AUGUST 2020 Vol. 07 | Issue 8
HOW THE COVID-19 IS REDEFINING ENVIRONMENT SUSTAINABILITY Page 8
IS THIS THE RIGHT TIME TO REFINANCE? Page 58
AUGUST IS THE NATIONAL WELLNESS MONTH Page 122
HONORING CONGRESSMAN
JOHN LEWIS
HAVE YOU READ OUR PAST ISSUES YET? the power is now
magazine THE POWER IS NOW MEDIA INC. Vol. 07 | Issue 8
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 POWER LENDING Pg. 20. Low mortgage rates, states reopening, ignite record home sales and bidding wars POWER TECHNOLOGY Pg. 22. Can tech companies reach older consumers during the pandemic? Pg. 24. How travel restrictions are changing the mortgage business
POWER GREEN Pg. 8. How the COVID-19 is redefining environment sustainability Pg. 12. Environment California Research and Policy Center launches campaign calling for 100 percent clean energy from SMUD by 2030 POWER ECONOMICS Pg. 14. United States economic forecast 2nd quarter 2020 POWER REAL ESTATE Pg. 16. Home construction rebound? NAHB home building data shows signs of leading an emerging economic rebound Pg. 18. California house sales fall 41% during coronavirus lockdown
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VIP AGENTS Pg. 30. Five Star Development sues Paradise Valley to protect $2 billion project Pg. 34. How to actually afford a home in Arizona Pg. 38. Looking for a new place? This may be the right time to create your wishlist Pg. 40. Does your home really make you happy? Pg. 42. NHPS helping create a future where all families are financially prosperous Pg. 44. What’s In Store for the U.S. Housing Market?
Pg. 48. Because of him, WE CAN! John Lewis Pg. 58. Is this the right time to refinance? Pg. 60. This is what makes San Bernardino County so unique Pg. 64. When buying a home, plan for these hidden costs. Pg. 68. Oakland housing market insights Q2 2020 Pg. 72. Milwaukee, San Francisco and Detroit top the list of places where black homebuyers are more likely to be denied a home loan Pg. 76. Top ten Placer County luxury homes Pg. 80. Luxury Home Prices dropped 2.3% this
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spring, reversing course from pre-pandemic growth Pg. 86. Your ultimate homebuying guide: here are some answers to your top questions about buying a home during this corona pandemic Pg. 90. L.A. housing market statistics Q2 2020 Pg. 92. Even in face of a pandemic, why’s California’s housing prices not tanking? Pg. 96. Richmond housing market statistics Pg. 100. A snapshot of the Richmond rental market Pg. 104. Coming to New Jersey? Here’s a list of the best neighborhoods you should check out first Pg. 106. The Texas housing market insights
POWER MORTGAGE Pg. 118. Freddie Mac: Mortgage serious delinquency rate increased in May, highest in 2 Years Pg. 120. Fannie Mae survey shows mortgage servicers want clarity on post-forbearance options for borrowers POWER HEALTH Pg. 122. August is the National Wellness Month POWER COMMUNITY Pg. 124. Officer in George Floyd Death arrested as Obama shows leadership while Trump Calls for ‘Shooting’ of Protesters
POWER LEGAL Pg. 112. MBA supports expanding Federal Home Loan Bank membership. Pg. 116. Supreme Court empowers Trump to fire consumer watchdog’s director at will
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FROM THE EDITOR Is Now Media community, no matter how uneventful things are turning out. Even before unfolding what we have prepared for you in this issue, let me take a moment to send out my heartfelt condolences to the family and friends of the late Congressman John Lewis. He was a hero, my hero, and an inspiration to many. Words cannot explain the loss that we are contending with as a community. He was a great man who will be remembered as a champion of freedom and hope for generations to come. May the good Lord lay his soul in eternal peace.
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his month marks the 7th month we are still grappling with the Novel Coronavirus. We all thought that this was passing wind, that it would go away, in fact, the president himself said that “Maybe this goes away with heat and light. It seems like that’s the case,” and so we waited for the heat of the summer hoping that things would get better. Here we are, still the United States leading the count, with over 4,000,000 people infected with the virus. I do not want to dwell so much on these disheartening events, we all know what’s going on, but all I can advice you to do is to stay safe, stay at home, and if you have to go out, wear a mask. That’s the only way we will defeat this virus. One thing that has kept us going forward is a strong will and the positivity of The Power
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On to some good news, The Power Is Now Media keeps on growing! Kindly help me welcome new VIP Agents to our team. Help me welcome on board Leon Townsend from Pasadena, Steve Peterson from Oakland, Emerick A. Peace from Maryland, and Denise Matthis from San Diego. With every new agent joining our VIP Agent program shows the level of trust bestowed upon us. It is such an honor to be working with such men and women of great reputation. Speaking of which, The VIP Agent Program is a program that helps industry professionals build their brand as market leaders, thus helping them bring more exposure to their real estate listings and buyer services. Around this time each year, we have the NAREB Annual National Conference which brings together hundreds of professionals from our community to discuss issues pertaining to our community like financial literacy, homeownership, wealth creation, and business opportunities. This year due to the COVID-19 pandemic, the event alongside many others have been canceled but you know what hasn’t been canceled? The Power Is Now Media. That’s right, every day we bring you shows that will help you prepare for the future through homeownership. Not forgetting that every month we bring also you stories to keep you updated all through the month, and this month, we did it again. On our cover, this month is the late Congressman John Lewis. He has been called one of America’s most courageous person to ever fight for justice and equality. John is a man so many of us will remember as a hero for his courage and perseverance. If it weren’t for his daring actions, I do not think we’d be where we are today. We are free because of what he went through. Find out more about John from his childhood to his death right here on this issue of TPIN magazine. THE POWER IS NOW MAGAZINE | AUGUST 2020
On other stories this month, what’s the economy looking like this quarter? Given the weight of the COVID-19, what should we be expecting? The real estate industry suffered some major blows back in April but with the ridiculously low rates and states reopening, does it mean that we are headed for a price surge due to bidding wars? Read on find out more. perhaps, this might be the break we have been hoping for. In the wake of the COVID-19, businesses are now realizing the key role technology plays in the day to day operations, and in this issue, we examine the power of tech companies in reaching older consumers during this pandemic. Also, if you are house hunting, this is your lucky day. We have featured markets like LA, Richmond, Texas, Oakland, and San Bernardino, all of which are good places to begin house hunting.
Of course, we don’t like closing without giving each agent out there the nuts and bolts to succeed in this industry. Find out how the latest news and developments in real estate to stay ahead in the game. Thank you for your continued support and readership. Our team is dedicated to you, we want the best for you and therefore, we have to bring the best of us. Please take a moment to share this magazine with family and friends. Knowledge is Power, and The Power Is Now. Have a prosperous month ahead. ERIC L. FRAZIER MBA President and CEO The Power Is Now Media, Inc.
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HOW THE COVID-1 IS REDEFINING EN
SUSTAINAB A renowned 1972 report by the famous Club of Rome titled ‘The Limits to Growth’ and a 1992 book ‘Beyond the Limits’ by Donella Meadows, the lead author of the report, had one message in common, a warning. In both accounts, Meadows warned that humanity’s future will not be defined by a single emergency, but by many different yet related crises resulting from human failure to live within the planetary limits.
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umans are consuming the earth’s resources faster than they can be restored, releasing wastes and pollutants faster that their absorption rate and this have only been setting the entire planet up for a disaster. Fast forward to 2019, humans had not yet set themselves up to live sustainably and the pollution was only increasing. At the same time, wake up calls and climate action campaigns were at the peak but nothing seemed to be done, only empty words from the world leaders. This resulted to the furious message to the world leaders by Greta Thunberg ‘How dare you’ making the headlines in September 2019. 2020 was set to be a turning point for the
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empty calls to climate action being fulfilled. It was set to ramp up climate ambition, protect the Mother Nature and pull down all the emissions. On the other hand, some other parts of the world were highly focused to continue generating and increasing environmental problems that would affect environment sustainability. Just before this happened, the Covid-19 intervened. Perhaps, it’s the wrath of Mother Nature. The pandemic forced nearly the whole world to go on lockdown, air travel in most countries
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possibility to make transformational changes overnight, or within a very short period of time. No one could ever imagine that the current situation of wearing masks and regular sanitization would once be the new normal. The pandemic has given us an opportunity to rethink ourselves and our actions. Time to build the future we want It is obvious that nothing lasts forever, this pandemic is soon going to be no more. The end of this pandemic will be the perfect chance for the world to make changes. Many governments are planning to inject trillions to jumpstart the economy. This is a once-in-a-lifetime chance to also fund the transition towards a sustainable environment for our sake and the sake of the future generations. The funding should also allocate for the generation of green investments that would include expanding use of net-zero carbon energy and transport systems as well as increasing funding for protected areas and establishing green food systems to promote environment sustainability. paused as factories temporarily shut down. All this were a win to the Mother Nature as the emissions and other pollution reduced significantly. This also provided an answer to the most debated questions on how to ensure environment sustainability. Covid-19 may have brought so much havoc into the world, but it has also revealed its silver lining. The crisis brought by the pandemic has played a significant role in reinforcing the 2020 environmental agenda and given it the badly needed boost. The crisis has proved the
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At this point also, we have seen how much environmental sustainability we can achieve when there is minimal use of fossil fuels. It is time to replace the traditional use of fossil fuels with new renewable energy technologies that are launched nearly every day. It is also important to note that these new renewable energy technologies are globally available and cost cheaper than fossil fuels in installation and maintenance. These energy technologies could also come with a lot of employment opportunities to the locals which would be a relief in relaunching the economies.
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To further boost environment sustainability, we should focus on transitioning from industrial agriculture to regenerative agriculture. This is one of the ways we could ensure we live and operate within the planet’s natural limits. Regenerative agriculture would enable the isolation of carbon in the soil at a faster rate that would give the world a chance to reverse the adverse climatic conditions. This form of agriculture is currently being implemented by city governments around the world as it features many advantages such as high profits, enhancing economic and environmental resilience, job creation and improving the wellbeing of the rural and urban communities. For policy makers and other world leaders, the goal should be supporting the livelihoods of humans and making a sustainable future by investing in renewable energy instead of fossil fuels. The subsidies imposed on fossil fuels should be redirected towards green infrastructure, reforestation, and investing in regenerative lowcarbon economic activities. The current crisis has proved to us that when faced with a life-threatening risk, we can respond. It is time to realize that unsustainable environment is a huge risk that features slow and painful deaths. We should respond to environmental unsustainability the same way we did to Covid-19 pandemic. Let’s learn from our past failures and begin rebuilding a future that varies from the one we were busy molding before. Let us take this moment of crisis as a wakeup call by Mother Nature and begin investing in resilience, wellbeing and planetary health. Works Cited https://www.weforum.org/agenda/2020/03/agreen-reboot-after-the-pandemic/. https://www.iisd.org/blog/covid-19environmental-agenda 10
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ue to the ongoing deadly pandemic globally, most governments around the world may have retreated to loosening their straps around the previous climate action strategies as they focus on fighting the deadly virus. This may sound reasonable since the pandemic is considered more deadly but to some states, both the Covid-19 and the global climate change are deadly pandemics. California once again is on the frontline in fighting the use of fossil fuels that result to harmful effects to the environment.
ENVIRONMENT CALIFORNIA RESEARCH AND POLICY CENTER LAUNCHES CAMPAIGN CALLING FOR 100 PERCENT CLEAN ENERGY FROM SMUD BY 2030 Despite the ongoing Covid-19 pandemic, California is still experiencing sleepless nights as long as the environment is in danger. Previously, California had set a very ambitious goal of wholly relying on zero-emission energy sources for its power provision by 2045. But on the other hand, 2045 sounds like so far away, some feel like this can be done by 2030. Perhaps, the pandemic has proved that it can be done faster than that from the significant environmental improvements that have been witnessed in most parts of the world within a very short period since the onset of Covid-19. In June 25, the Environment California Research and Policy Center launched a campaign to compel the board of directors for the Sacramental Municipal Utility District (SMUD) to recruit a new general manager who would advocate for 100% clean energy by 2030. “Our utility has a golden opportunity to be both a state and national leader on clean energy,” Emily Fieberling, fellow with Environment California Research and Policy Center stated. “If we are going to stave off the worst impacts of climate change, the time to act is now.”
“Our nation’s leading climate scientists are warning us that we don’t have 25 years to wait to curb the worst impacts of climate change,” Feiberling added. “SMUD has the opportunity to act now. They must do it.” The Environment California Research and Policy Center campaign is being led by high school and college students who are urging the SMUD board to utilize this unique moment to set 100% renewable energy by 2030 as a mandatory requirement for whoever becomes its day-to-day leager. The campaigns also target to compel the SMUD to transition to the use of clean energy from their current use of fossil fuel generators. According to the Public Policy Institute of California (PPIC), 71% of adults and 66% of likely voters are in support of the legislation that required all the state’s sources of energy to come from clean energy by 2045. This proves that much of the public is aware of the importance of clean renewable energy and the increasing momentum and public opinion toward a future with clean energy sources in California.
The pandemic has already proved to the world that the adverse effects the human activities have had on the climate can be reversed, and the time to reverse is now. Before it gets completely out of hand. Since nearly the whole world went on lockdown and most operations halted, there has been significant improvements that have taken place. There has been a significant drop in emissions that has resulted to cleaner air in most urban industrial centers around the world especially in China. This proves that with transitioning to use of clean energy, we could make the future brighter and healthier for us and the next generations. As most economies are set to reopen, this could be a lifetime chance to implement the transitioning to the use of clean energy. The pandemic had shown that this is possible, and now it is upon us to make happen. We don’t need another lesson from another pandemic before we get it done. The power is now. Work cited https://environmentcalifornia.org/news/cae/environmentcalifornia-research-and-policy-center-launchescampaign-calling-100-percent.
Back in September 2018, the-then California governor Jerry Brown signed the landmark Senate Bill 100 that set California on a course to generate 100% of its electricity from clean energy sources such as solar and wind. Since then, the state has been on its course to make meet the goal. California proved this at the beginning of this year when it became the first state to set a requirement for all new houses to be built with solar panels.
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Since the onset of Covid-19 in the globe, the global economic situation has been deteriorating. The US economy has not been exempted. Just like in the other countries that underwent lockdowns, businesses were shut down, millions lost jobs, and consumer spending significantly dropped as all other economic activities were temporarily halted.
UNITED STATES ECONOMIC FORECAST 2ND QUARTER 2020
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n the US, the pandemic has dealt a very heavy blow to all the economic players for the past few months. In March and April alone, more than 20 million Americans lost their jobs according to Bureau of Labor Statistics. This figure was just about one-seventh of the total number who got employed in February. As the earlier estimates had projected, sectors such as arts, entertainment and recreational services (55% drop) and accommodation and food services (47% drop) were the most affected. This was due to the implementation of the lockdown and quarantine measures that saw people remain locked in their homes. One of the key factors that put the US economy in the downward trend lane is the significant drop in consumer spending. According to Deloitte Insights food services and accommodation, and recreational services together account for 8% of the US GDP. Consumer durables alone account for 7% GDP while health care services account for a 10% of the US 14
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GDP. Sales in the consumer durables have significantly dropped as a significant part of the health care sector stopped operations due to the Covid-19 risk as well as the need for more hospital space for Covid-19 patients. According to Deloitte Insights, some sectors of the economy declined as soon as the economy was shut down in March, but most were to be hit hard in the second quarter. The GDP was projected to fall by an unprecedented 16% in Q2 as it was expected to recover in Q3. The recovery will be offset by another decline in Q4 as the pandemic continues to prove harder to eliminate than most experts expect. Recovery will not be achievable until mid-2021. Growth will be expected to reach the pre-pandemic level by the end of 2023, with the economy expected to attain a full employment level by the first quarter of 2025. Elsewhere, according to The Conference Board, the National Bureau of Economic Research (NBER) declared that the US economy officially entered recession in February but the blow was felt more in Q2 with April bearing the worst pain. However, May and June showed a solid rebound as the economy begun to reopen slowly but surely. Reopening the economy beginning from May proved to be somehow successful. The government policies have successfully limited the damage on small businesses as the FED policy created sufficiently easy credit requirements that enabled businesses to quickly get back to operating. The reopening of the US economy was not all smooth as it was met with spikes in Covid-19 cases in various states that raised concerns from all over. This situation delayed further reopening of the economy and result to new lockdowns in other states. According to The Conference Board’s baseline scenario, a large wave of Covid-19 cases is not expected to sweep the country in the autumn. But instead, a weak consumer demand is expected due to the continued rising in joblessness as the government stimulus programs are running WWW.THEPOWERISNOW.COM
out. Currently, The Conference Board has three possible recovery scenarios. Their base case forecast known as ‘Double Dip’ features an annualized contraction of about 40% in Q2. This significant drop is as a result of the nearly 40% annualized fall in consumer spending, over 30% annualized decline in real capital spending and more than 50% annualized decline in exports. With a large rebound of over 20% in Q3, growth is expected to slow down to around 1% in Q4 which will result to an economic level output of about 93% in December 2020 of what it was the previous year. According to The Conference Board’s updated forecast, the US GDP will contract by 7% for the whole 2020. However, the upside and the downside of the economic recovery will remain. The lack of Covid-19 treatment options such as an effective vaccine will persistently make the situation difficult. Once the pandemic will be under control, the situation will begin the full recovery process. Unemployment will further ease resulting to a rise in the consumer confidence leading to a stronger ‘Swoosh’shaped recovery which will bring the economy back to the pre-pandemic levels by the end of 2021. on another account, a large second wave of cases in the autumn resulting in another widespread economic lockdowns could lead to a weaker ‘W’-shaped recovery that would deal a blow to Q4 growth and extend the crisis into 2021. We should understand that for us to win this war, we must take personal responsibility. As we go about our daily errands, let us keep adhering to the guidelines given by the WHO and our government. Works cited https://www2.deloitte.com/us/en/insights/ economy/us-economic-forecast/united-statesoutlook-analysis.html. https://www.conference-board.org/research/usforecast l
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HOME CONSTRUCTION REBOUND?
