. Williams explains that there are tiered solutions that hit multiple price points, starting at just a $200 investment, with a fast pay back from the subsequent energy savings. The intelligent information these systems provide arm a consumer to take action on their behavior and energy use. Some solutions are DIY and others require an electrician to do the work. Williams says that sometimes the systems lead to finding surprises like an ill-running appliance. “Refrigerators at the end of their life cycle consume more power because motors and compressors start to be less and less efficient,” he said. “Just by replacing devices, homeowners can get a significant payback. Plus, with a little research, they can find the normal consumption of a refrigerator or HVAC to see if they are outside of the norm and if the appliance just needs to be serviced.” The next level of home energy management is a smart panel that integrates with car charging, battery storage and solar power to then regulate and optimize how power is being utilized in the home. These systems are closer to $10,000 with a 10-year payback but also can get the home to net zero energy. Wi-Fi is becoming a significant technology for how systems are communicating, Williams said. It’s allowing utilities to enter the space with intelligent monitoring driven by wireless protocol Zigbee sensor that connects a USB stick to the meter to look at what is being consumed at a granular level, including by device. This technology is evolving and is currently limited to fewer than 15 utility companies, but is less intrusive, costs less, and is easy to install. “Finally, generative AI pays a huge role as we move forward,” Williams said. “There are so many variables that go into energy use that have an impact on what goes into the house, and AI will be able to look at the variables, make sense about them and then make changes based on them, then be able to make predictions based on that information.” He is excited to see models evolve that provide collective data to understand at a regional level, and even globally, to more intelligently use power within homes. Home Electrification In the kitchen, home appliance inventor Impulse launched its first product at CES, a battery-integrated cooktop. After getting obsessed with making a pizza fast and delicious more than a decade ago, Impulse CEO Sam D'Amico, realized the broad implications and possibilities of having appliances that are easier to install. “If you install an induction stove, the building may not be wired for it because it already had gas and then doesn’t have the right amperage,” he said. “Then it is about a $4,000 expense, plus the wire to the street has to be upgraded, which can be $10,000, and can also take a lot of time waiting for the utility to do the upgrade.” As the industry is pushing away from natural gas to electrification, he has identified some of the stress in that, while also removing the environmental hazards, and delivering more power with his product launch. “It’s the highest performance stove ever,” D’Amico said. “We did that because the battery is integrated and charging all day and can pull three times more power. We can bring a liter of water to a boil in 40 seconds. You need 6 cups of water for macaroni and cheese and that can boil in 1 minute, where a gas stove is like 10 minutes.” The stove also has more precise sensors that deliver more consistency that hasn’t existed with electric stoves that have numeric dials that don’t necessarily provide clarity to the user. The Impulse stove takes in all the external factors, such as different types of pans, to essentially give cooking the precision of baking. The product will start at $5,999 and be available in the fourth quarter of 2024. It requires a 120-volt outlet to be installed and has a built-in bidirectional inverter. Pumping Innovation Throughout The Home Heat pumps are definitely having a moment, but some homeowners are resistant to try them and question the performance in colder weather climates. At CES, Bosch revealed the IDS Ultra Heat Pump that performs at colder temperatures as low as negative 13 degrees Fahrenheit. The new Bosch heat pump promises to be three to five times more energy efficient than gas furnaces and consume only about half as much electricity as electric furnaces. Bosch also announced heat pump technology innovation in a different climate. In Las Vegas, it launched its most efficient electric hot-water heater, improving its current efficiency by four times. In one more step for more efficient energy use, Bosch also updated its latest dishwashers with a “MySchedule” function that can be used to automatically schedule the start of the wash cycle to be during the lowest electricity price or when the most renewable energy is available. In addition, France-based LANCEY Energy Storage launched an energy independent heat pump. The system converts air to water and incorporates a battery and an inverter with a hybrid compressor that has AC and DC power. So, it can connect directly to solar panels. According to LANCEY’s CEO and Cofounder Raphaël Meyer, combining solar and storage with an air-to-water heat pump has never been done before. The heat pump pulls from two power supply modes—it can access AC power from the grid