Many areas of the country are experiencing blistering cold weather, even those that aren’t used to freezing temperatures. Rapid temperature swings could cause substantial issues to a home’s foundation, warns Groundworks, a nationwide foundation services company.

Every year, one in 60 homeowners file claims related to water damage or freezing, according to the Insurance Information Institute. That accounted for nearly 20% of all insurance claims in 2020—at an average cost of more than $10,000 per claim. The price tag to fix a damaged foundation could easily stretch even higher.  

REALTOR® Magazine caught up with Brian Black, Groundworks’ director of sales training and business development, to learn more about how a harsh winter could be affecting a home’s foundation and the signs of potential damage.

Q: How can cold, wintry weather damage a home?

A: Brutal cold is damaging in several ways, depending on your home’s foundation type. If you live above a crawl space, your home’s pipes are typically located beneath the floors. Freezing temperatures can cause pipes to burst, resulting in extensive damage. Frozen pipes are more than just frustrating. According to the Federal Emergency Management Agency, a one-inch flood caused by a broken pipe can result in about $25,000 in damage. 

If you have a basement or slab foundation, it’s the concrete you need to worry about. Concrete is porous, meaning it absorbs water. Water expands when it freezes, causing concrete to break and crack. When the spring thaw eventually arrives, water can easily find its way into your home through these cracks.

Furthermore, frozen ground is one of the three causes of inward basement wall movement. The other two are the weight of the soil and the weight of water in the soil. When these three contributors combine, it pushes basement walls inward.

What are the signs to look for?

For homes with a crawl space, the first sign of a problem is cold floors. As the issue progresses, homeowners will notice a problem when a faucet is no longer working. If none of the faucets are running, the frozen pipe is probably near the main water line.

Homeowners with basements and slab foundations should look for cracks both inside and outside their home. Cracks can vary in size and direction. That can help tell professionals why the problem is occurring. Inward wall failure will show as horizontal and vertical cracks on the basement wall or even drywall.

What should homeowners do if they suspect any damage to their foundation?

It’s best to have a foundation specialist inspect any cracks as soon as possible. Your home’s foundation supports everything in your house. If it’s damaged, you’ll discover costly secondary problems very quickly. So, it’s best to act fast.

Foundation work isn’t a DIY project. Choosing a company with the knowledge and tools to best solve your specific foundation problem is the best choice. Look for a company that customizes repair options to your home, offers long-term warranties and has a history of working with the specific soil and climate in your area.

What makes a home vulnerable to frozen pipes?

First, it’s important to understand where the majority of your pipes are located. In different parts of the country, pipes are installed in different areas of a home. In warm-weather regions, pipes are weatherized to handle summer heat and are placed in exterior walls and attics. But this makes them vulnerable to damage during rare cold events. In cooler climates, pipes are often located within the floor joists in basements and crawl spaces.

The best way to prevent frozen pipes and create a more comfortable environment overall is to seal out any outside air through encapsulation. But there are some easy steps you can take to beat the freeze and keep water flowing right now. Consider insulating pipes, allow for a constant drip, open cabinets to allow for warm air circulation and remember to leave the heat on and keep a consistent temperature throughout your home during the winter.

What can homeowners do to “winterize” their property?

The number one most effective route to winterize your crawl space is through encapsulation. Sealing your crawl space from outside air and circulating warm, conditioned air protects pipes and creates a more comfortable living environment. Plus, you can save nearly 20% on your energy bills.

Melissa Dittmann Tracey

Melissa Dittmann Tracey is a contributing editor for REALTOR® Magazine, editor of the Styled, Staged & Sold blog, and produces a segment called "Hot or Not?" in home design that airs on NAR’s Real Estate Today radio show. Follow Melissa on Instagram and Twitter at @housingmuse.

© Courtesy of Pam Graves

It’s no easy feat to make lasting change, especially in a foreign country where, culturally, everything is different. Still, Pam Graves, an agent with Summer House Realty in Fernandina Beach, Fla., knew that’s exactly what she was called to do after returning from a 2015 mission trip to Uganda. “The trip was life-changing, and I knew right then and there that I wanted to do something to make a difference,” Graves says. “Some of the people we met on the trip—I mean, we were giving them their first-ever pair of shoes.”