NAHB HOME BUILDING DATA SHOWS SIGNS OF LEADING AN EMERGING ECONOMIC REBOUND
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eopening the US economy amid the persistent blows from the pandemic seemed like the impossible. Even as health experts and other concerned parties warned of the possible resurgence in Covid-19 cases from reopening the economy, the US government still chose to take the chance. Despite, fears of a second wave of cases filling the air, the step has saved many economic sectors from facing extinction. A few months since the reopening of American economy, some sectors are already significantly benefitting from it.
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ata from the National Association of Home Builders (NAHB) are giving a sign that the housing market is rebounding from the effects of the Covid-19 pandemic. According to most recent data by the U.S Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built single-family homes shot up to 16.6%. This means that the number had increased to a seasonally adjusted annual rate of 676,000 units in May from a significantly low numbers in April. Surprisingly, the May rate is higher than the rate for the same time
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last year by 12.7% despite this year being troubled. “The May sales numbers are in line with rising builder sentiment,” states the chairman of the NAHB and a custom home builder from Tampa, Fla, Chuck Fowke. “With home building considered an essential business, this solid sales report is another indicator that housing is leading the economic recovery.” “In a sign of growing demand fuelled in part by record low mortgage rates, builder price incentives eased in May and home prices registered an upturn,” said Robert Dietz, NAHB Chief Economist. “Sales are 1.9 percent higher on a year-to-date basis THE POWER IS NOW MAGAZINE | AUGUST 2020
and our NAHB Home Building Geography Index points to construction gains in lower density markets like smaller metros and large metro exurbs in the months ahead.” On another account, inventory for May dropped to a monthly supply of 5.6% with only 318,000 new single family units available for sale which is 16.4% lower compared to the same time last year. Out of that number, only 76,000 units are completed and ready for occupation. Also this year, the median sales price for a new home is higher at $317, 900 compared to $312,700 same time the previous year. Elsewhere, according to a recent NAHB/Wells Fargo Housing Market Index, builder confidence for new single-family homes in the market rose by 21 points to 68 in June. May’s increase in new home sales is most likely a result of the builder price incentives offered in April but still it remains remarkable considering the current economic environment. “The rebound in builder sentiment as reported by NAHB was much stronger than expected by the consensus of economists,” RCLCO Real Estate Advisors Managing Director Brad Hunter said in a statement. “Builders have been telling us that May was almost back to normal, and some builders have gone farther than that, telling us that May was their ‘best month ever.” According to Hunter, the resurgence in the housing market is not just a result of the economy reopening but also response from the WWW.THEPOWERISNOW.COM
larger trend of built-up demand. “The recovery was happening even before a large number of states reopened,” he added. On the issue of the low housing inventory in May as compared to last year, Hunter commented, “The fundamentals of demand, combined with the shortage of housing that existed before the crisis and a heightened desire to move to the suburbs, are still fuelling the builders.” He expects new strong construction sales to be fare well into June and July. “Our expectation is that for-sale housing will continue to gain momentum, although more slowly,” Hunter adds. “Extending this discussion to the outlook for housing starts, the rise in building permits portends an increase in housing starts in the months ahead, which will reflect builders’ efforts to catch up with surprisingly strong demand.” According to experts, the housing industry is most likely to play a significant role in leading the country out of the current recession. Works cited https://www.nahb.org/News-and-Economics/IndustryNews/Press-Releases/2020/06/New-Home-SalesJump-in-May-as-Housing-Rebound-Continues. https://chicagoagentmagazine.com/2020/06/23/ new-construction-sales-numbers-rose-16-6-in-mayamid-growing-builder-sentiment/. l
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CALIFORNIA HOUSE SALES FALL 41% DURING CORONAVIRUS LOCKDOWN
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he Covid-19 pandemic period featured a lot of new norms that were put in place to curb the spread of the virus. Among them was the lockdown implemented across the U.S that brought nearly all the economic activities to a standstill. The lockdown had many businesses closed as all other key economic players such as the housing market reduced their operations in large bits. The California housing market was largely impacted as a result of the lockdown. According to the California Association of Realtors, in May alone, the lockdown caused a significant decline in California’s housing sales that resulted in a 41.1% decline in transactions compared to the same time the previous year. This was the largest year-over-year declined to be recorded since the last recession during the 2007 Great depression. Meanwhile, the year-over-year median prices for houses also dropped significantly for the first time in eight years.
“The sharp sales drop in May was the steepest we’ve seen in some time, but there are encouraging signs that show the market is recovering and should continue to improve over the next few months,” Jeanne Radsick Bakersfield, the CAR President said. In May, the Los Angeles metro area recorded a 46% which is the largest annual percentage decline in the region since October 2007. At the same time in all Southern California counties, house prices increased compared to last year as the median of all sales dropped by 1.2% in Orange County. The figures represent closed
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sales for existing single-family units which are more than two-thirds of all residential transactions. May’s pace was the slowest sales pace in California since the Great Recession in 2007 which is 13 years ago. If the year would proceed at May’s pace, 238, 740 units would sell for the whole year according to CAR. The last time a similar pace was recorded was during the 1982 recession when interest rates average was 16% compared to 3.2% towards the end of May. The same month also recorded a 13.9% decline from April. According to the CAR report, all but one of the 51 California counties tracked by CAR featured a yearover-year sales drop in May as all regions of the state reported decline in sales by at least 35%. “As we predicted, May home sales took the full impact of the coronavirus pandemic as much of the state remained in lockdown during the past few months and caused three straight months of double-digit sales declines,” said Leslie AppletonYoung, CAR Chief Economist in a statement. Elsewhere, the state-wide median prices for house units declined by 3.7% to $588,070 which was the first drop since February 2012. In Southern California, house prices were more stable. In Los Angeles County, the median for house prices increased by 1.4% to $546,930 as Riverside County recorded a 3.4% gain pushing it to $434,480 and a 1.6% gain in San Bernardino County raising it to $320,000. However, in Orange County, the most expensive housing market in the region has weaker prices. For the fourth time in the past one
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and a half years, the middle price for a single-family unit dropped to $834,550 in May compared to the previous year. The current figures show that transactions are somewhat rebounding. In Los Angeles, Orange, San Bernardino and Riverside counties, new escrows inclined to 48% as of June 11 compared to the month before and up 2% from the previous year. According to Zillow, state-wide escrows dropped to 6% as of June 6 giving an indication that closed sales for June and July were likely to experience a smaller drop compared to May. According to CAR agent survey, the buyer “perception gap” also gives indications of possible improvement. The agents reported that 77% of buyers expected prices to drop in late May compared to 90% the previous month. “While we expect sales activity to remain below pre-COVID-19 levels,” Appleton-Young stated, “closed sales should improve markedly as the phased reopening of the economy continues and consumers feel more confident returning to the market.” With the lockdown measures now lifted and most operations back and running, the housing market in California is expected to start recording signs of improvements. The California economy in general is improving steadily and therefore the housing market is expected to catch up soon. Works cited https://www.mercurynews. com/2020/06/17/virus-lockdownbattered-house-sales-prices-inmay-realtors-report/.
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LOW MORTGAGE RATES, STATES REOPENING, IGNITE RECORD HOME SALES AND BIDDING WARS Reopening of the US economy has come to the relief of many players especially the small businesses. Also, the reopening has come bearing many great things to the citizens in general. Those who had temporarily lost their jobs earlier due to the shutting down of operations have now had a chance to go back to their work places.
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he reopening of the economy also came with policies that were established to make the environment somehow friendly for the American people to relieve them the pain experienced during the lockdown periods. The reopening came with low mortgage rates that that saw buyers flocking to the summer real estate market. According to the National Realtors’ index of pending home sales released on July 4, contracts for previously owned homes in the U.S inclined by 44.3% in May, which is the highest ever as the states reopened from the lockdowns. The boom in May was after a collapse in April when the sales declined to the lowest point in the past 19 years. According to records from Mortgage Bankers Association, purchase activity has inclined above previous year levels for five straight weeks. “COVID-19 really slowed things down earlier in spring, when the home-buying season usually begins, so now we have pent-up demand at a lot of buyers out there” the branch manager at Sierra Pacific Mortgage in White Marsh Maryland, Michael Becker states. However, it’s not only pent-up demand that is compelling the current, homebuyers are also getting convinced by the low mortgage rates. According to Bankrate’s weekly survey of large lenders, the first week of July recorded a decline to 3.42% on the average 30-year fixed-rate mortgage. This records represents new record low. The rates were projected to remain relatively low in the following weeks and months.
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According to experts, the housing market is expected to continue getting more active. “Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year,” Lawrence Yun, chief economist at the National Association of Realtors (NAR), said in a statement.
OVERWHELMING NUMBER OF HOMEBUYERS WITH LOW HOUSING INVENTORY
The reopening of the economy combined with low mortgage rates have resulted in an overwhelming turn up of homebuyers, but the choices are limited; housing inventory is low country-wide. “The inventory of existing homes was tight before COVID hit, and now it seems it’s only worse,” Becker states. According to data from the NAR, the monthly supply of unsold housing inventory is at 4.8 at the current sales pace. That represents an increase compared to the previous month which was at a monthly supply of four. “New home construction needs to robustly ramp up in order to meet rising housing demand,” stated Lawrence Yun. “Otherwise, home prices will rise too fast and hinder first-time buyers, even at a time of record-low mortgage rates.” The current situation in the housing market hints at a possible heavy competition among homebuyers as they vie for the few available homes this summer. “It seems like every desirable home has multiple offers,” Becker states. “Sellers are selling their homes in days, not weeks. I am seeing buyers offer over the listing price, have escalation clauses where they will beat any other offer up to a certain price, and drop their requests for the seller’s help.” Becker also notes that the stiff competition among home buyers is setting a very huge hurdle for the first-time home buyers who may need assistance with down-payments or the closing cost. This is because their offers are less attractive compared to those others who don’t need any assistance.
MICHAEL BECKER’S ADVICE
According to Becker, you can use the following cheats to stand out in the current hot market. WWW.THEPOWERISNOW.COM
• Get preapproved for a mortgage instead of struggling to get your lender documents when you find a home. • Utilize technology. Currently, many lenders are equipped with a smart phone that allows them to email or text. That means you can apply for a mortgage in real time. • If the competition gets too hot, offer full list price. Over-list of use an escalation clause. • Don’t ask the seller to help you on closing costs. • Make a larger earnest money deposit if you have the capacity. This will prove to the seller that you are serious. • Consult your agent to come up with strategies that will make your offer standout.
GET THE BEST MORTGAGE RATES It is a fact that not all homebuyers will be able to secure low mortgage rates in this market. “Borrowers who are getting the best rates are those with strong credit,” Becker states. Borrowers with high credit score above 720 are receiving mortgage rates 78 basis points lower than those with scores below 660. This is according to a recent report from the Urban Institute. According to Becker, those with less than 20% for a down payment, having solid credit can help you secure lower private mortgage insurance rates as well. Those with less-thanexcellent credit have options but it’s never easy to qualify as it was before. This has resulted from the increase in the minimum credit score to 620 for FHA loans. Before the onset of the pandemic, Becker’s brokerage would accept a score as low as 580. “Borrowers just need to have a plan of action for the future if they don’t qualify now,” Becker states. “Remember, no doesn’t mean never.” If you don’t qualify for a mortgage now, take steps to improve your score for future benefits. Works cited https://www.fredericknewspost.com/public/ ap/mitch-strohm-low-mortgage-rates-statesreopening-ignite-record-home-sales-andbidding-wars/article_074ba045-9ae3-5fda932a-e6342f2f10c9.html. l
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For many companies, especially tech companies, reaching older consumers, especially the boomers and matures, has been a challenge even during the pre-Covid-19 period. Now with the pandemic, the challenge of reaching the older consumers seems to have renewed, and it now features new hurdles.
CAN TECH COMPANIES REACH OLDER CONSUMERS DURING THE PANDEMIC?
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ech companies, especially those that deal with consumer electronic devices such as laptops and smartphones, have had rough times during this pandemic period. The Covid-19 shocks have affected both their supply and demand trends. The lockdowns implemented in the US have caused a massive decline in corporate revenues and caused massive loss of jobs to Americans. To recover from this, companies such as tech companies need to do more. They need to get out of their comfort zone and pursue new consumers such as the boomers and matures. Interestingly, older consumers (boomers and matures) can afford to spend on consumer technology, but they are not buying. The question remains why? The question of why is what bars the tech companies from reaching older consumers. Boomers and matures live on their pensions and help from their kids and grandkids; therefore, money is not a problem here; interest is. Lack of
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interest is what keeps the older consumers from buying new tech. This has been the problem all along, and it even gets worse with the pandemic situation. To recover from the pandemic effects, tech companies need to develop a way to reach older consumers, those who have finances to spend but lack interest in new tech. According to a biweekly Deloitte State of the Consumer Tracker survey, older consumers are less concerned about making ends meet. Only 11% of boomers and matures showed their concern about making upcoming payments compared to 41% of Generation Z and Millennials, while Generation X consumers were at 35%. Therefore, there is a lot of money to spend at their disposal. Tech companies should take advantage of this situation and convince older consumers to upgrade their current devices and try new ones. They should convince the older consumers of the simplicity and the wide functionality of the new tech. This could see some older consumers choosing to try out the new devices, thus boosting tech companies’ sales. After all, older consumers have nothing to lose.
At an old age, most old consumers are only willing and interested in spending their money on goods and services that matter to them at the moment, such as food and health care. New devices from tech companies are, in most instances, never on the list of what old consumers are willing to spend on. According to the Deloitte survey, a net of 36% of the older consumers planned to spend less on electronics for July. This is a negative purchasing outlook that represents how the situation has been during the pandemic period, and the shock tech companies are preparing to recover from. Another Deloitte’s Connectivity and Mobile Trends Survey demonstrated the disconnect between tech companies and
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older consumers. 92% of boomers have a smartphone, which is a good number. But 43% of them haven’t upgraded their smartphones in the last two years while 58% of them have no plans to upgrade or buy a new one for the next two years. Matures are least likely to upgrade. According to the survey, most Generation Z and Millennials planned to increase their electronics expenditure in July. However, counting on these younger consumers to keep tech companies operating, at least for this period, is a super-risky strategy. The younger generation is characterized by less wealth, job insecurities, and are more concerned about paying their monthly bills. During these harsh times, tech companies should develop strategies to convince the older consumers of why they need new devices. They should show the connection between new devices and essential services that older consumers mostly care about. Tech companies should show older consumers how a new device can help make their lives easier and self-reliant through tracking their fitness and health conditions. They should also show the older consumers how the new devices can keep them connected to their friends, families, doctors, and even entertainment to make them feel less isolated, especially during these tough times. Work cited https://www2.deloitte.com/global/ en/insights/industry/technology/ technology-consumers-opportunityduring-covid-19.html.
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HOW TRAVEL RESTRICTIONS ARE CHANGING THE MORTGAGE BUSINESS
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he Covid-19 pandemic period has been met with many preventive measures that have established the basis for the new norm across the world. Lockdowns in cities, quarantines, and the ban on traveling have become part and puzzle of the new norm. Businesses have no option but to face the reality of the ban on traveling. Travelling has been restricted as a measure to curb the spread of Covid-19 as people move from one point to another. In the American mortgage industry, the travel ban, both formal and informal, is bringing a change to how mortgage firms manage their relationship with their branches and other companies. Since mid-March, giant mortgage entities such as Ellie Mae, Quicken Loans, and First American Bank, have banned traveling. Their operations now are running through virtual means such as video conferencing. Conducting operations virtually has come with its own side effects as several executives have stated that something is missing in the way of doing business. Taking most operations online means that data and analytics will play a significant role in the highly commoditized world of mortgage loans. Video
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conferencing also needs a unique kind of focus. Therefore, internal company activities that are done virtually have to be handled differently to accommodate for the digital format. These measures put in place during this period, characterized by virtual activities, are not all temporary. Once this pandemic is over and the travel bans lifted, the digital formats of running businesses are likely to replace some in-person visits. HOW DIFFERENT COMPANIES ARE COPING WITH THE SITUATION Some organizations, such as ClosingCorp, may not have introduced their own internal travel restrictions, but the company had to restrict traveling in line with the CDC and local government’s directives. ”From a travel perspective, it’s really our salespeople and our implementation people that spend the most time on the road,” the company CEO, Bob Jennings, said. ”And even with them, we’ve been pleasantly surprised that they’ve been able to continue their jobs somewhat unimpeded due to the introduction and widespread use of things like Microsoft Teams and Zoom and other video conferencing collaboration technologies.” Big operations in the sales process and implementation processes may occur through virtual means, but the little touchpoints such as the hallway conversations and recognition of body language are missing, Jennings added. According to him, the virtual forms of running operations have elongated both the sales and the implementation cycles. ”We talked a lot about, ’how do we solve for that going forward?’ because we suspect that even when all travel restrictions are lifted, people are still going to operate in this remote disbursement environment,” he added. According to Jennings, people may miss out on approximately 1% of the context without the free exchange of information that comes with face-to-face conversations. ”That 1% is critically important to the sales process and the implementation process,” he adds.
