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The housing market was on a wild ride this year. Here’s what to expect in 2022

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Many prospective buyers left the market dejected and without their own homes. As a result, the demand for rental housing increased and rents increased across the country.

“It’s been an insane year,” said Matt Holm, an agent at Compass in Austin. Last January, he brought a smaller five-year-old home on the market for $ 425,000, higher than comparable retail prices, and was inundated with offers. “I stopped counting on 35 offers,” he said. The home sold for $ 545,000, a 30% increase from list price.

Another buyer, who bought a luxury lakefront home for $ 6 million in 2020, was offered $ 9 million a few months later and $ 11 million two months later by buyers desperately looking for a lakefront property said Holm.

“My salespeople said that’s a lot of money,” said Holm. “They wanted to sell and get something good or better. But they realized they shouldn’t sell it because it would cost $ 18 million to $ 20 million to get something better than what they had. That’s a remarkable leap for a calendar year. “

Undoubtedly, the housing market was on a wild ride in 2021. This is what awaits you in the new year.

No more record-low mortgage rates

The year started with the lowest rates ever, with average 30-year fixed-rate mortgage rates of 2.65%. But they didn’t last long. On April 1, this had peaked at 3.18% in 2021. According to Freddie Mac, rates have fluctuated since then, with the 30-year rate set at 3.05% last week. And we can assume that interest rates will continue to rise in the new year.

The Federal Reserve has given several signals that its pandemic monetary policy is coming to an end to contain inflation. That will ultimately drive interest rates higher.

The Fed’s revised policy won’t dent people looking to buy a home in the next few months, but they may want to act soon, said Melissa Cohn, regional vice president and chief mortgage lender of William Raveis Mortgage.

“Mortgage rates should stay in a range of around 3% until the end of the year and hopefully in the first two months of 2022,” said Cohn, who expects an increase of up to half a percentage point in the next few months.

Similarly, Lawrence Yun, chief economist for the National Association of Realtors, expects the 30-year fixed-rate mortgage rate to rise to 3.7% by the end of next year.

“Increased mortgage rates combined with inflation that is eating up savings will weigh on buyers,” said Allison Salzer, a Compass agent in San Francisco. “It will hit lower and mid-priced home buyers more than luxury buyers.”

Inventory remains tight

Although more properties were available in the spring of this year, there were also more prospective buyers, leading to fierce competition and driving up prices.

There were so few homes that people took extreme measures such as offering to buy the seller’s closest home for them, giving thousands of dollars to competing buyers to leave, and up to $ 1 million above the asking price of the home paid. A Maryland home received 7 cash-only offers.

Inventories were tightest at the lower end of the market. Homes priced below $ 200,000 were hard to come by as the number of available homes fell 19% year over year, while homes over 40% year on year, according to HouseCanary, a real estate data company $ 600,000.

While the inventory is expected to improve in 2022, it is not expected to improve significantly. The inventory will remain limited and will grow through according to a forecast by Realtor.com, only 0.3% in 2022.

“The biggest factor I see for the 2022 housing market is low inventory,” said Paulo Prietto, a Compass agent in Orange County, California. “While inventory remains low, buyers will become more used to the lack of choice and will continue to compete aggressively to buy homes.”

As long as this happens, prices will continue to rise.

House prices will continue to rise

Home prices rose almost everywhere in the country in 2021. While existing home sales averaged $ 353,900 through November, 13.9% more than a year ago, prices for new home were even higher. New housing prices averaged $ 416,900 in November, according to the US Census Bureau, about 19% higher than a year ago and another new record.

While we won’t see the double-digit gains seen last year, prices are expected to continue to rise at a slightly more moderate pace in 2022.

A panel of top 20 economists and housing experts, brought together by the National Association of Realtors, predicts that average house prices will rise 5.7% over the next year. NAR survey participants said they expect the housing market and the broader economy to normalize over the next year as the Fed tries to curb inflation.

“The slower price growth will be in part the result of the Federal Reserve’s rate hike,” Yun said.

First-time buyers will continue to face challenges

The spread of pure cash offers, few available apartments and skyrocketing prices drove many first-time buyers off the market in 2021.

