JANUARY 2022 Vol. 09 | Issue 1
RUBY FRAZIER
INFLUENCER | WIFE | MOTHER ENTREPRENEUR & LEADER pg. 60
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magazine CENTRAL EDITION Vol. 09 | Issue 1
Eric Lawrence Frazier, MBA Publisher Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 eric.frazier@thepowerisnow.com www.thepowerisnow.com EDITORIAL TEAM Sheila Gilmore Editor in Chief (800) 401-8994 ext. 711 sheila.gilmore@thepowerisnow.com Daniels George Managing Editor (800) 401-8994 ext. 712 daniels.george@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager goldy.ponce@thepowerisnow.com
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CONTENTS
JANUARY 2022 POWER TECHNOLOGY Pg. 22. Did you know that technology with all of its dangling parts can really mess up an open house? Pg. 24. The Currency of the Future? How is bitcoin poised to bridge the finance gap?
CENTRAL EDITION:
POWER GREEN Pg. 8. Local elected officials urge Gov. Newsom to save rooftop solar Pg. 10. New report: California among national leaders in solar power, electric vehicle adoption, and battery storage growth
POWER ECONOMICS
Pg. 29. Commercial real estate trends for 2022, by Steve Peterson. Pg. 31. Let’s talk about affordable housing in San Francisco, by Norman Green. Pg. 33. Rents on the rise in Texas: You should be thinking about homeownership, by Johnnie Morine. Pg. 35. Which mortgage is right for you Part IV: 2022 Complete guide to conventional Loans, by Sharon Bartlett.
EAST COAST EDITION:
Pg. 14. Inflation is up in California: What does this Pg. 43. Is there a buyer faatigue in Maryland?, by Emerick Peace. mean for the real estate market. Pg. 45. The Hispanic Community to receive Pg. 16. 2021 California Economic Summit: a boost in Homeownership at Kissimmee highlights and possible impacts to our industry Center. Here’s how to get in on the action!, by Adriana Montes.
POWER REAL ESTATE
Pg. 18. Buyers brace yourself! 2022 might be tough- U.S home listings hit an all-time low.
POWER LENDING Pg. 20. Lenders should step in and be more proactive about serving the underserved in 2022. 4l
WEST COAST EDITION: Pg. 49. Arizona home prices on the rise: Make sure you are not priced out of the market, by Yvonne McFadden. Pg. 53. Arizona gives $41M to affordable housing & homeless aid groups, by Peggie Simons. Pg. 57. Local insights about Corona, CA, by Kamesha Keesee.
Pg. 59. Riverside county home price appreciation Trends: Home prices hit $535,000- 12th record high of the pandemic era, by Ruby Frazier. Pg. 61. Many people say life in the Inland Empire is getting worse and many want to leave!, by Marisa and Demarco Fletcher. Pg. 62. Ruby Frazier, Influencer, Wife, Mother, Entrepreneur and Leader Pg. 69. Millennials out for Irvine’s quality of life, by Cornelius Jackson. Pg. 73. How is the Corona Real Estate Market?, by Jenny Gonzalez. Pg. 77. San Diego named as World Design Capital with an estimated $1.5 billion economic impact, by Denise Matthis. Pg. 79. Despite Reports, the Sacramento housing market is still affordable, by Robert Langston. Pg. 83. Long beach housing market: Many homes sell above the list price, by Kate Nash. Pg. 85. San Diego home price gains drop according to S&P CoreLogic Case Shiller Indices - Is this a sign of market cooling down?, by Candace Thrower. Pg. 89. SoCal Homebuying frenzy cools down but its still not easy for new homebuyers, by Briana Frazier. Pg. 91. Affordable housing solutions in L.A.: LA City council approves a plan to build affordable housing developments, by Adrian Bates. Pg. 95. L.A. Housing market indicators for Q1, 2022, by Success Money.
Pg. 97. Richmond, CA Housing market report and Forecast for 2022, by Joe Fisher.
POWER LEGAL Pg. 100. What is appraisal bias and how does it become a fair housing Issue? Pg. 102. Opinion: Should FHA end its Life of Loan policy?
POWER MORTGAGE Pg. 104. Mortgage lending trends to watch in 2022
POWER AGENT Pg. 106. Why you should use Realtor® or Realtist Pg. 108. Brokers here’s one for you…Four Ways To Maximize Your Agents’ Potential
POWER HEALTH Pg. 110. Let’s Keep it Real: The New Omicron Variant: Should The industry worry?
POWER HITORY Pg. 112. House Panel Poised to Advance Bill on Slavery Reparations l
5
January 2022 FROM THE EDITOR
D
ear Esteem Readers,
Welcome to 2022. I am thankful to see another year, and I am certainly not taking it for granted. I know of many people who didn’t make it. 2021 felt more like a variant of 2020 because of all the variants of COVID-19. We may be dealing with COVID 19 and more variants for many years to come. My hope and prayer for 2022 is health and prosperity for everyone and that we defeat the Covid-19 Pandemic. 2021 was filled with events that changed America forever, and because of these historical events, we are more divided today as a country than we have been in a very long time. Civility in politics is at an all-time low, and race relations are also at new lows. Thank God our democracy is still intact after the insurrection at the Capital. What a year it has been! Let’s pray for a fantastic 2022. With the warmth and the sparkle of Thanksgiving, Christmas, and New Year celebrations slowly fading away, January can be a challenging month to embrace if you are not ready for the change that a new year brings. For me, 2022 brings new milestones. I will turn 60 on April 25th of this year, and on December 19th of 2021, I celebrate 40 years of marriage. So, I decided to kick off this new year by recognizing my partner for life. This month, we feature Ruby Lee Gordon Frazier, my wife of 40 years and extraordinary real estate professional, leader, mother, and entrepreneur, on our cover. What a blessed man I am! As you peruse through the magazine, you will see my article that shares a glimpse of our 40-year journey in matrimony and a few tips to keep your marriage strong. We have many great articles in the magazine and have written about many important issues facing us today. For example, we have written about the mortgage crisis seeing that many people are still in forbearance. We want you to understand that there is help, and we have outlined what you need to do to get 6 | JANUARY 2022
help once your forbearance period ends. Additionally, have you noticed that everything is up in price, including real estate, especially in California? Inflation is on the rise, and it looks like it’s not slowing down and is getting the attention of the Federal Reserve. Look for the Fed to make a move soon. In addition, did you know that your home could be equity-rich? Well, most homes in the country today are considered equity rich. What does that mean? Find out only on this issue of The Power Is Now Magazine. Lastly, I am delighted that The Power Is Now Media is still here and going strong. The Power Is Now Magazine has entered its 8th year of publication. The Power Is Now TV has entered its 5th year of broadcasting. We started when the ability to broadcast by Facebook Live was available to everyone, and now our content is available on Apple TV, Android TV, Roku, Fire TV, and all Smart TV and mobile devices. So
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please check out our shows. The Power Is Now Podcast is in its 10th year of broadcasting and can be found anywhere you get your podcast. We have a lot to be thankful for in 2022. Especially for our partners, advertisers, sponsors, supporters, and friends of The Power Is Now Media and, of course, you, our readers, viewers, and listeners. We appreciate you and are looking forward to the great opportunities that 2022 will bring us all. Please take a moment and share this magazine. Knowledge is power, and the power is now! Have a prosperous month!
ERIC L. FRAZIER MBA President and CEO The Power Is Now Media, Inc.
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JANUARY 2022 | 7
POWER GREEN
Local Elected Officials Urge Gavin Newsom to Save Rooftop Solar
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Net Metering is entirely positive as it allows low-income homeowners to earn credit by sending excess power produced during the day. Rooftop solar plays a critical role in meeting California’s energy and environmental goals by providing clean electricity for everyone in the state, improving the resilience of the grid, saving costs by reducing the need for expensive transmission lines, and providing emergency power during outages. The local officials also demand that the net metering be maintained because it helps to continue the installation of solar power across the state. These officials have risen amidst the aim of Pacific Gas and Electric (PG&E), Southern California Edison (SoCal Edison) and San Diego Gas & Electric (SDG&E) to push for the nation’s fixed solar charges and drastic cuts to net metering in California through the common utility playbook described in Blocking Rooftop Solar. State leaders need to push rooftop solar hard and maintain helpful solar incentives for homes and communities. More importantly, the CPUC needs to
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ocal elected officials have called on the Governor to stand up to the state’s investor-owned utilities and help ensure that solar power is within the reach of homes and businesses in California. The survival of each community depends on the access to solar. This has made local elected officials, city council members, and mayors in California to urge Gov. Gavin Newsom and the California Public Utilities Commission (CPUC) to maintain a strong net metering program. The state’s net metering program needs to be strengthened for the benefit of homeowners and businesses who own rooftop solar panels. While there is a need for residents and businesses in California to contribute to this effort, Governor Newsom to stand up to the investor-owned utilities and ensure that local solar and battery storage continue to grow in our communities.”
make a decision on the future of the state’s net metering program by the end of 2021. GOAL THE GOVERNMENT NEED TO ACHIEVE The local officials have outlined certain goals towards achieving a clean electricity for the state which the government must keep to. First goal is to keep rooftop solar growing to fight climate change and build a safer, more resilient grid: Increasing the pace of rooftop solar and battery adoption is critical to meeting California’s 100% clean energy goal. It also provides resilience in the face of power outages, empowers consumers with better choices to control their energy bills, and supports nearly 75,000 jobs in every corner of our state. Prioritize equity: bring rooftop solar and storage to more low-income families and communities: Equity and low-income access to
clean energy’s benefits are paramount. Today, rooftop solar is growing in lower- and middleincome neighborhoods, including on affordable multifamily apartment buildings. We should accelerate this trend so that more of California’s Environmental Justice and Social Justice (ESJ) communities and renters benefit from the wealth, savings, reliability, resilience, health and workforce benefits of local clean energy. This will ensure ESJ communities are not left behind by the clean energy transition, but instead are leading it and protecting themselves against the impacts of climate change. Make solar-charged batteries standard with rooftop solar by 2030: Solar-charged batteries reduce strain on the grid and can help accelerate the retirement of polluting fossil fuel power plants. They also allow people to keep their lights on and food fresh during power outages without turning to dirty and dangerous backup generators. On the heels of California achieving one million solar rooftops last year, we should now strive for one million solar-charged batteries by 2030. California is among the national leaders in solar power and this means that soon, clean energy will be completely achieved. Green energy is gaining power, therefore you need a home that will save you energy costs and utility bills. Feel free to reach out to one of our agents to get you your dream home.
JANUARY 2022 | 9
California Among National Leaders in Solar Power, Electric Vehicle Adoption, and Battery Storage Growth
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alifornia ranks first in the nation for growth in solar power generation since 2011, cumulative electric vehicle sales through 2020, public electric vehicle charging ports, and growth in battery storage since 2011, according to a new report released today by Environment California Research & Policy Center. Renewables on the Rise 2021: The rapid growth of renewables, electric vehicles, and other building blocks of a clean energy future documents the growth of six key clean energy technologies across the U.S. over the past decade: solar power, wind power, battery storage, energy efficiency, electric vehicle, and heat pumps. California has seen a 23-fold increase in the amount of electricity it gets from the sun since 2011; as of 2020 California’s installed solar capacity provides almost a quarter of the state’s electricity, enough to power over 4.5 million typical American homes. California also had a total of 772,421 electric vehicles on the road and ranks first in electric vehicle adoption. This analysis comes as beneficial rooftop solar programs like net metering, which requires utilities to buy back excess solar energy from residential solar users, which may be under threat as a new version of the program will be released by the California Public Utilities Commission. 10 | JANUARY 2022
The state’s net-metering program serves as the bedrock of our renewable energy program by making it more affordable and attractive for residential users to install solar, and generate more clean energy for their communities and beyond. GOVERNOR NEWSOM ENACTS POLICIES TO SUPPORT CLEAN ELECTRICITY Strong and supportive policies, such as netmetering, combined with improving technologies and falling prices, have played a key role in driving the adoption of rooftop solar panels among residential users. State agencies should protect and expand such policies to continue to increase solar panel adoption moving forward. Governor Newsom for enacting some important new policies today that will protect communities and support a just
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POWER GREEN
transition to clean energy broadly. Still missing, however, is bold action to accelerate California’s clean electricity goals Environment California Research & Policy Center states that California is truly setting the pace in the race toward 100% clean and renewable energy. Californians can look forward to a cleaner, healthier future, thanks to our state’s leadership in renewable energy. Beyond topranking growth in solar energy, California is leagues beyond the rest in electric vehicles sales and charging ports. Transportation is the most polluting industry in our state, so it makes sense that nearly half of all national EV sales have been in California.” In addition to highlighting states that have made the most progress in adopting renewable energy technologies, the research also details the rapid gains achieved nationally over the past decade. According to the report, America produced almost
four times as much renewable electricity from the sun and the wind in 2020 as in 2011. Additionally, if wind, solar and geothermal generation continue growing at the same 15% annual rate, renewables could meet the nation’s electricity needs by 2035. Millions of Americans and Californians are already reaping the benefits of the dramatic clean energy progress we’ve made so far. However, legislators and innovative people have contributed toward the achievement of this feat. As California leaders debate how best to invest in the future of our state, they should focus on helping clean energy thrive. Governor Newsom should keep the momentum going by accelerating California’s transition to 100% clean energy. With the world driving towards green energy, it’s important to note that the housing market will not be left behind. Some landlords and homeowners are already building green estates. Why don’t you tap into this opportunity and get yourself a nice apartment devoid of harmful carbon emissions? Contact Eric Frazier to help secure your next comfortable home. JANUARY 2022 | 11
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POWER ECONOMICS
Inflation is up in California:
What does this mean for the real estate market?
The sky-high prices don’t end with house prices or rents. Thanks to the rising inflation, Americans are paying more for everything; gas, groceries… everything. And of course, many first-time buyers are worried (as they should) because the rising inflation means they will not be able to buy a house. But, remember, even before the inflation hit, home prices had already blown out through the roofs. So inflation just made it worse. To address this issue, George Ratiu, the manager of economic research at Realtor.com, said that the rising inflation impacts people’s salaries and 14 | JANUARY 2022
weekly incomes, which are not rising at the same rate as inflation. Therefore, people end up with less discretionary money to spend each month. The Consumer Price Index, which measures the cost of goods and services, shows that home prices rose 0.5% last October alone. The index considers rent and the owners’ equivalent rent- or the amount the owners pay to suppose they rent their home. In August last year, home prices had risen 19.8% year over year, according to the S&P CoreLogic Case-Shiller Indices. SO WHAT DOES THIS MEAN FOR THE REAL ESTATE MARKET? Well, the first-time buyers will have to lower their budgets. Rising inflation means less disposable money each month. In addition, rising inflation simply means their monthly mortgage payments would be impacted for those who already
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ome prices and rents have been sky high throughout the year, rising almost every month.
are homeowners with mortgages since they are already paying higher prices elsewhere. According to an analysis done by Realtor.com, homebuyers of a median-priced home are already spending $160 more on their monthly mortgage payments than they were a year ago. And that’s just the beginning. With inflation expected to continue rising through 2022, the rate could climb. “Generally, as we see inflation go higher, we are going to see mortgage rates go higher,” Ratiu commented. Historically, real estate has always been viewed as a hedge against inflation. Although, in the past, home prices have kept up with inflation. When you have a mortgage, you lock a fixed monthly payment for the life of that loan.