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Video conferencing may fall short on that regard, but it does create a greater intimacy than phone call conversations could, Planet Home Lending’s Chief Operating, Officer Suzy Lindblom noted. ”We can tell a lot more from a face-to-face interview than you can on the phone,” said Lindblom. ”I personally have calls with a lot of our branches, and I’ve been doing [many] more videos with them because I think it’s important to see faces to feel you’re having that one-on-one conversation.” Elsewhere, Meriden, Conn-based Planet Home Lending, had its midyear sales meeting recently. The event stretched for three days, four hours a day. In terms of staying actively involved in an event, “being on video is different than meeting in person,” Lindblom said. Despite the difficulties that come with the digital forms, the mortgage industry has strived to maintain productivity. This has been made possible because the field is built on relationships created from physically attending conferences, both internal and external, Mike Fontaine, COO at Plaza Home Mortgage acknowledges. ”The reason the industry has been able to move forward right now is because we all have pretty good relationships from having gone to these events over the years,” says Fontaine. ”But if we can’t travel for the next 12 months, I think that’s going to hurt the ability for people to continue to help those relationships and also to develop new relationships with new customers and vendors and peers out there.” During this pandemic period, Plaza’s mantra is ”safety first,” therefore they imposed a travel ban. The company operates in the wholesale and correspondent origination channels and is headquartered in San Diego. When it comes to monitoring its third-party originators and other vendors under the Consumer Financial Protection Bureau mandate, the company deploys video conferencing.
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During the pre-Covid19 period, the vendors would engage in an in-person meeting while Plaza performed some onsite due diligence. However, Fontaine noted that many of the video conferencing he does during this pandemic period have resulted in the same conversations he would have had if it was in a physical meeting with his vendors. It is so helpful that he had existing relationships with the vendors before the pandemic period. Despite things being difficult due to the current situations, there is always a silver lining to it. Since the introduction of the travel ban, Planet Home has onboarded two new branches. ”To be honest, it worried us how it was going to go because our onboarding team is [normally] onsite with them for the first week,” Lindblom stated. ”So not only did we not have them at a physical location, we’ve had to do everything remotely: training, introductions, making sure to have the equipment, instead of it all being shipped to one location, being shipped to the individual homes. So there was a lot of planning going into it as we opened these first two during this time.” As we move on, Plane Home is preparing to open two more branches. It is encouraging that the mortgage companies are still striving to keep doing what they do to ensure Americans access their services despite the current situation. It is the American spirit always to find solutions and alternatives to do things when times are uncertain. Always remember that there is always a way through everything. Work cited https://www.nationalmortgagenews.com/news/ how-travel-restrictions-are-changing-themortgage-business.
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FIVE STAR DEVELOPMENT SUES PARADISE VALLEY TO PROTECT $2 BILLION PROJECT A ‘Shake-down’ is what they called it. And for months now there has been a struggle happening behind close boardroom doors between the Paradise Valley officials and Five Star Developmentwhich is very well known in Arizona for their magnificent The Palmeraie Luxury Community.
Yvonne Mcfadden
It seems Five Star Development cannot take it anymore which has prompted the company to file a legal suit against the Paradise Valley. The company alleges that the legal action is the culmination of months of attempted coercion by the Paradise Valley Officials, who have continuously attempted to disregard the terms of a 2016 development agreement to force the builder to pay money, in tunes of millions in new and unstipulated infrastructure costs. WWW.THEPINMAGAZINE.COM
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t makes sense why the Paradise Valley officials would put the unduly pressure on Five Star. It is estimated that the Town’s operating revenues are down 40% and also faced a potential $10 million reduction to its general funds in the coming year. “This is a shakedown, pure, and simple. The Paradise Valley Town Council is sorely mistaken if it thinks it can rip up our development agreement and squeeze us for millions of dollars in bogus fees and charges just so Town Hall can paper over its budget shortfall,” said Jerry Ayoub, President of Five Star Development. He continues to say that The Palmeraie which also includes the Ritz-Carlton, Paradise Valley will be one of the economic powerhouses, drawn from the fact that it is one of the most ambitious and luxurious community to ever be built in Arizona. Additionally, Mr. Ayoub says that Five Star Development has nothing to hide and is very ready and committed to paying its fair share of infrastructure. However, “…But we will not bow
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to the financial coercion of Town officials, nor will we allow them to jeopardize a project in which hundreds of millions of dollars have been invested, including from Arizona families who’ve already purchased residences as part of our property.”
ABOUT THE PALMARAIE
It is located in Scottsdale Arizona and promises to offer nothing short of a dynamic experience to the visitors and the residents of the township. The Palmaraie is a $2 billion master-planned luxurious community situated along the border between Paradise Valley and Scottsdale. It’s a 122-acre development and within it, the RitzCarlton resort and spa are being built along with lavish homes, villas, class AA+ office spaces, and a world-class shopping district. Indeed, The Palmaraie represents one of Arizona’s largest multi-use project that is currently underway. So far, the project has employed over 700 construction workers, and once complete, it is projected to generate at least $430 million yearly in consumer spending alone. As such, it is a project that as a real estate agent from Arizona I wouldn’t want to see it jeopardized. When it began, there was a legal agreement that detailed the roles and responsibilities of Five Star Development and the Town of Paradise Valley as part of The Palmaraie project and this includes the infrastructural improvements. To be exact, Five Star on their part were mandated with paying certain street improvements adjoining the property. This included the construction of turn lanes and such enhancements.
However, the Paradise Valley Officials now demand that Five Star fund at least $2 million worth of offsite improvements to regional storm drainage and flood control. In addition to that, the Town has defaulted on other key aspects of the development agreement, improperly assessed projected management and other crucial fees, refused to allocate financial credits to the firms as prescribed in the agreement among many other obstructions.
WHEN FIVE STAR DECLINED TO THE NEW TERMS… Interestingly, and as you would expect, Five Star declined to the new terms and unwarranted fees stipulated the Paradise Valley, that didn’t sit quite well with the city officials and they threatened to withhold various permits and approvals that the project needed to run smoothly. This includes the delay of the Town’s issuance of Certificates of Occupancy necessary for buyers of Ritz-Carlton-Branded Villas and Estate homes to close escrow and take ownership.
“The Palmeraie is the largest economic development project in the history of Paradise Valley, with the potential to both secure this community’s financial future and cement its status as a world-class tourist destination,” Ayoub said. “It’s terribly disappointing that Town officials, rather than working with us, would hold our project hostage at this late date in an attempt to secure additional financial concessions. We look forward to bringing The Palmeraie to completion and are optimistic the Superior Court will hold the Town of Paradise Valley accountable to the development agreement is signed.” Sources; https://azbigmedia.com/real-estate/thepalmeraie-developer-sues-paradise-valley-toprotect-2-billion-project/ https://www.bizjournals.com/phoenix/ news/2020/06/30/ritz-carlton-developeraccuses-paradise-valley.html
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HOW TO ACTUALLY AFFORD A HOME IN ARIZONA
Peggie Simmons There are so many things that one has to consider when buying a home and the entire process can be so overwhelming, especially for the first-time home buyers. Arizona, just like many other housing markets can be tricky to navigate. Understanding this, I have prepared a guide that will help buyers, including the first-time home buyers take advantage of this rich market. Before diving deeper into the complex web of real estate and start your hunt, make sure that you have the advantage of information, knowing all the ins and the outs of buying a home in Arizona.
ARIZONA REAL ESTATE MARKET The real estate market in Arizona is as strong as it has been in the last 10 years as more people flock the city from neighboring states and counties. A large share of the homeowners are the ones, probably like you who are tired of renting a house. Homeownership is a vibrant dream in Arizona, as there are so many benefits, both social and financial of homeownership. There are some factors that you need to take into consideration when buying a home in Arizona.
EVALUATE YOUR SITUATION
This is first thing you have to do. Evaluate your current financial standing. This is the single most important factor that you have to take into consideration. It is important that you assess your financial muscles and make sure that you can actually afford the home without going into massive debt. Getting pre-approved for a home loan makes the seller more interested in you because it shows that you are a serious buyer and that
you have the financial backing to buy the home. To get a pre-approval in Arizona, the lenders will look at your credit score and any liabilities you might be having. If feasible, make sure that you have cleared most of the debts which in turns raises your credit score. Preferably, most lenders look for an average of 620 or above to easily get a loan approval. Once you qualify for a preapproval, it is time to start looking for your next home. For a successful journey, stick to the set budget or set a price range. According to most experts, to give an estimate of how much you’ll expect to pay for a home, use three times your income as your base point, a suggestion I strongly recommend. It is also advisable that if you can, look for your next home in a trendy neighborhood, whereby the price for the homes will actually rise in the coming years. Once you spot the dream home, it is time to make your down payment. Most people believe that you need at least 20% down, l
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but I can help you get that dream home with 0% down payment. Nonetheless, the current average nationally sits at around 10%. Being able to pay at least a 10% down payment means that you ill be able to save yourself some cash that will cover your upfront costs. One other consideration you will have to make is the mortgage expense. This will largely depend on your current situation. It may be advantageous to go with a fixed-rate mortgage or even a 15-year term mortgage whatever works with your finances. Unfortunately, homebuying is not as easy as most people make it look, the expenses involved do not end there. There are expenses that you will incur when closing on the home. These include the transfer taxes, the attorney fees, inspection fees, appraisal fees among others. These will actually cost you around 3% of the sales price. Knowing when to make this substantial investment will ultimately impact how much money you spend and to get the best deal possible the market has to offer; you have to know the Arizona real estate market really good. That is where I come in. right now according to Zillow Arizona is a hot market. Home prices have been rising steadily and between years 2018 and 2019, there was a 7% increase. Ma jor cities in Arizona, including Phoenix will see up to 5% to 8% rise in the home prices within the years to come.
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Right now, when the world is grappling with the effect of the COVID-19, Arizona real estate market remains relatively stable, which is attributed to the steady supply of housing units. From 2018 inventory went from two months’ worth of supply to nearly four months of supply. Comparing this to the previous years, it means that real estate in Arizona is by far less competitive and much more affordable. The best times to hunt for your next home is during the summer months. It is during this time that you will fetch the best deals at a relatively lower price. Do not attempt to go into the market in January or February as they are the busiest months in Arizona. And while you will find more selections on the market, they will be pricier. One thing you have to keep in mind is that housing market trends tend to fluctuate from time to time and to get the best results and outcome that you will be proud of it is a good idea to always employ the services of an experienced local agent. Get in touch with me today to get started on your journey to homeownership. Sources: https://listwithclever.com/real-estate-blog/8steps-to-buying-a-house-in-arizona/ https://www.arizonadownpaymentassistance. com/buy-house-arizona/ THE POWER IS NOW MAGAZINE | AUGUST 2020
LOOKING FOR A NEW PLACE? THIS MAY BE THE RIGHT TIME TO CREATE YOUR WISHLIST
Kamesha Keesee The Coronavirus is here with us and probably to stay for a while. Most of us have been forced to shelter in place and truly, homes have never been this important. If the Coronavirus has highlighted one thing perfectly, is that our homes are our haven. Right now, most people have become quite familiar with their homes and in many cases, too familiar. It is possible that before the pandemic hit, you were planning to move and may be, the plan may be stalled, but you still plan to do so when the timing is right. This is the perfect time for you to reflect on the things that are moving swiftly in your current home and the things that are not. As such, if you still want to move after this pandemic, this Wishlist will be very useful.
General • For how long do you plan to stay there? The longer you stay, the more the plans that you will be making with the place. • Do you have kids? Or are you planning to have kids? If you do, it is important that you also take into consideration the schools in the area, the number of bedrooms, playroom, the yard size and such. • What type of a home are you looking for? A fixer may be? Do you have the time, the money, or the commitment to see it through to completion?
• What’s your budget like? this is an important determinant as it will influence where you live and the type of property you will buy. • How do you like your home? New or old or somewhat new? • Transportation means. This is important because there are people who prefer to stay near public means of transportation. • Where do you want your property to be in? what part of the country, what city and in what neighborhood?
The Property Itself • Can you afford the property and what is your price range? What is the minimum amount can you offer and what is the maximum amount you cannot exceed? • What kind of property are you will to move into? A one story, two story house, a split foyer, a bi-level, tri-level, townhouse, or a condo? • What taste of home is most appealing to you? Contemporary? Traditional? Southwestern? Colonial? Or no preference at all? • When it comes to property renovations, how much are you willing to do, a lot? Less renovations? Or none? • Do you keep pets? If yes do you need a property that will require special facilities to tend to the pets?
Exterior Property Details • What parking size do you need? • Will the parking for the guest be necessary? • Do you need a large yard? A large yard means that you will be required to maintain it frequently which to some people can be overwhelming. • Is a pool a plus to you or a minus? • Is a hot tub a plus or a minus? • If you need a fenced yard, can you be able to maintain it?
Interior Property Details • Do you like basements? • Will you require to be working from home? If so, do you need a property with an office space? • Are there floorplans or home styles that you dislike? • In the period you will own the property, how many bathrooms will you need? • If need be, can you afford the cost of cosmetic works such as carpets and painting? • Would you prefer a property with a fireplace?
Community Features • Would you prefer a community with a homeowner association or not? • What are some of the amenities that the community must have? • • • • • •
Community pool? Golf course? Basketball court? Tennis courts? Gated community? Clubhouse/activities?
• Are there any other special facilities that you would need or would consider in your new home? I hope that this Wishlist helps you make a decision that you will be proud of. Sources: https://www.zillow.com/resources/stayinformed/2020/05/29/new-home-wishlist/ http://www.fearlesshomebuyer.com/lesson/createyour-wish-list-for-a-house/ https://www.hud.gov/sites/documents/WISHLIST-EN. PDF
DOES YOUR HOME REALLY MAKE YOU
HA P PY?
Our homes are by far and large an extension of who we are. They tell a story of our personality, our lives and who define our lives more than words can. However, does owning a house real make us happy? At the core of the American Dream is homeownership which has often been translated to mean the foundation of a happy and fulfilled family, not forgetting the promise of a financial security. Common idioms like; material wealth will not bring you any happens really didn’t consider homeownership. Millions of people aspire to own a home someday.
David C. Trubey
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ccording to On Q Financial, “Owning a home is one of the most common financial goals in the United States, and there are many reasons why. It’s a source of stability, it gives you control, it allows you to build equity, it reflects your style, and on some level, it’s associated with a feeling of success.” DOES IT MEAN THAT THE PEOPLE WHO ARE RENTING ARE NOT HAPPY? In one study titled, “The American Dream or the American Delusion? The Private and External Benefits of Homeownership for Women,” a university professor contrasts the benefits of owning a home to that of renting and the result are somewhat surprising. The study indicates that those who own their homes aren’t any happier than those who rent. But, ultimately, owning a home is much more advantageous than renting and a source of happiness to most people. Do you need a stable life? Homeownership might be the simple straightforward answer. Imagine having a place that you come to each and every day. If you keep your home in a good condition, it could give you some sense of stability and consistency, which is key to you becoming content and happy with life. Additionally, buying a home is a strong signal of both internal and external success which will make you feel both proud and accomplished in life. Ultimately, this will lead to greater satisfaction with life. If you own a piece of real estate, it gives you a chance to build equity WWW.THEPINMAGAZINE.COM
which will in turn help you in wealth creation thus more buying power. In some other cases, owning a home is attributed to other variables that might have a positive influence on your overall happiness. For instance, research proves that most people will wait to buy a home until they have a spouse and or even a family. Spending time with family can make us happier in life. Also, owning a home means that you are really in control of your life and your desires and ambitions are in line which in overall can independently make you feel a lot happier in life. If you find that you are not happy with your home, try to adjust everything that you do not like about it because homes are havens and without one, you might suffer in life and the COVID-19 crisis has made this adamantly clear. Owning a home will make you happier in life, but this fact will depend on many variables which include but not limited to your own personality and the circumstances that might have led you to buying the home in the first place. Sources: https://knowledge.wharton.upenn.edu/article/so-youthink-owning-a-home-will-make-you-happy-dont-be-toosure/#:~:text=%E2%80%9COverall%2C%20I%20found%20little%20 evidence,at%20home%2C%E2%80%9D%20Bucchianeri%20writes. https://thriveglobal.com/stories/will-buying-a-home-increase-yourhappiness/ https://www.apartmenttherapy.com/10-things-that-will-make-youhappier-at-home-174151
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NPHS- HELPING CREATE A FUTURE WHERE ALL FAMILIES
ARE FINANCIALLY PROSPEROUS
Ameer Elahee
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he founding fathers of this great nation had one notion that proved to be true, that property ownership is a strong pillar to wealth creation. A stake in the ground meant lifelong happiness and the first step towards building a stronger and secure future. The same principle applied then and it also applies today as homeownership remains a strong pillar and cornerstone of the American Dream. Homeownership is important as it provides families with a strong sense of emotional and financial stability, and history has proved right that homeownership boosts household wealth as the homes appreciate over time. Just a month ago, we celebrated the homeownership month, but this time it was different given the current situation the world is grappling with. However, that doesn’t mean we should not take time off our busy schedules to look back and highlight just how important ours are. In fact, no more than ever, we need these homes and the COVID-19 has made that adamantly clear. June is the National Homeownership Month, but I also think our homes should be celebrated each and every month. Nonetheless, with the current economic conditions, people who had plans to make their home purchase this season might be skeptical and hesitant to get into the market. But that doesn’t have to be the case for you. National Partnership Housing Services Inc, wants to make your homeownership journey come true especially now, during these unprecedented times. We know that homeownership is one of the best ways for families to build personal and intergenerational wealth. We also know that the American Dream of homeownership is certainly not applicable to WWW.THEPOWERISNOW.COM
everyone in our country when people of color and other marginalized communities are unjustly treated and ultimately excluded from the promise of economic prosperity. At NPHS, we strive to build more equitable and inclusive communities. We house families, reduce blight, promote inclusion, fight displacement and redlining, create jobs, build, and preserve equity, direct impact investments, and we tackle other issues that no one else will. Sometimes we feel overwhelmed, but this is why we march in faith and hope and build on the resiliency of people to surmount what sometimes appears insurmountable. Our resolve to bring about racial equity and social justice through our work will be unwavering. We renew our commitment to helping pave the way for more families of color to achieve the financial and social benefits of homeownership. We will challenge and stretch ourselves more than ever to create opportunities that elevate both economic and civic empowerment, enabling people to shape the decisions that affect their lives, elevate their voices, and access all the services they need. From all of us at NPHS, let’s march together, arms linked, to a future where all families are financially prosperous and live in healthy, economically vibrant communities. Sources: https://nphsinc.org/2020/06/11/the-future/ l
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What’s in Store for the U.S.