She says that even though she faced struggles in life, she lived in a privileged position with access to everything she needed. She returned home with a desire to do something big, but she wasn’t able to at the time. “We were in a lot of debt and had small children, and I just thought there was no way,” Graves recalls. “So, I put it on the backburner, but the desire never left me.”

During the pandemic, though, things changed quickly for Graves. The rollercoaster market turned out to be a boon for her business, and she had what she says were the two best years of her real estate career. “We were able to get out of debt, and my kids were older. I just thought to myself, ‘Now is the time.’”

Graves says she approached the idea of philanthropic work in Africa with a careful lens. She was cognizant of the stigma around mission work and didn’t want to potentially cause more harm through performative actions. She sought to empower and create lasting change.

© Courtesy of Pam Graves

Graves reached out to her network in Africa to reconnect with a cook she met there named Mary Apio, whom Graves describes as having a “strong inner light.” That’s when Graves learned more about Apio’s story: Completely self-taught, Apio took up cooking to care for herself. She’d been married off as a child bride after being assaulted, and a local pastor helped her to escape. However, with no education and no skills, navigating the region alone as a woman was dangerous. Apio took to cooking after borrowing a neighbor’s well-used rolling pin to make tortillas that could sell in local markets.

Before her career in real estate, Graves spent years in the restaurant business and loved the culinary arts as well. “After Mary told me her story and we figured out we had cooking in common, I realized that this is where the lasting change comes in,” Graves says.

She and Apio discussed building a culinary school to help other survivors of assault and forced child marriage build a life for themselves. Within months, the Sonrisa School of Culinary Arts and Bakery came to life in Uganda. The school officially opened to students in February 2021. “We’ve given God all the glory for everything that’s happening over there,” Graves says, noting that she and Apio faced almost no obstacles when setting up the school. They were able to find a building, supplies and put scholarships together for students.

The one thing that makes the endeavor work, Graves says, is that Apio, a Uganda native, runs the show. Apio knows how best to serve her community, so she’s front and center in every aspect of running the school. Graves says her role is to help coordinate the services that Apio needs to make legacy-level change. “Together, it’s a beautiful combination. I provide the funding, and I let Mary tell me how it needs to be used to serve the community in the best way,” Graves says.

Right now, Sonrisa is fully supported by Graves, who gives personal donations and organizes fundraisers. But she’s hoping that will change. “I want Sonrisa to be around for all of the survivors that need it, and so, I’m hoping to grow fundraising efforts into recurring donations, matching gifts from companies and things like that.”

Nicole Slaughter Graham

You have to constantly fill your customer pipeline and reconnect with past clients to ensure you’re top of mind and your business remains healthy, whether the real estate market is up or down. “There’s no better time than right now” to grow your network, says Holly Mabery, ABR, GRI, a real estate coach and vice president of brokerage operations at eXp Realty in Peoria, Ariz. “Real estate has always been a relationship business, and the opportunity to connect is more critical than ever.”

With home sales lagging and an increase in agent competition for scant listings, many real estate professionals are prioritizing relationship-building to cement customer loyalty and stay ahead of market changes. And clients appreciate the outreach. “As consumer confidence in the real estate market dips, brokers must establish strategic, personal client communication to readjust consumer perceptions,” says Terry Sprague, lead broker at LUXE Forbes Global Properties in Lake Oswego, Ore. “We don’t rely on the technologies that automate viewings or feedback because personal connections are the most important tool for us to learn about a client’s needs.”