Homes are expensive now ... but for most people, the comparison that is most important is how that cost of homeownership is going to compare to the cost of renting, Zillow senior economist Jeff Tucker said. At the same time, rents are expected to blow out, rising higher than ever before. Unlike mortgage payments, rents are unpredictable, with broader inflation causing rents to increase unpredictably. “If wages are rising or if the cost of building materials and appliances and light bulbs and paint is rising, all of these to some extent will flow into the cost of maintaining and building rental homes,” Tucker said. You need to understand that there is a symbiotic relationship between the rental market and the home buying market, and they both feed off of each other. It will cause the other to hurt even
more when one is hurting. For example, there has been a persistent lack of available houses for sale, which drove home prices higher. The many buyers that were priced outran to the rental market to buy time, hoping that prices of homes would eventually go down (which hasn’t happened), which drove rental prices higher up. In fact, according to CoreLogic, this imbalance in supply and demand impacted the rental prices, causing them to rise 10.2% nationally in September Y-o-Y. MY ADVICE TO BUYERS IN CALIFORNIA The market is hot, hotter than it’s ever been, which and by the looks of things, this is not about to change. So whether or not it is worth buying a home right now depends on your situation. But for many people, owning a home is all about having a roof over their head, and even though homeownership historically has been viewed as a good investment, there are instances when home prices have declined. This is not to discourage you, but with inflation rising, it is best to consider your budget and time frame. If, for instance, you plan on staying in your new home for more than three years, it would make a lot of sense. Also, it is essential to consider how urgent you want the house. Remember, with few units in the market right now, buyers faceg very stiff competition and are getting beaten by far more aggressive bidders. As such, if buying a home isn’t that urgent, you can postpone home buying till spring which, by the way, Realtor.com predicts will be an easy time for homebuyers. One survey in the fall of 2021 of about 1,300 American homeowners found that 26% plan to sell their homes this year. “I think 2022 has the promise of providing less competition, a lot more homes to choose from, and, as a result, a lot more approachable prices,” Ratiu said. JANUARY 2022 | 15
POWER ECONOMICS
The 13 regions will receive up to $5 million in planning grants under the community fund. The regions include the Inland Empire, Los Angeles County, Central San Joaquin Valley, and others.
The Governor participates in a fireside chat at the 2021 California Economic Summit in Monterey. Photos by Roby Behrens for California Forward.
The fund was created to promote sustainable and equitable recovery from the economic distress brought about by covid-19. Mainly, the fund will support new plans and strategies to diversify local economies and develop sustainable industries that create high-quality and accessible jobs for Californians. Specifically, CERF would help communities and regional groups produce regional roadmaps for the recovery of the California economy and a transition that prioritizes the creation of accessible, high-quality jobs in sustainable industries. The 13 regions set to benefit directly from the CERF program were chosen mainly based on an analysis by California’s Labor market Information Division and other macro factors, including the region’s population, geographical scale, its size, among many others.
Highlights of the 2021 California Economic Summit
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he tenth annual 2021 California Economic Summit saw the California Governor, Gavin Newsom, participate in what was termed as a fireside chat in Monterey. The governor mainly discussed his California Comeback Plan, a series of bold steps, investments, and initiatives to equitably grow California’s economy while also making the state more environmentally sustainable. The highlight of the 2021 California Economic Summit was perhaps the discussion that formed around the Community Economic Resilience Fund (CERF). The Director of the California Office of Planning and Research, Samuel Assefa, gave a public comment regarding the proposed 13 regions that will receive the grants. 16 | JANUARY 2022
Termed as the SB 162, the Governor for California signed the $600 million bill in September, and it is aimed at helping the local economies recover from losses due to the pandemic. Additionally, the bill will promote equitable recovery from the pandemic, support the local groups in recovery and increase investments. “What defines this conference is this bottom-up notion to regionalization, collaboration, and partnerships. This CERF investment will support your efforts at the local level to make sure that our economic recovery is felt by everybody. And to make sure that we’re focusing on the divide, particularly that urban-rural divide.” Last year’s economic summit was hosted by the California Forward (CA Fwd). This nonprofit organization uses collective action to develop equitable solutions to the state’s problems. Last year’s summit was mainly centered around conversations, and informational sessions focused on equity, environmental sustainability, and economic growth pertaining to local governments. The conference concluded with the leaders committing to assist and build back regional economies in the state. As a result, the 2022 California Economic Summit will take place in Bakersfield, California, on October 27 and 28.
POWER REAL ESTATE
Buyers Brace Yourself! 2022 Might be Tough
U.S Home Listings Hit an All-Time Low
Despite the difficulties faced in 2021, buyers have managed to stay in the game due to interest rates. However, buyers at the lower end of the market will be pushed out slowly, with rates and prices edging up. First-time home buyers are already getting priced out of the market at an increasing rate, and higher prices have pushed the percent of those who can afford a house below 30% for the first time in many years. Examining home prices in the 100 largest U.S. metro areas, Harvard’s Joint Center for Housing Studies found that in 2020, a household earning 18 | JANUARY 2022
50% to 80% of the area’s median income could afford to buy a home in only 39 of those metros. While these rates may sound grim, the rate of affordable metro areas dropped to 20 percent in 2021. PREDICTIONS FOR 2022 Andrina Valdes, COO of Cornerstone Home Lending, Inc., pointed to statistics from a variety of housing authorities — including Fannie Mae, which predicts a 7.4% home appreciation for 2022, and the National Association of Realtors, which predicts a 2.8% appreciation for existing homes and a 4.4% appreciation for new homes — when explaining her prediction for home prices in 2022. Although home values may not depreciate, the rate at which home values are appreciating is expected to slow down. Buyers need to be more creative with their offers to beat the competition because housing will be highly competitive. The determination of buyers who aren’t giving up until an offer is accepted guarantees that competition will remain intense, especially in desirable metros. Prices may go
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2022
might be challenging for buyers hoping to become homeowners as home listing hits an all-time low. This difficulty is not a result of the buyer’s individual financial choices but the inability of the market to supply affordable houses that keep pace with current demographics. The rate at which home values are appreciating might slow down in the next year, and the number of prospective buyers actively searching for a home has dropped.
up, rates may rise, inventory could expand, but there’s one certainty we can predict: People will keep buying houses, and affordable homes will remain hard to find. The inventory of existing homes for sale grew throughout 2021 but stayed low enough that we’re still nowhere near a buyer’s market or even a balanced one. On top of that, affordable homes are even harder to find, as scarcity — among other forces — drives up prices. Buyers should expect a very competitive market through 2022, with multiple offers on most of the properties you are interested in. Available inventory is still low, but it is slightly higher than at the start of 2021. The supply of available homes will likely increase throughout the next year, it is still expected to be much lower. The housing market has improved due to the limited supply
of homes for sale and increasing butter demand with low-interest rates and stimulus payments. Undoubtedly, the market will continue to emerge strongly in 2022, but with continued low supply. While it is believed that the demand for housing and the entire housing market won’t be heated as of 2021, as buyers, you need to brace yourself. As you start making plans for the new year, you must consider housing ownership. With the U.S home listing hitting an all-time low, it might get difficult to get yourself a home. All you have to do is reach out to The Power Is Now Media agents. You will get access to 100% affordable housing loan programs and state homebuyer assistance programs. All you have to do is reach out to Eric Lawrence Frazier, MBA.
JANUARY 2022 | 19
POWER LENDING
Lenders Should Step In
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and be More Proactive About Serving the Underserved in 2022
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he 1968 Fair Housing Act is one of the rules protecting the rights of underserved regarding the inclusion of diverse people in the sale, rental, and house financing. Underserved communities were impacted by the pandemic resulting in house ownership challenges. However, it is important that lenders step in and be more proactive in including the underserved in 2022. The homeownership issues that keep plaguing underserved communities most especially community of colors must be solved. While top realtor seeks to target the longstanding and unacceptable barriers to home buying 20 | JANUARY 2022
programs and accessibility, lenders must join in achieving measurable positive change for diverse communities. House ownership gaps must be reduced, and lenders can begin by increasing equal access to housing loan programs, buyer assistance programs, and easy repayment. Of course, undeserved communities just like other community face house ownership challenges like high house prices, mortgage, and loans. However, lenders need to utilize tools to build and retain relationship with these customers and offer financial counsel. The underserved must be empowered with tools and services that provide awareness and liquidity options to help avoid problems.
PROACTIVE LENDING MEASURES BEST FOR UNDERSERVED There is no doubt that lenders need to be more proactive by enhancing credit monitoring and prevent deficits. Many underserved have limited access to affordable credit and housing loans. Top financial institutions like SunTrust, Wells Fargo, and Bank of America have in recent years subjected the underserved into subprime mortgage deals, overcharge on loans, and other breaches which they had to settle with the Justice Department (for $21 million, and $175 million, and $335 million respectively). Lenders need to be proactive by: • TACKLING THE HOMEOWNERSHIP DIVIDE Undoubtedly technology has impacted the financial industry, but the underserved population most especially low-income and people of color have been excluded. Over 27 percent of U.S household are underserved which shows that they lack access to financial services and housing programs. While top financial institutions and realtors seek to address homeownership divide, more lenders must boost accessibility. This is to ensure that low-income homebuyers are able to secure housing loans with no down payment. House
ownership of the underserved communities needs to be taken as seriously as lenders take other house ownership. Take action to address racial discrimination in the housing market, including by launching a first-of-itskind interagency effort to address inequity in home appraisals, and conducting rulemaking to aggressively combat housing discrimination • FLEXIBLE TOOLS Lenders should include consumer-friendly overdraft protection to help consumers so they are not subjected to high payday loan fees. Giving customers flexibility and control while encouraging financial accountability leads to the best outcomes especially in serving the underserved in 2022. Simple and intuitive tools that encourage smart money habits using exceptional UX, AI and automation must be available. Every citizen needs access to fair housing without any discrimination or disparity. While you are considering your financial status, you shouldn’t let it hinder you from becoming a homeowner. You can be a part of our fair housing program in collaboration with top real estate agents. With fair housing, you can access loans with low to no down payment.
About Farrah Wilder As a former civil rights attorney and REALTOR®, Farrah has a proven track record and deep expertise in homeownership issues that impact underserved communities and communities of color. She hopes to target the longstanding and unacceptable barriers to housing access and achieve measurable positive change for diverse communities throughout the state. In her various roles as a volunteer leader, Wilder has chaired a variety of committees, contributed to the development of residential real estate policy, and lobbied federal, state, and local lawmakers. To know more about Farrah Wilder, go to; https://www.linkedin.com/in/farrah-wilder
JANUARY 2022 | 21
POWER TECHNOLOGY
Did you know that Technology with All of its Dangling Parts Can Really Mess Up an Open House?
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aving a home is, without doubt, a big investment as a home seller but you don’t want to let the small or big fixes around your house that have added up over the years sabotage your bottom line during a resale. Buyers and home inspectors will notice any maintenance issues during inspection. You need to make upgrades and make reparations before potential buyers and inspectors tour your property. Potential buyers want a move-in ready home. While you may be wondering what is likely to turn your potential buyers off, technology with its dangling parts can mess up an open house and turn your buyers off. We rely on so many gadgets and devices to run our lives these days, but in many cases, our homes were never designed to handle all of these modern conveniences. You may have mounted your flatscreen 22 | JANUARY 2022
TV, placed Google or Amazon devices on your kitchen counter, or left your cordless vacuum hanging it’s charging station in your garage. When it comes time to sell your house, these devices may prove to be something of a distraction to potential buyers. Especially if they are draped across your walls, dangling from the furniture, running across the counters and hanging from the ceilings. PROPERTY TURN-OFFS THAT DISTRACT POTENTIAL BUYERS If you are considering an open house, you need to take note of things that can be a distraction for buyers. Avoid clutter or having your stuff hanging around in unusual places. It gives potential buyers the impression that the house lacks adequate storage. There is nothing wrong with having technological devices but potential buyers probably have all of the same devices you
have, maybe even more! When they visit your house remotely through photos and videos, or in person at a private showing or an open house, they will consider the house a mess and might reconsider buying the property at all. Buyers don’t want to spend extra money drilling the walls, adding more outlets or cables when they finally move in. Granted, in this crazy sellers’ market, this is likely to be a small point of contention when sellers have multiple offers, often over the asking price. But depending on the degree to which your cords are dangling out of control, it may turn into a bigger deal than you think.
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Put more effort into repairing your house before putting it out for sale. Here are some tips: You can hide the charger cables, Alexa or Google power cords, and bedside lamp cords down the back of the bedside table. Take the power strip off the bedside table and hide that
cord behind the table and run the cord behind the bed to the outlet. As for the flatscreen TV and its associated sound equipment, whether in a bedroom or bonus room for gaming or in the family room for traditional family viewing or streaming, give some thought to figuring out how to hide the cords in the walls behind, around or below the equipment. This may turn into a straightforward DIY project or may require a handyman or even an electrician. This all depends on your skill set, tool kit, home design and budget. Regardless of the remedy you choose, the more you can do to either temporarily or permanently find a place for your cords and cables, the neater and more attractive your home will be. You don’t have to spend a lot of money on repairing your house for sale. Our real estate agents here on the Power Is Now Media offer the best counsel and also help achieve maximum success. Our agents will help get your house ready for sale. JANUARY 2022 | 23
Since the founding of Bitcoin by Satoshi Nakamoto in 2009, it has continued to make waves in this digital era and has contributed to businesses who has utilize its benefit. Bitcoin have an estimated supply of 19,000,000 BTC coins with a live price of $47,852.39 USD. Digital payments have helped to democratize finance and keeps contributing to income and wealth inequality. Bitcoin has been regarded as the currency of the future because there is no doubt that it’s coming to stay. The number of users investing, trading, and making transactions keep surging.
The Currency of the Future? How Is Bitcoin Poised to Bridge the Finance Gap?
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igital currencies like Bitcoin often make headlines for the massive swings in their value, but beyond the intrigue of skyrocketing and plummeting prices the rising popularity of cryptocurrencies poses serious questions for financial institutions and monetary policy. Bitcoin did not only offer accountability to users it offers transparency as well. Digital currency is impacting different sectors especially property ownership by bridging the finance gaps by increasing financial inclusion. The future of digital currencies has remained uncertain due to its fluctuation of prices and value which makes it unsuitable for daily transactions. However, it has become crucial to users as an alternative to traditional fiat currency. Users won’t have to be subjected to the complexities of the bank, high transaction fees, or high return rates. Undoubtedly, Bitcoin is definitely an option for low-income individuals and the entire finance sector. Bitcoin Important to Bridging Finance Gap Bitcoin boost accountability and transparency in all transactions including property ownership. As a financial asset, bitcoin allows more people to own property in a very transparent manner. Accountability 24 | JANUARY 2022
is considered one of issues hindering the underserved from owning a property. However, bitcoin’s blockchain technology has encryptions that ensure transparent ownership and transfer ledger. The ability of bitcoin to give the less fortunate ownership of property is one way of ending poverty. Blockchain technology only requires one to have a smartphone, which is quite plenty in developing countries today. That means even low-income families can quickly sign up with bitcoin to start acquiring property. While you are wondering how Bitcoin will bridge the finance gap, it starts by offering relatively Lower Transaction Fees. Traditional financial institutions and even credit companies are rapidly adopting blockchain technology. Its main advantage is that it significantly cuts the transaction fees. Bitcoin transactions are dependent on blockchain technology instead of third parties that banks and other lenders typically use. In almost every transaction, they assign an intermediary to oversee the exchange process. Traditional fiat currency has created lots of complexities especially regarding the fees and speed. Bitcoin solves that by ensuring fast, safe, and cheap transactions. People can now own property without a high financial burden. There are increased financial inclusion as the value of Bitcoin keeps surging. The underserved has always been excluded from opportunities and employment. Bitcoin does not require high technical skills except a digital device like a smartphone and internet access and can be accessed by any individual regardless the financial status. Besides, today, there are plenty of platforms, such as Bitcoin Prime App that the public can join to learn online trading. That supports financial inclusion, ensuring that even the less-educated and unemployed can access capital and trade. The real estate sector is one of the fast digitalized sectors that explores the benefit of digital currency like Bitcoin. Are you planning to explore the benefit of accepting cryptocurrency as a mode of payment? You can reach out to The Power Is Now Media. Our experienced real estate agents will guide you on the right type of payment to use. Don’t hesitate to reach out to our experts today to discuss different aspect of using digital currencies in property ownership. We can help you to achieve your dream of becoming a homeowner. Contact one of our agents on our website at www. thepowerisnow.com.
