Mortgage Meltdown 2022 is Proving to be a Boom for Renters

By Suzanne Voter, Mortgage advisor NMLS

Pay attention millennials, this is for you. Beginning January 2023, the mortgage agencies that regulate affordable homeownership mortgage loans are eliminating the addon fees for the HomeReady and Home Possible 1st time homeowner programs. In addition, the maximum income limits are being raised, with lower interest rates and mortgage insurance costs as well.

Already we are seeing signs of improving market conditions for all homebuyers, not just 1st time buyers. Mortgage rates are stabilizing, and home values are flattening in some locations. Gone are the days of competing with multiple offers. The home buying field has evened out giving homebuying shoppers more time and options to succeed.

Experts are factoring all of this into their mortgage rate forecasts for next year. And if we average those forecasts together, experts say we can expect rates to stabilize early 2023. Whether that’s between 5.5% and 6.5%, it’s hard for experts to say exactly where they’ll land. But based on the average of their projections, a more predictable rate is likely ahead (see chart to the right):

We have seen over the centuries; the benefits of homeownership

230270 far outweigh renting for building your net worth. Or as many think of it — renting is making someone else’s mortgage payment for them.

Information found on this page is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval.

Home Heroes Lending Inc | NMLS # 230270 | CO NMLS # 2126292 www.nmlsconsumeraccess.org | |Equal Housing Opportunity.

Licensed by California Department of Financial Protection and Innovation. Loans made or arranged pursuant to under the California Financing Law License # 60DBO-144356.

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The Hangover - Part IV?

By Lock Richards, President/Broker, Sperry Commercial Global Affiliates – Highland Commercial Real

For better or worse “The Hangover” film series may have ended at three, but Hangover Part IV may still be heading our way in the form of economic repercussions caused in large part by governmental overimbibing with the national money supply. While the pandemic and related shutdowns clearly warranted monetary stimulus, as can be the tendency with alcohol, it can be difficult to know when to stop partaking.

The more pleasant effects of this postpandemic “intoxication” have been robust job creation, low unemployment, strong wage growth, increasing retail sales, resurging service/travel sector and strong manufacturing. However, with “last call” now upon us momentary feelings of optimism are being swallowed up by dropping consumer confidence and fears of recession due to soaring inflation and rising interest rates, which are beginning to have a palpable effect on pocketbooks.

The recommended cure for a hangover caused primarily by monetary overindulgence is monetary policy in the form of Federal Reserve interest rate hikes to reduce monetary supply, restrict economic

Estate activity and cool inflation, but likely leading to a recessionary hangover that will not be easy to shake.

While clouds are on the horizon, Nevada County can take solace in the fact that the local Grass Valley/Nevada City region is not overbuilt - as can be seen in the low vacancy numbers in the accompanying chart. The Sierra Foothills are a highly desirable area that will see enduring demand bolstered by “work from home” trends necessitated by the pandemic but now emerging as workplace norms that are here-to-stay. Financial markets are taking note of these trends and capital is migrating from larger metro areas into smaller tertiary markets like Nevada County. So while economic signals are quite disparate as of this writing, Nevada County commercial real estate does appear to be relatively well positioned to continue the primarily upward trajectory that we have seen in rents and values since 2017.

Purple. A rich and majestic hue, the color purple’s association with kings and queens dates back to the ancient world, where it was prized for its bold hues and often reserved for the elite and ruling class. The Persian king Cyrus adopted a purple tunic as his royal uniform, and some Roman emperors forbid their citizens from wearing purple clothing under penalty of death.

The meaning of the color purple symbolizes magic, mystery, spirituality, the subconscious, creativity, dignity, and royalty, according to Color Matters, and it evokes all of these meanings more so than any other hue. The digital aspect could be escapism, but it is sure to invade fashion collections for the spring summer 2023 collections.

As a need for optimism sweeps the world after a global pandemic, the color of the year 2023 is Digital Lavender, according to trend forecasting agency WGSN and color authority Coloro

The shade is already embedded in digital culture and is expected to converge across virtual and physical worlds.

Commenting on the choice of Digital Lavender, Coloro’s Head of Content, Joanne Thomas, said: “As consumers find solace and comfort inhabiting the virtual space, the influence of video games and virtual realities will become all-encompassing, distorting the boundaries between our online and offline existence.

“Digital Lavender, our Color of the Year for 2023, as reflecting what we are all after in our lives, solace and comfort inhabiting the virtual space. It signifies the stability, serenity, and digital escapism that so many of us have built into our recuperative rituals to both protect and improve our mental health in challenging times.

Digital Lavender extends the blurring of lines between the virtual and physical worlds, increasingly merging the two realities. Digital Lavender is gender-inclusive, while the soft and subtle tints bring point to feminine self-care.