Practitioners share several ways to expand the relationship part of your business, which may help you strengthen your position for the next market shift:

Related content:

1. Check in with past clients. Mabery, also an instructor for several National Association of REALTORS® designation courses, recommends reconnecting with past clients and your sphere over the phone. She suggests a script: “Hey, I was thinking of you and just wanted to see how you and your family are doing. Anything I can do for you?” The extra thoughtfulness of a phone call—as opposed to a text, which can more easily be ignored—can make you stand out from competitors, Mabery says. “With a phone call, they hear your voice and passion and that you care.” If you made five phone calls per day last year, make 15 now, Mabery advises. Triple down on making connections during a market slowdown.
2. Create a powerful peer referral network. Look at the markets where new residents in your area tend to relocate from, and build referral partners with agents in those areas, says Nicole “Nikki” Beauchamp, associate broker at Engel & Volkers in New York. These referral networks can earn you extra income: Studies have shown that real estate pros can make up to $50,000 a year in agent-to-agent referral fees alone. One way to build a referral business is to take in-person designation and certification courses—such as ABR, GRI, SRES and others—in markets where people relocating to your area are coming from. and in an area that often has clients relocating into yours. “These courses tend to be very interactive with small groups and can be great for building a network of peers and referrals,” Beauchamp says. Don’t forget to nurture these newly created relationships with thoughtful touches, such as a birthday phone call, Mabery adds. “Look for ways to create a memorable experience with a peer, and they will be more likely to remember you and send you a referral,” she says.
3. Build up your “virtual appeal.” “Virtual appeal is the curb appeal” for real estate professionals, Mabery says. One way to beef up your online presence is to create a robust local-centric video library, which could include fun facts about the area, local housing market snapshots or your favorite parks and hiking spots. Mabery also recommends creating videos about the real estate process and leveraging the “power of 3”—for example, “3 tips for hiring a home inspector” or “3 mistakes buyers make when they walk into open houses”—in order to keep your videos short and simple. Share the videos on your social media channels, but link viewers back to your YouTube channel to help make yourself more searchable online, she says. 
4. Show off your expertise. Social media, podcasts, guest blogging and cross-market Zoom panels can increase your visibility and position you` as the expert in real estate, says Beauchamp. Use housing reports from REALTOR® associations or other real estate companies—but provide local context beyond just a data dump. Throughout your social media, keep it local, Mabery adds. Share what’s happening in the community, such as upcoming farmer’s markets, art or car shows and new restaurant openings. “You will become a resource and the trusted adviser,” Mabery says.  
5. Try pop-bys. Visit members of your sphere in person, and offer small tokens of appreciation—perhaps a gift with your marketing slogan on it—to help keep you top of mind. After all, a third of consumers say they are more open to connecting with companies that send them gifts, according to a survey from marketing firm Sendoso. Provide a gift card along with a handwritten note, flowers, candles or special treats for holidays and special occasions. Also, don’t forget to treat those who treat you: Holly Styrcula of Huff Realty in Cincinnati offers small gifts of appreciation, such as a branded ice cream scooper or pizza cutter, to anyone who gives her and her team a client referral. Need ideas of your own?
6. Expand your “other” network. Don’t just focus on building relationships with other agents; create a vast network of professionals from related industries. Consider joining a local Business Network International chapter or start your own. The groups include representatives from various industries, which could include a real estate agent, home inspector, lender, photographer, insurance agent and contractors for numerous trades. You also can build your “other” network by hosting a joint webinar or event, such as a home buyer seminar with a panel that includes a lender, home inspector and others involved in the homebuying process.
7. Host a client appreciation event. Use a party to build up client loyalty and generate warm leads. These can be a great excuse for reconnecting with past clients and thanking them for their business. Real estate pros have planned a range of events, from drive-in movie nights to fall or summer festivals and Academy Award-level dinners.
8. Create a contest or offer an incentive. Some real estate professionals have held friendly contests online, such as “guess the list price!” and open house scavenger hunts. Alexandria Reed of Guide Real Estate in Denver told the Drive With NAR podcast how she uses a giveback mindset to foster greater connection. For example, on social media, she may offer to donate a dollar to a local food bank for every like or comment on certain posts. “It serves as something tangible in directly helping the communities that you do business in,” she says.
9. Earn a “thank you.” In your conversations with prospects, listen carefully to their problems—whether related to real estate or not—and think of a quick favor you could do for them. Organizational psychologist and bestselling author Adam Grant shares the business gratitude approach in his 2014 book, Give and Take: Why Helping Others Drives Our Success. He highlighted how a service model—doing a favor with no expectation of anything in return—can pay back dividends. For example, get an estimate from a handyman or painter for a prospect who’s struggling with a renovation, or share recommendations for local restaurants. Studies have shown that salespeople who adopt “extra-role” behaviors create deeper, more long-lasting relationships.

