A home often represents about 90% of the total wealth of a household. Homeownership often has long been pointed to as a way to build wealth over the long run. It also could help narrow racial income and wealth inequity gaps, writes Gay Cororaton, senior economist for the National Association of REALTORS®, at the association’s Economists’ Outlook blog.

But how much wealth potential can you gain over time? Cororaton offers the following scenario: Take a homeowner who purchased a single-family existing home 10 years ago at the median sales price of $170,567, with a 10% down payment. Then, they sold the home at the median sales price of $315,700 in the fourth quarter of 2020. They would have built up a home equity gain of $176,123. Over a 30-year period, that would jump to $307,979, Cororaton notes.

“Wealth accumulation takes time, so the earlier households start owning homes, the greater the wealth accumulation,” Cororaton writes.

In some metros, homeowners are accumulating equity over a decade faster than others. For example, the areas that saw the greatest wealth gains from homeownership between the fourth quarter of 2010 and the fourth quarter of 2020 were:

• San Jose-Sunnyvale-St. Clara, Calif.: $929,471
• San Francisco-Oakland-Hayward, Calif.: $761,204
• Anaheim-Sta. Ana-Irvine, Calif.: $509,806
• Los Angeles-Long Beach-Glendale, Calif: $430,196
• San Diego-Carlsbad, Calif.: $427,896
• Urban Honolulu: $412,986
• Naples-Immokalee-Marco Island, Fla.: $379,243

Phone calls are still good for business. They can leave both participants feeling more emotionally connected to the other than a simple text exchange can. Also, studies show that a phone call is better at detecting emotional nuances and misunderstandings than video calls, even though you’re relying on voice alone.

The study, conducted by researchers Amit Kumar and Nicholas Epley, shows that seeing the other person through a video call does not necessarily make the other person feel any more connected than simply talking with them over the phone. On the other hand, just being able to hear the other person’s voice tended to create more understanding and connection. Still, researchers didn’t discount text-based interactions or even email in several cases.

A phone call can seem like a nuisance to some. The interruption to the day may be one factor, as phone calls have earned the reputation of taking time. “There’s one more consideration often holding many of us back [from talking on the phone nowadays]—the difficulty of extracting yourself from the call once it’s begun,” writes Jessica Stillman for Inc.com. “Finding a graceful exit from a ‘just called to say hi’ conversation can be tricky, and most of us have experienced the agony of an acquaintance who won’t stop chattering away.”

Should You Text That Client Before Calling?

In a study conducted in the U.S., which recently appeared in the journal Proceedings of the National Academy of Sciences, researchers found that after analyzing thousands of phone conversations between family and friends and between strangers, usually one person wants to stop talking first. Politeness often keeps the other from interrupting. But as a result, conversations never ended when a participant was ready, which can hamper the effectiveness of a phone call.

“I’m hesitant to tell you that I’ve got 20 minutes to talk to you because I don’t want to appear rude, but actually it’s just going to make that conversation so much better for both of us because we know the rules; we know the terms of engagement,” Paul Dolan, a behavioral scientist at the London School of Economics, noted in a recent UK Guardian article, separate from the study.

Many workers want to continue to work from home, even when the pandemic is over. A new survey from JLL of 2,000 employees globally found that 72% want to be able to work from home more during the workweek, up considerably from 34% before the pandemic. Sixty-six percent are in favor of a hybrid model that mixes in office, home, and a co-working facility.

The idea of a 3-2-2 model is gaining popularity with workers. LinkedIn’s year-end roundup of 2020’s workplace trends called it a one to watch in the new year. The model would allow employees to work three days in the office, two days remotely, and two days off.

While many workers don’t want to return full-time to the office, they are missing the workplace. Fifty-two percent of professionals say they do not feel as productive at home, and 58% miss working at an office, according to a separate JLL survey. The 3-2-2 model could allow workers to balance remote and in-office work.

“The emergence of this new framework for the workweek confirms that people don’t just want to go back to the office—for many, they need to,” writes Kenny Kane, chief operating officer at Firmspace, for Forbes.com. “And commercial real estate agents will see this reflected in their quarterly reports as soon as the pandemic turns around.”

Still, a CBRE analysis cautions that the growth in remote work could cut the overall need for office space by 15% after the pandemic ends. As workplaces consider new leases, they’re demanding more flexible space options, shared meeting spaces, better indoor air quality, connected building apps, and touchless technology, CBRE notes. Also, about 50% of the workers surveyed by JLL consider socialization spaces crucial to their experiences in the office in the future. These spaces could include coffee and tea areas, lounges, terraces that offer more connection with nature, and more.