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Commercial Real Estate Trends for 2022 By Steve Peterson
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fter nearly two years of unprecedented transformation, the Commercial Real Estate (CRE) industry is at a crossroads. But, according to projections, In 2022, the economy and CRE markets will continue to recover, and setbacks from Covid-19 flareups will be brief. A rising tide may elevate all boats, but not all boats are equal. That is, CRE is for you. Almost every sector of this huge industry will recover from the first shock of the pandemic-induced shutdowns. However, some will recover far more quickly than others. With a rent increase of 5% in the new year, the industrial and multifamily sectors appear to be the most promising, followed by retail and office CRE (0.6%) and REITs. According to The Fall 2021 Real Estate Economic Forecast, which is based on a survey of 49 economists and experts from 36 major real estate organizations, CRE property prices will rise by 7% in 2022 based on the price index. Despite financial concerns and a changing regulatory environment, there is a general sense of confidence about the fundamentals. Eighty percent of respondents believe their institution’s revenue will be slightly or much higher in 2022 than it had been in 2021.
COMMERCIAL REAL ESTATE FORECAST FOR 2022 •
Multifamily housing will remain popular as well According to the National Association of Realtors, multifamily investors can expect solid demand to support rising rents in most locations across the country (NAR). In its fall forecast, the trade association noted that skyrocketing property prices, which hinder affordability for many people, and building activity that lags demand, will all continue to be factors.
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The retail industry will continue on its erratic path - Essential brands will remain solid tenants and anchors for landlords. But, at the same time, individual entrepreneurs may be the best option for filling strip malls and downtown space previously costly.
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The Federal Reserve, Interest Rates, and Inflation -During 2022, inflation will continue above trend, although it will progressively decrease as the year passes. In the second half of 2022, the Federal Reserve will begin gradual, moderate increases in its short-term interest rate objective. Long-term interest rates are expected to decrease, making commercial real estate financing appealing.
Labor shortages, logistics concerns, travel restrictions, inflation, and the unchanging rule of supply and demand will all continue to influence CRE in 2022. As a result, CRE executives must alter their methods to obtain greater long-term success. In addition, the real estate business still has a long way to go in terms of achieving equitable representation. CRE executives should therefore place a high priority on social concerns as well as diversity, equity, and inclusion programs. However, as we approach 2022, there is optimism that we will do better as far as commercial Real Estate is concerned. With all of the optimism surrounding the CRE market, you can finally own that retail store, office building, or warehouse facility you’ve always wanted. All you have to do is reach out to me today at 408-509-0700.
ABOUT STEVE PETERSON Steve Peterson CCIM is the Broker/Owner of Infinity Investments, and therefore, CRE executives should commercial real estate brokerage and investment firm based in Oakland, California. His focus and expertise are in apartment buildings, but he has experience in office and retail property, working as both a broker and principal. Steve has been in the commercial real estate business for 15 years as an investor and a broker/agent. To find more about Peterson, go to; https://www.thepowerisnow.com/steve-peterson/ JANUARY 2022 | 27
Let’s talk about affordable housing in San Francisco by Norman Green
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he housing market in San Francisco is one of the most costly and unaffordable in the country. San Francisco has a median home value of $1,522,827, which is more than one million dollars higher than the national average. San Francisco County’s median single-family house price is $1,822,000 depicting a 12.1 percent increment from last year. The average rent for a onebedroom apartment in San Francisco is $2,792 as of November 21, 2021. This represents a 3 percent rise over the last year. The average monthly rent for a studio apartment in San Francisco has reduced by 1 percent to $2,025 while the average rent for a two-bedroom apartment is currently $3,800. This represents a 6 percent increment over the last year. With 323, the number of closed sales increased by 13.7 percent year over year. According to C.A.R., real estate in this market has increased 91.99 percent in the last decade, resulting in an average annual home appreciation rate of 7.3 percent. Housing supply inventory is at 2.1 months, reflecting increased demand
from purchasers. The value of the residence has increased by 14%. 14.6 days on the market is the average number of days that a home stays in the market. The unsold condominium inventory index is currently at 3.1 months, and the continuous oversupply is finally decreasing condo median prices. This is why people simply do not want to live in heavily populated regions, particularly apartment complexes with shared common areas. Lenders and banks’ low mortgage rates have a direct impact on buyers’ capacity to afford homes. The insane supply-demand imbalance has been caused by low inventory caused by fewer new home builds. According to the California Association of Realtors, there has been an uptick in demand for singlefamily houses in the suburbs for some time. It is because the majority of people were relocating from the city to the suburbs, leading suburban property values to climb in comparison to single-family homes. Even if demand in suburban areas remains robust, many real estate professionals
believe that the San Francisco housing market has begun to cool. The pandemic has increased migration out of major cities, and it appears that the majority of the relocation will be permanent. Some of the most significant pandemicrelated disruptions have occurred in San Francisco. Purchasing a home in San Francisco, as predicted, will get more expensive. Despite hitting new highs each month in 2021, the dearth of available inventory and rising demand are likely to boost home values by up to 8.6% in the next 12 months. Foreclosures in San Francisco are expected to rise: For the better part of a decade, foreclosure moratoriums and government help kept banks from foreclosing on struggling homeowners. It’s more of a ‘luxury’ market, with only the most affluent real estate investors likely to be able to afford San Francisco houses. In typical and average standards, the housing market in San Francisco is expensive for most people and will remain so until next year. This does not, however, rule out the possibility of owning your ideal home in this hot market. Homeownership is easier than you think with the appropriate and trustworthy realtor on your side. To find out your homeownership options in this market, reach out to me today at 650-296-5210. JANUARY 2022 | 29
Rents are on the rise in Texas You should be thinking about homeownership By Johnnie Morine
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ccording to the National Association of Realtors (NAR) most recent survey, apartment rentals are rising across Texas. Like the rest of the country, major cities in Texas are seeing double-digit annual increases in the cost of renting an apartment. While the national average rent has climbed by around 11 percent in the last year, rents in North Texas have jumped by nearly 16 percent. A one-bedroom apartment costs $1400 per month on average, and a twobedroom apartment costs $1700.
anticipation that new apartment complexes will be created, which will assist in slowing rental hikes. On the contrary, this may not be the best way to keep up with Texas’s population increase. According to Lynch, current occupancy levels are at 96.5 percent, with future increases. To relieve tenants’ stress, landlords are urged to issue a 30-day notice of a rent increase before it takes effect. Tenants have the right and are encouraged to bargain, so if they have just a few months remaining on their lease, start now to see whether the landlord is open to such a dialogue.
The tight housing supply in Texas is outstripping demand due to the decreased number of new units being built and the increased number of individuals migrating to Texas. Furthermore, eviction rates are high across Texas due to the pandemic, just like they are in every other state. It is affecting primarily low-income residents.
Renting appears to be less expensive than purchasing a property. There are no repair and maintenance duties, low upfront expenditures, and flexibility. Instead, think about the advantages of buying a property. • It’s an excellent long-term investment. • consistent monthly payments
There are no rules in Texas that protect renters from rising rents. Other variables from the epidemic pushing rent prices even higher include increasing building materials, labor, energy, natural gas, and property taxes. “These increased labor costs and operations are nearly passed through to the tenant, and it does boil down to the typical supply and demand equation. So that’s why you’re seeing these big increases in rents,” said Professor Julie Lynch, an associate director of the Weitzman Institute of Real Estate. As the state’s apartment supply grows, there is
• more personal space • Tax advantages from the federal government • lower Interest rates • Increasing your net worth All of the benefits of owning a home outnumber those of renting. Decide on homeownership as the superior alternative. Avoid the ambiguity of monthly rent increases. It is the most costeffective financial move you can make for yourself and your family. With as little as you have, build your ideal home in Texas. Wondering how you can do that? It’s simple, reach out to me today through 817-266-6629, and let’s talk about your options for homeownership. JANUARY 2022 | 31
By Sharon Bartlett
Which mortgage is right for you? Part IV 2022 Complete Guide to Conventional Loans
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ast month, we looked at the FHA loans, what they are and how you can qualify for one. This month, we look at conventional loans. Conventional loans, unlike federally insured loans, are not backed by the government.
Conforming loans: which, just as the name suggests, conforms to a particular set of standards that have been put forward or in place by the Federal Housing Finance Agency (FHFA).
In most cases, and I find this is by default when people are talking about mortgages, they are more often than not thinking about conventional loans. But, and there is a reason for this, conventional loans have evolved over the years to become the type of loan closer to a standard mortgage. This means that with a traditional loan, there are no special eligibility requirements whatsoever. Almost every lender offers these types of loans and, individuals can qualify with as little as 3% and a 620 credit score.
These standards could include anything including a range of factors about the credit and debt. However, one of the main pieces is the size of the loan. This year, the conforming loan limit is $647,200 in most areas and $970,800 in the most expensive areas.
Conventional loans come in two packages;
Non-conforming loans: these loans do not meet the FHFA requirements. They might be the loans designed for larger homes or offered to the borrowers with subpar credit. Some of the non-conforming loans are intended for people who have gone through financial hardships such as bankruptcy. JANUARY 2022 | 33
REQUIREMENTS OF THE CONVENTIONAL LOANS The requirements will vary from one lender to the next, but all the conventional loans must meet specific criteria specified by Fannie Mae and Freddie Mac. These requirements are; • A minimum credit score of 620 • A debt–to–income ratio lower than 43% • A down payment of at least a 3% If you apply for the conventional loan with better
credentials, say with a DTI of 30% or a credit score of 740, it would mean that you will access lower rates and a more down monthly payment. However, it is essential to mention that if you only meet these criteria on edge, meaning that you have a credit score of 620, a DTI of 43%, it is important that you spend time learning the market. Shop around for lenders willing to offer you better terms, do not just settle for the first lender you find. Do some digging around till you find a lender that you are comfortable with.
Note: lenders will set their own set of requirements and rules for the conventional loans as long as they are within the conforming limits set by Fannie Mae and Freddie Mac which means, while there will be those setting their rates and terms higher than the others, you will still get lenders who are very flexible and will offer rates to match your situation. DO YOU NEED A 20% DOWN PAYMENT WITH CONVENTIONAL LOANS? This is one of the most common misconceptions I see thrown around quite often. You do not need a 20% down payment to qualify for conventional loans. You can get one with as little as 3% down. But, here’s the catch, there are six mortgage options for a conventional loan down payment requirements ranging from 3% to 20%. These are; • • • • • •
Conventional 97 loan – 3% down Fannie Mae HomeReady loan – 3% down Freddie Mac Home Possible loan – 3% down Conventional loan with PMI – 5% down Piggyback loan (no PMI) – 10% down Conventional loan without PMI – 20% down
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What you’ll realize is that in today’s market, from the conventional 97 loans to the Freddie Mac’s Home Possible loan, the low down payment loans are prevalent. I know you are curious to know, if the 20percent down payment requirement is just a myth, why has it become so popular. This myth was popularized by the shoppers who did not like the idea of paying for private mortgage insurance. If you put less than a 20% down payment, the lender will require you to pay for the PMI to protect the lender in case of loan default. PMI will increase the amount you pay at the end of the month, but that is okay since, on the flip side, you get a conventional loan with a down payment that you are comfortable with. Additionally, note that PMI can be canceled
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later on once your home reaches a 20% equity. Therefore, it is not something you’ll be forced to stick with. CONVENTIONAL LOAN RATES The conventional loan comes with pretty low rates, making home buying much more affordable. As per the date of writing this article, conventional loans average rate was 2.82% (2.843% APR) for a 30–year, a fixed-rate mortgage which is the most popular type. On the other hand, for the 15-year conventional loan, the average rate was 2.125%. You need to understand that conventional loans are heavily reliant on the applicant’s credit scores, so much so that a person with a 740 score and a 20% down payment almost instantaneously offered about a .50% lower rate than the buyer with a 640 score. In addition to the credit score, lenders base their rates on another factor is the Mortgage-backed securities (MBS), which are traded just like the stocks. This, therefore, means that the conventional loan rates will fluctuate daily.
HOW TO LOCK IN THE BEST AND LOWEST RATE IN A CONVENTIONAL LOAN MARKET One of the best ways you can lock in a reasonable rate is by watching the market movements, and this way, you will spot a reasonable rate once you see it. It is also important to note that conventional rates will rise and sometimes drop depending on the financial news in the market. For example, if the Fed decides to cut its benchmark rate, the conventional rates might fall. This year, the rate for the 30 years fixed conventional loans rate has remained below the 3.5% mark for quite a while. It is not the lowest we’ve seen year-round, but it’s still very low, which means you can lock in the rates right now. But remember, the key thing with conventional loans is to do your homework, research as much as you can, learn as much and be ready to work with a lender who will be able to give you a personalized rate quote. If you would like to know more about conventional loans, reach out to me on a personal level at 214914-9272.
JANUARY 2022 | 35
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Is There Buyer Fatigue in Maryland? By Emerick Peace
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ccording to Redfin, statewide home prices rose 5.5 percent year over year in November. Simultaneously, the number of homes sold fell by 1.1 percent, while the number of homes for sale fell by 13.4 percent. The real estate market in Maryland is especially hot, with the demand for homes shooting through the roof. So hot that homebuyers in Maryland are struggling to keep up with how quickly homes are flying off the market due to intense competition. The hottest homes in Maryland sell on an average of 9.6 days after going on the market. Let’s take a look at the most popular real estate markets in Maryland right now. According to Norada, Maryland’s monthly supply of inventory in October dropped to 1.1, which means it will take just a month for the current inventory of homes on the market to sell given the current sales pace.
According to a Maryland Realtors report, the October 2021 housing market in Maryland continued its monthly trend of a decrease in units sold, down 8,665 in 2021, a 10.4 percent drop from the previous month’s figure of 9,676. Housing experts at Norada, project that the housing market in Maryland will remain tight for the foreseeable future, which will favor home sellers. In comparison to the demand from homebuyers, housing inventory remains very low. As a result, the median sales price has risen to $369,700, up 7.2 percent from last October. Homes are on the market for an average of 9 days, up from 8 days last year. The median represents the middle, with half of the households spending more time and half spending less time. Buyer demand typically slows in late summer and early fall as children begin the school year. However, Redfin analysts believe that buyer fatigue caused by high listing prices is causing some buyers to exit the market. A gradual increase in the number of available homes for sale this fall may also relieve some of the pressure on buyers. Another sign of a slowing housing market is the percentage of homes sold above their asking prices, which fell to 50% in the four weeks ending Sept. 5, down from 55% in July. During the same period, 47 percent of homes were sold within two weeks of being listed for sale, down from 56 percent in March 2021, the year’s high.
Baltimore’s appreciation rate has been 8.29 percent, according to NeighborhoodScout data. The most recent quarter’s appreciation rate in Baltimore was 2.61 percent, equating to a 10.85 According to WKRN.com, to overcome buyer percent increase (annual rate). Baltimore’s most fatigue in the housing market, you should recent annual appreciation rate is higher than that consider working with real estate professionals. of half of the state’s other cities and towns. In a market that’s seeing bidding wars, cash buyers, investors, and homebuyers should work Home sales typically slow around this time of alongside a qualified real estate professional year, and they have in Maryland, but pending who can guide them through the process and sales in the Maryland metro area in October represent their wishes to the seller’s agent. A were little changed from the same time last year. buyer’s agent oftentimes is there specifically Potential buyers’ online home searches have to advocate for you. They know the laws. They slowed, and real estate agent showings are down know the rules, and they’re bound to ethics. We 6.5 percent from a year ago. All of this points to recommend our very own qualified real estate the possibility of buyer fatigue. agents at The Power Is Now Inc.