After so much turmoil in recent years, the desire for serenity and calm is anticipated to favor Digital Lavender’s neutral tone that will be readily accepted by all generations and celebrated by Generation Z.

RENOVATE • CONCEPT • REIMAGINE • CONCEPT • REINTERPRET • CONCEPT

By Stephanie Statler, Stephanie’s Custom Interiors

“Two weeks to slow the spread.” I wonder if any of us knew what that meant, nor did we know it would be more than two weeks. We also didn’t realize that many of us would be confined to our homes, working from home, going to school from home, and not entertaining ourselves for more than two weeks.

As a business owner, I knew we were going into uncharted territory. What would this mean for my business and my clients? Interior design is a luxury even though I have tried to make it obtainable for all over my 25 years in business. So, the question arose in my mind with a sharp sting, “who in the world would be thinking about interior design in a time like this?”

On days when I slow down long enough to catch my breath, I answer that question, EVERYONE was interested in their home, how it looked and how it felt.

The interior design and construction industry has changed a lot since March 2020, but the one thing it did not do was stop or even think of slowing down.

The design industry was deemed essential and put into the same category as grocery store workers and mail carriers. People wanted and needed attention placed on their homes. Design was a big priority in their life. Homeowners found themselves shuttered in their homes only to look around and see a need for change. The changes were big and small. For some, it was something as simple as a new wall color to brighten and update their space. For others, it was that uncomfortable sofa upon which they now spend much more time. Many of my clients were forced to work from home and needed a space they could be productive and feel accomplished. That was true for our kids as well. They needed a desk, a space to continue their education. Other clients just wanted to use this “time off” to get some projects done around the house that they had been putting off. The most significant impact on this industry here in Nevada County was the influx of folks from out of the area who bought homes here and needed help making their new place fit into their lifestyle.

Whether it was furniture, a bathroom or kitchen remodel new paint, or anything else in between, the phone that I thought would be quiet for a while started to ring in early spring 2020. Suddenly we all felt the need to be in an environment we loved. A place that made us feel safe and comfortable, especially since we were spending a lot more time at home. The need for good interior design help skyrocketed. There was only one small problem that would radiate a gigantic kickup in the industry that is still ongoing more than 2 1/2 years later; there were no workers to accommodate our needs.

The factories were closed. There was no one to answer the phone, take an order, check on an order, or ship an order. Even if one manufacturer was producing goods, the chance of the packaging material or a needed part wasn’t available. My clients who were in the middle of a project when this hit really felt it. Everything stopped. Then there were the shipping delays. We are all familiar with those still to this day.

The understaffed shipping departments needed help to keep up with simply getting the product out the door. There needed to be more truck drivers to get us our goods. How can we forget those ships, stuck with many of our products floating at the docks waiting to be unloaded? That delay was on top of the original production delay; packaging and shipping delays meant waiting months and months for a product. The problem was apparent; not enough people back in the workforce, plus more demand made for the need to be very, very patient.

Our clientele still wanted to start and accomplish a project. They were still at home and still desired a great space. People were not traveling, so they had funds that they were willing to put back into their homes. Their homes were growing in value, so they knew the value would only increase by updating it. Most clients just realized something I’ve wanted to convey to clients for many years, your home is your sanctuary, and it should feel good to you. It should be fine if we spend a limited amount of time there or all our time; your home should be your favorite place. People were getting that!

Those of us in the industry soon found ourselves the bearer of bad news. We were the ones that had to break the news that their windows wouldn’t be in for nine months, that their refrigerator wouldn’t arrive until the following fall, or that their sofa would be nine months out. And remember that they would have to wait for a qualified contractor for at least 6-9 months.

It took my clients a while to come to terms with this bad news. They just knew there was something out there that they could get sooner, ship faster, and install next week, but there just wasn’t. We also found our workload doubled to do the same job. Ordering, tracking, and schedule changes became the thing that took up most of our time, as it took much longer to do any one of those tasks.

As we sit in the beginning months of 2023 and near the anniversary of the start of this all 3 years ago, I can’t say things are too much different. Clients do realize and are aware of the delays. They might not like the news, but they do understand.

I might be jinxing the topic, but the industry is seeing a slight uptick in faster turnaround times for almost all products across-the-board. Do I dare say that out loud? I am anxious for 2023 as the importance of our home, where we live, and how we feel is hopefully a part of our culture.

I think a lot more people realize the importance of a home that feels good and functions well. I hope this shift of paying attention to the feel and comfort of our home is here to stay. I hope this period influenced several generations so they can enjoy the benefits of a well-designed home and personal space when they become homeowners. Interior Design IS obtainable to all. The shipping delays and long wait times for contractors will be a distant memory at some point. I want to continue our love for our space. Our home should reflect us and make us feel our best. It should also function well for whatever needs we have individually or as a family. My wish is that this change becomes permanent.