during off-peak hours and then can use DC power to pull directly from solar energy, with the option of storing any unused solar energy. Homeowners will be able to track the usage with a cloud-based energy management system. This carbon neutral HVAC system will help reduce reliance on fossil fuel heating. Smart Home Services Home technology expert Tim Costello says that the permanency of robotic home services is the top takeaway from CES. Those robotic home services stretch from lawn mowers to home companions, and from pet management to robotic chefs. He says that this new wave of innovation is creating the “Zero Labor Home,” a phrase coined from LG’s vision for its robotic services. As smart home systems grow more complex with or without robot services, the need for professional support is growing. Parks Associates tracks the challenges in device integration and management. It sees the rise of Smart TVs as central control hubs and the adoption of interoperability standards like the Matter protocol as the next part of the evolution to simplify very complex smart home ecosystems. All these technologies are destined to make leaps and bounds in progress before the 2025 CES, which is scheduled for January 7-10 in Las Vegas. Any bets on what the trends will be next year? ------------------- Source: Forbes

Have you ever heard the term “Silver Tsunami” and wondered what it’s all about? If so, that might be because there’s been lot of talk about it online recently. Let’s dive into what it is and why it won’t drastically impact the housing market. What Does Silver Tsunami Mean? A recent article from HousingWire calls it: “. . . a colloquialism referring to aging Americans changing their housing arrangements to accommodate aging . . .” The thought is that as baby boomers grow older, a significant number will start downsizing their homes. Considering how large that generation is, if these moves happened in a big wave, it would affect the housing market by causing a significant uptick in the number of larger homes for sale. That influx of homes coming onto the market would impact the balance of supply and demand and more. The concept makes sense in theory, but will it happen? And if so, when? Why It Won’t Have a Huge Impact on the Housing Market in 2024 Experts say, so far, a silver tsunami hasn’t happened – and it probably won’t anytime soon. According to that same article from HousingWire: “. . . the silver tsunami’s transformative potential for the U.S. housing market has not yet materialized in any meaningful way, and few expect it to anytime soon.” Here’s just one reason why. Many baby boomers don’t want to move. Data from the AARP shows over half of the surveyed adults ages 65 and up plan to stay put and age in place in their current home rather than move (see chart below): Clearly, not every baby boomer is planning to sell or move – and even those who do won’t do it all at once. Instead, it will be more gradual, happening slowly over time. As Mark Fleming, Chief Economist at First American, says: “Demographics are never a tsunami. The baby boomer generation is almost two decades of births. That means they’re going to take about two decades to work their way through.” Bottom Line If you’re worried about a Silver Tsunami shaking up the housing market, don’t be. Any impact from baby boomers moving will be gradual over many years. Fleming sums it up best: “Demographic trends, they don't tsunami. They trickle.” -------------- Source: Keeping Current Matters

The Federal Reserve signaled possible rate cuts to come, which could influence lower mortgage rates and spur housing activity. Mortgage rates, which averaged 6.63% this week, according to Freddie Mac, are likely to feel downward pressure after the Federal Reserve on Wednesday held its key short-term interest rate steady and indicated possible rate cuts to come, housing analysts say. Economists expect a more robust real estate market this year if rate predictions hold true. Although the Fed’s rate does not directly impact mortgage rates, it often influences them Jessica Lautz, deputy chief economist at the National Association of REALTORS®, anticipates mortgage rates to remain in the 6% range for most of the year. “While this is certainly higher than the historic lows seen in 2020 and 2021, this is lower than the historical norm of 7.74%,” Lautz says. With less volatility in mortgage rates, consumers may feel more confident to resume house hunting. Last fall, mortgage rates surged to nearly 8%, shaking buyer confidence and causing home sales to dip. This week’s 6.63% average translates to about $251 less for a typical monthly mortgage payment compared to fall when rates hit a peak, Lautz says. Mortgage rates have held relatively stable for nearly two months, which is bringing more buyers back into the housing market, says Sam Khater, Freddie Mac’s chief economist. Further, “the economy continues to outperform due to solid job and income growth, while household formation is increasing at rates above pre-pandemic levels,” he says. “These favorable factors should provide fundamental support to the market in the months ahead.” Lower mortgage rates are helping to improve housing affordability, adds NAR Chief Economist Lawrence Yun. Pending home sales rose 8.3% in December and are now higher than a year ago, NAR’s latest housing report shows. Homeowners also may find more incentive to sell. “Many delayed home sellers may be willing to give up 3% to 4% rates as life circumstances have changed, thereby boosting inventory,” Yun says. “Home sales will no doubt rise this year.” NAR is forecasting a 13% increase in existing-home sales compared to 2023. That rising trend is expected to continue into 2025, with another 15.8% uptick, NAR notes. Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 1: 30-year fixed-rate mortgages: averaged 6.63%, dropping from last week’s 6.69% average. Last year at this time, 30-year rates averaged 6.09%. 15-year fixed-rate mortgages: averaged 5.94%, falling from last week’s 5.96% average. A year ago, 15-year rates averaged 5.14%. --------------- Source: NAR

KEY POINTS The average rate on the 30-year fixed mortgage hit 7.04% on Monday, according to Mortgage News Daily. Mortgage rates have been on a wild ride since the summer, briefly crossing to a 20-year high of 8% in October. With the all-important spring housing market closing in, rates are more important than ever, given high and still-rising home prices. The average rate on the popular 30-year fixed mortgage crossed over 7% on Monday for the first time since December, hitting 7.04%, according to Mortgage News Daily. It comes after the rate took the sharpest jump in more than a year Friday, after the January employment report came in much higher than expected. Rates then moved up even more Monday after a monthly manufacturing report came in high as well. Mortgage rates have been on a wild ride since the summer, briefly crossing to a 20-year high of 8% in October. Rates then fell sharply, as investors saw more and more evidence that the Federal Reserve would end its latest phase of interest rate increases. Mortgage rates do not follow the Fed directly, but they follow loosely the yield on the 10-year Treasury, which is heavily influenced by the central bank’s impression of the economy at any given time. “The rapid increase in rates over the past two days is actually not too surprising given the fact that the market was widely seen as overly optimistic on the Fed rate cut outlook. The Fed has repeatedly pointed to economic data having the final say in that outlook and data has been shockingly unfriendly to rates as of Friday morning’s jobs report,” said Matthew Graham, chief operating officer at Mortgage News Daily. As mortgage rates fell over the past two months, buyers seemed to be returning to the market. That coincided with a slight uptick in the number of homes for sale. Total inventory, however, is still historically low and is keeping competition high. It is also keeping home prices stubbornly hot. High prices and low supply combined to make 2023 the worst for home sales since 1995. Most predict 2024 will be better. “The strong job market is good news for the spring buying season as higher household incomes are a necessary component, but it also means that mortgage rates are not likely to drop much further at this point,” said Michael Fratantoni, chief economist at the Mortgage Bankers Association. Mortgage applications to purchase a home had been rising steadily, but fell back in the last few weeks, as mortgage rates edged higher. With the all-important spring housing market closing in, rates are more important than ever, given high and still-rising home prices. The median price of an existing home sold in December (the most recent data) was $382,600, according to the National Association of Realtors, an increase of 4.4% from December 2022. That was the sixth consecutive month of year-over-year price gains. The median price for the full year was $389,800, a record high. Given how high prices are, even small rate swings are having an outsized effect on monthly payments, which are the final determination of affordability. Just a half percentage point swing can cost or save a buyer more than $200 a month on the median-priced home. So what next? “The future of rates in 2024 is all about ifs and thens,” said Graham. “If we see more data like last Friday’s jobs report, rates will have a hard time getting back below 7%. But inflation is even more important than the labor market. If inflation comes in cooler than expected, it could balance the outlook.” ------------------- Source: CNBC

There’s nothing quite like walking into a professionally designed home. Everything looks fresh and beautiful—with every item thoughtfully curated. If you’re not a designer, you might be wondering, “Where did they buy that?” While many designers stick to shopping trade-only stores—those aren't their only sources for furniture and decor. It's possible to get the designer look if you know where to go and what to look for. Here are 16 stores where interior designers love to shop. Lulu And Georgia Interior designer and HGTV star Shay Holland is a big fan of Lulu and Georgia. “If you want a timeless, luxe look for your space, Lulu and Georgia is the place to look over and over again.” While Holland generally prefers brick-and-mortar stores, she tells me Lulu And Georgia is one of the few places she truly trusts for online shopping. “I’m a huge fan of their stylish kitchenware and you can find very reasonably priced