By the end of November, the proportion of first-time buyers had dropped from 32% a year earlier to 26%, the lowest since the National Association of Realtors’ persecution began in 2008.

“We’re creating a divided society,” said Yun. “People don’t feel like they are part of what they call American life through home ownership. All of their savings-building work can seem less meaningful in the face of soaring prices.”

Rising home prices pushed the proportion of first-time buyers down to all-time lows

Not only were prices rising faster than people could save for a down payment, but many types of mortgages preferred by new home buyers, such as FHA and VA loans, were often passed over for cash deals or conventional loans.

The inventory of homes at the lower end of the price range was so tight that sales fell by nearly 20% in November between $ 100,000 and $ 250,000, according to NAR.

And while new build homes are now going online, prices for most are outside of the typical first-time buyer budget.

“Builders are focusing more on high-priced homes, with the percentage sold for under $ 300,000 down from 33% a year ago to just 14%,” said Robert Frick, corporate economist with the Navy Federal Credit Union.

But many hopeful homebuyers say they’ll be back in the spring armed with knowledge gained from a frustrated search over the past year, according to a recent survey by Realtor.com

“Despite a difficult year, budding first-time home buyers are surprisingly optimistic for 2022,” said George Ratiu, manager of economic research at Realtor.com. “They see the New Year as a new opportunity to make their dream of owning a home come true.”

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The state of Idaho County: Part 2 – Growth, real estate and pay | News

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(Reporter’s note: This is the second of two articles about the state of Idaho County based on an interview with the three county commissioners. This story describes what they’re looking forward to in 2022 and the challenges ahead.)

GRANGEVILLE — Commissioner Skip Brandt said he looks forward to continuing to work with the other elected officials in Idaho County in 2022. “The county has a great group of elected officers who work well together to deliver the necessary services that we need to deliver.” As he enters his second year as commissioner, Lindsley looks forward to being more helpful in his role after serving in his first year went through a steep learning curve to understand the job.

Despite increasing staff salaries by 10 per cent in 2021, the commissioners see the need to keep increasing their salaries to retain their staff. Raising wages while keeping taxes low is a challenge. Brandt said Idaho County has the lowest tax rate of any county in Idaho, except for counties with major ski areas.

Brandt assumes that population growth will continue to lead to an increase in crime. This in turn leads to overcrowded prison conditions. He said the commissioners “have to find a solution to deal with our overcrowded courthouse, parking lot and jail”.

With the demand for real estate and the high cost of building materials, Brandt acknowledges that housing has become a major problem in the county. Commissioner Ted Lindsley shares concerns about affordable housing and sees Commissioners in a cooperative role in housing development to help make things happen. Commissioner Denis Duman noted that Ida-Lew has been trying to do something for years.

The growth is also creating more demand for services, as people continue to move from places where they paid more taxes but used more services. They’re surprised their street isn’t plowed every day while others are asking the county to plow their private driveway, Brandt said.

Brandt explained that the county maintains many miles of roads in a vast area from Warren to Powell. Although the county (Idaho County Road and Bridge) is not currently accepting new roads for its maintenance, there is a fine line to providing services and keeping taxes low. “At what point do we step up and do more?” Brandt said. He suggested the county could provide any service it wanted, but cautioned, “If we make an improvement, we’ll all have to pay for it.”

In addition to the Idaho County Road and Bridge Dept, twelve highway districts maintain road systems within the county. Brandt suggested these local road districts could be a great option for people who want more say in road maintenance. According to Brandt, each district is governed by three Highway District Commissioners who are elected within that particular district. “The freeway districts are the right way to get the county out of this,” he said.

Lindsley said he looks forward to working with Duman and Brandt to determine how to spend the county’s $3.2 million in ARPA (American Rescue Plan Act) funds. While they agree that a new or expanded prison is a high priority, they plan to prioritize other needs. Now they have the final rules for using the funds and can focus more on how best to spend the money.

Duman said he looks forward to the completion of the new airport layout plan in May 2022. With the completion of the plan and the development of a new runway, the county will have more rental space. This, according to Duman, will make it more viable for the Forest Service to expand the air base and tanker base and replace the smoke jumper base. He also anticipates the development of a new pilot’s lounge in 2022.