Where Tomorrow’s Dreams Become Today’s Solutions

Worship Centers in Western Nevada County

ASSEMBLY OF GOD

BETHEL CHURCH

530-273-8475

13010 Hwy. 49, Grass Valley, CA

BAPTIST

BIBLE BELIEVERS BAPTIST

530-272-6210

13005 Rough and Ready Hwy., Rough and Ready, CA

GRACE BIBLE CHURCH OF CEDAR RIDGE

530-273-7857

Colfax Hwy. & Brunswick Dr., Cedar Ridge, CA

FIRST BAPTIST CHURCH GRASS VALLEY

530-273-7301

1866 Ridge Rd., Grass Valley, CA

FIRST BAPTIST CHURCH NEVADA CITY

530-265-4711

300 Main St., Nevada City, CA

NEW COVENANT BAPTIST CHURCH

530-274-8516

12582 Squirrel Creek Rd., Grass Valley, CA

CATHOLIC ST. CANICE

530-265-2049

317 Washington St., Nevada City, CA

ST. PATRICK'S CHURCH

530-273-2347

Church & Chapel Streets, Grass Valley, CA

CHRISTIAN SCIENCE

FIRST CHURCH OF CHRIST, SCIENTIST

530-273-9452

375 Crown Point Circle, Grass Valley, CA

CHURCH OF CHRIST

GRASS VALLEY CHURCH OF CHRIST

530-273-0401

670 Whiting St., Grass Valley, CA

EPISCOPAL

EMMANUEL EPISCOPAL CHURCH

530-273-7876

235 S Church St., Grass Valley, CA

TRINITY EPISCOPAL CHURCH

530-265-8836

Nevada St. & High St., Nevada City, CA

FOURSQUARE

FOOTHILL COMM. CHURCH FOURSQUARE

530-272-8511

16874 Allison Ranch Rd., Grass Valley, CA

SOLID ROCK FOURSQUARE CHURCH

530-432-1964

11665 Spenceville Rd., Penn Valley, CA

INDEPENDENT CHURCHES

ABUNDANT LIFE COMMUNITY CHURCH

530-273-1139

10795 Alta Street, Grass Valley, CA

CALVARY BIBLE CHURCH

530-273-1343

11481 CA-174, Grass Valley, CA

COMBIE BIBLE CHURCH

530-268-0309

22924 W. Hacienda Dr., Grass Valley, CA

CROSSROADS CHURCH

530-268-2539

10050 Wolf Rd., Grass Valley, CA

BETHE'L CHURCH

530-273-8475

13010 CA-49, Grass Valley, CA

PENN VALLEY COMMUNITY CHURCH

530-432-1161

11739 Spenceville Rd., Penn Valley, CA

TWIN CITIES CHURCH

530-273-6425

11726 Rough & Ready Hwy., Grass Valley, CA

WHISPERING PINES CHURCH OF GOD

530-273-1722

680 Brighton St., Grass Valley, CA

WORD-A-LIVE FELLOWSHIP CHURCH

530-432-9155

10528 Spenceville Rd., Penn Valley, CA

JUDAISM

NEVADA COUNTY JEWISH COMM. CENTER

530-477-0922

506 Walsh St., Grass Valley, CA

LATTER DAY SAINTS

CHURCH OF JESUS CHRIST OF THE LATTER DAY SAINTS

530-265-4554

615 Hollow Way, Nevada City, CA

LUTHERAN GRACE LUTHERAN

530-273-7043

Ridge Road by NUHS, Grass Valley, CA

PEACE LUTHERAN CHURCH

530-273-9631

828 W. Main St., Grass Valley, CA

METHODIST

GRASS VALLEY UNITED METHODIST

530-272-1946

236 S Church St., Grass Valley, CA

NEVADA CITY UNITED METHODIST

530-265-2797

433 Broad St., Nevada City, CA

SIERRA PINES UNITED METHODIST CHURCH

530-268-6907

22558 W. Hacienda Dr., Grass Valley, CA

NAZARENE CHURCH OF THE NAZARENE

530-273-9218

10220 Hughes Rd., Grass Valley, CA

PENTECOSTAL

UNITED PENTECOSTAL CHURCH

530-272-6455

1784 Ridge Rd., Grass Valley, CA

PRESBYTERIAN

SIERRA PRESBYTERIAN

530-265-3291

175 Ridge Rd., Grass Valley, CA

QUAKER

RELIGIOUS SOCIETY OF FRIENDS

530-265-3164

13075 Woolman Lane, Nevada City, CA

SALVATION ARMY

GRASS VALLEY CORPS

530-274-3500

10725 Alta St., Grass Valley, CA

SEVENTH DAY ADVENTIST

GRASS VALLEY

530-477-5017

12889 Osborn Hill Rd., Grass Valley, CA

PENN VALLEY

530-432-2479

17645 Penn Valley Dr., Penn Valley, CA