Melissa Dittmann Tracey

Melissa Dittmann Tracey is a contributing editor for REALTOR® Magazine, editor of the Styled, Staged & Sold blog, and produces a segment called "Hot or Not?" in home design that airs on NAR’s Real Estate Today radio show. Follow Melissa on Instagram and Twitter at @housingmuse.

Mortgage rates jumped this week, driven up by a record number of jobs and higher-than-expected inflation, says Nadia Evangelou, senior economist and director of real estate research for the National Association of REALTORS®. The 30-year fixed-rate mortgage averaged 6.32%, up from 6.12% last week, according to Freddie Mac.

While mortgage rates may see temporary increases in the coming weeks, they’re largely predicted to stabilize and remain below their most recent peak of 7.08%, which was set in mid-November 2022. “Mortgage rates could linger at around 6.5% for a few more months before heading below 6% by summer—and maybe even 5.5% by the end of the year,” says NAR Chief Economist Lawrence Yun.

Once mortgage rates dip further, expect more home buyers to return to the housing market, Yun predicts. But he warns that with inventory levels still stubbornly low, an influx of buyers looking to take advantage of falling rates could set off “another revival of multiple bidding.”

Housing makes up one of the largest components of the Consumer Price Index and accounts for about 40% of the inflation index. Inflation is staying elevated because of rising rents, Yun says. In January, renters paid 8.6% more in rent than a year earlier. “That was a big contributor to the overall consumer price inflation running at 6.4% and well above the comfort level of 2%,” Yun says. “But rent relief is on the way.”

Yun notes that apartment construction is at a 40-year high. “As these new empty units steadily reach the market, rent growth will tame,” he says. “That will also pull back the overall consumer price inflation.” The CPI likely will ease in the second quarter of this year, Evangelou notes.

Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 16:

Melissa Dittmann Tracey

Melissa Dittmann Tracey is a contributing editor for REALTOR® Magazine, editor of the Styled, Staged & Sold blog, and produces a segment called "Hot or Not?" in home design that airs on NAR’s Real Estate Today radio show. Follow Melissa on Instagram and Twitter at @housingmuse.

Housing equality worsened in the decade since the Great Recession, a new analysis shows, lending greater urgency to the commitment REALTORS® make to uphold fair housing laws. The national homeownership gap between Blacks and Whites widened 1.5 percentage points from 2010 to 2021, according to Today’s Homeowner. That’s a glaring sign that the full promise of the 55-year-old Fair Housing Act has yet to be realized. The Black homeownership rate of 43%—versus 72% for Whites—is roughly the same as it was 50 years ago, according to National Association of REALTORS® data.

Though incidents of housing discrimination are lower today, the legacy of racist policies has held back Black families for generations, explains NAR Vice President of Policy Advocacy Bryan Greene. “Even where discrimination poses no barrier, Black would-be home buyers, on average, have less family wealth, lower income and more debt due to past redlining, generations of outright exclusion from the housing market and other economic deprivation,” he says. “If you gaze into that yawning homeownership gap, you’re seeing a century or more of wealth deprivation. Today, this legacy means a Black buyer is less able to raise the funds for a down payment, and their credit profiles are strained.”

The racial homeownership gap in some states has widened nearly 10 times larger than the national trend, including in Alaska, Hawaii, New Hampshire, New Mexico and Vermont, according to the study from Today’s Homeowner. “The national gap between Black and White homeownership rates is an important gauge of how we, as a country, have progressed toward the goals of equitable access to homeownership,” the study notes. “By that measure, we have backtracked in terms of equality between Black and White families.”