decorative accents of exceptional quality. Known for its wide range of rugs, the company also has a great sale section.” But Holland isn’t the only designer touting this retailer. Designers Erin Loscialpo and Meredith Gough of Darby Wallis Design highly laud the brand’s collaboration with Sarah Sherman Samuel, which features everything from furniture to lighting and rugs. TJX Stores While many are under the impression that designers only shop at expensive or obscure stores—this simply isn’t true according to interior designer Kate Dawson, calling big box stores including HomeGoods, HomeSense, TJ Maxx, and Marshalls (all of which have the same parent company (TJX) her absolute favorite places to source decor. “They have a huge, ever-changing inventory that gets replenished pretty much every day. These stores never disappoint! You can find fabulous pillows, beautiful pairs of picture frames, stunning and large pieces of art, contemporary pairs of lamps, and fantastic faux plants all at a great price point! Which always pleases my clients.” While many of Dawson’s projects are accessibly priced, she reveals that end designers also hit up the discounters as well. “These stores are every designer's secret (not-so-secret) weapon when it comes to finishing off a space.” Tumbleweed and Dandelion Tumbleweed and Dandelion has a brick-and-mortar location on Abbot Kinney in Venice, California but also sells online. Holland tells me this store is always at the top of her list for creating homes with a coastal, cottage, or California vibe. “I met the owner, Lizzie McGraw when I walked into the store while while sourcing furnishings for our HGTV families. The location in Venice Beach is actually where Lizzie once lived and now the rooms are filled with her touches, from signature scented soy wax candles infused with essential oils to custom home furnishings.” McGraw is best known for designing celebrity homes including those of Josh Brolin, Sharon Osbourne, and Brooke Burke. “Despite its star ties, Tumbleweed and Dandelion pieces definitely invoke that laid-back coastal ease my clients crave,” explains the designer. Ballard Designs Interior designer Jennifer Hunter loves Ballard designs. With something for every room in the home, it’s an excellent source for traditional and contemporary pieces. However, what sets Ballard apart is that they upholster pieces with fabrics provided by the customer. “It is a wonderful way to go custom without the price tag,” she explains. West Elm Looking for a big-ticket item like a desk or bed? You can’t go wrong at West Elm. Many designers love this store, including the founders of Darby Wallis Design. The tabletop offerings are also worth exploring according to designer Andrea DeRosa of Avenue Interior Design. “We adore a great fashion collaboration and especially love the West Elm X Rhode collaboration. We want everything from this collab.” McGee And Company McGee and Company has a huge following among interior designers including Audrey Scheck. “Renowned interior designer, Shea McGee, expertly curates a wide selection of products spanning pillows, decor, furniture, rugs, art, kitchen accessories, and lighting. Their products are trendy yet timeless, and they are suitable for a wide range of design aesthetics.” So even if you can’t have Shea McGee personally design your home, this shop is the next best thing. Target While many will argue that buying socks, sunscreen, and home furnishings from the same place isn’t necessarily a good thing—Target is the exception to this rule. Loscialpo and Gough are fans of Target, specifically the Studio McGee line. A fantastic value, it has a similar vibe to McGee and Company for so much less. For example, while a McGee And Company burl wood side table costs $900, the Target version is just $140. It’s ideal for mixing and matching to complete the look at an attainable cost. Minted Finding affordable artwork can be a challenge, but according to Loscialpo and Gough, with Minted, it doesn’t have to be. “Minted is a great source for artwork, as they curate from local artists all over the world to give a home a unique, personal feel.” While Minted is probably best known for its stationery, the decor also scores points with interior designers. With a variety of prints and framing options, there’s something for everyone. Rejuvenation Hardware can make or break a kitchen or bathroom. One of the best places to source unique hardware is Rejuvenation. “Specializing in premium kitchen and bathroom products, Rejuvenation is known for its excellent selection of hardware. Most of their pieces are available in an array of beautiful finishes that add a luxe touch to any space,” says Scheck. Dinosaur Designs Dinosaur Designs isn’t exactly a household name in the States just yet, but for those looking for interesting pieces unavailable anywhere else DeRosa suggests checking it out. “Dinosaur Designs is an Australian-based company specializing in resin and no two vessels are the same.” This shop’s serveware and drinkware are the epitome of chic whimsical. Best of all, it’s the perfect place to scour for housewarming gifts. Oka Oka is a ideal store for those who want something unique, but don’t want to hunt for it. “Oka has wonderful ceramic lamps with custom-looking lamp