Housing Market?
Ruby Frazier At the start of the year, everything looked good, in fact, many industry experts predicted that 2020 would be a good year for real estate. For a while, it did thanks to the all-time low mortgage and industry rates. However, out of the blues, Coronavirus struck and the bad thing is, it caught most people by surprise. Right now, the virus has created fears of a potential recession but none of that seems to distract buyers from getting in homes.
A
round January to mid-march, the U.S. housing market enjoyed a red-hot status but with the announcement of the first few cases in the country, uncertainty loomed through the market, and the subsequent result was shattering of businesses and a severely disrupted economy. That was before real estate was made an essential business. Fast forward to the second quarter, the housing market started out from a rocky ground, almost completely defeated by the virus which hit it right around the peak moving season. However, through all these
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challenges, the market seems quite resilient adapting positively to the changes in the last 6 months and has so far managed to make a quick and strong comeback. That is not to say that the market is fully sustained on the path to recovery, there are still numerous challenges that lie ahead, mostly emanating from the precarious situation of the economy. Of importance to note is that Q2 closed on a much stronger note that where it had begun. This means that we can expect that as we head into the 3rd quarter, the market will be stronger and more robust than Q2.
A V-SHAPED RECOVERY
For weeks leading to a healing Q2, measures put forward against the virus which included lockdowns and shelter in place painted the bleak picture not just for the industry, but for the whole economy and this put the market through its paces. However, in line with some expert’s predictions, we can expect a V-Shaped recovery by looking at some key indicators such as supply, demand, the prices, and industry sentiments which all appear to
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be well adjusted for a stronger rebound, but in the short term. To paint a clear picture of this, back in April when the virus’s impact on the market was on its peak, a whooping 78% of the real estate agent reported a declined activity in their areas which was up from the two weeks prior report of 45%. This is understandable, most buyers were uncertain about buying property in the middle of a pandemic, in fact, at the same time, 87% of the buyers reported that they’d seen some buyers pause their home search due to the virus. On the other hand, sellers were also expressing their fears with the market. There were many sellers who had plans to list their properties in March or April, but they ended up pulling down their listings. 76% of the agents reported a decline in seller activities at the start of April. This had two effects on the market. While the behavior in itself was troublesome and tipped off the market health in the long term, it effectively helped prevent a supply bloat and also, protected the home values from a severe downward pressure. Even with the lockdown measures, many markets around the country reported less to no declines in housing prices.
SUMMER IS THE NEW SPRING
All over the country there was a sheer loss of transactions which sent the market into shock. This was a stark contrast to the prepandemic expectations. All through the month of April, many agents reported a slower business than usual which is largely peculiar for spring. In February, though at a mild pace, real estate was doing great, however reports in April indicated that the market had dropped below the 50% across the nation, which was down nearly 77% in February. As for the pending homes sales data measured by the National Association of Realtors, they had slumped to their lowest levels in nearly two decades. Hopes with the market all through march
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and April had dwindled, but going into May, the market yet showed signs of life. There was a slower pick-up rate and agents across the country said real estate business was picking up. Their estimations of a buyer and seller drop out from the market had steeply fallen by the end of May, only 3% of agents across the country had reported that buyer activity was on a decline. Meanwhile, only 13% said that seller activity on the market was declining. All this showed that buyers and sellers were ready for the market, as long as there was adherence to the safety protocol measures against the virus. In June, there was a surge in pent-up demand which hit the market in a wave, driving up competition over the available units for sale. All this activity happened in just a span of single quarter and while the two biggest question remain unansweredthe stability of the economy and the longevity of this rebound loom- we can only hope for a better Q3 even as the real estate industry seem to be dancing to a new catch phrase; Summer is the new Spring. As of June, the industry had regained to some sort of normalcy as ma jority real estate agents reported that business was back on track, however, regardless of the promising uptick in activity, this year’s summer will look different than most with most agents saying that, while Coronavirus has been a deadly blow to the market, it brought an opportunity with adaptations like e-signature tools and virtual tours accelerated, which probably will be here to stay. Sources: https://3xlsey17pnzh3nf35w1wwnugwpengine.netdna-ssl.com/wp-content/ uploads/2020/06/real-estate-top-agentinsights-for-q2-2020.pdf https://www.realtor.com/research/tag/ housing-forecast/ https://www.nasdaq.com/articles/whatdoes-coronavirus-mean-for-the-housingmarket-2020-04-03
THE POWER IS NOW MAGAZINE | AUGUST 2020
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BECAUSE OF HIM, WE CAN! HONORING OUR CIVIL RIGHTS LEADER:
CONGRESSMAN JOHN LEWIS
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e has been called one of America’s most courageous person to ever fight for justice and equality. He is extraordinaire, and that in itself is a big understatement. John Lewis has offered almost all his life selflessly in service of others, primarily to protect the rudimentary principles governing human societies- equality for all, securing civil liberties and building his vision of “The Beloved Community” in America. A lot can be said about John, but o amount of word can be able to describe the legacy he has built over the years. Because of John, African Americans in this country have the right to vote, which probably would not have been the case were it not for his courageous move at the Pettus bridge. But even before we get there, it’s interesting that John, at a tender age, wanted to be a preacher. He always would assemble the landfowl onto their roosts and recite bible verses to them almost every evening.
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John Lewis However, noble as that call would have been, the good Lord decided otherwise for the future would-be Georgia Congressman. Later, he would be pulled in to the civil rights movement to serve perhaps an even greater call. A call that would change the history of this country. his actions then and even in the later decades ensured freedom for all. And while freedom to most of us is still somewhat a foreign concept, the actions of the late Congressman John Lewis and others ensured that we have at least some of it.
After battling cancer for years, Lewis died on July 17, 2020, having led a successful 60-year career on America’s stage. “It is with inconsolable grief and enduring sadness that we announce the passing of U.S. Rep. John Lewis,” Lewis spokeswoman Brenda Jones said in a written statement early Saturday. “He was honored and respected as the conscience of the U.S. Congress and an icon of American history, but we knew him as a loving father and brother. He was a stalwart champion in the on-going struggle to demand respect for the dignity and worth of every human being. He dedicated his entire life to non-violent activism and was an outspoken advocate in the struggle for equal justice in America. He will be deeply missed.”
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BUT WHERE DID IT ALL BEGIN? Troy. The year is 1940, and on February 21, a baby boy was welcomed to the family of Mr. Eddie Lewis. At the time, the South was a hotspot for systemic racism and outright discrimination. Being born to a Black family during those tough years required you to be tough and from a tender age, Bob Lewis, as his father called him was groomed to be tough; but most importantly, Eddie and Willie made sure that their son understood that there was much to lose and so little to gain by going against the system. John was so spirited and so curious, but what caught his eyes were the signs of ‘Whites only’ plastered on only the best things, from water fountains and seats in movie theaters. This slows began to ignite a spark from within him, and who would blame him? Even where these signs were not posted, John knew that these apartheid rules applied. So, he did the best he could to not get in trouble. In 1954, something happened, an event that completely revolutionized John’s life. In a case, Brown vs. Board of Education, the Supreme Court struck the separate-but-equal doctrine. This allowed schools to segregate, and at the time, John was only 15 years. He later would record the events in his 1998 memoir “Walking With the Wind” that the events then “turned my life upside down.” All was not lost; however, something far more interesting was happening. On the radio, John heard of a young preacher from Atlanta who denounced racism with the strongest of terms without any fear of contradiction, and this was the turning point of the young boy.
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It seemed as though the Rev. Martin Luther King Jr. “was speaking directly to me,” Lewis recalled. “I felt like he was saying, ‘John Lewis, you can do it. You can make a difference in the struggle to defend the dignity of all humankind.’” A few years later, Lewis graduated from high school, and the thought of becoming a minister once again crossed his mind. But how could he just ignore what he was feeling deep down inside? The desire was stronger; he had to do something. He had to challenge the system; even against his parent’s wishes, he did it anyway. At the American Baptist Theological Seminary in Nashville, John began to challenge the equal but separate doctrine. Earlier in his high school years, he had tried it but failed, this time, failure wasn’t an option. He sent an application to all-white Troy State University but never got any reply. He sought help from his mentor, Dr. Martin Luther King Jr, who at the time was a pastor at a church nearby in Montgomery. To his surprise, King actually replied, sending him an invitation and a bus ticket.
THE POWER IS NOW MAGAZINE | AUGUST 2020
Dr. King offered to help John in his pursuit of equality, and while his family was worried that John’s action would land them in trouble, John continued, soldiering on to very rocky grounds. But, the advice he got from his parent from when he was a boy had to count for something. In his own twisted way, John would result in what he called the ‘good trouble.’ While at Fisk University, he organized a sit-in demonstration at the segregated lunch counters in Nashville, Tennessee. Through this bold move, John embraced the Gandhian philosophy of non-violence from earlier days of being in the public service.
“Among so many other things, this was about education, pricking consciences, teaching one race about another, and, if need be, about itself,” Lewis said.
“I was overwhelmed,” Lewis would later recall. “I kept telling myself to be calm, that fate was moving now, that I was in the hands of that spirit of history.” “So, you’re John Lewis,” King greeted the young man who would become an ardent supporter, protégé and colleague. King dubbed him “the Boy from Troy,” a nickname Lewis carried the rest of his life.
GROWING TO BE SOMETHING BIGGER THAN JUST THE BOY FROM TROY
While the fight for equality in America has not been an easy one, his commitment to the movement and the highest ethical and moral standards has earned him reputation and approbation from many people all over the country. WWW.THEPOWERISNOW.COM
What later followed is a series of boycotts, non-violent protests, and strikes, all of which landed John in trouble. In fact, he celebrated his 21st birthday in jail for blocking the entrance of a segregated theatre. He also successfully helped form the Student Non-Violent Coordinating Committee in 1960. A committee that spearheaded and helped spread civil disobedience across America. Such moves began directing attention to John, and often, he would find himself on the receiving ends of violence and arrests. This earmarked John as a communist and a threat to the Government. Fast forward to 1961; Lewis volunteered to take part in the Freedom Rides. These were meant to challenge segregation at interstate bus terminus across the South. In most cases, these Freedom Riders were often met with violence and beatings in Alabama and many other areas, but still, Lewis charged on and pushed his non-violent resistance. Many a time, he risked his life during these events by simply sitting in seats reserved for the white patrons. On several occasions, however, he would be beaten severely by angry mobs and got arrested by police for challenging injustices of the Jim Crow segregation in the South. In 1963, he was made the chairman of the SNCC, which he held for three years. Following his inauguration as the chairman of the SNCC, he rose in stature, being ranked as one of the Big Six leaders of the Civil Rights Movement along with Whitney Young, A. Phillip Randolph, Dr. Martin Luther King, Jr., James Farmer, and Roy Wilkins. In fact, he was largely involved in the organizing of the March on Washington that culminated in the famous Dr. King’s speech, l
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“I Have a Dream.” His speech that Day was one of the most influential speeches, calling people across the nation to join with them in the fight against racial inequality and voting rights.
In December last year, Lewis announced that he had stage 4 pancreatic cancer. “I’ve been in some kind of fight – for freedom, equality, basic human rights – for nearly my entire life,” Lewis said. “I have never faced a fight, quite like this one.”
“To those who have said, ‘Be patient and wait,’ we have long said that we cannot be patient. We do not want our freedom gradually, but we want to be free now! We are tired. We are tired of being beaten by policemen,” Lewis said at the March on Washington. “We are tired of seeing our people locked up in jail over and over again. And then you holler, ‘Be patient,’ How long can we be patient? We want our freedom, and we want it now.”
VOTER ADVOCACY AND THE “BLOODY SUNDAY”
From 1963 through 1965, Lewis was actively engaged in civil rights movements across the South. During this time, hi grouped worked on various projects, including voter registration drives and community action programs, especially in the deeply segregated state of Mississippi. Much of this work led to the passage of the Civil Rights Act of 1964. However, its passage ushered in a new era of struggle for equality for the civil rights group. This can be seen in the events that occurred in 1965 when things took a violent turn in Alabama. On March 7, 1965, Lewis and Hosea Williams had put together a group of about 600 peaceful protestors. They intended to make a peaceful walk from Selma to Montgomery, with the main purpose being the need for voting rights in the state. The protestors were met with violence at the end of Edmund Pettus Bridge from roughly 150 Alabama State Troopers, Sheriff’s deputies, and many others. This Day would later come to be known as Bloody Sunday! During this commotion, Lewis suffered a skull fracture after being hit with a billy club by a state trooper. He was one of the 58 people taken to hospital for injuries inflicted on them by the cruel state troopers. Later that year, John was at the side of President Lyndon 52
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Johnson during the signing of the Voting Rights Act of 1965.
“We had no chance to turn and retreat,” Lewis wrote in his autobiography. “I remember how vivid the sounds were as the troopers rushed toward us — the clunk of the troopers’ heavy boots, the whoops of rebel yells from the white onlookers, the clip-clop of horses’ hooves hitting the hard asphalt of the highway, the voice of a woman shouting, ‘Get ‘em!’” The years elapsing between his first bold move at Troy library and the events at Pettus Bridge had earned John the Status hero; he was well deserving of it as he had paid a high price for his work, emotionally, psychologically, and physically. If he stopped now, no one would judge him; at least he had most of the works, so many people were afraid of doing. Though a hero to most people, things back at home were sour. His parents were deeply ashamed of their son. His parent had to content with their neighbors whispering about how troublesome Lewis was. Being rejected by your family is a deep wound that takes time to heal; for some people, it never does. For Lewis, it would take years, and he had to contend with that, he regarded the civil rights movement as his family.
LEAVING SNCC AND JOINING POLITICS
African Americans wanted change. They were desperate, and John’s methods to some were regarded as too chummy, at the time, John was already feeling the isolation from his family, and the same began happening at SNCC. Stokely Carmichael and H. Rap Brown were among the first to argue with Lewis’s philosophy saying that ‘Black Power’ would never be granted; it had to be taken by every means necessary. This led to Lewis losing his ground at SNCC and was replaced by Carmichael. Despite being arrested more than 40 times and suffering physical atrocities and life-threatening injuries, John Lewis remained on the vanguard of the philosophy of non-violence. In 1966, John left SNCC, but that didn’t mean that he THE POWER IS NOW MAGAZINE | AUGUST 2020
had stopped his advocacy for equality. Over the next decade, John spends most of his time working on other programs that pushed for the righting votes for everybody. He continued his advocacy and commitment to the Civil rights Movement as Associate Director of the Field Foundation and his participation in the Southern Regional Council’s voter registration programs. He was later appointed as the Director of the Voter Education Project (VEP). In 1977, he was appointed by President Jimmy Carter and mandated with the responsibility of directing more than 250,000 volunteers of ACTION, the federal volunteer agency he held this position for three years before resigning in 1980 as the presidential elections approached. After leaving the national politics, in 1981, John was elected to the Atlanta City Council, where he worked on city issues for about five years before making another run for Congress. He faced a tough opponent in his 1986 run for the Congress, Julian Bond, who was a fellow civil rights activist who had helped found SNCC and the Southern Poverty Law Center. Lewis, however, emerged victorious beating Julian in a runoff, 52-48 percent in January 1987, he took the oath to office and became Congressman John Lewis. “If someone had told me when I was growing up that one day I would be here, serving in the House of Representatives, I’d say, ‘You’re crazy, you’re thinking the unthinkable,’” Lewis said.
HIS TIME IN CONGRESS
Lewis rose in ranks in his Democratic party to become one of the most liberal voices in the House. In fact, his colleagues referred to him as ‘the conscience of the Congress.’ He was among the people who opposed the Persian Gulf War in 1991 and then later, the Iraq War. He was also a critic of his Georgia Colleague, Rep Newt Gingrich, who is known for leading the 1994 Republican takeover of the House and became speaker. He also worked privately with a number of top Republicans to reauthorize the 1995 Voting Rights Act, build an AfricanAmerican history museum on the National Mall, and created a minority health research center and the National Institutes of Health. He was later awarded the Presidential Medal of Freedom, the nation’s highest civilian honor. “Generations from now, when parents teach their children what is meant by courage, the story of John Lewis will come to mind - an American who knew that change could not wait for some other person or some other time; whose life is a lesson in the fierce urgency of now,” Obama said when presenting the medal in 2011.