Like most people, real estate agents want to feel the love — especially when it’s coming from clients. But in a stressful, emotional time, buyers and sellers are sometimes more likely to take their anxieties out on you than show their appreciation. You could be on the receiving end of an angry rant, peppered with questions that reveal a client’s lack of trust, or worst of all, the client could ghost you. You probably don’t see why they are so upset, but before you write your client off as crazy, try to figure out where their fear is coming from.

Every relationship needs good communication, and as a real estate agent, you need to be a master at it. If you don’t take extra care to communicate often and to all parties involved, you risk your clients feeling uncertainty, fear, and eventually anger. We live in a busy world, and clients may be distracted by their phones, kids, or other stressors. This is why we often find ourselves repeating things and answering the same questions multiple times. Here are a few things I’ve learned to do to perfect my communication with clients.

When you’re dealing with a couple or clients who are including others in their decision-making process, always copy all parties on emails about the transaction. This is why email is my favorite way to share important information — even if I’ve been texting with clients all day or I have them in a room face-to-face. If you put your thoughts in writing to everyone, you can refer back to the email if they start asking questions you’ve already answered. At the beginning of the transaction, give buyers and sellers a guideline and timeline of what to expect. Be clear about what happens when, and what they need to do to keep the transaction on track. For extra-anxious clients, this will be comforting to have on hand.

Don’t assume your clients are sharing everything with their spouse. If you’re working with a couple and maintain contact primarily with one of the parties, you shouldn’t assume they’re passing on the information you’ve given them to their significant other. It’s sad but true that people don’t communicate with each other. I often find myself on the phone or in person with one half of the couple, and we’ll discuss priorities, make decisions, and plan to move forward according to that conversation. But unless I explicitly communicate what has been discussed or decided to the other half, that person might never know. One email should be sent to both parties, going over the conversation you had with one of them and the next steps you will be taking.

When you’re working with an unmarried couple but only one is buying or selling, give them both equal priority — up to a point. Usually, I ask for both my client and their partner’s contact information, and I include them on emails regarding the home search or any information about showings. But I don’t include the partner on the specifics of the transaction. Since they aren’t officially part of it, it’s up to my client to share whatever they want with his or her partner. If you do include the partner in all that you can, though, you will make them an ally. They appreciate being seen and respected, even without an official stake in the transaction.

Be obsessively careful to balance communication with divorcing clients or an estate with hostile heirs. If one party of the transaction feels you are favoring another, telling secrets, or not working in everyone’s interest, they will make the entire transaction 10 times more difficult by questioning everything, refusing to compromise, or going silent on you. When hurt feelings are involved, someone always feels like they are losing the most — and sometimes everyone feels this way. It’s easier to speak primarily with the party that is kind, reasonable, and willing to negotiate, but it is essential that every communication you send is copied to all parties.

Also, be careful to not stir the pot, even unintentionally. For instance, in a divorce, one party may have moved out of the house. If the person who doesn’t live there anymore asks how the showings are going and if the soon-to-be-ex is keeping the house show-ready, do not reply and copy the other spouse on the email. Send a new email to both parties with the showing feedback you’ve received and a reminder that the property must be show-ready at all times. Keep your communication neutral.

We all have been guilty of not communicating with our clients as well as we should. Maybe they are past clients who are working with you again, so you figure they know how the process goes. Or they’re a couple who you assume must be sharing important information with each other. That’s when you get in trouble. When someone isn’t happy with your service, it’s all your fault. If you mess up, don’t try to talk your way out of it. Apologize sincerely. It goes a long way in making things right again.

Mary McIntosh

©Photo provided by NAR

If you ask Natalie Davis, founder of The Evolution Group in Denver, with a little work, creating an office environment where everyone feels like they belong can happen quite quickly. All it takes is a commitment to diversity, equality and inclusion and a few tangible action steps to get started.

As we gear up for the 2023 Broker Summit in Kansas City, Mo., we’re taking a look back at the Bias Override co-facilitator and speaker’s presentation on creating a DEI blueprint for your brokerage.