shades in beautiful block prints. Everyone is always asking where we purchased the lamps,” says Hunter. Anthropologie Once considered just a clothing retailer, Anthropologie has leveled up its furniture game in recent years, delivering a vintage aesthetic without the stress or price tag. “Anthropologie has great collaborations with designers like Amber Lewis where the pieces look one of a kind or vintage. No one ever believes that it came from Anthropologie,” says Hunter. The brand’s collaboration with House of Hackney is also a true winner with gorgeous pieces that look like nothing else. Estate Sales It’s not just bargain hunters who like to hit up estate sales every weekend, it’s also interior designers according to Dawson. “I love to go to estate sales—mainly for glassware. I have found the most beautiful wine glasses, decanters, martini glasses, and even cordials at these sales, and with the popularity of home bars continuing to be a trend, there is no better place to find unique and beautiful glassware to fill your open shelves. Adding unique pieces like this always elevates a design.” ---------------- Source: Forbes

KEY POINTS One-quarter of American ultra-high-net individuals plan to buy a home this year, according to a new Douglas Elliman and Knight Frank Wealth Report. The ultrawealthy ranked “lifestyle” and “investment” at the top of their list of priorities, followed by taxes and safety. The report forecasts that Miami and New York will be the best-performing U.S. luxury markets this year. Globally, the top market for luxury real estate is expected to be Auckland, New Zealand. The ultrawealthy are looking for a better lifestyle and strong investment when it comes to buying their next home, according to a new study. One-quarter of American ultra-high-net individuals, or those worth $30 million or more, plan to buy a residential property this year, according to the Douglas Elliman and Knight Frank Wealth Report. The average ultra-high-net-worth individual already owns four homes, according to the report. One-quarter of their residential portfolio is outside their home country. When it comes to priorities for their next big purchase, the ultrawealthy ranked “lifestyle” and “investment” at the top of the list, followed by taxes and safety. While luxury real estate has been buffeted by many of the same pressures as the rest of the market — low supply, slow sales, rising prices — the ultra-high-end has fared slightly better. Last year in the U.S., there were 34 sales over $50 million, down from 45 in 2022 but still way up from the pre-pandemic years. With interest rates stabilizing and possibly falling this year, real estate experts say there are early signs that luxury supply may be growing, which could lead to more sales. “If we do see a pivot to lower rates, or at least more confidence that inflation is going in the right direction, I think you will begin to see inventory building up again,” said Liam Bailey, partner and global head of research at Knight Frank. The report forecasts that the best-performing U.S. luxury market this year for price growth will be Miami, with an expected increase of 4%, according to the report. New York ranked second in the U.S., with expected price growth of 2%, followed by Los Angeles with 1% growth. Globally, the top market for luxury real estate is expected to be Auckland, New Zealand, with projected price growth of 10% in 2024. Mumbai ranks second, at 5.5%; followed by Dubai (5%); Madrid (5%); Sydney (5%); and Stockholm (4.5%). Last year, the world’s top 100 luxury real estate markets posted a solid 3% gain on average price. The best-performing luxury real estate market in the world was Manila, Philippines, with 26% growth, fueled in part by investors fleeing Hong Kong and China. Dubai came in second place, at 16% price growth, followed by the Bahamas at 15% and the Algarve region in Portugal at 12%. Among the worst performers last year were New York, with prices down 2%, and San Francisco, basically flat at 0.5%. The biggest decline in the world among prime markets was Oxford, in the U.K., down 8%. Bailey said ultrawealthy American buyers are increasingly venturing overseas. He said U.S. buyers are now the leading foreign purchasers of ultraprime London properties — those priced above $10 million. They are also increasingly active in Europe. “They’ve become quite a big presence, so much more noticeable now in Italy, France and Portugal particularly than they were,” Bailey said. “I think the American buyers have become much happier to explore and kind of think about alternatives.” Still, $1 million doesn’t buy what it used to in the U.S. and abroad. In Monaco, the world’s most expensive real estate market, $1 million gets you 172 square feet of prime real estate, according to the Wealth Report. In Aspen, you get 215 square feet, while in Hong Kong, you get 237 square feet, which makes New York look like a bargain with 367 square feet. -------------------- Source: CNBC