ACHIEVEMENTS AND AWARDS In terms of academics, John holds a B.A. in
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Religion and Philosophy from Fisk University. He is also a graduate of the American Baptist Theological Seminary. Congressman John Lewis has also been awarded over 50 honorary degrees from some of the nations prestigious colleges and universities, including Harvard University, Brown University, the University of Pennsylvania, Princeton University, Duke University, Morehouse College, Clark-Atlanta University, Howard University, Brandeis University, Columbia University, Fisk University, and Troy State University. Congressman John Lewis is also a recipient of numerous awards from eminent national and international institutions including the highest civilian honor granted by President Barack Obama, the Medal of Freedom, the Lincoln Medal from the historic Ford’s Theatre, the Golden Plate Award given by the Academy of Excellence, the Preservation Hero award given by the National Trust for Historic Preservation, the Capital Award of the National Council of La Raza, the Martin Luther King, Jr. Non-Violent Peace Prize, the President’s Medal of Georgetown University, the NAACP Spingarn Medal, the National Education Association Martin Luther King Jr. Memorial Award, and the only John F. Kennedy “Profile in Courage Award” for Lifetime Achievement ever granted by the John F. Kennedy Library Foundation. Congressman John Lewis also wrote several books, including his biography, “Walking with the Wind: A Memoir of the Movement,” along with others like MARCH, a bestselling graphic novel trilogy. He was also the subject of two books that looked at his life during the Freedom Riders era and another called “John Lewis in the Lead.”
FIGHTING FOR JUSTICE HALF GIVEN More recently, Lewis continued with the pursuit of justice. After the brutal killing of 49 people at an Orlando night club in 2016, Lewis 54
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led the House Democrats in a sit-in on the House floor. “Sitting there on the floor, I felt like I was reliving my life all over again,” Lewis later recounted. “During the ’60s the sit-ins started with three or four people, and they spread like wildfire. This will spread.” He later reemerged on the political limelight in late 2016, when he commented on something that caught the president’s eyes. He commented that he didn’t see Trump as a legitimate president. The president later responded, claiming that Lewis should focus on fixing and helping Georgia district. Lewis would have none of that; after this, he boycotted Trump’s addresses to Congress and refused to appear with him in public. And while Trump in almost all occasions had harsh things to say about Lewis, he did, however, help Democrat achieve one of his most sought-after legislative priorities when he signed a bill creating Georgia’s first national historic park at Atlanta’s Martin Luther King Jr. National Historic Site in 2018. In December last year, Lewis announced that he had stage 4 pancreatic cancer. “I’ve been in some kind of fight – for freedom, equality, basic human rights – for nearly my entire life,” Lewis said. “I have never faced a fight, quite like this one.” News of his death has left many in shock and grief, from political leaders, civil rights leaders, and celebrities on social media. Obama had this to say about our fallen giant; “Not many of us get to live to see our legacy play out in such a meaningful, remarkable way. John Lewis did,” Obama said in a written statement. “And thanks to him, we now all have our marching orders — to keep believing in the possibility of remaking this country we love until it lives up to its full promise.” Sources; https://www.a jc.com/john-lewis-obituary/ https://www.politico.com/news/2020/07/17/john-lewis-obit-civilrights-congress-036212
THE POWER IS NOW MAGAZINE | AUGUST 2020
THIS VETERAN HAS EXPERIENCED ENOUGH.
HE SHOULDN’T HAVE TO FIGHT HOUSING DISCRIMINATION BECAUSE OF HIS DISABILITY. Sergio lost his leg and his hearing while serving our country overseas. Now back home, he was ready to start a new chapter in his life. But when he found the perfect apartment, the landlord refused to make a reasonable accommodation to allow his service dog in a “no pets” building. Then Sergio learned that the Fair Housing Act protects people with disabilities. He contacted HUD and filed a complaint. Today, Sergio is feeling right at home. If you believe you’ve experienced housing discrimination, please contact
hud.gov/fairhousing 1-800-669-9777 50 YEARS OF OPENING DOORS. A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.
IS THIS THE RIGHT TIME
TO REFINANCE?
Jenny Gonzalez
Following the Coronavirus surge all over the world, central banks of most governments have cut interest rates to historic lows and the united states has led the charge. In early march, the Fed announced a quarter-point rate cut and by mid-march, the institution had announced cut rates by full point to near zero. When the Fed made the first rate cut, mortgage industry experts predicted a a upheaval in the rate of originations, however, that was not the case. Perhaps due to the slowdown in economic activity, the home loan application fell to their lowest levels since 2015 in the first week of April. However, unlike the home purchases, refinancing seemed to pick up speed as people hurried to take advantages of the low rates. 58
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hen the interest rates and the mortgage rates are down, many homeowners think that this presents an opportune time for them to refinance their loans. In Q2, the refinance activity had been heightened over the last year but what most people don’t know is that refinancing isn’t always the best move. Knowing the right time to refinance is always the tricky part. If you are opting to refinance, there are two things that you should always consider; (i) your FICO Scores as they will influence the rate that you will be offered. Sure, right now the rates are down, but if your credit score is also down, you will not be able to enjoy those rates and (ii) know the actual rate that you will be offered. Basically, what the lenders advertise with is a rate called the ‘prime rate’ which is usually based on the federal funds rate. The ‘mortgage rate’ is the rate that the lender will charge the home buyer and THE POWER IS NOW MAGAZINE | AUGUST 2020
it’s also the rate that you will pay when you are refinancing. As such, be sure to know what rate the lender is offering you.
SO, WHEN’S THE RIGHT TIME TO REFINANCE?
Generally, the rule of the thumb is, when refinancing is expected to save you money or help you build your equity or even help you pay off your mortgage faster, then refinancing becomes the best option. Right now, the rates are down, probably the lowest they will ever get and even the people who have fairly new mortgage may be able to benefit from the refinancing option. If you are considering to refinance, do it when you are only sure that you can be able to lower your interest rates by onehalf to three quarters of a percentage point. Also, it is important that your total monthly savings will offset the actual cost of refinancing and this is good if you are planning to move in the near future, say in two year’s time. The benefit of this is that it gives you some time to recoup the cost.
IS IT WOR TH IT?
It depends on the ways that you choose to refinance. Basically, there are a variety of ways that you can choose from to refinance your mortgage and finding the right mode or method will depend on your goals. There are people who prefer switching from the overt adjustable rate to a fixed rate loan that has a steady monthly WWW.THEPOWERISNOW.COM
payment, and other may want to shorten the life term of the loan from may be 30-year to 15-years which ultimately saves them a bundle in interest charges. People often refinance to get rid of the private mortgage insurance after reaching the 20 percent equity in their home. For you it might be different. Most of the homeowners will opt for a straight rate and term refinance which allows them a lower interest rate and also gives them comfort in repaying the terms. Others will prefer, or opt for a lower monthly payment to free up money for other expenses such as college or tuition or the auto loans. “A borrower should consult with a mortgage professional to determine if their financial needs are best suited for a cash-out refinance vs. other forms of credit,” says Richard Liu, a mortgage consultant for C2 Financial Corp., a San Diegobased mortgage brokerage. Sources: https://www.bankrate.com/mortgages/when-torefinance/ https://www.fanniemae.com/portal/researchinsights/surveys/mortgage-lender-sentimentsurvey.html https://therealdeal.com/2020/04/13/nearly-halfof-2020-mortgage-originations-will-be-refisforecast/ l
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THIS IS WHAT MAKES REAL ESTATE IN SAN BERNARDINO COUNTY
SO UNIQUE
Danon Burnside
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ocated on the southern part of the state of California in the heart of the Inland Empire is the beautiful county of San Bernardino. As of the U.S 2010 census, the county has about 2,035,210 people which makes it among the top five most populous county in California and 14-th most populous county in the united states. while the county of San Bernardino is placed within the Greater Los Angeles area, it is also included in the Riverside-San Bernardino-Ontario metro and also the Los Angeles-Long Beach combined statistical area. San Bernardino county is mostly unique due to its rich historic culture. Influences of the native residents, the Mexican settlers, the Spanish missionaries, and the Mormon immigrants can be traced across the vast 20,105 square miles of the county. The name San Bernardino was given to the county back in the early 1800s by a Franciscan missionary priest by the name Dumetz. The county is nestled south of the san Bernardino mountains and west of the lower desert. Part of the reason why most people tour the county of San Bernardino is because of its scenic beauty and strategic location.
REAL ESTATE MARKET
Part of the reason why most people prefer to live in the county of san Bernardino is its affordability. The Inland Empire has for so long stood to be states’ most affordable place to live. However, the dynamics have been changing thanks to the effects of the corona WWW.THEPOWERISNOW.COM
virus pandemic. The inland housing market today is hot and for quite some time, the area has been experiencing exponential population growth and housing appreciation. To assert this, some submarkets in the county have seen some of the strongest housing appreciation than any other place in the country.
“The Inland Empire’s strong job market now enables people to live in far-eastern cities like Victorville and Twenty-Nine Palms, whereas before, these residents would have been forced to commute into Los Angeles and Orange County for work,” Matt Kaufman, research analyst at JLL, tells GlobeSt.com. “Therefore, it is no surprise
that these are the areas in the Inland Empire where we are seeing some of the greatest appreciation, now that living there has become much more suitable and sustainable.” While the real estate market in the Inland empire took a significant blow in April, due to COVID-19, the market has rebounded quite strongly in the months of May and June. The Inland Empire and to be specific the county of san Bernardino has always been an appealing alternative to more costal areas. Perhaps enticed by the low mortgage rates, more people had flocked the area in hopes of better priced homes, most of these were the renters or the frontline workers who have been on the vanguard fighting the virus. l
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will notice is that the crime rate here is actually higher than most.
ECONOMY OF SAN BERNARDINO COUNTY
The country’s average unemployment rate is 3.9%, however, San Bernardino county’s average is higher at 5.1%, and over the past few years, the county has been recording consistent job increases by up to 2.3%. it is projected that over the next 10 years, the job growth rate will be 36.0% which is higher than the country’s average of 33.5%. The average incomes of people living in the county of San Bernardino is $14,759 a year which is lower than the national average of $28,555 annually. On the other hand, the median household income of a San Bernardino resident is $38,774 a year which is also lower compared to the national average of $53,482 a year.
SCHOOLS IN SAN BERNARDINO COUNTY
Education is integral in raising up a morally upright society. The county of san Bernardino has put a higher emphasize on mastering the fundamentals in the district’s steady improvement on standardized test scores and graduation rates. Most of the schools in San Bernardino county have been named as California Distinguished 62
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Schools. The county also has a number of private schools and kindergartens to high schools. When it comes to higher education the San Bernardino Valley College (SBVC) represents a comprehensive community college that offers a full range of degrees, transfer programs to four-year and certificates in a wide range of careers. The SBVC is a regional leader in career development and technical education with programs in nursing, human services, computer information technology, welding, electrical and many others.
CRIME RATES
The county has a crime rate of 59 per one thousand residents and it is rated as one of the counties with a higher crime rate compared to most other communities with the same size. In other words, a person’s chance of getting victimized through either property or violent crime in the county of San Bernardino is one in 17. In the state, more than 98% of all the cities and communities have a crime rate that is lower than this. Of importance to note however is that when you compare san Bernardino with most other communities of similar population, what you
Does this mean that San Bernardino county is a dangerous place to live? No, it doesn’t. the crime happening in any county or in any place are only natural, there’s no neighborhood that is clean of crime. And while San Bernardino county crime rate (property and violent) is one of the highest in the state and in the country, measures have been taken to mitigate this through the law enforcement department in the county. The primary law enforcement agency in the county is the san Bernardino County Sheriff’s Department which provides law enforcement services in the unincorporated areas of the county and in other 14 contract cities.
CONCLUSION
San Bernardino county is a great place to live. Home prices in the county are so inviting and if you would like to invest in this rich market, get in touch with Danon Burnside, one of the agents stationed in the county to help you navigate the San Bernardino county real estate market. To get in touch with Danon, follow this link; www.thepowerisnow/vipagents Sources: https://www.bestplaces.net/housing/city/ california/san_bernardino http://www.sbcity.org/cityhall/city_ managers_office/economic_development/ default.asp https://www.neighborhoodscout.com/ca/ san-bernardino/demographics https://www.globest.com/2020/01/03/ inland-empire-sees-strong-housing-priceappreciation/?slreturn=20200618035814 https://www.pe.com/2020/06/18/inlandempire-is-now-southern-californiashousing-hot-spot/
THE POWER IS NOW MAGAZINE | AUGUST 2020
EMERICK A. PEACE
#320004 240-882-0198 EmerickPeace@KW.com Your #1 Referral Source for Phenomenal Service in Washington, DC & Maryland
WHEN BUYING A H OM E, PL A N FOR THE S E H IDDEN C OS T S Lewis Sanders III
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ight now, that the mortgage and the interest rates are down, it may be the best time to get that home you have been eyeing for. Renting is not for everybody and sooner, you will get sick of pouring hundreds of your hard-earned money into the pockets of your landlord. If you are already considering the buying option, you must have realized that mortgage tend to be a lot cheaper than paying the rents which then raises the question, why doesn’t everybody stop paying rents and use that money to pay for mortgages? Truth is, buying a home is not as easy as most agents make it sounds. As a homebuyer, you have to be prepared financially and emotionally. Additionally, there are so many facts about homebuying people still don’t know about and one of them is the hidden costs of buying a home. Therefore, this article will help you discover most of the hidden costs associated with homebuying.
1. LOAN ORIGINATION FEE This is perhaps the first hidden costs that you will encounter as you start your journey to become a homebuyer. The loan origination fee is the cost that you will have to pay whenever you take out a mortgage. This is the money that your lender will require you to pay them for the services rendered in mortgage processing. As WWW.THEPINMAGAZINE.COM
such, as you make your calculations about the cost of your mortgage, be sure to account for the loan origination fee. Although the exact amount will vary from one lender to the other, you can expect to pay anywhere between .5 percent and 1 percent of the total value of your loan.
2. INSURANCE FEES This is one of the most overlooked costs associated with homeownership. When purchasing a home, the homebuyer signs up for several new insurance requirements. Among the insurance contracts that you might be buying include the title insurance, homeowners’ insurance and possibly a flood insurance. While these insurance costs might be inexpensive, they can still add up a present themselves as huge costs later. As such, be sure to also plan for them.
3. CLOSING COSTS This category of costs will encompass a variety of things which include, but not limited to the appraisal costs. It is important that you stay alert to these costs as they get charged almost immediately the seller accepts the offer. Once you have been able to close, you are at liberty to move into your new home.
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4. TAXES AND OTHER COSTS Everybody hates taxes. Property taxes especially can be a huge expense to the homeowner. They are not a flat tax which means, from time to time, they will vary significantly depending on so many different factors. The value of your home will be assessed and evaluated by an assessor who specializes in real estate value allocation. The assessor also considers the value of homes and properties that are surrounding your property and also the cost that will be incurred should a person decide to replace the house and the rate that could be charged for leasing the property based on the local rental market. All these, along with the municipality of the home are considered and will dictate the property taxes that you will be charged on your property. It is worthwhile noting that the property tax that you will first get assigned to might change as time goes. If you make a ma jor change to your home, such as a ma jor renovation or a backyard landscaping, your home value will likely increase and the property tax will increase along with it.
5. REAL ESTATE AGENT FEES Should you choose to consult and use the services of a real estate agent, you will have to pay for the services rendered. You will note that not all the real estate agent will have the best intentions at heart, the more you are willing to pay for a home, the bigger the fee they might demand. For some homebuyers, using the services of a real estate agent might not be the right choice for them but it is advisable you use professional real estate services.
UPCOMING EVENTS UPCOMING UPCOMING EVENTS EVENTS THE POWER IS NOW EVENTS: FIRST TIME HOMEBUYER SEMINARS HOMEBUYER TOWN HALL LIVE ON FACEBOOK
NATIONAL EVENTS: NAHREP
SOLVING FOR ACCESS TO CAPITAL FOR LATINOS AND OTHER COMMUNITIES OF COLOR. SPONSORED BY CITY BANK. VIRTUAL EVENT August 11, 2020 NAHREP GIVES BACK SPONSORED BY CITIBANK August 19, 2020 NAHREP AT L’ATTITUDE GRAND HYATT SAN DIEGO, CA September 24–27, 2020
AREAA
AREAA COMMERCIAL WEBINAR SERIES: HOSPITALITY FOCUS August 20, 2020 2020 NATIONAL CONVENTION October 14-16, 2020
CAR and NAR
TECH EDGE, METRO TEX ASSOCIATION OF REALTORS® August 12, 2020
You can choose not to use the real estate services which will cut down the costs, but only do so if you feel confident in your ability to navigate the complex real estate market. On the other hand, if you are not well knowledgeable with the real estate market, it is important that you use the services of real estate. Even though you will still see this fee, it will likely be absorbed into the listing price of a home.