As she got started, Davis made it clear that DEI is not a political issue, but rather “a way to foster a sense of belonging in your business and in your community.” With a commitment to creating a culture of belonging, brokers are well equipped to represent the entirety of their communities and lead a team of agents capable of doing the same.

Focus on the Feeling of Belonging

Inclusion and belonging are two different things, Davis said. Inclusion is that action brokers take to create a space where everyone feels like they belong. Inclusion is in the brokerage’s mission statement, marketing, core values and training offered to agents. Belonging is the feeling created by the action of inclusion. In order to create an inclusive space, focus on how belonging feels. Figure out what makes people of all backgrounds feel like they have a place in your office.

How do you do this? Through company culture.

Make DEI a Clear Part of Your Brokerage’s Culture

A company culture in which everyone feels like they belong isn’t “a thing that’s nice to have or a box to check,” Davis said. It’s a must. Attracting and retaining agents of all backgrounds starts with the culture the broker creates.

Start with your brokerage’s mission and vision statement, and figure out how DEI fits into those two pillars. To do so, you might have to turn inward and reflect, Davis said. “Why is DEI important to you? Once you’ve identified it, you want to bring that [reason] back to your mission and vision.”

Bringing your commitment to DEI back to your mission and vision means making sure it’s clearly articulated in both, Davis explained.

Perform an Internal Audit

Stating a commitment to an environment of belonging is a starting point. Taking action toward inclusion is making sure that both processes and practices within the brokerage align with DEI values.

Davis recommends creating a plan to ensure all facets of the business further your commitment to DEI. In order to create a plan for forward motion, though, it’s important to recognize where you’re starting from. To figure out what that starting place is, ask yourself questions in each of these areas:

Recruiting and Hiring

Onboarding, Training and Support

Outreach

Marketing and Branding

Make Your Commitment Known Publicly and Privately

Once you’ve completed your internal audit and created a plan, it’s important to let your community and your brokerage know that you’re committed to creating an inclusive environment that promotes belonging. One of the easiest ways to do so is to make your commitment clear in your internal and external statements.

If you’re not sure how to word these statements, Davis recommends using phrasing that’s already been created.

“You can add a statement to your website that speaks to the fact that you align with the NAR DEI Commitment Statement. You could also use the One America Principles.”

Improve DEI in Your Brokerage

You have a plan. You’ve made your stance clear internally and externally. Now, it’s time to take action.

“You can start by hiring and developing people of color into positions of power, but this isn’t enough,” Davis said. “Can you form a committee or task force? An affinity group or a club?”

It’s also important to make sure you have buy-in from your team—and, if you don’t, adjust accordingly. Elevating people of color to positions of power and creating groups work only if you’ve truly created a culture of belonging where everyone feels safe and supported.

“Sit down and have a conversation with your team member with the caveat that everyone enter into the conversation with respect and curiosity. Highlight where the needs are and then come up with a way to fill those needs.”

Nicole Slaughter Graham

A record number of young adults moved back home during the pandemic—the most since 1960, according to industry data—but signs are emerging that they’re finally ready to branch out on their own. In 2022, 15.6% of adults ages 25 to 34 lived at home with their family, down from 17.8% in 2020, according to a National Association of REALTORS® analysis of Census Bureau data. Still, the percentage is high: Historically, it tends to be less than 10%.

In recent years, high rents and the flexibility of remote work have prompted many young adults to move back home, Jessica Lautz, NAR’s deputy chief economist and vice president of research, says at the Economists’ Outlook blog. “It is possible that moving home allowed these young adults a financial boost that they would not have had otherwise,” Lautz says. “It could have translated into savings, paying down existing debt and working on their credit score and debt-to-income ratio.”

Six percent of student debt holders say they were able to pay off or get closer to paying off their loans earlier than expected because they moved in with family, according to Lautz. Moving home also may have given that group extra time to save up for a down payment. That’s an important benefit as the home affordability crisis worsens. The median price of a single-family home rose by nearly $100,000 from 2020 to 2022.

