Joan's therapist acknowledges her pain regarding the loss of her home and explains how he might feel the same way if confronted with a similar situation. Joan's therapist is demonstrating

Empathy.

Explanation:

The capacity to understands or feel is called Empathy. It is the capacity to place oneself in other person's position. There are three type of empathy; cognitive, emotional and somatic. It is derives from ancient Greek work empathia. Alexithymia is used to describe the inability to understand or describe the emotion in oneself. Michael Hoffman studies about empathy ans according to him everyone is born with the ability to feel empathy.