LEADERSHIP ACADEMY SESSION August 13-14, 2020
Sources: https://www.listenmoneymatters.com/buying-ahouse-hidden-costs/ https://www.preferredpropertiestx.com/2019/10/ buying-a-home-plan-for-these-hidden-costs/
TECH EDGE, OMAHA AREA BOARD OF REALTORS® September 24, 2020
LEADERSHIP SUMMIT August 17-18, 2020 NEW AE/GAD ORIENTATION September 10-11, 2020
REALTORS® CONFERENCE & EXPO Nov 13-16 New Orleans, LA
OAKLAND HOUSING MARKET INSIGHTS Q2 2020
Kenneth Session
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ll over the country, there has been a big market rebound in market activities. In most parts, especially the OaklandBerkeley Inner East Bay Region Real Estate the Median house sales prices hit new quarterly highs. Despite the current public health crisis in the country, the real estate market has made quite a remarkable comeback from the steep declines recorded in the months of March and April. In the second quarter, the real estate median house prices hit a new high and around the Bay Area, the luxurious homes have seen some of the highest demands. The following charts from Compass illustrates the big rebounds the real estate market has been making due to a stronger buyer demand. As the year began, there was a stark shortage in new housing units,
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and even though the inventory has been slowly rising since the sharp decline in April, the inventory count remains relatively low on a year-over-year basis. When looking at the areas median house values which is usually measured by both the median sales
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prices and the average dollar per square foot, we can see a new peak in Q2 this year suggesting robust growth and rebound that is expected to last in the coming months. Comparing Oakland city with neighboring cities, Oakland has been making steady increases. It
is important to note that median house sales prices are an imperfect indicator of the changes in fair market values as it is normally affected by a variety of factors and fluctuations are very common in the markets experiencing relatively low sales volumes across a wide range of sales prices. This is particularly evident for the Oakland housing market given that it is in the same metro as Piedmont and Kensington. If you would like to know more about the Oakland housing market, get in touch with Kenneth Session,
an industry veteran with a proven track record. Mr. Session knows the Oakland housing market well and he will be your guide as you navigate this complex market. To get in touch with Mr. Session, follow this link www.thepowerisnow.com/vipagents sources https://www.bayareamarketreports. com/trend/oakland-berkeley-realestate-market-conditions-prices
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MILWAUKEE, SAN FRANCISCO AND DETROIT TOP THE LIST OF PLACES WHERE BLACK HOMEBUYERS ARE MORE LIKELY TO BE DENIED A HOME LOAN
Don Dunbar According to Redfin almost 16% of African Americans applying for mortgages are rejected nationwide compared to the 7% of the White counterparts. This gap between the non-Hispanic Whites and the African Americans is widest in Milwaukee, San Francisco, Detroit, and St. Louis. In these areas, the rejection rate for the African Americans is more than 10 percentage points higher than they are for the non-Hispanic whites. In Milwaukee and San Francisco, African Americans in need of mortgage are more than three times as likely to be denied a mortgage.
“Getting denied a loan serves a huge blow to a person’s self-esteem— especially for people of color, who often feel like the world is already falling on them,” said Brittani Walker, a Redfin agent in Chicago. “My mother has been a renter since she moved out of her parents’ house. I tried to get her preapproved for a mortgage a couple of years ago, but she was rejected because she had some blemishes on her credit. She broke down in tears and hasn’t tried again since. When people of color are stuck in this cycle of renting, their children often meet the same fate, missing out on thousands of dollars’ worth of home equity. If your parents never owned a home, where do you learn the value of homeownership?” 72
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This report by Redfin reveals that this stark schism in denials among the African Americans is based upon the criteria of race and continues to widen as one crosses the more segregated regions of the united states. and even though the banks in these regions are often cited as a contributing factor to these denials. However, other factors such as debt and credit history of the African Americans have been cited as likely roadblocks for the applicants. “The residue of redlining is still very tangible in Milwaukee and Chicago. Segregation continues to perpetuate the uneven playing field for Black communities, which are severely underserved when it comes to financial education and access to credit. Buying a home
isn’t like walking into a bank and getting a credit card. Everyone wants a piece of the American dream, but that’s hard to achieve when you don’t have access to the right tools and information.” Arnell Brady, a Redfin Mortgage advisor in Milwaukee and Chicago. According to Elizabeth Korver-Glenn, an assistant professor at the University of New Mexico, a simple solution to this problem would be to hide the applicant names and races or ethnicities from the underwriters when determining their risk. However, organizations and lending institutions need to be trained on fairness and also incentivizing mortgage brokers to lend money to people of color and low income Americans.
THE POWER IS NOW MAGAZINE | AUGUST 2020
TOP TEN PLACER COUNTY
LUXURY HOMES Robert Langston
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lacer County is a 1400 square miles destination for visitors from all over the world. It is one of the very best places to stay and work not just in California, but in the United States. for the locals here, the county serves as not just as a home, but a community enjoined in love and communism. Placer county offers you a thrill of never-ending adventure, from the suburbs of Roseville, Lincoln, and Rocklin, to the foothills of Auburn come and experience a lifestyle like no other. Known for its beauty, size and clarity, Lake Tahoe is the main gem of the County of Placer, however, that is not to say that there aren’t other magical scenery the county has to offer, in fact, there are numerous towns that are known for their unique and rich heritage making up the landscape along the interstate 80, all of these features make Place county one of the best places to be in.
ECONOMICS AND DEMOGRAPHICS In 2018, the county of Placer had about 401K people with a median age of 46.0 and a monthly household income of $88,592. The five largest ethnic groups in placer county are Non-Hispanic Whites (71.9%), Hispanics (10.2%), Asians (7.77%) Two or More Races (Non-Hispanic) (3.59%), and Some Other Race (Hispanic) (2.86%). N/A% of the people in Placer County, CA speak a non-English language, and 96.1% are U.S. citizens. The economy of Placer county employs about 180K people with the largest industries in the county being Health Care and Social Assistance which takes up about 27,332 people, Retail trade comes in second with 20,344 people and public administration with about 25,319 people. Some of the highest paying industries in the county are Management of companies and Enterprises ($101,737), Utilities ($92,456) and Public Administration ($82,407). The median household income for the people in Placer County is
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$88,592. This is higher compared to the $61,937 annual income across the entire united states. From 2017 to 2018, the annual income growth in Placer county was 9.74%.
EDUCATION Data shows that in year 2017, the county universities awarded about 3,517 degrees. The student concentration and distribution in Placer County skewed more towards the women than men, with 8,745 male students and 11,036 females. Most of the students graduating from the universities in Placer County are white, followed by Hispanics or Latinos and then Asians. The largest universities in the county by the number of the degrees awarded are Sierra College, William Jessup University and Hoss Lee Academy.
HOUSING The median property value in Placer county in 2020 is $529,595, with a homeownership rate of 72.4% higher than the national average of 64%. The residents of the Placer County have an average commuter time of 24.8 minutes and they commute by Drove Alone. From 2017, the median home value has grown from $468,400 to $529,595. There are more than 145K households in Placer county with an average household income of $97,640. From 2017, the income has grown from $80,728. This data proves that Placer County is the place to be. With that, here are some luxurious properties to look at in placer county, prepared and curated by a premier agency in placer county, Bobby Real Estate. https://search.bobbyreinc.com/i/placer-county Sources: https://www.bobbyreinc.com/top-ten-placercounty-luxury-homes/ https://datausa.io/profile/geo/placer-countyca#housing https://www.visitplacer.com/about/
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LUXURY HOME PRICES DROPPED 2.3% THIS SPRING, REVERSING COURSE FROM PRE-PANDEMIC GROWTH
Charles Reynolds
In just about 12 weeks, the median sales price for the high-end homes in the country plunged 2.3% year-over-year to $1,099,521, which is probably the biggest declines since 2015, according to data released by Redfin, a technology-powered real estate brokerage. The data also points out that this decline might be short-lived as the luxury market started showing signs of a promising come back with the median sales price for homes in the top
5% rising 3.5% year over year. The report by Redfin defines luxury properties as all the homes that are estimated to be in the top 5% based on their market values. Representing the non-luxurious homes, the ‘middle’ price tier is normally used. Redfin usually reports the luxury property data quarterly, but due to this anomaly, a reversal in price growth for this market, Redfin was compelled to release data early.
This anomaly in the luxury market has been caused by the coronavirus pandemic as the price growth for homes in the top 5% has been on the rise since October of 2019 until March, when the first cases of the COVID-19 began making news on our headlines. The median luxury price started to record declines in 12 weeks ending March 29 and saw its biggest decline of -2.5% YoY in 12 weeks ending June 7. WWW.THEPOWERISNOW.COM
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The report also notes that the top 5% of the market took a plunge due to the adverse effects of the virus than the rest of the housing market. For the non-luxury, mid-priced homes, rather than plunging, they rose 4.1% year over year to $265,134 in the same period. The price growth for this category of homes, however, started to indicate signs of a reversal growth in mid-April after months of upswings that started at the start of the year.
“The pandemic is playing an outsized role in the luxury market, as very expensive homes are particularly sensitive to periods of economic uncertainty,” said Redfin economist Taylor Marr. “Many luxury buyers are nervous about pouring money into an investment that may be difficult to sell if the economy takes a nosedive. By comparison, people buying starter homes they plan to live in for 10 years are less concerned with volatile financial markets as long as they have money for a down payment and can afford monthly mortgage payments. And although access to credit is loosening up now, it tightened considerably for jumbo loans, which a lot of luxury buyers use, in April and May.” The slight increase in the luxury market on the week of June 7, ending 14, indicated that the buyers are beginning to have confidence in the market and coming back. Even with the current panic in the economy, what we should be
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expecting are slight increases. “Luxury home prices have likely already bottomed out. Price growth may continue to be lower than last year through the summer and fall, but with smaller drops as the months go on,” Marr said. “The fact that prices increased at the beginning of June may represent pentup demand because buyers held off during the height of pandemic panic. The top end of the real estate market will recover more slowly than the rest of it.” The report also indicates that the number of new listings of luxury homes fell 19.3% annually, compared with a 25.8% drop for the non-luxury homes over the same period of time. Before the COVID-19 struck the economy, new listing in both these markets were rising steadily, though the peak year-over-year increase was higher for
THE POWER IS NOW MAGAZINE | AUGUST 2020
the luxury market than it was for the non-luxury market. All through March, the drop in new listings has been continuous for the non-luxury market segment, but of late, the luxury market has started to make some comeback after its biggest decline -23.7% YoY in the 12 weeks ending May 31. Since September last year, the sales of luxury homes had been on the rise, but since the onset of the novel coronavirus, it also reversed course and started to decline in April. The luxury sales were down 29.9% year over year compared to the 21.9% decline in the non-luxury sales.
“Luxury home prices have been declining since the beginning of the year largely due to an oversupply of expensive newly built homes, and the downward trend has accelerated in the last three months,” said Dallas Redfin agent Pam Henderson. “Luxury buyers tend to take more time finding a home that suits all their wants and needs, touring many homes before they find the perfect fit. They typically aren’t buying a home because they need a place to live, so they don’t have much motivation to rush their search. Due to COVID-19, a lot of potential luxury buyers are putting their searches on hold because they don’t want to be out touring homes and increasing their risk of infection.”
Sources; https://newfinancemagazine.com/luxury-home-prices-dropped-2-3-this-spring/ https://www.prnewswire.com/news-releases/luxury-home-prices-dropped-2-3-this-springreversing-course-from-pre-pandemic-growth-301087713.html
Eric Hooks YOUR ULTIMATE HOMEBUYING GUIDE: HERE ARE SOME ANSWERS TO YOUR TOP QUESTIONS ABOUT BUYING A HOME DURING THIS CORONA PANDEMIC
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he coronavirus is everywhere and has left millions of people struggling to make ends meet. Some have already lost their lives to the virus, and before a cure is found, thousands of others might lose their lives too. The daily lives of people have been upended in ways unimaginable. Offices, schools, and industries have been shut down, some temporarily while others for life. Hospitals today are scrambled for necessary gear to treat the overwhelming number of people pouring in each day. One industry that has remained resilient to the effects of the virus is the real estate industry. In fact, after difficult months of inactivity, the industry seems to be making a comeback. Thousands of buyers are pouring into the market looking for their ideal homes, sellers, on the other hand, are welcoming offers; indeed, summer might be the new spring. One thing remains, however, that buyers and sellers alike 86
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are so much confused about transacting during this period. If you were hoping to purchase a property soon, certainly, you must be having a lot of questions, perhaps about the possibility of buying or even touring the property during this time. While the internet is awash with numerous guides and articles about buying in the age of coronavirus, there are still some people who still want to know how to navigate the market during this time. As such, I have prepared a guide that will answer some of the questions about buying a home during the corona pandemic.
• SHOULD I BUY NOW? Finding an ideal property in today’s rocky market might be a challenge. Certainly buying now is also a challenge. However, it is very possible to buy your dream THE POWER IS NOW MAGAZINE | AUGUST 2020
property today in this market. This is so because the U.S Department of Homeland Security declared that all the residential and commercial real estate services as an essential service that should be allowed to continue.
• IS NOW A GOOD TIME TO INVEST IN REAL ESTATE? Yes, this might be the most opportune moment for you to invest in real estate. From a financial perspective, the mortgage and interest rates have never been this low, which means that your monthly payments will be substantially lower. When you buy now, you are putting the property under contract now and locking in a low-interest rate. This is not the case with renting. Buying now gives you more control over your monthly payments. Additionally, most people fear to buy under economic uncertainties, and thanks to the COVID-19, potential homebuyers have been dissuaded from shopping for a home. Therefore, if you want to buy now, it means that there will be less competition which puts you in a better position to negotiate for reasonable offers.
• HAS THE COVID-19 AFFECT HOME PRICES? While the virus has certainly affected many industries in the country, thankfully, home prices have remained stable across the board, which means that the buyers are in a better position to lowball their way to a bargain. “I don’t expect the slowdown to be like the last recession where prices fell,” says realtor.com chief economist Danielle Hale. “There are more than enough buyers out there to keep home sales from slowing in any major way.”
While most sellers have pulled their listing off the market, those who are yet to withdraw their listings are facing a small pool of buyers, which puts the buyers at an advantage as they can bargain the price.
• CAN I BUY WITH SIGHT UNSEEN? Buying with sight unseen ordinarily has been a strategy used by the military service or people who are relocating due to a new job. However, the present conditions are making it necessary to buy with the sight unseen. According to a survey done by Realtor.com involving 1,300 consumers during the week of April 5, 24% of the buyers said they would be willing to buy with sight unseen. Therefore, during these unprecedented times, it is something you might consider doing; however, you must have good knowledge of the market and the neighborhood. These are some of the questions that I find most people want answers to. I hope that this guide has been helpful. For people having concerns about moving right now, it is important to note that the American Moving and Storage Association notes that moving has been categorized as an essential service. However, check first with the local and state government before scheduling any move. If you have to move, make sure that you adhere to the safety protocols about how to move safely during the coronavirus pandemic. Sources; https://www.realtor.com/advice/buy/homebuying-faq-purchasing-property-duringcoronavirus/
www.StopHigherPropertyTaxes.org
Split-Roll Property Tax Measure Hurts Immigrant and Minority Communities
Background: Prop 13 Has Helped All Californians for More Than 40 Years •
For more than 40 years, Prop 13 has provided certainty to homeowners, farmers and businesses that they will be able to afford their property tax bills in the future. Under Prop 13, both residential and business property taxes are calculated based on 1% of their purchase price, and annual increases in property taxes are capped at 2%, which limits increases in property taxes, especially when property values rise quickly.
Split-Roll Property Tax Measure Destroys Prop 13 and Makes Our Economic Crisis Worse •
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Amid an unprecedented economic crisis, special interests submitted petitions to qualify a measure for the November 2020 statewide ballot that will destroy Prop 13’s property tax protections and will be the largest property tax increase in California history. The measure will raise taxes on commercial and industrial property by requiring reassessment at current market value at least every three years. This type of property tax is known as a “split-roll tax” because it splits the property tax roll, assessing business property differently than residential property. We should reject this measure and maintain Prop 13 protections that have kept property taxes affordable and provided every taxpayer who buys a home or business property with certainty that they can afford their property tax bills in the future. Now is not the time to raise taxes and bring more uncertainty to businesses and all Californians.
Gentrifies Our Longtime Communities •
A split-roll property tax will provide a huge financial incentive for local governments to approve business projects to replace existing housing so they can receive higher property tax revenue. It will also push small minority- and immigrant-owned businesses out of our communities when they can’t afford the higher property taxes. This unintended consequence will intensify the gentrification already occurring in much of the Bay Area and Southern California coastal counties.
Hurts Small Businesses and Consumers •
Most small businesses rent the property on which they operate. The measure’s higher property taxes will mean soaring rents at a time when the federal and state government is trying to provide small businesses with rent relief to keep their doors open. Ultimately, the measure’s tax hike on businesses will get passed on to consumers in the form of increased costs on just about everything people buy and use, including groceries, fuel, utilities, day care and health care.
Hits Minority-, Immigrant- and Female-Owned Businesses the Hardest •
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Small businesses are already struggling. This measure will make it even more difficult for them to reopen their doors or stay in business as a result of this economic crisis. Increasing property taxes on businesses by up to $12.5 billion a year will hurt female- and minority-owned businesses the most and 120,000 jobs will be lost, according to a Berkeley Research Group study. Voters are being asked to consider a measure that will only increase job losses at a time when millions of Californians are applying for unemployment benefits. According to the latest data from the Harvard Business School, about 42% of new companies are founded by immigrants in California and the most recent 2012 Survey of Business Owners by the Census bureau found that 5% of businesses in the state are owned by African Americans. Additionally, the California Latino Economic Institute found that nearly one-quarter of all businesses in California are owned by Latinos, and they are the fastest-growing component of the state’s economy. Most of these businesses start small and stay small, meaning they often rent their property and are subject to higher rents when property taxes increase. In the most recent 2012 Survey of Business Owners by the Census Bureau, 38% of all non-publicly traded businesses were owned by females and another 9% were owned equally by females and males.