Peter Miscovich, managing director of strategy and innovation at JLL, told the Commercial Observer that some clients are wanting to decrease their office portfolios, open up satellite spaces in the suburbs, or retool their existing spaces to fit a new hybid workplace model.

Co-working spaces are increasingly being viewed as an alluring option to more workers. The JLL survey finds that 40% of workers would like to be able to work at a co-working space in the future.

Regardless, the office will remain a key role for companies as a collaboration space, Miscovich says. Only 10% of survey respondents said they would want to work from home exclusively. Seventy-four percent said they would be willing to return to the office at least part time; 24% would be willing to return on a full-time basis.

As more of the country breathes a sigh of relief as temperatures rise and the countdown to spring shortens, there’s a weather-related concern that remains. Melting snow followed by a cold snap—which is on the way for many parts of the country in the coming week—may cause ice dams to develop and bring a cascade of water into homes. Even if your house hasn’t faced this problem this year or in prior years, it’s still wise to think ahead to avoid the potential mess and repair costs, which can be significant.

Design, building, and remodeling experts at Orren Pickell Building Group in the Chicago area report that the company has been contacted by a number of homeowners who faced the challenge this year due to heavy snowfall and unusually cold temperatures followed by warm days.

How Ice Dams Form

“When we experience a polar vortex, where there’s a combination of heavy snow and then a dramatic decrease in temperature, it’s a situation that can create the perfect ice dam situation,” says Eric Pickell, head of sales and marketing. “That happened this year because of the amount of snow from several large storms and sustained cold, followed by a warming cycle.”

Ice dams build up this way. As heat rises from the house into an attic, it melts the snow on the roof, which drips into the cold gutters and, when cold enough, forms a block of ice—the ice dam. “As the dam enlarges, it may trap water behind it that gets pushed back under the shingles and into the attic as it melts, or into the house if there’s no attic,” Pickell says. Having a lower-pitched roof and poor insulation may exacerbate the problem.

What You Can Do

There are several steps homeowners can take to avoid ice dams. Advise them to consider these possibilities:

• Visually inspect the exterior of the house. Make sure ice and snow aren’t accumulating at the gutter line. If they do, the homeowner should hire a professional to clear the roof rather than try to tackle the problem on their own. “There are professionals who are licensed who know how to steam icicles and ice dams away,” Pickell says. These pros also may use roof rakes and shovels. However, Pickell notes that because of the accumulation this winter, many professionals were more difficult to hire.
• Be sure a gutter and downspout system is in tip-top shape. Gutters may contribute to the problem when snow and ice build up and cause water to back up. This is why a gutter inspection is key. On the other hand, gutters are important for the rest of the home’s good maintenance because they direct water from the roof, down through downspouts, and away from a house rather than remain at its base by the foundation.
• Take care of the roof and gutter system by having it regularly inspected. This also includes sealing all points where water can infiltrate an attic or conditioned spaces of the home through roof sheathing. More insulation may be needed in the attic if there are areas where the insulation has been removed or where it has settled. Additionally, if the home’s HVAC system and ductwork are located in the attic, these need to be properly sealed and insulated so warm air isn’t leaked into the space, which can prematurely warm the roof and create the right condition for an ice dam.
• Make any needed repairs promptly. Gutters and downspouts may need repairs and replacement, depending on the material used and how they were constructed. Generally, Pickell recommends five- or six-inch-width gutters and properly sized downspouts. These may be aluminum, galvanized, or copper. Aluminum is generally the most cost-effective, though copper and galvanized can last longer with proper maintenance. Where gutters and downspouts often fail is near their seams, which may wear out. These should be inspected and sealed regularly.

Homeowners may also consider adding de-icing cables along the length of eaves, in any valleys, and along downspouts in areas where ice dams have formed to prevent future problems. The downside of the cables, Pickell says, is that they can detract from a home’s aesthetics and require a power source. The cost can be about $1,000 to $2,500, depending on the size of the roof.

Home buyers may not be happy: The 30-year fixed-rate mortgage topped the 3% threshold, averaging 3.02% this week, Freddie Mac reports. Despite the uptick, economists note that mortgage rates remain near historical lows.