Lindsley added he was pleased with the increased media coverage. In 2022 he would like to provide further information on what the district government is doing.

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Kilroy Realty Named Top 10 Real Estate Company on Newsweek’s ‘Most Responsible’ Companies List For 2022

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THE ANGEL–(BUSINESS WIRE). The company is one of 499 on the overall list, which includes the largest public companies in the United States in diverse industries including healthcare, financial services, automotive manufacturing, retail and real estate.

According to the list, Newsweek wanted to “highlight those companies that take their environmental and social responsibilities as citizens of the country and the world more seriously than others”. Newsweek has partnered with global research and data firm Statista to analyze a variety of metrics, including publicly available performance data in the environmental, social and governance categories, combined with survey results from 11,000 US citizens about their perceptions of companies regarding corporate social responsibility. All items were weighted to arrive at a final score.

“We are honored to be recognized by a select group of peers for our commitment to sustainability, corporate responsibility and acting as good stewards of our environment and communities,” said John Kilroy, Kilroy Chairman and CEO. “Being included in this prestigious list alongside some of the most respected names in the industry is a great way to start the new year,” he added.

In 2021, the company expanded its sustainability leadership among the world’s most recognized organizations and ranking systems included in the GRESB 2021 Real Estate Assessment, the Dow Jones Sustainability World Index (DJSI) and the US Environmental Protection Agency’s National Top ( EPA) 100 list of the largest green electricity users. These awards and rankings underscore Kilroy’s exceptional leadership in industry-leading sustainability initiatives, policies and performance.

About Kilroy Realty Corporation

Kilroy Realty Corporation (NYSE: KRC, the “Company”, “Kilroy”) is a leading US landlord and developer with offices in San Diego, the greater Los Angeles area, the San Francisco Bay Area, the Pacific Northwest and in Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in creating a more sustainable real estate industry, the company’s approach to modern business environments helps fuel creativity and productivity for some of the world’s leading technology, entertainment, life sciences and business services companies.

The Company is a publicly traded Real Estate Investment Trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience in the development, acquisition and management of office, life science and mixed-use developments.

As of September 30, 2021, Kilroy’s stabilized portfolio totaled approximately 15.2 million square feet of primarily office and life science space that was 91.5% occupied and 93.9% leased. The company also had more than 1,000 residential units in Hollywood and San Diego, which had an average quarterly occupancy rate of 79.9%. In addition, the Company had six ongoing development projects with an estimated total investment of $2.6 billion, totaling approximately 3.0 million square feet of office and life science space.

A leader in sustainability and commitment to corporate social responsibility

The company is included in the Dow Jones Sustainability World Index and has been recognized by industry organizations around the world. The Company’s stabilized portfolio was 78% LEED certified, 44% Fitwel certified, the highest of any NGO, and 72% of eligible properties were ENERGY STAR qualified as of September 30, 2021.

The company has been recognized by GRESB as a listed sustainability leader in America for eight of the last nine years. Other honors include National Association of Real Estate Investment Trust (NAREIT) Leader-in-the-Light designation for eight consecutive years and ENERGY STAR Partner of the Year for eight years, as well as top ENERGY STAR designation for Sustainable excellence over the past six years.

A large part of the company’s foundation is its commitment to fostering employee growth, happiness and well-being while maintaining a diverse and thriving culture. For the second year in a row, the company has been included in the Bloomberg Gender Equality Index, which recognizes companies that are committed to supporting gender equality through policy development, representation and transparency.