Increases the Cost of Living for Everyone and Makes the Homelessness Crisis Even Worse • •
In 2019, US Housing & Urban Development data showed California led the nation with more than one-quarter of the country’s homeless population. California’s cost of living is already among the nation’s highest. We shouldn't do anything to make it even more expensive to live here. The split-roll measure will only increase homelessness and make life more difficult for Californians already living paycheck-to-paycheck.
Homeowners Are Under Attack • If businesses lose their Prop 13 protections, homeowners will be next. Supporters of the measure even admitted
that this initiative was the first step in a plan to end Prop 13, which could mean skyrocketing property tax increases for all California homeowners.
Ad paid for by Californians to Save Prop 13 and Stop Higher Property Taxes, sponsored by California homeowners, taxpayers, and businesses Committee major funding from Western Manufactured Housing Communities Association California Business Roundtable California Taxpayers Association Funding details at www.fppc.ca.gov
L.A. HOUSING MAR K ET STATISTICS Q2 2020
Briana Frazier The Covid-19 pandemic has had significant impacts on the economy of California and more specifically, on the housing market. When we narrow down to specific regions in California, the impacts are becoming more vivid. Over the past couple of months, home sales have significantly dropped, but prices have maintained their position nevertheless. In Southern California, home sales declined by 26.6% in April compared with reports from the previous month, while year-over-year sales declined by 31.5%.
The largest city in California and the secondlargest in the U.S, Los Angeles is home to approximately four million people, while the L.A. metropolitan area hosts over 13 million people. Its real estate market, which boasts of being the least affordable housing market, has for long been considered as a premier market for both investors and homeowners. The appreciation rate on real estate in L.A. is expected to remain a bit modest throughout 2020. However, the strong demand and low housing inventory keep on pushing the prices higher in the area. Real estate experts have warned that home values in L.A. will continue to increase throughout the year, but at a slower rate than the nationwide average. According to a recent housing market report by Realtor.com, L.A- Long Beach- Anaheim would see a 0.7% rise in home values in 2020. In April alone, the Los Angeles Metro Area recorded a median sold price of existing singlefamily units at $550,000, which represented a 1.1% decrease from the previous month and a 2.5% year-over-year increase. The same month recorded a 30.9% decrease on home sales in the Los Angeles metro compared to last year and
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a 21.2% decrease from March. The question of whether it’s the right time to buy a house in L.A. does not have clear answers yet. According to a forecast by CoreLogic, home prices are not expected to drop in Southern California. Instead, they are expected to incline by 3% in L.A. County, 5% in Orange County, and 6% in the Inland Empire by April 2021. This could hint that it is a relatively good time to buy a home in L.A. before prices begin to trend upwards as forecasted. With the continued uncertainty in the housing market due to the current pandemic, affordability is declining among buyers, and only 30% of L.A. County residents are homeowners. The high home prices in L.A. homes are getting out of reach for many homebuyers as many also consider them over-priced. Despite home prices in L.A. projected to continue increasing throughout the year and over to next year, there are still many homes in L.A. available at considerably fair prices. It is also important to note that housing market prices are highly volatile as its demand side is impacted by economic cycles of which much of it is subjective to factors that cannot be controlled such as the Covid-19 pandemic that paralyzed the economy. This means that many other variables can possibly affect the housing market prices in L.A. and any other market in 2020, some of which are impossible to foresee in advance. According to Movoto.com, the home resale inventory number in L.A. for June was 2058, which represented a 29% decrease from the same time the previous year, and a 2% increase from the previous month. The median list price per square foot in June was $708 in L.A. Elsewhere, according to an index by HousingWire that combined median income and median home prices termed L.A. as the least affordable city in the country as many younger residents claimed that they were concerned that they would never be able to afford a house. According to Zillow, most home shoppers are leaving L.A. for cheaper metros such as Las Vegas. The Zillow data proves that the L.A. housing market as of June was a balanced market with a healthy balance between the numbers of qualified home buyers and homes for sale in the market place. As of June 2020, there were approximately 6370 WWW.THEPOWERISNOW.COM
homes for sale and about 2560 homes for rent in L.A. on Zillow. On the potential listings list, there were about 49% foreclosed and about 1320 pre-foreclosed units. On Realtor.com, there were about 9370 homes for sale and about7970 for rent in L.A. according to Realtor.com April 2020 statistics, the housing market in L.A. was a buyer’s market. According to L.A. foreclosure data by Zillow, 0.5 per 10,000 homes are foreclosed. This is greater than the 0.4 value for L.A.- Long Beach- Anaheim Metro and lower than the 1.2 national value. As of June, the number of properties in L.A. that were in some stage of foreclosure stood at 1,030 while homes listed for sale on RealtyTrac was at 1,690. In May 2020, the number of properties that received a foreclosure filing in L.A. was 10% lower than the previous month and 58% lower than the rate for the same period last year. There is also a 0.7% delinquency mortgages in L.A., which is lower than the 1.1% national value. Also, there are 4.3% homeowners underwater on their mortgages in L.A., which is higher than the 4.1% for the L.A.- Long Beach- Anaheim Metro. The only real good news for anyone home shopping in the L.A. metro area currently is that there is a significant increase in the number of units to choose from. However, the region is already giving hints of possible softening but could get submerged in more pressure if the economy and job growth continue to weaken. For any inquiries concerning the housing market in Los Angeles and California at large, you can reach out to our VIP Agent, Briana Frazier. Briana is a licensed real estate broker and an active member of National Association of Realtors, California Association of Realtors, Women’s Council of Realtors, Orange County Association of Realtors, and Inland Valley Association of Realtors. Being a member of all these realtor groups, she is for sure your perfect shot for getting any reliable information concerning the housing market in L.A. You can reach her at https://thepowerisnow.com/briana-frazier/.
Works Cited; https://www.noradarealestate.com/blog/losangeles-real-estate-market/
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EVEN IN THE FACE OF A PANDEMIC, WHY ARE CALIFORNIA’S HOUSING PRICES NOT TANKING?
Adrian Bates The U.S. is going through the worst economic crisis since the Great Depression more than ten years ago. Approximately one in every six workers in California lost their jobs, while those who are lucky retain their jobs are faced with reduced hours, slashed wages, and cumulative uncertainty of what the coming days may bring. The budget in the country is in shambles while counties and cities are already sending workers home. Despite all these, it is almost unbelievable that California home prices and rents are not dropping, neither are they showing hints that they’d drop. WWW.THEPOWERISNOW.COM
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his constitutes another housing crisis in the state. While rentals in some other markets are showing signs for a significant drop, a singlefamily unit in California was going at $570,000 as of June. According to real estate data firm Zillow, this figure is way higher than in the same period last year.
IN A RECENT GIMME SHELTER: The California
Housing Crisis Pod, Skylar Olsen from Zillow highlighted some of the reasons for the current situation in the California housing market. “We have the demand shock, that lowers the prices of the homes, but we also have the huge supply shock, where not just builders but existing homeowners took their homes off the market or they couldn’t list their homes like they had planned to,” she states in the podcast interview. “So we have a similar huge fall in the new listings coming on the market. So even if buyers weren’t showing up, neither were sellers.” According to Olsen, when the recovery started, the buyers came back in waves, but the sellers were still hesitant. That buyer return has been contributing to the building up of prices. The low turn-up of sellers is because of the uncertainty surrounding the housing market currently. “It is unclear whether you can complete the process at the county office, which isn’t there to accept the papers being filed at the end,” Olsen states. “Even without that, imagine
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how uncertainty impacts your decision. If you are a seller, most sellers are also buyers. So you’re going to have to make two very uncertain decisions. That might take sellers a little bit longer. They will need a little bit more encouragement to come back.” The podcast was backed up by some comments from the audience. One comment read, “Why is the housing market not tanking when wages have been flat for decades, and C.A. unemployment is as high as it was during the Great Depression? Because the same forces at work that allowed the predatory lending by Corp USA &Banks are still at work. Obama’s admin made it more difficult for Wall St & Banks to rob you blind in plain sight, but Wall St / GOP tried to stop him at every turn. Corporate America knows the only Invisible Hand in our economy is the Sleight of Hand. The Wall St 1% stockholders have shares that have gone up exponentially since the 2010 recovery while the 99% is STILL trying to get to back where they were before the 1980s. Zillow’s Olsen kept bring up “low inventory” as a key component for the sky-high prices in C.A. - TOTAL ILLUSION. Zillow knows that. Banks/Wall St & American Association of Realtors designed the illusion to keep home prices artificially high. According to Olsen, another reason constituting the current low housing inventory is because no houses were being built amid the Covid-19 pandemic. “We didn’t have the access building because we didn’t have access credit. We didn’t have access credit driving access homeowners driving a building boom during the crisis.” The situation surrounding the housing market in California is uncertain. Experts continue to warn that California’s home prices could continue rising or retain their current position as we move forward. Before buying a home with these current factors, ensure that you have thoroughly assessed all the uncertainty risks and planned on how to mitigate them. Works cited https://calmatters.org/multimedia/podcasts/ gimme-shelter/2020/07/podcast-why-californiashousing-market-isnt-tanking/ 94
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Richmond housing market Statistics Andre Jackson
AVERAGE HOME PRICES As of July 15, the average house price stood at $972,300, while new listings were at 574, according to Richmond MLS stats. The stats also demonstrated that the median days for a home on the Richmond housing market was at 23 days. The average house price figure represented a 3.4% rise from the previous 28 days period that ended on June 17, 6.7% increase from the previous quarter stats, and a 9.3% increase compared to the same period last year.
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Richmond, just like the other regions of California, and the U.S at large, has had its extremes, both highs, and lows in the housing market amid the Covid-19 pandemic. The median prices, listings, demand, and supply in the Richmond housing market have experienced different impacts since the onset of the pandemic in the U.S. This piece features the various housing market statistics obtained from Zolo’s Richmond real estate market trends recorded over a period of 28 days (June 17-July 15).
The significant change in the average home price could be due to a change in the home type’s proportions. This could mean that the mix of homes sold has changed from a ma jority of high-priced homes to low-priced ma jority homes. SALES BY PROPERTY TYPE This categorizes the sales by property type, such as detached properties, townhouses, and condo properties. For the 28-day period, a three-bedroom detached property in the Richmond area was valued at $1.4M. This was the same value three months ago but represented a 2% increase year-over-year rate. A four-bedroom property was at $1.7M, representing a 27% increase from last year while a five-bedroom was at $2.2M and $1.4M for a six-bedroom. The five-bedroom figure represented a 22% increase while the six-bedroom figure represented a 26% drop, year-over-year rate. l
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For the townhouse properties, a two-bedroom unit was at $790K, three-bedroom at $793K, and a four-bedroom at $1M. The units represented a year-over-year increase rate of 26%, 5%, 12%, and 9%, respectively. For the condo property, a onebedroom unit was at $438K, two-bedroom at 616K, and three-bedroom at 690K. The figures represent year-overyear changes of 5% decline, 3% increase, and an 11% decline respectively. Richmond Housing Inventory For the 28-day period, the number of new listings in Richmond stood at 574. In the same period, 199 homes were sold, and their calculated average days on the market was 23 days. The selling to listing ratio for the 28-day period was at 96%.
RANKINGS Richmond was compared on various parameters, with 20 of the regions in Greater Vancouver. It was ranked position 10 out of 20 as having the most expensive houses in Greater Vancouver. It was also ranked 12th on the fastestgrowing housing markets, 11th as the fastest-selling and 11th again as having the highest turnover in Greater Vancouver’s housing market. For any inquiries concerning the housing market in Richmond, you can reach out to our VIP Agent from the rich Richmond area, Bishop Andre Jackson. Bishop Andre is a native Richmond resident having lived there for over 21 years. He, therefore, has a better understanding of the housing market in the area than anyone else. Bishop Andre Jackson is the owner of Jackson Medical
Supplies and Equipment. He also owns a record label, Ground Up Record, and Production Co. Besides, he is also the Vice president of BASA Publishing and The American Clergy Leadership Conference of Northern California and National Co-chair. Bishop Andre holds a master’s degree in Christian Counselling and Theology and a doctorate in Christian Education and Theology, both of them from Sacramental Theological Seminary. You can reach out to him with any Richmond housing market questions through https://thepowerisnow. com/andre-jackson/. Work cited https://www.zolo.ca/richmondreal-estate/trends.
Joe L. Fisher
A SNAPSHOT OF THE
RICHMOND RENTAL MARKET
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he impacts of the Covid-19 pandemic have fully stirred the housing market in most parts of the U.S. The rental market in Richmond has not been left behind. February 2020 report by RENTCafé indicated that the average rent for an apartment in Richmond was at $1,110, which was a 2% increase from the previous year. At the same time, the average apartment size was approximated to be about 866sq. Ft.
According to the report, the Richmond apartment rent ranges were as follows.
• • • • •
$501-$700 $701-$1,000 $1,001-$1,500 $1,501-$2,000 over $2,000
2% 39% 50% 7% 1%
By then, 49,507 of the Richmond households were renter-occupied, which represents a 55% while 40,339 (44%) were owner-occupied. Currently, there are about 2,380 homes for sale and 620 for rent in Richmond, VA. The homes for sale range between $6000 and $2.9M in value while the rentals range between $460 and 100
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$3,800 in rent per month. Richmond, VA comprises of 119 neighbourhoods. Among the most expensive of the 119 neighbours are Gambles Hill, Richmond City Centre, Shockoe Slip, and The Fan. The most affordable neighbourhoods in Richmond, VA include Austin Heights, Austin Park, and Brookland Park. If you are searching for great deals, consider checking listings from Chatham Place, Cloverland and Confederate Heights. According to RENTCafé, the most popular neighbourhoods in Richmond, VA are Shockoe Bottom, Richmond City Centre, The Fan, Manchester, The Museum District, Huguenot, and Monroe Ward. THE POWER IS NOW MAGAZINE | AUGUST 2020
Before the onset of Covid-19 in Richmond, VA, the housing market was moving on solidly. When the virus arrived, everything started to change. Data from the Central Virginia Regional Multiple Listing Service (CVRMLS) shows that the number of new homes listings increased across the region between February and March. When the effects of the pandemics began to be felt, a steep number of homes were taken off the market. In March alone, a total of 174 listings were taken off the market. That was nearly three times the number that was temporarily taken off-market in February, which was 61. “There were definitely sellers who said, ‘Hey, I want to hit the pause button,’ for whatever reason… I’m sure some sellers
hit the pause button over concerns about buyer traffic in their house. Some sellers’ economic situation may have changed,” said the CEO of CVRMLS and Richmond Association of Realtors, Laura Lafayette. Almost simultaneously, the number of new single-family home listings increased month to month from 1,152 in February to 1,478 in March. Also, the number of new single-family listings in March was 2% higher than the same period last year. During the spring, the level of housing market activity in the whole of Virginia reduced significantly during spring. According to Virginia Realtors, the Virginia housing market is set to make a rebound during the summer period of 2020.
In case you need any further information or clarification on the rental market in Richmond, VA, you can simply reach out to our VIP Agent Joel L. Fisher. If you need to make any decisions that are greatly affected by the state of the rental market in Richmond, VA, do not rush. Let the best guide you. Joel is an industry guru who will show you and tell you all you need to know about the Richmond rental and housing markets. You can get Joel at https://thepowerisnow.com/joefisher/. Works cited https://richmondbizsense. com/2020/04/20/more-richmondarea-homes-taken-off-market-sincevirus-arrived/. https://richmondmagazine.com/ news/features/real-estate-marketsnapshot-2020/. https://www.rentcafe.com/averagerent-market-trends/us/va/richmond/.
YOU DESERVE TO LIVE SAFE FROM SEXUAL HARASSMENT.
Sexual harassment by a landlord or anyone related to your housing violates the Fair Housing Act. If you receive unwelcome sexual advances or are threatened with eviction because you refuse to provide sexual favors, you may file a fair housing complaint. To file a complaint, go to
hud.gov/fairhousing or call 1-800-669-9777 If you fear for your safety, call 911.
FAIR HOUSING IS YOUR RIGHT. USE IT. A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.
COMING TO NEW JERSEY? HERE’S A LIST OF THE BEST NEIGHBOURHOODS YOU SHOULD CHECK OUT FIRST
Jerel Washington New Jersey, just like all other states in the U.S, is known for its good and bad things. With an approximated population of about 9 million people, the garden state is considered being densely populated, being the fourth-smallest state but 11th largest by population. The state may be known for its high taxes, pricey homes, congested traffic, and landfills, among others. On the other hand, New Jersey is generally a beautiful state. With plenty of shore towns and beloved diners, rural farmlands that provide fresh produce, diversity, high performing public schools, without forgetting its strategic location, New Jersey is one of a kind state.
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f you’re looking to move to New Jersey, here there is a list of some few neighbourhoods you should consider checking out first. The list is not in any order. 1. PRINCETON Princeton is strategically located between New York and Philadelphia. For anyone who might be having frequent visits to either of the cities, Princeton is the best place you can settle.
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New Jersey in the previous years. The city has also been listed among the best small cities in the U.S and the top towns to live and work in the U.S in the previous years. 2. WHITE MEADOW LAKE This is a suburb region in Morris County that features a population of nearly 9000 happy people. The region has often appeared among the happiest places to live in New Jersey.