JANUARY 2022 | 41
The Hispanic Community to receive A Boost in Homeownership at Kissimmee Center: Here’s How to Get It on The Action! By Adriana Montes
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or decades, homeownership rates among the Hispanic Community have lagged behind the White Community. And though that can be attributed to the US’s long history of housing discrimination, the language barrier also plays a role, often affecting financial literacy in this Community. However, the tide is beginning to change, with the number of Latinos owning homes in the US being the highest it has ever been since 2000; the Latino community is the only demographic in the US to increase their homeownership rate, which by the way, is projected to increase from 49 percent to 51 percent from 2020 to 2040, according to the 2020 State Hispanic Homeownership Report. Ameriuno Home Opportunity Center is on the vanguard, providing the Hispanic Community a pathway to achieving these projected homeownership rates. A bilingual mortgage services division of Ameri-first Financial Corporation will focus on Hispanics in Kissimmee, Florida, achieving the dream of homeownership. “The idea of a Home Opportunity
Center was born from a true understanding of what the Hispanic Community and those minorities who have been historically underserved by the lending industry through financial education, nurturing, and support through each step of the loan process,” said Ameriuno Managing Director Andy Insua. “The Ameriuno Home Opportunity Center aims to remove the barriers that have prevented them from owning a home: language, credit, down payment, documentation of income and a general distrust of banks.” The center will officially open in January 2022. It will be staffed with bilingual staff that will guide would-be-homeowners in the home buying process in a relaxed and welcoming setting in a language they are fluent in. The center’s layout is 1,500 sq. ft. and is more of a community center model than a bank model— making it ideal for family and loved ones to join in the significant financial decision. “Hispanics are very familyoriented, and we designed the Home Opportunity Center so that they can bring their loved ones with them as they mull over the
important decisions that come with buying a home. In addition, Ameriuno licensed loan officer will be available to help prospective home buyers understand the ins and out outs of securing a mortgage while their children are in a nearby playroom or watching a big screen TV.” Ameriuno first opened in Florida in August 2020, last year, targeting the growing Hispanic population. The company is a fully-fledged mortgage community that focuses on a wide range of mortgage purchase, refinance, renovation, and construction options, with their services including; FHA, USDA, and VA. All services that help renters qualify for a home loan through flexible credit guidelines, low down payment options, and lower overhead costs, according to Ameriuno.com. Ameriuno has an online resource website that can help you navigate homeownership. The website prompts you to engage them during your home buying plans, explain them to them, build, buy, remodel, refinance, or buy. The website also has articles and blog posts that will help you expand your knowledge on everything housing in a language you understand.
To learn more about the homeownership opportunities in Florida, reach out to me today at (321) 689-6258. JANUARY 2022 | 43
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Arizona Home Prices Are On The Rise So Make Sure You Are Not Priced Out! By Yvonne McFadden
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s we have seen, the Arizona real estate market has been thriving and has become sizzling hot in recent years. According to the Zillow Home Value Index, Arizona property prices have increased by about 182 percent, with a median home price of $455,000. Home rental costs are also on the rise. If you can keep your house and rent it out, do so. Because rental inventory is low, a percentage of tenants are unable to locate a place to reside. The average monthly rent in Arizona is currently over $2,000. There are almost 900,000 renter households in Arizona, accounting for 36 percent of the households. Rental prices in Arizona have become out of reach for many households, as reported by the National Low Income Housing Coalition (NLIHC). Too many low-wage workers have seen their incomes fall behind growing rents and house prices. Home values in Arizona have risen 31.3 percent from the previous year and will continue to hike at a similar rate in the future. It also raises the possibility that earnings in Arizona are not keeping up with rising home expenses. Hence,
some buyers can no longer afford to buy as prices rise. In a healthy market, the faster pricing rises, the more purchasers abandon the purchase. The 30-year fixed rate is currently hovering at a 50-year low of 2.75 percent. In addition, refinancing rates are now hovering at 2.45%, driving up property prices in Arizona. Before purchasing a home, purchasers should research mortgage rates from several lenders. Low inventory levels have enticed purchasers into the market, increasing demand and price increases. If you plan to sell, this is good news. For the foreseeable future, inventory levels are projected to remain low. Furthermore, living conditions have encouraged real estate investors and buyers to invest in the Arizona market. People from out of state continue to flock to the area because of the pleasant weather, prominent restaurants and shopping, and specialty school possibilities. There are no indicators that the Arizona housing market is slowing down. Seize this opportunity; get in touch with me today.
ABOUT YVONNE MCFADDEN I am a veteran in the real estate industry. My business has been extensive for over 30 plus years. My clients range from all walks of life. I recently added a foreign presence by becoming licensed in Dubai. I have fun with my clients while making one of the most important decisions of their lives. I take time to explain the process to guide them through tough decisions. WWW.THEPINMAGAZINE.COM
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Arizona gives $41 million to affordable housing and homeless aid groups PHOTO FROM 123RF
By Peggie Simmons
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ising rents and home prices, along with Arizona’s housing crisis, have made finding a place to call home more difficult than ever. As a result, Governor Doug Ducey and the Arizona Department of Housing have provided funds for housing programs to prevent homelessness for months. In addition, Arizona has received $40.7 million in federal stimulus monies to build transitional housing for Arizonans, especially Native Americans and people with special needs, as a proactive measure to address the state’s rising housing crisis. The money comes from the American Rescue Plan Act’s $4.2 billion State Fiscal Recovery Fund. Recently, the Housing Department announced a $197 million mortgage-aid scheme to assist homeowners who the pandemic has impacted. “ These funds will help families and individuals who are struggling access transitional housing options and equip them with the skills and support needed to secure permanent, reliable housing,” said Arizona Governor Doug Ducey. The following is a breakdown of the funds and how they will be distributed;
• The Arizona Housing Coalition will receive about $10 million. The funds will be distributed to homeless-aid providers around the state for programs and resources. • The Arizona Coalition to End Sexual and Domestic Violence (ACESDV) will donate $7.5 million to domestic violence assistance providers to house survivors. • Native American Connections (NAC) has been awarded $7.2 million to help fund the purchase of a 58-bed homeless transitional housing facility in the West Valley. • $5 million for Chicanos Por La Causa to hire staff to help with rental applications, housing relocation, and referrals to other community resources. • $4 million for domestic violence organizations serving Native American tribes, and $2.5 million for Home Matters to Arizona to expand affordable housing options and support providers that focus on transitional, homeless shelters. • Habitat for Humanity Tucson will receive $1,854,893 to establish a community-based job-training program to help people build and repair more affordable homes. JANUARY 2022 | 51
• One in ten will receive $500,000 to provide LGBTQ and Youth in need of a safe place to stay. In addition, Tanner Community Development Corporation will receive $434,276 to provide housing alternatives for nine homeless veterans. • $362,047 for Circle the City to create a street outreach team to improve mental health services for the homeless. • Native Americans for Community Action will get $300,000 to expand services for homeless people. • Primavera Foundation will receive $250,000 to spend for its charitable work.
these housing funds. Transitional housing is an excellent first step toward assisting more Arizonans in obtaining permanent housing. “Helping people who are experiencing homelessness and preventing it from happening to those who are struggling is a top concern for us,” says ADOH Director Simplot. Isn’t this the kind of treatment that most citizens would prefer? Owning a home should not be a pipe dream. If you would like to know how you would benefit from one of these programs, contact me today at 480-201-0654.
• $250,000 for First Place Arizona to offer independent living outreach, health programming, community engagement, and mental health coordination to neurodiverse Arizonans. • Southern Arizona Aids Foundation will receive $250,000 to assist counseling and housing initiatives for HIV/AIDS patients and LGBTQ+ youth who are homeless. • Tohdenasshai Committee Against Family Abuse will get $250,000 to recruit staff to help with child care at the Navajo Nation shelter and transportation to housing appointments and other services for victims. • In addition, $55,000 will go to Free Arts, which will provide art supplies to children in shelters and facilities. • Finally, $50,000 will go to Streets of Joy, which will provide shelter and counseling to underserved people with mental illnesses and inmates who have recently re-entered society, assisting them in their transition to a more independent lifestyle. Home affordability has become a ‘fantasy’ amid the housing market’s frenzy. However, Arizona’s government has made the best decision for its inhabitants by assisting them in distributing 52 | JANUARY 2022
ABOUT PEGGIE SIMMONS Peggie Simmons has 34 years experience as a real estate agent and broker in Tempe, Arizona, and currently serves as the Founder and CEO of Realty Marketing Group specializing in relocation, new homes sales, traditional homes, marketing & sales, short sale negotiations, foreclosures, luxury rentals, investments among many others. Peggie has a heart of gold, boldness, and unbridled enthusiasm that drives her passion. She has been a resident of Arizona since 1983, which makes her the perfect choice and your go-to real estate agent in Arizona. She is an Accredited Buyer Representative (ABR), a Certified Residential Specialist (CRS), a Multi-Million Dollar Producer, a Certified Short Sale Property Expert (CSSPE), and a Certified Distressed Property Expert (CDPE), all of which means you will be dealing with a highly qualified professional who knows what she’s doing. to read more about Peggie, go to https://www. thepowerisnow.com/peggie-simmons/.
Local insights about Corona, CA By Kamesha Keesee
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s published by Realtor. com Corona housing market continues to be competitive and hot. In November 2021, the median home prices were $699.9K a 24.5 percent November 2021, the median listing home price in Corona, was $699.9K, trending up 24.5% year-over-year. The median listing home price per square foot was $336 depicting a 21.9 percent increment from last year. The median home sold price was trended up 24.1 percent to $680K.The median list price of single family homes in Corona, was $709,425 in November 2021 , compared to $699,000 in last year while the median list price of Condos in was $545K in , compared to $327K The median home sale dropped to 329 compared to 329 homes sold last year. This is a clear indication that home demand in Oakland is still at its peak making it no news that it’s still a sellers’ market. This is mainly a result of the countrywide low mortgage rates and low inventory rates. The Corona Sale-to-List Price Ratio: 100.87% Many homes are getting multiple offers especially with waived contingencies. Average homes in Corona are selling for 2 percent above the national listing price within 30 days. On the other hand, hot homes are selling at about 4 percent higher than the median selling price with a market stay of 11 days. Generally, homes in Oakland sell after 30 days
which is an increment from last year. The median rent price in Corona like most cities in the United States has increased year over year Currently, there are 473 homes available for sale and 53 homes for rent. It has been months since the moratorium’s end and this has had an impact on foreclosure. Corona , like all states in the US, has experienced relatively high foreclosure rates and this is especially after the United States Supreme Court ended the moratorium extension. The state has a 1.4 foreclosure rate compared to the national average foreclosure rate of 0.8 percent. It is now more than never that most homeowners are willing to sell their homes rather than filing for bankruptcy. This is also to enable them to keep up with their mortgage obligations as most of them are behind their mortgage payments. Corona is one of the best and fast-growing cities in the US.it is therefore a perfect destination for any real estate investor. Now is the best time to develop your real estate investment in Corona , become a homeowner while the opportunity still allows. If you need the best and recent updates about the Corona housing market, reach out to Kenneth Session, a VIP agent of The Power Is Now Media Inc. Alternatively contact the CEO Eric Lawrence Frazier for MBA DRE 011433884/NMLS 461807.
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Many People Say Life in The Inland Empire Is Getting Worse and Many Want to Leave! By Demarco and Marisa Fletcher
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hanks to low-interest rates, the Inland Empire Housing market has seen an influx of buyers migrate into the area, driving home prices through the roof and it is not hard to see why. The Inland Empire has always been regarded as one of the most affordable areas of Southern California to live in. Besides that, since last year, the Inland Empire economy has added over 215,000 jobs, bringing unemployment down to 7.6 percent, the lowest level since 2015. Unfortunately, with so many people moving there, the real estate market has become red hot, making it extremely expensive to live there. Long-term I.E. residents say the high demand and low supply are having an impact on their neighborhoods. According to Norada, the median price in the Inland Empire increased by 17.6 percent year over year, with a median price of $529,000. According to realtor.com, the median listing home price in San Bernardino County, CA in November 2021 was $469.9K, up 17.5 percent year over year. The median listing price per square foot for a home was $295. The median sold price of a home was $465.5K. The median listing home price in Riverside, CA in November 2021 was $588K, up 22.5 percent year over year. The median listing price per square foot for a home was $327. The median sold price of a home was $585K, according to realtor.com Supply is critical to the market’s viability, given the region’s rapid population growth and high demand from competitive buyers. In the absence
of a supply of new homes, potential buyers may be put off by rising prices, which are expected to continue in 2022. The number of new housing units authorized by building permits in the Riverside-San Bernardino Ontario MSA has increased each year since 2012, according to the Federal Reserve Economic Data (FRED). However, the market is experiencing some improvements. Inland Empire business activity surpassed national growth in the most recent quarter, but signs are pointing to a slowdown going into 2022, with housing costs among the factors imposing constraints on labor, UC Riverside economists said Thursday. The UCR School of Business’ Center for Economic Forecasting & Development released its quarterly Inland Empire Business Activity Index, showing that area businesses experienced a 4.5% increase in consumer demand in the third quarter, compared to only a 2.1% increase nationwide. Over the next two quarters, regional business activity is likely to expand between 3% and 6% — below the levels reached in the first half of 2021, according to the center. This year has seen consistent job growth, particularly in the critical sectors for the local economy of transportation, warehousing, and utilities, which are up 3.9 percent year to date. The Inland Empire has always been regarded as one of the most affordable areas of Southern California to live in, but with so many people moving there, the real estate market has become red hot, which means extremely expensive. Long-term I.E. residents say the high demand and low supply are having an impact on their neighborhoods. JANUARY 2022 | 57
Riverside county home price appreciation Trends:
Home prices hit $535,000- 12th record high of the pandemic era By Ruby Frazier
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ccording to PE.com, Riverside County homebuyers bought fewer homes and paid more in October, with the median price reaching $535,000 — a new high. According to DQNews, Southern California’s six-county median sales price hit another record high in October — the 13th of the pandemic era — despite slowing sales. Low mortgage rates and a desire for larger living quarters have pushed up prices, though affordability concerns may be slowing the buying pace. According to Neighborhoodscout.com, Riverside appreciation rates in the latest quarter were at 7.67%, which equates to an annual appreciation rate of 34.42%. Relative to California, our data show that Riverside’s latest annual appreciation rate is higher than 80% of the other cities and towns in California. Across the region, 22,837 homes were sold, a 5.1 percent decrease for the month and a 6.6 percent decrease year on year. The median sales price was a record $690,000, up 0.4 percent month over month and 14.0 percent year over year. According to redfin.com, the Riverside housing market is very competitive scoring a 76 out of 100 with home prices were up 23.7% compared to last year, selling for a median price of $575K. On
average, homes in Riverside sell after 28 days on the market compared to 27 days last year. There were 320 homes sold in November this year, down from 367 last year. The pandemic home-buying frenzy pushed Riverside County’s median price to a new high of $546,750 in November, the busiest month since 2006, according to PE.com. According to DQNews, the six-county median sales price hit its 14th record high of the pandemic era in November, but that did not deter Southern California homebuyers. Mortgage rates that are a notch above record lows have combined with a persistent, hearty appetite for larger living quarters to drive up prices — through appreciation rates appear to be cooling. A possible recession in 2023 could also slow the pace of purchasing. Regionally, 22,426 homes were sold, a 1.5 percent decrease for the month but a 1.8 percent increase year over year. The median sales price reached a new high of $693,500, up 0.5 percent month on month. The median has risen 15.6 percent in a year. When compared to six months ago, prices were rising at a rate of 25% year on year. Firsteam.com projects that home prices in South California will not drop but will continue rising. However, according to the most recent CAR market report, prices are finally beginning to fall. Home prices in most of Southern California have remained stable in the last month, but they have fallen in Los Angeles. However, over the last year, all counties in Southern California have experienced double-digit growth. Expect prices in the California housing market to continue rising because inventory remains so low, but the dramatic month-to-month increases have slowed. Many expected COVID-19 to disrupt the real estate market and cause another housing bubble like the Great Recession, but the pandemic has only increased housing values. The real estate market is booming, thanks to lowinterest rates, stringent lender requirements, and a greater emphasis on our personal lives. JANUARY 2022 | 59