Since reaching an all-time low in January, mortgage rates have risen by more than 30 basis points, “and the impact on purchase demand has been noticeable,” says Sam Khater, Freddie Mac’s chief economist. “While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March, prior to the pandemic.”

Still, Khater predicts that the rise in mortgage rates over the next couple of months will likely be more muted in comparison to the last few weeks. The National Association of REALTORS® agrees, forecasting the 30-year fixed-rate mortgage to average 3% for the first half of this year.

Job gains also may help lift buyer demand regardless of mortgage rate movement. The Commerce Department reported Friday that the country added 379,000 jobs in February, which could counterbalance rising mortgage rates, says NAR Chief Economist Lawrence Yun. “The [real estate] market will experience countervailing forces of the higher push from more jobs but also the pullback of higher mortgage rates,” Yun says. “We will have to wait to see which force will be stronger. Back in 2018, the economy roared with 2.3 million job creations, but home sales modestly declined because mortgage rates rose from 4% at the beginning of the year to 4.6% by the year’s end. This time, rate increases will be occurring but will be well below 4%.”

Freddie Mac reports the following national averages with mortgage rates for the week ending March 4:

• 30-year fixed-rate mortgages: averaged 3.02%, with an average 0.6 point, increasing from last week’s 2.97% average. Last year at this time, 30-year rates averaged 3.29%.
• 15-year fixed-rate mortgages: averaged 2.34%, with an average 0.7 point, unchanged from last week. A year ago, 15-year rates averaged 2.79%.
• 5-year hybrid adjustable-rate mortgages: averaged 2.73%, with an average 0.3 point, falling from last week’s 2.99% average. A year ago, 5-year ARMs averaged 3.18%.

Freddie Mac reports commitment rates along with average points to better reflect the total cost of obtaining a mortgage.

In Denver, real estate pros are reporting that some listings are seeing more than 100 showings in one weekend and are then receiving more than 20 offers. Buyers are being told to expect going 20% above the list price if they want a home. Markets across the country are reporting the same.

The spring homebuying season is expected to be fierce for house hunters.

Here’s the reason: More than 200,000 new listings have been absent from the U.S. housing market during the first two months of 2021 compared to levels seen over the last four years. Buyer demand is surging and there aren’t enough homes for sale. Inventory woes were common in markets even prior to the pandemic, but they’ve worsened since.

There are nearly 50% fewer homes for sale this year than last year, according to realtor.com®’s newly released Monthly Housing Trends Report.

Extreme winter weather nationwide pushed new listings to a record low in February, and realtor.com® warns it will be difficult to dig out from the low number of sales this spring.

What’s more, home buyers are seeing prices quickly rise. The median listing price in February increased nearly 14% over last year to $353,000.

Real Estate Pros to Homeowners: Don’t Wait to Sell

“Last month’s record cold and snowstorms likely caused sellers to hit pause, even if only temporarily,” says realtor.com®’s Chief Economist Danielle Hale. “However, in today’s inventory-starved market, any setback is significant. Unless we see some big improvements in the new listings trends over the coming months, buyers can expect stiff competition. And unlike last spring, buyers may also face affordability challenges as home prices and mortgage rates increase. Market dynamics continue to favor sellers.”

Housing inventories were down annually by the most in metros like Oklahoma City, Okla. (new listings falling 47% annually); Kansas City, Mo.-Kan. (down 45%); Milwaukee-Waukesha-West Allis, Wis. (down 40%).

The following is a chart of the metros with the largest declines in newly listed homes.

The pandemic has ushered in a wave of first-time home buyers. But it may not be entirely prompted by the pandemic: Millennials are now the largest cohort of the population and were already starting to settle down before COVID-19. The median first-time home buyer age is 32.

In January, first-time buyers comprised 33% of existing-home sales, according to the National Association of REALTORS®.

But the presence of first-time buyers is higher in some locales. CoreLogic, a real estate data firm, evaluated 500 counties to pinpoint the areas with the most mortgage applications in 2020 coming from first-time buyers. Researchers note that 10 of the 20 counties with the highest share of first-time buyers are in the New York metro area.

“Counties’ home prices can explain the large share of first-time buyers,” CoreLogic notes at its blog, CoreLogic Insights. “For example, in the top 4 New York metro counties, first-time buyers paid an average price which is about half or less of what the average price paid was in New York, New York (Manhattan)—at over $1.3 million.”

The following is a list of the 20 counties with the highest share of first-time home shoppers.