Rents also are up by double digits, jumping 14% from 2021 to 2022, which may be prompting more young adults to move straight from their parents’ house into a home of their own, Lautz says. The share of first-time buyers who moved directly from a family member’s home grew at a significant rate, reaching 27% in 2022 compared to 15% in 1995, NAR data shows.

“While living at home may not be an ideal long-term scenario for many people, if prospective first-time buyers can move home before purchasing, this might financially help them save to purchase a home,” Lautz says. “The added flexibility of living with family allows a buyer to navigate the tight housing market with limited affordable inventory.”

For young adults ready to flee their parents’ domicile, realtor.com® recently released its list of top housing markets for first-time buyers this year. Realtor.com® based its list on available inventory, average commute times, age of residents, strength of the housing market and recreational activities. The top 10 markets this year are:

1. Portsmouth, Va.
2. DeForest, Wis.
3. Windsor Locks, Conn.
4. Gloucester City, N.J.
5. Moore, Okla.
6. Magna, Utah
7. Eggertsville, N.Y.
8. Watervliet, N.Y.
9. Mattydale, N.Y.
10. Somersworth, N.H.

Melissa Dittmann Tracey

Melissa Dittmann Tracey is a contributing editor for REALTOR® Magazine, editor of the Styled, Staged & Sold blog, and produces a segment called "Hot or Not?" in home design that airs on NAR’s Real Estate Today radio show. Follow Melissa on Instagram and Twitter at @housingmuse.

© Courtesy of Scott Matthias

For 22 years, Scott Matthias traveled annually to Mexico with a group of family and friends to build schools and homes for those in need. But when the COVID-19 pandemic forced international borders to close, his trips were put on hold. Matthias, CRS, GRI, an agent with Madison & Company Properties in Greenwood Village, Colo., was suddenly left to find a new cause to support that he could access closer to home. It was a former Good Neighbor who inspired Matthias’ next move.

He learned about Vickie Lobo, a 2020 winner of the National Association of REALTORS®’ Good Neighbor Awards, while watching a playback of that year’s ceremony. Lobo, an agent with Einstein Realty in Upland, Calif., founded a nonprofit called Knock Knock Angels, which helps to furnish homes for people who are getting back on their feet after experiencing homelessness. “Tears ran down both mine and my wife’s faces,” Matthias recalls. “We were beyond inspired by Vickie. I called her the next day to congratulate her and ask if she would mind me doing something similar in Colorado. She said it was her dream to have [her organization] spread across the country.”

To help get Knock Knock Angels Colorado off the ground, Lobo provided Matthias with a startup kit and helped arrange for the organization’s 501c3 status. Matthias partners with local housing nonprofits that provide transitional homes for the homeless. Those nonprofits rely on Matthias and his team to furnish the homes. Lobo helped Matthias with the first project, and within a year, Knock Knock Angels Colorado furnished 20 homes.

For more stories of REALTORS®’ extraordinary service to their communities, follow REALTORS® Are Good Neighbors on Facebook and Instagram. You also can apply for this year’s Good Neighbor Awards before the April 19 deadline.

Aside from providing a comfortable home, Matthias says his organization’s work, in some cases, helps restore people’s faith in humanity. The first recipient of a home that Knock Knock Angels Colorado furnished was a Marine name James, who had been homeless for eight years. Matthias remembers when he and his wife met James for the first time. “He kept looking us both in the eye, trying to gain trust in us,” Matthias recalls. “He finally said, ‘Excuse me for not getting excited, but I have been let down my whole life and have a hard time trusting anyone.’”

While experiencing homelessness, James isolated himself and would often fight with others, which would get him kicked out of the tent villages where he was staying. A member of the Knock Knock Angels Colorado team took James out for breakfast and to the barber shop one day while Matthias and a few others transformed the apartment where James found housing. They furnished each room with care, and when James walked in, he couldn’t believe what he saw. “He took a swan dive on his bed when we did the reveal of his new apartment,” Matthias says, adding that James now gets along with the other tenants in his building.