COVER STORY
Ruby Frazier INFLUENCER | WIFE | MOTHER ENTREPRENEUR & LEADER
by Eric L. Frazier MBA
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uby Frazier, President, and CEO of Frazier Group Realty Inc are located at 3739 6th Street in downtown Riverside, California. She is known for her style, personality, and resilience and has been a fixture in the downtown landscape for the last 15 years. Her office is within walking distance from the iconic historic Mission Inn Hotel & Spa. The residence and business owners living downtown know Ruby Frazier and Frazier Group Realty. You cannot miss the office on your way to Main Street in downtown Riverside. Ruby is the wife of CEO Eric Frazier, The Power Is Now Media Inc. with whom she has been married for 40 years. Eric and Ruby are power partners with a powerful family of four dynamic children who are leaders in their own right in business and in life. Frazier Group Realty (FGR) is a full-service real estate company with a vibrant and energetic team consisting of their HIGH achieving daughters. The three oldest have their MBAs 60 | JANUARY 2022
while the youngest currently has a BA. FGR is family-owned as a company, concentrating on residential and commercial real estate, property management, and they are HUD certified selling agents. Their purpose is to assist home buyers and sellers in reaching their real estate goals. FGR is well known and respected in the community, and its philosophies are centered on honesty and integrity. Ruby has organized
business development with the City of Riverside and maintained strong relationships with key clients to generate contracts and accounts, negotiating millions of dollars in sales and purchases. As a client-centered business, they strive to give the best personal service. The mission at FGR is to deliver the highest quality and most exceptional real estate services to their clients. Their client's needs always come first, and they make every effort to exceed their expectations. The team has extensive access to data about the communities in Southern California. Including but is not limited to schools, populations, recreation, entertainment, home values, growth potential, and surrounding areas. The agents live in the areas they serve and, therefore, can more accurately overcome potential obstacles and focus on the unique needs of their clients. Ruby is currently a member of the National Association of Realtors, the California Association of Realtors, and the Inland Valley Association of Realtors. She serves on the Grievance Committee at the Inland Valleys Association of REALTORS. She is a former board member at the University of Riverside Foundation Board of Trustees, serving from 2012- 2017. Ruby was instrumental in forming the Riverside Downtown Lions Club serving the community from 2009-2011 as a charter board member. Ruby is a certified Green REsource realtor and a California native. She is a firm believer in family and the power of creating your presence. Ruby enjoys long conversations, a characteristic glass of vino, and a good Netflix binge but can also be found discovering new adventures without the assistance of guided tours. She loves a good murder mystery and has an eye for style. She enjoys spending time with family on any occasion, especially during the holidays. Ruby and Eric have four daughters, two sons-in-law - soon to be three, and three grandchildren. Ruby has been told that her daughters are just like her, and she considers that as one of her greatest compliments. If you are looking for a Real Estate expert who knows Riverside Real Estate, please call Ruby Frazier and her team. You will not be disappointed. Office: 951-686-5621 website: www.fraziergrouprealty.com JANUARY 2022 | 61
COVER STORY
My wife, my life a Journey that began 40 years ago by Eric L. Frazier MBA
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n December 19th, 2021, I celebrated 40 years of marriage with Ruby Lee Gordon Frazier. I am so thankful Ruby agreed to marry me and that we became one to tackle life and independence together. At the tender age of 19, we left our parent’s home to create our home. We had big dreams and crazy love for each other, but we didn’t really have a plan. We just knew that we would make it and be successful because we loved each other. Love was our only plan. We didn’t have any money, and our parents were not financially able to set us up for success like they wanted. So we started from nothing and worked hard to achieve many personal and financial goals and raise the incredible family we have today. Looking back over the last 40 years, I am amazed at what we have been through. The challenges and the victories. The disappointments and deaths of our parents and the
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challenges of raising children during difficult economic times. I could not have survived any of it without Ruby. I didn’t know about life, manhood, and the responsibilities that come with just living on your own or being married and responsible for each other and children. Not growing up and becoming a man and living up to my responsibilities was simply not an option. Looking back, I can see clearly how the obligations and pressures made and molded me into who I am today. Like the pressure needed to turn coal into a diamond, my life and wife literally made me. I am the product of marriage and an incredibly supportive wife. She has always been more mature
than me and supported me to become the man I am today. My development into manhood did not come without its challenges. I have made many mistakes in every area you can imagine. I have many regrets and have said I am sorry thousand times too many. But I am thankful that Ruby is just like God and is not counting my sins against me. Her love for me was not dependant on me being right or perfect but on being present. All she has ever wanted from me is me and my time and my attention. Her love for me was and still is a result of a decision and vow to God and me to love me for better or worse and until death. I am the beneficiary of God’s Love and Grace flowing through her love and grace for me. Ruby and I were under the care and support of our parents, still going to school when we married. I did not have the best example for fatherhood because my father was rarely home, and my parents divorced, but he did the best he could. What our parents did for us was provide and give us our faith and love. In these areas, they set a great example. We lacked nothing, and our
parents loved and supported us in every way they could. Our parents are the reason for our spiritual foundation, which is why we are still together today. I credit our parents for our strong faith and our church family for being a great support system to grow up and raise our children. God is the author of marriage, and I believe that most marriages fail because God is not the foundation. God is Love and Love is God according to 1st John 4:8-15. You cannot have one without the other because there is no Love or forgiveness without God; which is essential in a successful marriage. God represents everything we need to succeed in all relationships. Our dependence and faith in God
enable us to do the hard things He does every day for us. God loves us. God provides for us in every aspect of our lives despite our weaknesses, vices, and failures. His love for us is unconditional and all encompassing. There is nothing we can do to be separated from His love. He gives us free will to separate ourselves from Him and to refuse to accept the love, forgiveness, and provisions that He gives us without condition every day. We can continue to
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live that way in our relationships. Still, in doing so, we deny ourselves love in all relationships. God’s love is available to everyone to receive and to share with everyone else in our life. This is how God’s love is encompassing. You can’t help but try to be like Him when you rely on Him to love you and provide for you. People ask me to tell them my secret to a long marriage. Thank God it is really not a secret. The information is available to everyone who jumps the broom into matrimony. So here it is:
1. Love your wife as much as you love yourself. 2. Recognize that you are not perfect, and nor is she. So be quick to apologize and say I am sorry when you are wrong and be humble and say I am sorry even when you are right. You are friends, partners, and lovers. Not competitors or adversaries. 3. Be present. This is difficult to do for working couples but necessary. We must listen and communicate as much as possible and every day for the rest of our lives. These are the basics and really all that you need to do. They will come naturally because we all love ourselves. We are all imperfect and want time with those we love. Love is the foundation. I love Ruby more than I can actually say or put into words. I try to say it in poetry, but even that is still very limiting. Here is what I do know. Ruby would rather that I not write a poem or an article to say how much I love her but have me be more present and communicate with her. She would rather have me be more helpful at home with cleaning the house or cooking or shopping and assisting her with the things that I have taken for granted. So this is what I am going to do for
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2022. It is not a resolution. I will attempt to stop writing and talking about love and show it in more meaningful ways. May God bless everyone to have what I have. My wife and life could not be possible without God and Ruby Lee Gordon Frazier. My life and my love.
A Love Life Poem for Ruby Frazier on our 40th anniversary
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t’s December 19, 2021. After 40 years of marriage you are still my number one.
I love you! I can’t believe what we have achieved together You have stuck by me even in stormy weather. Supported me, helped me, loved me, Forgiven me constantly and put up with me Because you love me. It seems like yesterday that I said I do And we were standing before my father looking all brand new. Two little love birds Leaving the nest Ready to take on the world And to do our best. To create a life together, forever, Have we seen it all And been through it all. But we promise to have and to hold each other From our wedding day forward That was the desire of our heart 66 | JANUARY 2022
To be together forever and never to part.
PHOTO FROM 123RF
On a promise and a vow and wow
For better, for worse For richer or poorer In sickness and in health To love and to cherish. Until death we part And yet here we are Still under the ark Of our covenant. Alive and well, Having endured the ups and the down, The successes and failures I am here for you. You are here for me We became one and a family, With 4 children and 3 grandchildren Son - in Laws and Son’s in Laws to be We have established a legacy. Our love is our legacy. No one can take that away from you or me. In spite of what the future holds We have laid a path We have built the mold For generations, our story will be told And so, I love you. More today than I could ever imagine. And in ways that are difficult to express We have built a nest and the children are gone. All I have is you and all I ever wanted was you You are second to none.
I began with you and I will end with you Because I am forever in love with you. You are my rock, And my high place above the noise You are my shelter when in the warm embrace of your arms You are my sugar high, my cup of coffee, my warm tea, My sweet potato and candied yam. And All things that are sweet to me. You make me love you more each day And appreciate when you say I love you. Happy Anniversary to you, and me May God bless us to see Many more Anniversaries And be the very best We can be as a family.
By Eric Lawrence Frazier December 19th, 2021 JANUARY 2022 | 67
Millennials out for Irvine’s Quality Of Life By Cornelius Jackson
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ationally, millennials born between 1982 and 2000 are taking the lead in homeownership, with this generation buying up homes two to four times higher than any other generation, according to Investopedia. According to the National Association of Realtors, millennials accounted for 38 percent of home purchases in 2020, with their parents—baby boomers—accounting for 33 percent and Gen X accounting for 23 percent. Millennials are known as the “connected generation”
born during the internet age, have taken to finding their homes online. According to NAR, 99 percent of millennials search online to get general information about the housing market and home buying. As millennials intensify their search for homes, they have set their sights on the Southern California suburb, Irvine. Although overshadowed by Los Angeles, millennials are giving up their leases and rents in overpriced cities and are turning to suburbs.
So what makes Irvine so attractive? IRVINE’S SOCIAL AMENITIES AND INFRASTRUCTURE As infrastructure in some cities is overlooked or in shambles, the city’s infrastructure was well-thoughtout before the foundation for the first home was built. Residents of the suburb enjoy a smarter street system (Irvine has a hierarchal road system that has traffic move around neighborhoods instead of through them), alternative transportation (Irvine has 360 miles of bike trails, the iShuttle, Amtrak, and Metrolink service), reliable water supply (16 reservoirs located throughout the city) and recycled water (delivering more than 8.5 billion gallons of water every year for landscaping), according to The Irvine Standard. JOB MARKET According to Norada, LA suburbs have witnessed significant growth, primarily because millennials are being driven out of cities that are often overpriced and dangerous while trying to maintain quality of life and proximity to high-paying jobs. Irvine, Orange County, has the tightest job market, with less than 3 percent unemployment rate. Millennials are especially attracted to the suburb’s good-paying jobs and their accessibility. People working at UC Irvine, Verizon, Irvine Company, or Broadcom are better placed living in Irvine instead of taking on the regional traffic in California. IMPROVING ECONOMIC CIRCUMSTANCES Millennials are often referred to as the “broke
generation,” and rightfully so, they are the most debtburdened generation yet. According to cbinsights. com, millennials are on their way to turning the tide in their favor—moving from investing to budgeting. Millennials are having a new take on their personal finances, 75 percent of millennials are saving for retirement, and 51 percent are building an emergency fund. What’s more, millennials are well on their way to being debt-free; the average debt for people who graduated in 2010 is just $874, according to the Education Data Initiative. And with their finances lining up, millennials are taking the giant leap into homeownership, and what better to do so if not Irvine. FINALLY “If you have a home, especially in a family-oriented community like Irvine, millennials are on the hunt,” according to Mina Wan, president of Signature One Realty Group. “That allows current homeowners options to leverage this moment and move up into a larger home or scale down into something smaller.” The supply-demand dynamic in Irvine has seen home prices go up 28.6 percent compared to last year, with home selling at the median sale price of $1.2M. The number of days houses spend on the market has gone down to 26 days from 49 days last year. If your heart is set on Irvine, let the qualified real estate agents at The Power Is Now Media Inc. find you your perfect home. JANUARY 2022 | 69
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How is the Corona real estate market? By Jenny Gonzalez
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s published by realtor.com, the real estate market in Corona is still heated and competitive. For example, the median home price was $699.9K in November 2021, up 24.5 percent from the previous year. In addition, the typical listing price per square foot for a property was $336, up 21.9 percent from last year.
PHOTO FROM 123RF
The median price of a property sold increased by 24.1 percent to $680,000. Single-family homes in Corona had a typical market price of $709,425 in November 2021, up from $699,000 the previous year, while condos had a median list price of $545K, up from $327K the year before. Compared to 363 homes sold the previous year, the median home sale declined to 329. It is evident that housing demand in Corona is still at an all-time high, so it’s no surprise that it’s still a seller’s market. The low mortgage rates and low inventory rates across the country are mostly to blame. As a result, Corona has a 100.87 percent sale-to-list price ratio. Many homes are receiving multiple offers, even with waived contingencies. Within 30 days, the average home in Corona sells for 2% more than the national average, while hot properties sell for
roughly 4% more after an average of 11 days on the market. The average time it takes for a home in Corona to sell is 30 days, up from last year. Like most American counties, Corona has seen an increase in the median rent price year over year. There are 473 houses on the market right now and 53 homes available for rent in the area. Like the rest of the United States, Corona has had a high incidence of foreclosures, significantly since the US Supreme Court lifted the moratorium. Compared to the national average of 0.8 percent, Corona has a 1.4 percent foreclosure rate. Most homeowners would rather sell their homes than file for bankruptcy now than ever before. It is also to help them stay on top of their mortgage payments, as the majority of them are behind. Corona is one of the best-performing and fastestgrowing cities in the United States. As a result, it’s an ideal location for any real estate investor. Now is the perfect moment to grow your Corona real estate investment and become a homeowner while the chance remains. Contact Jenny Gonzalez today at 951-316-0374 if you need the most up-to-date information on the Corona housing market. JANUARY 2022 | 73
San Diego Named As World Design Capital with an Estimated $1.5 Billion Economic Impact By Denise Matthis
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arlier this year, the San Diego-Tijuana region was selected as one of the two shortlisted finalists in the race to be named the World Design Capital in 2024. San DiegoTijuana region made it on the shortlist because of its “approach to human-centered design, its use of design as a vehicle for improved quality of life and commitment to cross-border collaboration,” according to World Design Organization (WDO). Also on the shortlist was Russia.
place of drama, anger, violence—all of these negative things.”
“This is an incredibly exciting opportunity to not only showcase our binational region as a long standing design innovation powerhouse, but also shape the narrative around what it means to be a 21st century metropolis,” said Michelle Morris, president of the Design Forward-Alliance, following San Diego-Tijuana selection.
“Our region is uniquely positioned to face the complex social challenges of our time by utilizing the broad spectrum of design practices that thrive here including arts and culture, applied design, urban and environmental planning, user experience, systems design, design strategy, innovation and more. The San Diego-Tijuana bid aligns with our regional values, priorities and communities to design and support our future,” Morris added after the shortlisting.
PHOTOS FROM 123RF
For the first time in history, two countries were named as World Design Capital—San Diego, USA and Tijuana, Mexico and will receive an estimated $1.5 billion economic impact. The title is awarded bilaterally by the World Design Organization and seeks to recognize cities for their effective use of design in driving economic, social, cultural, and environmental prosperity. “This is a wonderful feather in the cap of the San Diego and Tijuana binational region. We competed with cities around the globe, made it to the finals and we won,” said Todd Gloria, mayor of San Diego. “But I say I say this is a feather in the cap because, over the last five years, mostly because of our previous administration, the border has been miscategorized as a liability,
The Design Forward Alliance entered the San Diego and Tijuana region bid. This organization is dedicated to encouraging human-centered designs as a means to improve economic, social, and civic life within the community of the two cities.
