January Newsletter
We hope you had a great holiday season, and we're wishing you all the best in 2022! To help you start the year off right, this month's newsletter includes 5 tips for kicking the post-holiday blues and a cool trick for smarter grocery shopping. You'll also find some good-to-know info about escalation clauses (which are very useful for buyers in today's hot market) and an update on the national housing market.
Enjoy, and happy new year!
5 Tips For Kicking The Post-Holiday Blues
Are you one of those people who can’t wait to get the messy pine tree out of your living room and get your house back to normal? Or do you mourn the end of the holidays?
If you fall into the latter category, these tips are for you. Psychology Today has some great tips for easing your way past the post-holiday blues so you can have a truly happy new year! (And remember, if your blues don’t go away, or if they feel like something more serious, please speak to a mental health professional.)
1. Call—don’t text—someone you enjoy talking to. If one of the things you love most about the holidays is all of the quality time spent with family and friends, you can keep the good times rolling into the new year! Call a good friend to catch up, ask about their holiday, and find out if they have any fun plans for the new year.
2. Get out of the house. Empty house got you down? Get out of there! Grab a coffee or run some errands, You’ll get your body moving, you’ll have some interactions with people (who doesn’t love a nice exchange with a friendly barista?), and the change of scenery will help you get out of your funk.
3. Exercise. Yeah, probably not what you want to hear. But do a quick yoga video or go for a brisk walk outside, and your mood is almost guaranteed to improve.
4. Look forward, not backward. Plan some things for 2022 to look forward to, and write them on your calendar. They can be big plans (maybe you can finally take that family beach trip this summer!) or small plans, like a few coffee dates with friends.
5. Try a new recipe. One that is completely different from the meals you ate over the holidays. “Better yet, try to cook something from scratch,” suggests Psychology Today, “as it is creative and active—two ways to stimulate different thinking.”
If you’re experiencing post-holiday loneliness, a quick phone call to a friend or a trip to your favorite cafe can help lift your mood. Exercise is always a good idea. And the best way to let go of the holidays is to focus on the future—try something new, make plans, and figure out how to make 2022 a great year!
The Life-Changing Magic of the Reverse Grocery List
Okay, the title may be a little hyperbolic. But this cool trick shared by Apartment Therapy really is a great way to save time and money when grocery shopping!
It's called the reverse grocery list. Basically, you maintain an inventory list of all of your staple ingredients: pantry items like spices, pasta, and canned vegetables; refrigerated items like milk, butter, and eggs; and all the other foods you like to keep in stock at home, whether it’s tortilla chips and salsa, all the fixings for a turkey and cheese sandwich, or the components of your favorite garden salad.
You can use a notepad app like Google Keep to create this list on your phone. Or, if you prefer the old-fashioned route, you could print out the list and laminate it (the laminating step is important, because this needs to be a reusable list that you can mark up and erase).
The initial setup is a big undertaking, but once you have your entire inventory list created, the magic can happen.
Here's how it works:
You use up a staple item while you're going about your day.
You immediately go to your reverse grocery list and make a mark next to the item. (On a digital list, you might want to use the big red "X" emoji so it stands out.)
Before your next grocery run, you can look to the list and see which staples you need to replenish.
Never again will you buy a new jar of cumin when you already have 2 others hidden at the back of your spice drawer.
Never again will you be in the middle of making breakfast only to discover that you're out of butter.
Never again will you undergo the agonizing task of wracking your brain and digging around your pantry to figure out what you need to write on your grocery list.
With the reverse grocery list, food shopping is easy-peasy.
Here are a couple pro tips for creating your list:
Categorize your items to keep things organized and easy to locate on the list. Spices, Pantry, Tea/Coffee, Canned Food, Deli, Fruits/Vegetables, Breakfast Foods—your categories will depend on what you typically eat.
If you prefer to use a specific brand, include the brand name in parenthesis next to the food item.
If you keep multiples of a particular item, include that amount in parenthesis next to it.
Don't forget to update your list! If you try something new and decide it must become a household staple, make sure it's accounted for on your reverse grocery list.
Never let those staples run out! Read more about reverse grocery lists at Apartment Therapy.
Should I Include An Escalation Clause In My Offer To Buy A Home?
In today’s hot market, where the supply of available homes is still far from meeting the demand, it’s likely that buyers will find themselves in bidding wars. One way to make an offer more competitive is to include an escalation clause.
What is an escalation clause?
As defined by the Freddie Mac blog, “An escalation clause is language written into a purchase offer that automatically increases your purchase price by a certain amount above competing offers, until the offer reaches the maximum price you are willing to pay for the home.”
The escalation clause goes into effect when a competing offer is made on the home. You choose the escalation amount (the amount your price will increase each time there is a competing offer). “For example, if your escalation amount is $3,000 and the competing offer was $300,000, the escalation clause would automatically increase your offer to $303,000.”
When to consider using an escalation clause:
If you and your realtor feel confident that there will be multiple offers, an escalation clause could give you an advantage. It will show the seller how serious you are about the home; it will make your offer stand out; and it will streamline the bidding process, eliminating the need to keep sending counteroffers back and forth.
When NOT to use an escalation clause:
Escalation clauses should only be used when there's an anticipated bidding war. If you aren't expecting to compete with other buyers for the home, you should NOT include an escalation clause.
Why? Because there are some serious downsides.
When you include an escalation clause in your offer, you’re showing all of your cards. The seller sees exactly how much you’re willing to pay, so they might make a counteroffer asking for your maximum amount. You forfeit your chance to negotiate.
Also, when your offer amount is being quickly and automatically increased, you might miss out on the opportunity to include additional counteroffers, such as shortening the time to close.
Finally, if your purchase price was escalated and you eventually won, there’s an increased risk of the purchase price exceeding the appraised price (and your lender won’t let you borrow more than the home is worth).
***
Escalation clauses can be beneficial in a hot market with fierce competition among buyers. Just make sure your realtor knows what they’re doing, and check to make sure that maximum amount is clearly stated. Read more about escalation clauses on the Freddie Mac blog.
2022 Housing Market Predictions from Realtor.com
Realtor.com predicts 2022 to be a “whirlwind year for buyers”—great news for anyone whose plans were put on hold by the pandemic. Buyers will still face more of the same challenges—fierce competition and historically high prices—but with inventory expected to grow 0.3% on average and price growth forecasted to slow to a more moderate pace (up 2.9%), buying a home will be a little easier in 2022.
As for sellers? “Homeowners who are ready to sell in 2022 are in a good position,” according to Realtor.com. Despite a slight increase in inventory that could mean more competition among some sellers, “well-priced homes in good condition will continue to sell quickly in many markets.” The challenge of buying will continue to be one of the biggest factors making some homeowners hesitant to sell.
Some other trends you can expect to see in 2022:
Mortgage rates are expected to reach a 3.6% average by the end of the year. (In December 2021, the average rate was around 3.1%.)
With many people still working remotely, Americans will continue to vacate expensive metro areas in favor of the more affordable suburbs. “1-in-5 homeowners looking to sell and move no longer need to live near the office.”
Rent prices will increase at a faster pace than home prices, expected to grow 7.1% in 2022.
To learn more, check out the Realtor.com 2022 Housing Market Forecast & Predictions report.