The need for the type of service Knock Knock Angels Colorado provides is great, Matthias says. In some cases, people in transitional housing sleep on the floor for months—even up to a year—before they receive a proper bed. The issue is only getting worse as the housing affordability crisis and inflation complicate people’s personal situations.

Nicole Slaughter Graham

Affordability woes are still spooking buyers, but another decrease in mortgage rates could bring them back to the market. The interest rate for the 30-year mortgage averaged 6.13% this week, Freddie Mac reports, nearly a whole percentage point drop from a 7.08% peak just two months ago. This could boost homebuyer confidence and help dig the real estate market out of a “housing recession.” To boot, mortgage applications for home purchases have been inching up, rising 3% last week, the Mortgage Bankers Association reports.

“Homebuying activity remains tepid, but if rates continue to fall and home prices cool further, we expect to see potential buyers come back into the market,” says Joel Kan, an MBA economist. “Many have been waiting for affordability challenges to subside.”

Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, says that mortgage rates could fall even further in the weeks ahead as investors anticipate the Federal Reserve’s next move. The Fed plans to vote for a smaller rate hike at its meeting next week due to signs of easing inflation. “A stronger housing market could help the U.S. economy skirt a recession,” Evangelou adds.

Meanwhile, ever since the start of this year, mortgage rates have continued to trickle down. “As a result, home purchase demand is thawing from the monthslong freeze that gripped the housing market,” says Sam Khater, Freddie Mac’s chief economist. “Potential home buyers remain sensitive to changes in mortgage rates, but ample demand remains, fueled by first-time home buyers.”

Also, Evangelou notes that consumers seem to be accepting that historically low 3% rates in recent years aren’t likely coming back anytime soon. As rates see less fluctuation, more buyers will likely re-emerge onto the housing market.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 26:

Melissa Dittmann Tracey

Melissa Dittmann Tracey is a contributing editor for REALTOR® Magazine, editor of the Styled, Staged & Sold blog, and produces a segment called "Hot or Not?" in home design that airs on NAR’s Real Estate Today radio show. Follow Melissa on Instagram and Twitter at @housingmuse.

The National Association of REALTORS® offered the White House a commitment Wednesday to educate its more than 1.5 million members on renter assistance and protections as part of the Biden administration’s new plan to alleviate rental affordability pressures across the country. The plan’s blueprint lays out principles to “drive action by the federal government, state and local partners, and the private sector to strengthen tenant protections and encourage rental affordability,” according to the White House.

NAR vowed to create resources for REALTORS® that highlight ways to incorporate tenant-centered property management practices in their business. These resources include advertising the acceptance of HUD housing choice vouchers at a property, providing information about rental assistance and using alternative credit scores for applicants without a detailed credit history.

However, NAR urged action on the root causes of affordability. “Rental affordability is a product of the housing supply crisis,” says Shannon McGahn, NAR’s chief advocacy officer. “The White House took bold action in 2022 on housing supply, from a historic budget request to repurposed American Rescue Plan funds to the president’s Housing Supply Action Plan. We hope many of these policies come to fruition in the near future.”

To immediately address the lack of housing affordability, NAR encourages the administration and Congress to consider providing rental assistance through a range of channels, including grants, state and local fiscal recovery funding, and a variety of HUD programs that can be better funded and improved.

“Rents are rising, driven by inflation and exacerbated by the housing supply shortage,” says NAR President Kenny Parcell. “NAR supported rental assistance throughout the pandemic, which was vital for struggling tenants and mom-and-pop housing providers. These small investors provide more than 40% of all rental housing in America and are essential to growing the nation’s affordable housing supply.”

“Federal intervention into rental housing policy can push small housing providers out of the market, pushing rents higher,” McGahn says. “Mom-and-pop housing investors are essential to affordable housing, which is already regulated at the state and local levels. Adding layers of federal policy only makes it more difficult for them to enter and remain in the market and serve their communities.”

REALTOR® Magazine Staff