The World Design Organization visited the San Diego-Tijuana region to meet with bid organizers and region representatives during the shortlist evaluation process. According to the San Diego Business Journal, the visit sought to verify the information provided in the bid and experience the city first-hand. San Diego and Tijuana will take on the title in 2024, joining previous countries that have won the award, including Seoul, Korea; Cape Town, South Africa; Mexico; and Valencia, Spain, and many more. JANUARY 2022 | 77
Despite reports, the Sacramento housing market is still affordable
By Robert Langston many people buying new homes in Sacramento are residents from other areas, and their earnings are typically greater than the Sacramento median. Hence these figures don’t fully match the housing market’s current trends. Kelly Brothers, a financial analyst with KCRA 3, said.
According to the Knock report, In the Sacramento area, the median household income is around $77,000, and the median price of a new home built in the area is $650,000. This suggests that a household income of $128,000 is required to afford a newly constructed home in Sacramento.
The Knock report should not dissuade anyone interested in relocating to Sacramento. “I believe the Sacramento property market is quite affordable in respect to current salary levels,” said Sacramento realtor Kevin McDonald. But, unfortunately, the Knock report doesn’t provide a complete picture when it comes to Sacramento’s housing market.
Nonetheless, resale homes, which make up a greater portion of the housing market, were not included in the research. According to real estate company Redfin, the median listing price for a resale home in Sacramento is around $450,000, which is less expensive than adjacent Roseville, which has a median listing price of about $615,000. Although new homes are pricing out potential buyers, the resale value of Sacramento homes remains competitive and fair. In addition,
It is a highly desired place exhibiting all of the economic growth indicators that are favorable to real estate investments. The quality of life is excellent, especially given the area’s proximity to Lake Tahoe and the Bay Area. So ignore allegations that the Sacramento real estate market is unaffordable, and invest in one of America’s best states. Wondering how? Well, reach out to me today at (916) 836-1762.
ILLUSTRATION FROM 123RF
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t’s the contrary! Experts reacted negatively to a report released by real estate firm Knock claiming that Sacramento is tied for the most overpriced housing market among the country’s major metropolitan areas. Experts argue the housing market in Sacramento remains inexpensive due to new homes being built, proving the report wrong!
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Long Beach Housing market: Many homes sell above the list price By Kate Nash
It’s a seller’s market!
Long Beach homes sell after 32 days on the market on average, down from 38 days the previous year. Simultaneously, the number of homes sold dropped 10.4 percent, while the number of residences available for sale dropped 24.8 percent. In November, 330 homes were sold in Long Beach, down from 363 the last month. The sale-to-list price ratio is 102 percent, representing a 1.3 percent increase. Long Beach ordinary homes sell for around 2 percent above list price and go pending in about 33 days, while hot properties sell for about 6 percent above list price and go pending in about 13 days’ year over year. Inventory is at an alltime low, and investors and cash buyers are dominating the market. Even though the market looks to be cooling, these two variables together don’t bode well for typical homebuyers. When it comes to inventory, Long Beach had as many as 3,000 homes for sale a decade ago. However, there were just 410 single-family and condominiums on the market at the end of November, down from 603 last year. Meanwhile,
three months ago, 62 percent of Beach listings had four or more offers, but that number has decreased to around 50 percent as typical purchasers have stayed away.
“We’re seeing a lot of buyer fatigue— buyers who are tired of losing out on multiple offers.” Traditional buyers have suffered a setback. “They simply cannot compete,” said Phil Jones, owner, and CEO of Coldwell Banker Coastal Alliance. However, Jones noted that due to the recent market slump, mortgage rates have begun to creep upward, though he does not expect significant hikes. Mortgage rates climbed to 3.22 percent earlier this month, up from 3.15 percent the previous week. According to Freddie Mac forecasts, mortgage rates will hit an all-time low of 2.68 percent in December 2020. The strength of the housing market in Long Beach is determined by the direction and rate at which property prices change. The Long Beach local property market, according to Jones, may reset after more than a year of historic price rises, owing in large part to the coronavirus outbreak. Long Beach is still a popular real estate investment destination, and this does not appear to be changing anytime soon. Make a sensible lifelong investment decision today, and you will not be sorry. JANUARY 2022 | 83
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ong Beach’s housing market is hotter than the national market, thanks to rising home prices, low mortgage rates, and low inventory. Long Beach home prices increased 9.4 percent year over year in November 2021, with a median sale price of $765,000. In comparison, home prices in the United States hiked by 13.2 percent year over year, with a median price of $378,545.
San Diego Home Price Gains Drop According To S&P CoreLogic Case Shiller Indices—Is This A Sign of Market Cool Down? By Candace Thrower
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xponential price gains have characterized the housing market as a whole, but September saw the market take a turn as price appreciation dropped compared to the same time last year. In September this year, home prices rose by 19.5 percent, down from an annual gain of 19.8 percent, according to S&P CoreLogic Case-Shiller National Home Price Index. The drop represents the first in the yearly increase since May 2020. “If I had to choose only one word to describe September 2021’s housing price data, the word would be ‘deceleration,’” said Craig Lazzara, managing director at S&P Dow Jones Indices. “Housing prices continued to show remarkable strength in September, through the pace of price increase decreased slightly.” According to data from the S&P CoreLogic CaseShiller National Home Price Index, the 10-city composite increased by 17.8 percent from last year, a figure representing a decrease from August, which stood at 18.6 percent. On the other hand, the 20 city composite rose 19.1 percent year-over-year, from 19.6 percent in August. In San Diego, the housing market also showed signs of cooling off. However, the housing market, the San Diego market included, had tight inventory and heavy investor activity in the housing market, which is keeping the prices elevated, according to Cnbc.com. “Home price growth in San Diego, which has been trending near the top of the 20-city list since the onset of the 20-city list since the onset of the pandemic, slowed to a 25 percent annual increase, bumping it down to the fifth place strongest home price growth,” the report read.
The median home price in San Diego dropped for the second month in a row in September to $725,000—down from the peak in June of $749,750. However, the median home price increased 13.3 percent year-over-year even with price deceleration. Some real estate experts feel that this is a sign that the housing market is beginning to cool. Attributing the rising mortgage rates to the cooling in the market—in August, the average rate on the 30-year fixed mortgage was 2.78 percent and 3.15 percent in September. Apart from mortgage rates, more housing on the market played an even more significant role. “The market has cooled since the beginning of the year, when dozens of competing bids, contingency waivers and price escalation clauses made home shopping a struggle especially for the first-time buyers. A growing number of homeowners are preparing to list in the next six months, hinting at an uncharacteristically active winter season,” said George Ratiu, manager of economic research Realtor.com. However, some realtors feel that data from August did not paint a complete picture as the housing market tends to cool around that time when parents are taking their children back to school. In addition to this, condominiums sold at higher rates in August, which affected the median price as they cost less than single-family homes.
“The market had been going up 25 percent. That’s just not sustainable,” Mark Goldman, a real estate analyst with C2 Financial Corp. “But are prices going to back off? I don’t think so. The worst-case scenario is prices would be stable, but the more likely scenario is they will continue to increase.” And true to this “prophesy,” home prices and sales are appreciating across Southern California, San Diego also included. In October, San Diego witnessed low inventory, price appreciation, and “pent-up” demand, with buyers flooding the market, according to Norada. The median sale price went up to $760K, up from September’s $750K. JANUARY 2022 | 85
SoCal Home buying frenzy cools down but it’s still not easy for new homebuyers By Briana Frazier
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ccording to LA Times, Southern California’s cutthroat housing market has cooled in recent months, with some home shoppers — tired of losing bidding wars — putting their search on hold. The supply-demand imbalance in the market continues to heat up, with many buyers offering sales bids that are higher than the asking price. Market competitiveness was less ferocious than a few months ago, but it remained high in November. The low-interest rates have also contributed to the high price appreciation in South California. “Interest rates are at historic lows, there is a lot of demand for houses in the pandemic and there aren’t enough houses for people to buy,” said Daryl Fairweather, chief economist at Redfin, noting that the last decade saw the fewest homes built in the U.S. since the 1960s. While the statewide median sales-price-to-list-price ratio remained above 100 percent, the figure for November (101.4) was the lowest since March 2021. According to the most recent monthly report, nearly two-thirds (59.2 percent) of homes sold for more than the asking price. Not only has the pandemic failed to cool the hot housing market, but it has also kicked it into a higher gear. At the end of September, the average home price in the U.S. was $377,000, according to real estate broker Redfin. That’s up 14% from the same month last year and a staggering 30% from September 2019, when the average selling price for a home was $291,000. According to data from real estate firm DQNews, home prices in the six-county Southern California region rose 14 percent year on year in October to a record-high median of $690,000. Sales fell 6.6
percent, the first decrease since June 2020. CoreLogic economist Selma Hepp said the report is consistent with expectations of a slowing but still competitive market. The 14 percent increase last month was slightly higher than the year-over-year increase in the median home price in September, but it was lower than the 20 percent range earlier this year. For a variety of reasons, including low inventory, record-low mortgage rates, and an influx of millennials into the market, home prices were rising faster than they had in years. The pandemic has also prompted more people — particularly those with more disposable income — to seek out more space, and first-time buyers have abandoned pricey city rentals in search of a home. Many economists predict that future price increases will be smaller. People simply do not earn enough to pay so much more for housing consistently, they argue, especially as mortgage rates are expected to rise. Fairweather expects interest rates to rise by 60 basis points next year, but the national average annual percentage rate on FHA-approved mortgages was 3.63 percent on Oct. 13, according to Bankrate.com, so that would still be a low rate. She also does not believe that the construction industry will be able to correct the housing supply/demand imbalance anytime soon due to material and labor shortages. Unfortunately, rental costs are also rising, though not to the same degree as housing prices. Average national rent across all sizes of apartments and homes rose 13.1% in the last two years, according to data from Redfin and RentPath. With that said there is no better time to buy a home than now. To start your homeownership journey, reach out to one of our qualified real estate agents www.thepowerisnow.com. JANUARY 2022 | 89
Affordable Housing Solutions In LA.: LA City Council Approves A Plan To Build Affordable Housing Developments By Adrian Bates
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hether to launch a Hollywood career, visit its tourist attraction, a career change in one of its tech startups, or to have your children enjoy a good education, one thing is clear—LA has a pull. There’s so much to love in LA and be that as it may, the city has had a hard time shaking off the housing crisis that has plagued it. The majority of LA residents, 67 percent, are renters, many of whom are susceptible to displacement and other forms of insecurity, according to Strategic Actions for a Just Economy (SAJE). And though the city was in a housing crisis even before the pandemic hit, the pandemic has worsened the situation. Rising home values and prices have made it untenable for LA renters to get into homeownership and gain some form of stability. And worse, as rent is on the rise, many renters are on the brink of homelessness. According to the Regional Housing Needs Assessment (RNHA), the city will need to produce 1.3 million new residents to meet the current demand by 2029.
“Everyone knows we are in an affordable housing crisis… but we also know we are not building affordable housing units at the rate or scale that matches the need that we have in LA,” the Councilwoman said before the vote. The plan dubbed the Plan to House LA targets to provide a more equitable distribution of affordable housing all across LA. Though ambitious, the project seeks to rezone sections of the city to allow for over 250,000 new housing units in the space of three years from adopting the plan. That means LA will produce approximately 57,000 annually for three years. “The housing crisis is one of the biggest and most pressing issues facing our city,” said City Council President Nury Martinez in a news release. “While other cities have pushed against their building obligations, our city has embraced this opportunity to develop one of the boldest housing plans in the nation, and we not only meet the challenge but exceed this challenge. Apart from addressing affordable housing supply, the plan also seeks to prevent displacement, eviction, and homelessness.
“The Plan to House LA is designed to protect the most vulnerable Angelenos from displacement, eviction, and homelessness,” said the Director of City Planning, Vince Bertoni. “It centers racial equity and environmental justice at the forefront of our planning consideration, aligning Los Angeles’ citywide land-use strategies to improve future access to housing, preservation, and protection.”
To mitigate the current housing crisis, the LA City Council updated a housing plan on October 5, 2021, to see 500,000 new homes built by 2029. The program will see the city produce housing five times the rate it currently produces houses.
The plan will focus on high-opportunity areas of the city-near jobs and transit areas. In addition, it will seek to expand existing programs that offer incentives for developers to include affordable housing in new buildings and ensure that Community Plan updates have housing goals based on equity.
The motion was introduced in June by Councilwoman Nithya Raman. It aimed to expand the city’s tight affordable housing inventory by coming up with a plan to streamline 100 percent deed-restricted affordable housing developments in the city.
The market may be red hot, and I know that you must be scared, but you don’t have to be, and believe it or not, it is still possible to find affordable units for sale in LA. Wondering how? give me a call today at 323-3338201. JANUARY 2022 | 91
L.A. Housing market indicators for Q 1 2022 By Success Money
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he real estate market in the United States has been heated, and Los Angeles is no exception. The city has consistently ranked among the top real estate markets in the country. The market has recently exhibited signs of calming, which has provided some respite to investors. I can’t say if the market will continue to rise or revert to pre-pandemic levels following its recent stabilization. The indicators for Q1 2022 in Los Angeles are as follows:
low mortgage rate and inventory are associated with high prices. Despite the high prices, purchasers have buying power, thanks to low mortgage rates. Housing Inventory
MORTGAGE INTEREST RATES For homeowners in Los Angeles, there are a variety of mortgage rates to choose from. The average mortgage rate for a 30-year fixed mortgage is anticipated to rise to 3.5 percent in Q1. Likewise, the interest rate on a 15-year fixed mortgage will increase to 2.6 percent. However, these rates will continue to exist due to global economic concerns. Hence no much change in home prices come 2022.
The house Inventory drastically decreased from the beginning of the pandemic. Los Angeles’s home resale inventories are 381, which increased 44 percent since November 2021. Los Angeles homes on average sell after 296 days on the market compared to 55 days last year. There were 264 homes sold in Los Angeles in November, down from 2664 last year. Undoubtedly, San Diego is a sellers’ market, and no likelihood of a shift this fall. However, inventories likely increase in Q1 as more homeowners will list their homes, and new ones might come to the market. In addition, it is possible if at all the Covid 19 vaccines become common.
HOME VALUES Because of its high median property prices, Los Angeles is one of California’s most expensive states. Home prices have been rising steadily since last year and are now at $1,065,000, with a 5.2 percent increase projected in 2022. From a projected 26 percent in 2021, housing affordability is expected to drop to 23 percent next year. Because mortgage rates and inventory are inversely proportional to home values, the
HOME APPRECIATION According to Neighborhoodscout.com, home values in Los Angeles have risen by 22.5 percent in 2021. Los Angeles real estate has appreciated at a pace of 114.7 percent per year over the last ten years, putting it in the top 10% of all real estate appreciation rates in the country. According to Zillow, home values in the Los Angeles metro area will rise by 13.7 percent in 2022.