New research shows that house hunters are willing to accept a smaller property as long as it has these key amenities. Home buyers appear willing to sacrifice property size to afford homeownership, as the average size of a newly constructed house drops to its lowest level in 13 years—2,479 square feet, according to new research from the National Association of Home Builders. Twenty-six percent of builders say they plan to build even smaller in 2024, the research shows. But while buyers may accept a smaller home, they want it to be more personalized, said Donald Ruthroff, founding principal at Design Story Spaces LLC, during a press conference this week at the International Builders’ Show in Las Vegas. “They want it to feel like it was made just for them and be significantly different than their neighbors’ homes,” he said. Ruthroff added that an example of this personalization could be a kitchen island that resembles a piece of furniture. Nearly 40% of home buyers say they’re willing to buy a home with a smaller lot while 35% say they’d buy a smaller house, according to the NAHB survey, called “What Home Buyers Really Want(link is external).” Respondents who opt for a smaller home say they’d be most willing to shrink spaces like the home office (53%) and the dining room (52%). But they’re not willing to sacrifice the size of the kitchen or closets, said Rose Quint, NAHB’s assistant vice president of survey research, at the press conference. Buyers are prioritizing other key features around the home. Eighty percent or more of home buyers in NAHB’s survey rate the following property amenities as “essential” or “desirable”: Laundry room Patio Energy Star windows Exterior lighting Ceiling fan Garage storage Front porch Hardwood flooring Full bath on the main level Energy Star appliances Walk-in pantry Landscaping Table space in the kitchen Technology features are gaining popularity, too. Over the last decade, the following home features have posted the most significant growth among home buyers, according to NAHB: Security cameras Wired home security system Programmable thermostat Multi-zone HVAC system Energy management system Video doorbell “Buyers want technology mostly to increase the safety of their home and also to better control the temperature inside their home,” Quint said. She also flagged other home features posting significant growth over the past 10 years, including: Quartz or engineered stone for kitchen countertops Lighting control system Outdoor fireplace Outdoor kitchen Built-in seating in the kitchen Exposed beams Also, with the growth of multigenerational living, more home buyers appear to prefer two primary bedroom suites rather than one: 55% say they prefer this layout, NAHB data shows. What Builders Are Prioritizing NAHB also surveyed homebuilders to find the features they say they’re most likely to include in a newly built home in 2024. Topping their list: Laundry room Great room (kitchen/family/living room) Nine-foot-plus first-floor ceilings Central island in kitchen Walk-in closet in primary bedroom Low-E windows Walk-in pantry Front porch Programmable thermostat Two-car garage Indoor fireplace Patio Quartz kitchen countertops On the other hand, some of the least likely features builders say they’ll include in a typical home in 2024 include cork flooring for living areas on the main level, geothermal heat pump, dual toilets in a primary bath, glass walls and a pet washing station, the NAHB survey finds. --------------- Source: NAR

According to hommes.studio , fall decor should emphasize natural elements, earthy tones, and quiet luxury, bringing warmth and comfort to your living spaces in 2024. As f all arrives, it's the perfect time to refresh your home with the latest seasonal trends. Here are seven key trends to incorporate into your home this season. 1. Embrace Earthy Tones Fall 2024 is all about rich, nature-inspired colors like terracotta, muted greens, and warm browns. These tones create a cozy, grounded atmosphere that can be used as a primary palette or as accents to brighten your space. 2. Natural Materials Sustainability remains a key focus this year, with natural materials like wood, stone, and linen taking center stage. These elements not only look beautiful but also enhance well-being, bringing a touch of nature indoors. 3. Luxurious Textures Velvet continues to dominate fall decor, adding elegance and warmth. Whether through throw pillows or larger furniture pieces, velvet's plush texture creates a cozy, sophisticated vibe. 4. Personalized Design Individualism is a big trend this season, with unique, custom pieces adding personality to any space. Think antique finds or handcrafted furniture that reflect your style. 5. Mixed Metals Mixing metals, like combining brass with brushed nickel, adds a subtle layer of sophistication to any room. Incorporate this trend through lighting, hardware, or decorative accents. 6. Quiet Luxury Understated elegance is key this fall. Focus on quality materials like leather and cashmere to create a serene, luxurious environment without bold patterns or colors. 7. Mono-Rooms For a unified, immersive look, consider creating a mono-room by using a single color or material throughout. This cohesive design approach works especially well in smaller spaces, making them feel larger and more intentional. By embracing these trends, you can transform your home into a cozy, stylish retreat that reflects the best of the season. Get in touch with the Benson Group today to explore homes that match your budget and lifestyle perfectly! Source: hommes.studio