Visit http://www.kilroyrealty.com for more information.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions and are not guarantees of future performance. By their nature, forward-looking statements are subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are beyond our control. Accordingly, actual performance, results and events may differ materially from those expressed or implied by the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, without limitation: global market and general economic conditions and their impact on our and our tenants’ liquidity and financial condition; adverse economic or real estate conditions generally and particularly in the states of California, Texas and Washington; risks related to our investment in real estate assets that are illiquid and trends in the real estate industry; non-performance or non-renewal of leases by tenants; any significant decline in tenant business; our ability to sub-let properties at or above current market prices; costs of compliance with government regulations, including environmental remediation; the availability of cash for distribution and debt service and the risk of default on debt obligations; increases in interest rates and our ability to manage interest rate risk; the availability of financing on attractive terms or at all, which may adversely affect our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and to refinance existing debt; a decline in real estate valuations, which may limit our ability to sell assets at attractive prices or to obtain or maintain debt financing, and which may result in write-downs or impairments; significant competition, which may reduce property occupancy and rental rates; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and divestments on announced terms; the ability to successfully operate acquired, developed and redevelopment properties; the ability to successfully complete development and redevelopment projects on time and within budget; delays or refusals in obtaining all required zoning, land use and other required permits, governmental permits and approvals for our development and redevelopment properties; increases in expected capital expenditures, tenant improvements and/or leasing costs; loss of leasehold on land on which some of our properties are located; adverse changes or enactments or implementations of tax laws or other applicable laws, regulations or statutes and business and consumer responses to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on the financial condition of our partners and disputes between us and our partners; environmental uncertainties and risks associated with natural disasters; our ability to maintain our status as a REIT; and uncertainties regarding the impact of the COVID-19 pandemic and restrictions designed to prevent its spread on our business and the economy generally. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially affect our business and financial performance, see the factors discussed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 and in our others Filings included are the Securities and Exchange Commission. All forward-looking statements are based on information currently available and speak only as of the date they are made. We undertake no obligation to update any forward-looking statements contained in this press release that become untrue as a result of subsequent events, new information or otherwise, except as required to do so in connection with our ongoing requirements under federal securities laws.

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Schmelz, Stallmann announce launch of ELS Real Estate Group | Local News

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Lifelong friends, Ed Schmelz and Jacob Stallmann, have formed a new company, ELS Real Estate Group.

“I recently decided to do my (real estate) broker’s license in order to mainly get into third-party rental management,” says Schmelz, who Stallmann first met in elementary school. she were college roommates at the University of Missouri at Columbia. Both graduated in 2003.

Schmelz has been a licensed real estate agent for two years. He said it’s not uncommon for developers to have their own real estate license.

“We manage all our own stuff that belongs to ELS Properties. You do not need a broker license to manage your own property, but you do need one for third-party management.

“So with the really great team of people that we have here, I thought, why don’t we offer our services to other property owners?” said Schmelz.

ELS Real Estate Group will become a subsidiary of ELS Properties, a company founded by Schmelz in 2004 that currently owns and leases more than 1,300 homes, semi-detached homes and apartments in Washington, Union, Warrenton, New Haven and Linn Creek. The company also owns a number of boarding houses in Hermann.

Stallmann, who has been a real estate agent for 15 years and previously worked for Coldwell Banker, said his partnership with Schmelz “just made sense.”

In this new venture, Stallmann will continue to be able to help individual clients buy and sell properties, but he will also work to assist Schmelz in purchasing additional properties for further development, which he has done for the past decade.

“Basically, we’re expanding on what we’re already doing,” said Stallmann, who has averaged more than $12 million in real estate sales over the past three years.

Initially, ELS Real Estate Group will operate out of the ELS Properties office in Union, but will open an office in downtown Washington within the next six months, with additional offices planned for Hermann and Warrenton by the end of the year.

The offices are staffed by licensed real estate agents. In Washington, two other real estate agents – Crystal Stallmann, who has been a licensed real estate agent since 2018 and is married to Jacob Stallmann, and John Behrens, who has worked in real estate since 2006 – join the Jacob Stallmann Real Estate Group, a subsidiary of ELS Real Estate Group . Four other real estate agents are already working for the ELS Real Estate Group office in Union.

Stallmann said he would like to see several new agents join his real estate group.

While details of the Washington office will be announced later, locations for the ELS Real Estate Group office at Hermann, 800 Market Street have been finalized. The Warrenton office will be built on a lot adjacent to the Crider Health Center.

As ELS Properties grows into property management and the third-party real estate space, Schmelz said his company is always on the lookout for real estate development opportunities. The Company is nearing completion of Hummingbird Heights in Union and this year will begin construction of Country Club Estates, a 200+ unit gated community south of Washington that will be built for people aged 55 and over.

“We are always in growth mode,” said Schmelz. “We are always looking for new projects, new markets.”

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