Los Angeles is constantly changing; today, a new aspirational lifestyle has emerged in response to the need for more accessible living. The city’s cutting-edge industries, prosperous and flourishing culture, several employment sectors, and, of course, the legendary climate all attract visitors. The Power Provides Now Media Inc. is all you need for homeownership adventures in Los Angeles. The county continues to transform in unique ways, with Angelenos exploring new ways to live if you need some boots on the ground to help[ you navigate this market, reach out to me today at (323) 215-8150. JANUARY 2022 | 95
Richmond, CA Housing Market Report and Forecast for 2022 By Joe L. Fisher
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he year is almost at its end, and the Richmond CA housing is hotter than ever, scoring a high of 86 out of 100 on redfin. The median listing price has for the third quarter stabilized; however, the median sold price has fluctuated and dropped in November. The housing market is still a sellers’ market, with homes selling well over the list price. The days on the market have also dropped, which means demand for homes in Richmond is still high. FOR MORE IN-DEPTH MARKET ANALYSIS AND FORECAST, READ BELOW: MEDIAN LISTING PRICE Richmond, CA, has seen median home prices trend up in this third quarter. According to Realtor.com, the median listing home price in November was $599K and the median sold home price was $656K. Consequently, the Median Listing Home price/sq. Ft. was $499. More or less, the median list price in September more or less matched that of November at $599,900K. However, the median sold price in November trended downward, with September having a median sold price of $717,000. In October, the median home sold price was $599,900, and the median listing home price was $670,000K. SALES-TO-LIST PRICE RATIO This ratio is especially important when determining whether a housing market is a sellers’ market or buyers’ market. As the name suggests, a seller’s market benefits sellers as they get more on their homes, and a buyers’ market favors buyers because they pay less than
what the homes are worth. In November 2020, homes in Richmond had a sales-to-list price ratio of 106.51 percent, meaning the homes sold 6.51 percent above the asking prices. The sales-to-list price ratio is a measure used to determine whether homes were sold beyond the listing price. If the sale-to-list ratio is anywhere above 100 percent, the homes are sold for more than the list price. If less than 100 percent, the home is sold for the list price. MEDIAN DAYS ON MARKET Days on the market (DOM) is a real estate metric that calculates the average days a property has spent on the market. In simpler terms, it is the number of days a listing has been active in multiple listing services until they are sold. It also informs whether a market is a sellers’ or buyers.’ Homes in Richmond, CA, sell after 41 days on the market in November, a drop from the 44 days in September and a further drop in 48 days. In a sellers’ market, the median days on the market are a lot lower and higher in a buyers’ market. Based on this data, Richmond is spending less time on the market toward the end of the year. INVENTORY According to Redfin.com, months of supply is a real estate term that tells how many months it would take for all the current homes on sale in the market to sell, according to Redfin.com. The average months of supply are four to five months, a number lower than that signals that there is a great demand in the housing market JANUARY 2022 | 97
and a higher number signals that there are more buyers in the market. In the past week, Richmond, CA, has had 21 new listings, of which 19 sold, telling of a very competitive market, according to zerodown. com. In November, 103 homes were listed, and 48 were sold. According to zerodown.com, the number of new homes coming on the market in Richmond has increased by 56.06 percent. However, the number of homes sold each month decreased by 57.52 percent over the past 12 months.
FORECAST According to the California Association of Realtors, California will see fewer sales and price appreciation of up to 5.2 percent in 2022. Home sales will especially decrease for single-family homes and will reach 416,800 units, which will be a drop from those projected for 2021, which were 439,000. The median home price is forecast to rise to $834,400 in 2022, a projected 20.3 percent increase from 2021’s $659,400. Experts also project that housing affordability will also decrease as interest rates begin to rise.
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What is appraisal bias, and how does it become a fair housing Issue?
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omeownership is the cornerstone of the American dream; we all know for a fact! Yet, certain groups of people have been denied the opportunity to this basic right for so long. We do not need to go back to retell the stories of discrimination, bigotry, and redlining perpetrated by the government itself and openly practiced by the industry. As the industry shifts to equality as the answer to the present-day gap between the homeownership of various ethnicities in the country, the conversation now should also include home appraisal gaps based on the subjective judgment that have slighted the minorities to capitalize on the accrued equity on their homes. Numerous reports shed light on the adverse effects that minority neighborhoods continue to suffer due to this kind of bias that is practiced subtly. And in as much as we can’t point the finger at one specific person or persons responsible for perpetuating this bias, the fact that it still exists raises questions to industry professionals about addressing this issue that is now becoming taboo. It is the responsibility of everyone in the industry, more so the professionals, to make sure that their strongest interest is seeing that people reap the full benefits of homeownership. 100 | JANUARY 2022
SO, WHAT IS APPRAISAL BIAS? Before that, we need to first understand what home appraisal is. The simplest definition I can give is assessing the value of the home. It is one of the most important steps in buying and selling homes, especially when a mortgage is attached to the property. A home appraisal makes sure that the loan’s value doesn’t exceed the property’s value. Understanding that homeownership is a key component of wealth creation in the United States, with some estimates placing almost twothirds of the wealth of a typical household in home equity, doing away with all forms of racism and discrimination ensures equitable growth. Yet, even with that knowledge, recent studies support the fact that there has been a persistent devaluation of Black and other minority-owned homes, which is consistent with continued discrimination hence the large racial wealth gap. A recent inspection (2020) of data done by the U.S. Census Bureau from 1980 to 2015 showed that the racial composition shaped the valuation of homes more in 2015 than in 1980. Researchers identified the devaluation of properties in these neighborhoods as a primary factor contributing to the widening wealth gap. The research points out that in
over 40 years, homes in white neighborhoods appreciated by $200,000 more than similar homes in black neighborhoods. The research by the Census Bureau is not isolated as several other studies have been conducted, and all corroborate that same idea that discrimination has impacted the appraisal process. To point out one of the many examples, a 2018 study by the Brookings Institution concluded that the devaluation of homes in the neighborhoods of color led to $156 billion in cumulative losses, which is approximately $48,000 per home. Furthermore, the Appraisal Institute has acknowledged that racial bias exists in the professional valuations of homes. MORE DISHEARTENING DISCOVERIES What we need to be honest about, and I am glad that the Appraisal Institute has come out and acknowledged is the fact the appraisal bias is part of the longstanding dialogue among industry peers (real estate agents, mortgage professionals, and appraisers) who agree that they want to see the best outcomes for their clients, in that they are treated fairly in every aspect of the home buying process.
“ That means you want to see all homes fairly valued by appraisers,” Bryan Greene, vice president of Policy Advocacy at the National Association of REALTORS® (NAR) in an interview with RISMedia. “If you’re an agent and you’re representing a seller, you want to be sure that the seller can obtain the right price for that home, as well. Then, finally, you want to close that deal, so you want to be sure that when there is an offer on the home that the house appraises out.” Another study done by Freddie Mac revealed and confirmed the findings. Other research bodies found that homes in black neighborhoods were about 70% more likely to be appraised low than the sales price for homes in the White neighborhoods. More worrying was the fact that homes in the Latino communities were more than twice as likely to be appraised lower at 15.4%. Data also revealed that as the appraisal gap grew, the concentration of blacks and Latinos also grew. According to Rodman Schley, President of the Appraisal Institute, these findings by Freddie Mac give a peek into the potential reasons for the disconnect. In response to Freddie Mac’s findings, Rodman had this to say: “This research serves as yet another reminder that our nation has a long way to go in not only identifying but also pursuing solutions to racial bias around homeownership”
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“That goes against everything appraisers stand for,” Schley added. “Appraisers take a lot of pride in being an objective source of real estate value information. We look at the numbers and facts and mirror what the market tells us. It’s also important to work with trained, professional appraisers from the beginning.”
process. While it’s also good to admit that there isn’t a blanket solution to the problem, a concerted effort among the industry stakeholders such the appraisal groups, real estate professionals, banks, government agencies, and others must all come forward. That’s the first crucial step. “It’s an opportunity for people who are involved every day in the appraisal profession to speak with policymakers and explore the different variables that could potentially affect appraisal price to make sure all of those items are factored into any analysis,” Greene says. Schley recommended that HUD use its interagency task force to include adjoining mortgage processing issues such as lender “reconsideration of value” and appraisal appeal process. Finding ways in which to serve the underserved markets. “We also believe instances of potentially sub-par or otherwise problematic appraisals could be mitigated by hiring highly qualified appraisers who also have a market and geographic competency at the outset,” Schley said. Another area of concern was appraisal management, and regarding that, Schley suggests engaging qualified appraisal review staff. Moreover, the real estate agents, since they are the people who deal with customers more often and on a personal level, they need to come out and address the fears and concerns that people might have regarding potential bias hindering their home appraisals. This, therefore, means that agents have to become more intentional and involve themselves in learning about the appraisal process and how they can engage with the appraisers to dispute reports that may seem unfair.
To add, the frustration expressed by Rodman is equally felt among the real estate professionals who have long had to represent professionals working with clients struggling with this form of discrimination. FINDING SOLUTIONS The first step towards rectifying the problem is first admitting that it exists. Various stakeholders say they are exploring various solutions to help them get a fair representation and treatment during the transaction JANUARY 2022 | 101
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HUD BUILDING PHOTO FROM WWW.HOUSINGFINANCE.COM
Should FHA end its Life of Loan policy?
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oward the end of last year, the Federal Housing Administration released its annual financial report which confirmed that the agency’s growth was strong in its capital ratio to over 8% which is four times more than the statutory average. Owing to the fact that the FHA has been profitable over the years, groups like the Community Home Lenders Association couldn’t help but call on the agency to end its 102 |lJANUARY 2022
Life of Loan policy which it enacted in 2013. In addition, the groups have called on the agency to also cut its annual premiums back down to the pre-crisis levels. From time to time, the Agency has been pressured to make changes to the Life of Loan policy but to no avail. For instance, in 2018, the
then commissioner said that changes to the policy wouldn’t be possible due to the health of the Mutual Mortgage Insurance Fund, FHA’s flagship insurance fund. The Life of Loan policy requires the FHA borrowers to maintain mortgage insurance throughout the life of the loan and it doesn’t matter the principal owed. FHA’s mortgage insurance plan is different from the private mortgage insurance in that PMI falls off after the borrower reaches a certain balance. Initially, the FHA’s previous policy required borrowers to pay the mortgage insurance premiums until the balance owed reached 78% of the original home value, but in 2013 FHA instituted the life of the loan as an effort to improve the health of the Mutual Mortgage Insurance Fund. at the time, the agency needed about $1.7 billion as bailout as a result of a significant shortage in the MMI fund. In the last few years, the fund has improved quite significantly which doesn’t make any sense to continue with the life of the loan policy.
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The report released by FHA shows that the agency’s more than 84% loans last year to first-time homebuyers compared to the 45.02% for the rest of the mortgage market. The report further breaks the data down to show that 16% of FHA loans were to Black homebuyers compared to just 6% for the rest of the mortgage market. 25% of FHA loans were to Hispanics compared to just 10% for the rest of the mortgage market.
time the borrower is hitting their 78% LTV, they are already in too deep 10% in premiums and in many instances, over the actuarial risk of a loan. Essentially, the life of loan policy is a way to deprive FHA’s underserved borrowers of their wealth-building capacity. One way that FHA can contribute to fairness in this industry is by ending the life of loan policy. Again, we have to be honest about one thing, this increase in premiums was supposed to be temporary so as to raise the MMI Fund and since the agency did accomplish its goal, now would be the time to end the Life of Loan Policy. Ofcourse there are those arguing that ending the policy right now would be a premature step to take because of the uncertainty brought about by Covid-19 and let’s assume that Covid-19 would be a problem and that the price actually declines, the $84 billion in FHA cash reserves would be more than enough to absorb such losses. For more than a decade, both republicans and democrats have been good stewards of the agency’s financial health, but the recent report shows that it’s time to recap the rewards of that stewardship.
Looking at the data above, one thing is very apparent and that is FHA has the lion’s share in the mortgage market especially to the underserved borrowers that have minor credit blemishes or need a low. We can only be forced to make one conclusion, which is rather unfortunate because the life of loan premium policy seems to overcharge the borrower by tens of thousands of dollars. Interestingly, by the JANUARY 2022 | 103
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Mortgage lending trends to watch in 2022
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f anything, the uncertainty of the Covi-19 pandemic re-emphasized the importance of modern infrastructure of the mortgage lending industry. As a result, many of the ‘traditional’ mortgage lending companies were forced to invest in technology to accelerate innovation and keep up with their customer’s expectations. In addition, to ensure economic progress, lenders have been forced to be responsive. One of the ways this has been done is by creating new business models that target new clientele and new market segments and future-proofing new strategies. LOOKING AT THE 2021 MORTGAGE MARKET The mortgage lending industry in 2021 stayed relatively healthy even with the pandemic, and it seems that the market will remain strong and continue to prosper in 2022. Even though some say that the market is likely to crash, many people are bullish about the industry predicting higher rates perhaps fueled by high home prices as demand for homes continues to rise. The 2022 mortgage lending industry is likely to be just a watered-down version of 2021 which means, a moderate increase in home prices resulting in less competition, but the market could still be hot. I am looking for how the industry will cater to the changing needs of the various generations in the U.S., especially millennials who are looking for a more digital experience, which means the industry might have to transform its entire mortgage chain. A global survey of financial services professionals by Infosys concluded that “Mortgage providers that spent on digital infrastructure capitalized on their investments during the [pandemic] crisis, while those tied to physical paperwork lost new business,” the survey continues to add that, “Instead of just surviving, many companies leapfrogged their competitors using 104 | JANUARY 2022
new digital capabilities, and those companies will continue to race ahead in this new — and still evolving — mortgage market.” But, here are some of the trends to watch out for in 2022. RATES WILL RISE BUT STILL BE LOW. In 2020, the rates hit a record low of 2.66% towards the end of that year, rising only at the start of 2021 but still hovering below 3% for most of the year. In 2022, the rates are likely to rise, but we are bearish on the rates rising dramatically. But, likely, the market might never see the rates dip below the 3% mark again. One of the predictions the Mortgage Bankers Association gave is that the rates might rise, hitting the 4% mark by the year’s end, and that’s on the high side. But on the flipside, Fannie Mae expects that the rate for the 30year fixed will float at an average of 3.4% by the year’s end. These two organizations, Freddie Mac and the National Association of Realtors all agree that the mortgage rates will rise steadily in 2022. How feasible is this prediction? It’s fair and reasonable given the fact that the Fed has a plan to slowly let go of the market by tapering its purchases of mortgage-backed securities and treasury bonds. This will dramatically affect mortgage rates, which makes sense why they may rise in 2022. Still, it is important to note that the markets are fickle, and it’s not always that they will obey prediction. With the uncertainty about inflation, employment, and the pandemic, it’s agreeable that the market rates will zig, but that doesn’t mean they cant zag! HOME PRICE WILL STILL BE ON TEAR… NOT AS FAST AS IN 2021 Home prices were unstoppable in 2021, and the trend is expected to continue in 2022 but rise moderately. In 2021, median home prices rose by double digits year over year, with the highest median price
reached in June 2021- $362,800, nearly $60,000 over the median price in January 2021. The third and fourth quarters of 2021 were market by less heady price increases, which set the precursor trend for 2022. On the high end, Fannie Mae seems to express strong bullish sentiments about price rising, predicting a 7.4% year-over-year growth, while Freddie Mac puts its prediction at 7%. On the other hand, MBA anticipates the price to increase 5.2%, while NAR is the outlier predicting a 2.8% yearover-year growth.
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So what does this mean? Well, assuming you bought your home in September 2021 at $352,800, the potential resale value for the home would be $372,557 in 2022. While the rate of appreciation is slowing down, the idea that the median existing-home prices are getting higher and closing the $400,000 mark is more than alarming. And let’s face a fact here, the prices are slowing down not because inventory is getting added in the market, no! The potential buyers are getting priced out of the market hence a weaker demand, thus slowing price growth. First-time home buyers will not be safe and what we are expecting in 2022 if the price keeps rising is that
the percentage of buyers who can afford a home will fall further below 30% for the first time in a long time. If home prices continue to rise, the higher prices might take the edge off the demand, which thus causes a setback on the rising prices. AFFORDABLE HOMES WILL BE HARD TO COME BY A fact- while home prices were soaring month after month, the inventory of existing homes for sale did grow throughout 2021. However, the growth was tight falling short of satisfying the demand from buyers. At one point, it would take about six months or even more to sell all the houses on the market at the current prices which in a way favored the buyers, but it was still a seller’s market. The latest data from NAR (September- the time of writing this article) show that the U.S. is at a mere 2.4 months’ supply. At the same time, affordable homes remained harder to find which is one factor that drove prices up. One study by Harvard’s Joint Center for Housing Studies that analyzed home prices in the 100 largest U.S. Metro Areas found that in 2020, a
household making 50% to 80% of the area’s median income could afford to buy a home in only 39 of those metros. That assessment was done at a time when we have historically low mortgage rates which are helping make homes more affordable. So you can expect the situation to get more desperate in 2022. SELLERS WILL STILL DICTATE THE TERMS The inventory is low and most sellers are receiving more than a dozen offers. This is a trend that’s expected to hold in 2022. A survey by the National Association of Home Builders that regularly surveys buyers who have been house hunting for three months or more found that one of the top reasons these folks hadn’t bought a home was that they got outbid. While some of the markets are still red hot, some are starting to see moderation. In the markets where sellers are accurately pricing their homes, these properties are seeing pending contracts in 10 days or even less. However, to get the best offer, sellers have to prepare their homes and they also need to be in perfect condition. These are some of the things that buyers are willing to renegotiate and sometimes waive the inspection and appraisal contingencies. With the market slowly cooling down, buyers are getting a fair shot at homes from the listing agents and sellers allowing the homes to sit on the market a little longer. JANUARY 2022 | 105
POWER AGENT
Why you should use a Realtor® or a Realtist
Here are some of the reasons why you should reconsider;
fact that real estate transactions involve a lot of paperwork that more often than not tends to be technical. Realtor® or Realtist have the expertise required to help you prepare a deal that will bag you that money! That they will do while also helping you avoid costly delays and mistakes that can mess up your deal. GETTING INTO THE MLS IS A BIG DEAL FOR SELLERS Have you ever heard the saying that in real estate ‘MLS is the holy grail of home listings?’ once a home is put up on the MLS, it gets sent to dozens of online websites and finally into the buyer’s hands through their agent. That in itself might not seem like a big deal, after all the market is tight with no new homes which means buyers will still flood your listing. But imagine a situation where it’s a buyer’s market, having the home put up on the MLS serves as a goldmine where you are sure that your listing will get an influx of traffic in showings and open houses.
Gaining access to MLS is not easy. You must be a licensed agent in the state to list a home. Therefore, when you list REALTORS HAVE LOADS OF as an FSBO, you’ll be forced to shell out a flat fee or a EXPERIENCE AND EXPERTISE. commission to a broker to have access. This means you are This is a complicated industry full of paying for not using an agent which explains why the 2019 acronyms and jargon that may not National Association of Realtors Profile of Home Buyers and make sense to the ordinary you! On Sellers revealed that 89% of sellers listed on MLS ad worked the other hand, Realtor® or Realtist are professionally trained to speak this with an agent to sell their home. language fluently. WANT TO GET MORE CASH… USE REALTOR® OR REALTIST In addition to that, I am quite sure What’s the primary reason why people prefer selling their that by now you are familiar with the 106 | JANUARY 2022
PHOTO FROM 123RF
S
elling your home without an agent may seem like the best idea. It actually is if you are looking to save thousands of dollars, but not as great as advertised by some FSBO gurus. I see a lot of people bargaining to use the Realtor® or Realtist arguing that a 5% or 6% on a single transaction is a lot. Given the size of this fee (5% to 6% that’s $12,500 to $15,000 on a $250,000 property) on a single transaction, acting out alone may seem like a good idea, after all, you’ll be saving thousands of dollars, but you may want to reconsider and I will tell you why.
homes without an agent? Well to save cash on this could make or break a listing. commission. There’s a problem though…. Statistics say you won’t! The danger of selling a home without a Realtor® or Realtist is that you may overprice a home and that’s the worst thing you could ever do to Typically, an FSBO home will sell for about your listing. Overpriced homes tend to stay on $200,000 whereas an agent-assisted home sale might go to a high of $280,000 and that’s according the market longer because they do not meet the to data from the NAR’s Profile of Home Buyers and buyer’s search criteria. Sellers. To explain this, one agent explains, “Those ‘A’ buyers are in town for the weekend for a few days to buy a house, or they’re under contract to sell their home and they’ve got to find one,” she adds. “They’re never going to buy for sale by owner, and those are the highest paying buyers.” Another agrees to say, “One of my past clients is trying to do a for sale by owner,” Jones says. “And the main reason they said is they’re trying to save a few bucks, which is ironic because the people who want to buy for sale by owners are usually pretty cheap.” HONESTLY, YOU NEVER WANT TO BE AN AMATEUR AT THE NEGOTIATING TABLE! Let’s be honest about one thing, it is highly likely that this will be your first major sale of purchase. You’ve never done this before and in my opinion, a Realtor® or Realtist will have an upper hand during the negotiation phase. They are professionally trained for these kinds of things. Without an experienced agent by your side you’ll be walking into the negotiation table handicapped. Even in instances where the negotiations might seem to go on smoothly, remember, the agent’s job is to get the price of home to where the buyer wants- they have no responsibility whatsoever to the seller. HOW DO YOU PRICE YOUR HOME WITHOUT REALTOR® OR REALTIST There is something you should know about agents and that is when they decide to narrow in on a price, they usually do it because they have access to comparable home sales and some key information about the neighborhood which may go as far back as decades of years. Selling without pricing data is like throwing a dart in the dark and
While you may argue that with an online calculator you can get all the estimates you are looking for, in most cases they tend to be inaccurate, but Realtor® or Realtist can accurately evaluate a home physically and give you the correct price tag. AND MARKETING… THAT’S A DIFFERENT GAME! Let’s be real about one thing, listing a home up on a website won’t sell it! People often think that the home selling process is automatic where one puts a home up for sale and expects buyers to come flooding in! They don’t. And this is where marketing comes in. You have to note that there is a difference between marketing a home and selling a home. To get a top dollar for the home, you have to market it which is where a Realtor® or Realtist will help you. When they market, Realtor® or Realtist makes sure that your home gets the exposure in the best places with the best angles. Real estate agents, because of their exposure to the market and experience, know what most buyers are attracted to and know what resources to pull together for your good. They are also able to quickly recognize the highlight of the home and what features make the home pop out in order to sell the home fast. Thats a good reason to work with Realtor® or Realtist. Why use a Realtor® or Realtist, well, that’s a no-brainer! Sellers who think they can outsmart the market by selling the home on their own are missing so many opportunities and advantages of using a licensed Realtor® or Realtist. The monetary advantages of not using an agent are non-existent. JANUARY 2022 | 107
POWER AGENT
Brokers, here’s one for you… Four Ways to Maximize Your Agents’ Potential
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he real estate industry, just like all other industries is quite unpredictable. Brokerages that find themselves in a slump have to find ways through which they can improve their businesses. In most cases, I’ve found that when sales are declining, the laid out business strategy isn’t working as it used to work before.
Again, you have to understand that we live in a very dynamic world where policies and structures are being changed each day. As such, the industry has to change to adapt to the new environment. Brokerages are a collection of individual thoughts, their business ethics and standards, their actions, and therefore, to improve the overall output, each agent’s actions must be taken into consideration.
On the other hand, brokerages must also improve their business model to match that of the agents. I believe what the agents are bringing to the table must correspond with what the brokerages are doing or producing. The two must be aligned for a successful output. Brokerages, but more so the brokerage’s leadership team has to treat the business with somewhat respect to achieve longevity and success. If brokerages as a collective are treated as the business it deserves to be treated like, success is inevitable.
its power. Nonetheless, in the business world, everything has to follow a specific plan for it to succeed. Brokerages must set a business plan that agents must follow and that’s not all, each agent needs to be held accountable if they do not deliver their end of the bargain. Additionally, brokerages must also be held accountable if they fail to deliver.
But, I want to focus on the agents themselves since they are the main gears towards driving the success needed. One of the questions I get so often is how to maximize the agent’s potential and it’s quite simple!
FLEXIBILITY AND QUICK ADAPTATION One thing I can’t emphasize enough is the fact that brokers need to re-emphasize how important it is for their agents to remain flexible and quick to adapt in any given circumstance. Remember, the real estate industry in itself isn’t that dynamic but the environment in which it must co-exist changes rapidly.
FIRST, BROKERAGES NEED TO CREATE A PLAN AND HOLD AGENTS ACCOUNTABLE. I think this phrase ‘create a plan’ has been thrown around so much that it’s beginning to lose
To stay ahead of the curve, brokers need to identify and also meet the dynamics of the market. This often means maintaining a sociological understanding of their audiences.
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PHOTO FROM 123RF
For the brokerages themselves, the rule is to restructure quickly to avoid becoming obsolete. I have seen companies with extremely rigid internal structures and engrained working practices that often in times of fluctuations, they find it hard implementing to the changes. As such, to make sure that your agents are performing maximum, brokerages should always aim for a more fluid internal framework. TECHNOLOGY AND HOW AGENTS INTERACT WITH IT Brokerages nowadays want more parts moving, more capacity, and even more communication but are reluctant to invest in the technology that will facilitate this. Let’s look at one typical example, brokerages and agents too had to quickly adapt to remote working- a trend forced upon us by the pandemic. Those agents and brokerages that adapted to this new environment survived through technology.
What you need to realize is that technology is an extremely important tool in every new shift or new dynamic. It is the catalyst for change and therefore to quickly take up a new tech tool to maximize your agent’s potential is inevitable. EDUCATION As a last way to maximize your agent’s potential, education plays a vital role in doing just that! Education is the ultimate pathway to helping your agents maximize their potential by becoming more proactive. Offering in-house training programs for your agents helps expand their knowledge and gain new skills. Providing educational opportunities to your agents is a valuable benefit for agencies to offer to their teams. Not only does education allow businesses to expand their capacity, but it also gives employees the chance to grow and develop professionally.
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POWER HEALTH
Let’s Keep it Real: The New Omicron Variant
Should the Industry Worry?
T
he fall of the BSE Sensex by 1.65% on the 6th of December, 2021 shows the likely impact of the Omicron variant of the Covid-19 virus on the stock market. The variant has raised concerns concerning housing demands and gains in the commercial market. While the severity of the variant cannot be predicted presently, the real estate sector will be affected if the yet-evolving variant becomes more severe or when another lockdown is imposed.
ILLUSTRATION FROM 123RF
The World Health Organization has declared Omicron as a variant of concern as there are signs that it could be more transmissible and harmful, while making existing vaccines less effective. Omicron can result to the same housing trends that existed during the first two waves of the pandemic which may result to homebuyers having to wait before buying a house. Recently, global equities were down by 3 per cent, listed real estate was down 4 per cent, US treasury yields have shed 20 basis points (bps), and the price of oil is more than 14 per cent below recent highs. There are chances that new project launches won’t be affected but it is important that the government exclude real estate from any lockdown because it will not only impact on the industry but economic recovery too. While the variant is causing everyone a great worry, there are possibilities that the impact will be much lesser than the second wave of the pandemic. THE NUMBER OF HOMES FOR SALE REACHED AN ALL-TIME LOW New restrictions due to the omicron variant of the coronavirus can affect volatility in the economy. In the short term, global interest rates, including mortgage
rates, could fall. In this extremely tight housing market, we could quickly see a proportional increase in competition and home prices. Recently, housing data shows the number of homes for sale reached an all-time low during the week ending Nov. 28. That could fall even lower, as the number of homes for sale typically declines another 15% in December as well. There are possibilities that by the end of the year, the number of homes for sale may reduce by 100,000 homes which will be more severe than that of February when housing supply last hit rock bottom The real estate sector is still hoping that the impact of the variant will be limited. Real estate is not immune to either policy or fear. We are all well versed on the implications of a further lockdown on the retail and hospitality sectors, or a return to working from home for office space. A potential collapse in international travel will also hit cross border activity, while a decline in sentiment could make December transactional activity a little more subdued. And this will reinforce some of the structural trends impacting demand across core real estate assets. The real-estate industry has adapted in many ways to provide more flexibility, so it is unlikely that there would be a slowdown similar to the one that happened at start of the pandemic. However, if the new variant weighs on consumer confidence, that could cause some would-be buyers to second guess their decision to purchase a home. Every region of the U.S. saw an increase in the number of buyers signing contracts to purchase homes, but the housing market’s trajectory may be dependent on the omicron variant of the virus that causes COVID-19.
Need some advice regarding buying a new home during this period of uncertainty? Chat up with Eric Lawrence Frazier, a real estate professional and mortgage advisor. He will inform you all the things you need to know about the housing market amidst the growing concern of the omicron variant in the States. 110 | JANUARY 2022
POWER HISTORY
Racism is a significant problem in the United States despite being a democratic state that holds the principle of “life, liberty, and the pursuit of happiness” highly. While many African Americans have made tremendous progress economically and socially, majority have been denied wealth-building opportunities. African Americans have always been subjected to uneven distribution of wealth and housing crisis.
House Panel Poised to Advance
Bill on Slavery Reparations
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he covid-19 pandemic also showed the racial wealth divide as those who can draw upon the equity in a home, savings, and securities are able to recover faster after economic downturns than those without wealth. The absence of social safety net, racial disparities in access to housing programs, health care, and economic inequities has continued to make Black people more vulnerable to challenges. Efforts have been made to advance bill on slavery reparations during the civil war era but little progress has been achieved. However, supporters have proposed bill to combat racism in the States following the death of George Floyd. OVERVIEW OF THE PROPOSED SLAVERY REPARATIONS BILL A House panel is expected to advance a decades long effort to pay reparations to the 112 | JANUARY 2022
descendants of slaves with a vote Wednesday on legislation that would create a commission to study the issue. It’s the first time the House Judiciary Committee has acted on the legislation. Still, prospects for final passage remain poor in such a closely divided Congress. The legislation would establish a 13-member commission to examine slavery and discrimination in the United States from 1619 to the present. The commission would then recommend ways to educate Americans about its findings and appropriate remedies, including how the government would offer a formal apology and what form of compensation should be awarded. The bill, commonly referred to as H.R. 40, was first introduced by Rep. John Conyers, D-Mich., in 1989. The 40 refers to the failed government effort to provide 40 acres (16 hectares) of land to newly freed slaves as the Civil War drew to a close.
In Evanston, Ill., a new building goes up not far from Mount Zion Missionary Baptist Church. Credit: Eileen Meslar/ Reuters
In the weeks after George Floyd died, an embodiment of the violent oppression black Americans have endured makes supporters of reparations newly hopeful. Photograph: Spencer Platt/Getty Images The Chicago suburb of Evanston was the first city in America to make reparations available to its Black residents for past discrimination and the lingering effects of slavery. The money will come from the sale of recreational marijuana and qualifying households would receive $25,000 for home repairs, down payments on property, and interest or late penalties on property in the city. Other communities and organizations considering reparations range from the state of California to cities like Amherst, Massachusetts, Providence, Rhode Island, Asheville, North Carolina, and Iowa City, Iowa; religious denominations like the Episcopal Church; and prominent colleges like Georgetown University in Washington. President Joe Biden released an executive
order which showed the aims of the Federal Government to advance racial equity and support underserved communities. While diversity remains one of America’s greatest strengths, the need for equal opportunity can never be overemphasized. Measures have been taken by the Federal Government to ensure that blacks are given access to housing facilities and health care. Being among the underserved community, many black families have been vulnerable to high return payments, limited access to loans and assistance programs. So, it is important that you reach out to realtors that offer fair housing and inclusiveness for low-income families that dream to become a house owner. Do not hesitate to reach out to The Power is Now agents to access housing programs. JANUARY 2022 | 113
Home Ownership by Eric Lawrence Frazier MBA Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own. Real Estate you own is not like cars that decay over time and you have to replace them. Real Estate you own is not like clothes that go out of style and you have to buy new ones. Real Estate you own is not like expensive vacations or experiences that only last a moment in time. Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable. Real Estate you own is not like staying at your parents house where you know can’t stay forever.
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Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family. Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned. Home ownership is the place you build memories that can never be taken from you. Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand. Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life.
It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen. It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections
Home ownership It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire. It’s more than money saved, gifts recieved and grants obtained It’s more than the debt you incur to buy it. It’s more than the payments you make to own it. It’s more than the appreciation that comes with keeping it over time. It’s memories, it’s family, and it’s life that can happen in one place Until you say it’s time to move.