Princeton also boasts being home to the prestigious Princeton University, which is one of the best universities in the U.S.
Just like its name, the region is one of the most picturesque places in the state and comes with a lake and meadows.
The city has appeared at the top of the lists showing the best places to live in
The place also features high media income rates, excellent learning
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institutions, buzzing nightlife, significantly low crime rates and very little not to smile about. 3. EDISON TOWNSHIP Named after the famous lighter of the world, Thomas Edison, Edison Township is a small city in Middlesex County comprising of a population of about 102,000 people making it the 5th largest municipality in New Jersey population-wise. The city features low unemployment rates, top-notch education system and a low cost of living. The city has appeared several times on various lists of the best places to be in the Garden State. 4. LITTLE SILVER This town is more of a coastal borough, being located a few minutes from the Jersey Shore beaches, it indeed is one of the happiest places. Little Silver is a small community of about 6000 residents. The place is also one of the most expensive in both in the Garden state and the country at large. It has in several occasions appeared on many nationwide lists revolving around cost. The town mostly hosts rich residents with many of them being families with children. The town features high employments rates, significantly low crime rate and a lot of outdoor activities to keep the residents happy. 5. BERGENFIELD Situated in Bergen County and 13 miles from Manhattan, Bergenfield is home to more than 27000 residents. The area has everything a parent would wish for and therefore the most suitable for those looking to raise a family. The area has in the previously appeared on the list of the best places to raise children in the Garden State. Bergenfield features low costs of living, highly rated public schools system, low crime rates and a pool of outdoor activities to keep the residents engaged. 6. NORTH ARLINGTON This is a suburb in the Bergen County with
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a population of about 15,800 residents. The region is strategically located near the famous New York City and 15 miles from the world’s most prominent financial district, the Big Apple’s financial district. North Arlington features low crime rates, excellent schools and relatively affordable houses and rents. The region has in the past appeared on the TIME’s Money Magazine featuring the best places to live in the U.S. 7. CONCORDIA The Middlesex County neighbourhood is home to nearly 3500 residents. The neighbourhood features an invitingly low cost of living, great schools, almost non-existent crime rate, plenty of outdoor activities ranging from tennis courts to golf. The neighbourhood is best suited for retirees and anyone who prefers a low-key living. If you’re looking to get any further professional guidance on choosing where to stay in New Jersey, don’t look any further. Reach out to our VIP Agent, Jerel Washington. Jerel Washington is a full-time realtor and real estate investor hailing from New Jersey. Mr Washington is a professional realtor specializing in unique and luxury residential, multi-family buildings, high-rise, short-sale marketing and processing, foreclosure prevention and a commercial speciality in selling salons and spas and other personal care business locations. Mr Washington comes with 21 years of professional corporate experience in the technology sector, specifically I.T, tech services and internet sales, product development and marketing and public speaking. His base of knowledge and expertise creates a winning formula for both the buyers and the sellers. You can reach out at Mr Washington through https://thepowerisnow.com/jerelwashington/. Works cited https://www.thecrazytourist.com/15-best-places-live-newjersey/.
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THE TEXAS HOUSING MARKET INSIGHTS Johnnie Morine
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espite the reopening of the US economy, the situation in the bigger part of the economic players still features lots of uncertainties, including the housing market. In Texas, the housing market is still experiencing the impacts of the Covid-19 pandemic. The pandemic is the greatest threat to the Texas Housing market since the 1986 to 1990 recession which similar to Covid-19, led to disruption of buyer and seller confidence, loss of income, and wariness of home visiting and showing for sale. However, home purchases mortgage applications and the Real Estate Centre’s single-family unit sales projection hinted that home sales were beginning to recover before the second wave of new Covid-19 cases.
In May, the total housing sales continued to drop in Texas although the drop slowed to a 2.1% compared to the previous month. Also, the home for sale inventory declined to a record low of 3.2 months. This possibly resulted from the trend of homeowners pulling their homes off the market or declining to list them amidst the pandemic. The increasing caution during the home buying process has caused softer demand, which has pushed the average days on market to 61 days. An indication from the Repeat Sales Price Index has however suggested stable price gains.
TEXAS HOUSING MARKET SUPPLY SIDE According to Texas Residential Construction Cycle Index, which measures current construction levels, the index recorded some little increases in May as the industry began to refill some of the positions left vacant during the economic shutdown. The index however continued to trend downwards as declining housing stats offset increased permitting activity and dropped real estate interest rates. This hinted for a sluggish second half in the near future. As the stay-at-home orders were lifted state-wide, temporarily calming the economic uncertainty, the single-family construction permits recorded some recovery by 12.6% in May. Despite the levels remaining nearly a fifth below that issuance in February, Texas retained its position as the national leader, contributing 17% of the national total.
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The total Texas starts on housing fell 30.1% to a 6-year low with the multifamily sector displaying some weakness. In the singlefamily sector, their private construction values increased 5.8% after adjusting for inflation with Houston recording the highest improvement of 20.2% increase. As the sales decreased in Texas, its months of inventory (MOI) also dropped to a historic 3.2 months. Also, the state’s supply of active listings down-trended to its lowest level in three and a half years. Inventory for homes valued less than $300,000 declined to a staggering 2.4 months as the registered price range increased sales. Elsewhere, the supply of active luxury homes (those valued above $500,000) listings inclined for the first time this year while their closed listings dropped, shooting the MOI up to 7.6 months.
TEXAS HOUSING MARKET DEMAND SIDE In May, the total housing sales dropped by 2.1%. Sales for homes valued below $300,000 inclined with huge margins but remained onefifth below this year’s peak levels. Still on this, Texas recorded a smaller decline compared to the whole of the U.S as nationwide sales declined 6.6%. In North Texas, sales declined by 4.7% and 1.9% in Dallas and Fort Worth respectively. In Austin, sales declined 7.7% and 3% in San Antonio, while in Houston, they inclined by 1.9%. The reduced showing and visiting of homes for sale during the months of March and April led to a slightly softer housing demand. This pushed the average days on market in Texas to 61 days which ended a year-long downward trend. The average days on market of Houston and San Antonio were slightly above the state-wide average at 62 and 63 days respectively. In Austin the average days
on market were at 55 days, which was six days below the figure in April. In Northern Texas, the figure was at 57 and 50 days in Dallas and Fort Worth, respectively. Demand for existing homes softened more than for new homes in every Texas location except in Fort Worth. This possibly indicates more willingness in visiting and purchasing new constructions.
HOME PRICES The median home price in Texas contracted by 2.3% in May, dropping to a near-annual low of $240,500. In terms of year over year, the median sale price represented a 1.6% increase, which was the smallest annual change in seven years. The Texas Repeat Sales Home Price Index, which provides insights into the evolution of Texas home prices, projected a 3.4% year over year increase in single-family home value. This suggested that the impacts of the pandemic on home values has been minimal. If you’re looking to get more insights on the Texas housing market, we got the best VIP Agent for you, Johnnie Morine. Johnnie Morine is the founder of the Morine Group Realtors, which is a top brokerage firm from Texas, which offers all brokerage services, training, mentoring and coaching. Apart from being a highly respected real estate agent, Johnnie is also a motivational author with S.P.E.C.I.A.L philosophy on sales and marketing. Johnnie is the best shot for everything you need to know about the housing market in Texas. You can get in touch with him at https://thepowerisnow.com/ johnnie-morine/. Work cited https://www.recenter. tamu.edu/articles/ technical-report/ Texas-HousingInsight.
It is almost a human thing for people always to want to get a chance to have something valuable but at a cheaper cost. The same thing happens when it comes to loans. In the U.S, the Federal Home Loan Banks (FHLB) are known to offer low-cost mortgage loans to members. Of course, every sane person would want to get this kind of loan. Early this year, the Federal Housing Finance Agency (FHFA) received evidence regarding “conduit arrangements,” where non-members form relationships to members as a way of evading the membership guidelines to gain access to the FHLB loans. In response to this, the FHFA decided to take a closer look at the FHLB guidelines.
M B A S U P P O RT S E X P AND I NG FE D E R AL HOME L O AN B ANK MEMBERSHIP
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n February this year, the FHFA released a request for input or opinions from the other industry stakeholders about expanding FHLB membership. Currently, FHLB membership is only legally available to federally insured banks and credit unions, non-federally insured credit unions, and non-depository community development financial institutions. In response to the FHFA request on the expansion of FHLB membership, the Mortgage Bankers Association (MBA) sent a letter to FHFA director, Mark Calabria. Through the letter, MBA was urging Calabria to responsibly expand FHLB eligibility by allowing companies like mortgage real estate investment trusts and independent mortgage banks to join the FHLB network. “Increased diversity in FHLB members would more accurately reflect the breadth of institutions that contribute to the national system of housing finance, in effect creating a ‘21st Century’ FHLB System,” MBA CEO Robert Broeksmit, stated in the letter. Broeksmit, through the letter, also stated that expansion should
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“better reflect the diverse providers of singlefamily and multifamily housing finance throughout the country.”
Association raised concerns for non-banks
MBA also argued that expanding FHLB eligibility to both banks and non-banks would produce more competition in the marketplace and better terms for consumers. Lenders in the network reap the benefits of on-demand liquidity through advances — low-cost loans — from its regional FHLB. This helps the FHLB achieve its mission to “provide reliable liquidity to its member institutions to support housing finance and community investment,” the MBA letter stated. According to the MBA, the mission would be easily achieved with more members and that a bigger network comes with a broader selection of product offerings, which results in more earnings.
memberships.”
Membership plans for the FHLB have often been a controversial subject in the mortgage industry, having gathered huge opposition and complete polarization. In 2019, the Pennsylvania Bankers
to be restricted from joining FHLB, citing the practice of fraudulently obtaining “back-door
Having that in mind, the MBA took a favorable stance but also advised the FHFA to establish a comprehensive eligibility framework should they choose to expand FHLB membership, and have counterparty oversight to ensure members alignment with its mission. Once clear parameters are put in place, potential members would have to meet the requirements and join the network without having to sneak through any existing loopholes. The letter also stated that a “well-crafted framework would strengthen the broader housing finance system by increasing the supply of reliable, longer-term liquidity to institutions that play critical roles in this system.” It would save the FHLB a lot should they choose to expand the membership since the non-members will never quit trying to sneak in. Otherwise, FHLB will continue being a controversial subject like it has been in the past.
Works cited https://www.nationalmortgagenews.com/news/ mba-supports-expanding-federal-home-loanbank-membership. https://www.housingwire.com/articles/mbaurges-fhfa-to-expand-fhlb-eligibility/.
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SUPREME COURT EMPOWERS TRUMP TO FIRE CONSUMER WATCHDOG’S DIRECTOR AT WILL
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n 2017, a California-based law firm, Seila Law, was under investigation by the Consumer Financial Protection Bureau (CFPB). The firm was accused of allegedly charging consumers an illegal upfront fee for debt-relief services. The law firm refused to turn over the material requested by CFPB, citing that the agency’s structure was unconstitutional. The case moved along until it reached the Supreme Court. On June 29, the Supreme Court ruled that CFPB’s leadership under one Director, who could only be removed for certain wrongdoings (inefficiency, neglect, or malfeasance), was unconstitutional. During this ruling, the court ruled that the Director of CFPB can be fired at will by the US president. The court also said that the agency’s structure was unconstitutional, citing that it put “significant governmental
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power in the hands of a single individual accountable to no one.” The court’s decision said that Congress acted incorrectly during the agency’s creation in 2010 and gave its lone Director too much protection from political influence. “Lawmakers created the CFPB as part of the sweeping DoddFrank legislation, signed by President Barack Obama in the wake of the financial crisis with the goal of protecting consumers beyond the realm of presidential control, which is what drew the ire of the majority of justices ruling for the high court,” says Mark Hamrick, Bankrate’s senior economic analyst. The agency’s protection from political influence insulated it from the political winds that included pushbacks from politicians and other
significant financial industry players such as big banks, mortgage servicers, and credit card companies, among others. The ruling came as a victory to the Trump administration, which has long argued that the consumer watchdog agency created under the Obama administration to guard consumers against abuses in the banking and financial services industries, is too powerful. However, the ruling also clearly stated that the agency would remain intact and operating. “The agency may ... continue to operate, but its Director, in light of our decision, must be removable by the President at will,” Chief Justice John Roberts stated in his ma jority decision. Unlike other independent
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agencies, the CFPB has a single director nominated by the President and then approved by Congress to serve a five-year term. In the past, there have been long heated debates on whether the CFPB director has too much power has too much power which goes against the constitution. Response from concerned parties The Trump administration declined to defend the agency to let its Director retain his status. Also, some other industry stakeholders came out in agreement with the decision of the court. “While we may not agree with every action the Bureau has taken in the past, today’s ruling will ensure the Bureau’s rules that our members and the nation’s consumers have come to rely on remain in place,” Mortgage Bankers Association said in a statement. Those who supported the watchdog agency are concerned that the President would take advantage of the ruling to delegitimize it and render it ineffective. According to Hamrick, any WWW.THEPOWERISNOW.COM
president could weaken CFPB by nominating a director who is not invested in the agency’s mission. “President Trump has sought to bolster support among members of his base by dismantling wide swaths of regulation, including those protecting consumers,” Hamrick says. “Now, the court has given the president the power to fire the CFPB chief, raising the risk that it might well be restrained from protecting consumers as members of Congress had intended.” The ruling by the Supreme Court could also have further effects on other government agencies and bodies if subjected to a ruling similar to the one on CFPB. Such rulings undermine the independence of any government body or agency. Multi-person boards of the Federal Reserve, Securities and Exchange Commission, Federal Communications Commission, and other bodies have similar rules that protect their independence, and at no point should they be altered. “In the end, it feels like this is a setback for consumers, which cannot be a good thing,” Hamrick says. Works cited https://www.forbes.com/sites/advisor/2020/06/30/supreme-courtsays-trump-can-fire-consumer-watchdog-director-but-cfpb-here-tostay/. https://www.bankrate.com/banking/cfpb-supreme-court-presidentmay-fire-director-at-will/.
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FREDDIE MAC: MORTGAGE SERIOUS DELINQUENCY RATE INCREASED IN MAY, HIGHEST IN 2 YEARS THE CURRENT COVID-19 PANDEMIC PERIOD IS CHARACTERIZED BY A LOT OF HIGHS AND LOWS OF EXTREMES THAT HAVE NOT BEEN RECORDED IN A LONG TIME. IN THE HOUSING MARKET, THE HIGHS AND LOWS ARE BEING RECORDED DAILY ACROSS ALL OF ITS SECTORS. IN MAY, A LOT OF MORTGAGES WERE PAST DUE THAN IN ANY OTHER PERIOD SINCE 2011.
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n the same May, the US mortgage delinquency rate inclined to its highest point in more than eight years. This comes even as some homeowners are making higher shares of payments in June. As most Americans continue to struggle to pay bills amid the ongoing pandemic, 723,000 American homeowners were recorded as past due on their mortgages in May. This pushed the delinquency rate to 7.76% according to a property research firm, Black Knight. Compared with the previous rates, the May delinquency rate was up and above, 6.45% in April and 3.39% in March. A recent Freddie Mac report showed that the single-family serious delinquency rate was 0.81% in May, up from 0.64% in the previous month and 0.63% from the same period last year. According to Freddie Mac, that was the highest serious delinquency rate recorded since June 2018. Mortgages that are 90 days past due but are not yet in foreclosure (serious delinquencies) inclined 36.5% to 631,000 in May compared to the previous month. On adding the May figures, there are currently 4.3 million homeowners past due on their mortgages or in active
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foreclosure. This figure is up from 2 million at the end of March. However, the property research firm also noted that “a higher share of payments have been made thus far in June than at the same time in May, suggesting the rise in delinquencies may be leveling off.” According to regions, Mississippi recorded the worst delinquency rate at 12.7%, followed by Louisiana at 11.79%, New York at 11.28%, New Jersey at 11.03%, and Florida with 10.52% delinquency rate. States with the lowest delinquency rates were Idaho at 4.4%, Washington DC at 4.91%, South Dakota at 5.02%, Oregon at 5.12%, and Montana at 5.13%. With the pandemic still persisting, the delinquency rates were expected to increase significantly in June and July, according to Freddie Mac. Works cited https://www.calculatedriskblog.com/2020/06/freddiemac-mortgage-serious.html#:~:text=June%2026%2C%20 2020-,Freddie%20Mac%3A%20Mortgage%20Serious%20 Delinquency%20Rate%20increased,May%2C%20Highest%20 in%202%20Years&text=Freddie%20Mac%20reported%20that%20 the,delinquency%20rate%20since%20June%202018. https://www.cfo.com/the-economy/2020/06/u-s-mortgagedelinquency-rate-jumps-to-7-76/
THE POWER IS NOW MAGAZINE | AUGUST 2020
FANNIE MAE SURVEY SHOWS MORTGAGE SERVICERS WANT CLARITY ON POST-FORBEARANCE OPTIONS FOR BORROWERS
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arly in May, the Government-Sponsored Enterprise (GSE), Fannie Mae carried out a survey as part of its Mortgage Lender Sentiment Survey Series that recorded feedback from nearly 200 senior mortgage executives. The survey asked mortgage servicers two questions;
1. WHAT ARE THE BIGGEST CHALLENGES THAT THEY’VE FACED IN LOAN ORIGINATION AND MORTGAGE SERVICING IN RESPONSE TO COVID-19? 2. WHAT ARE THEIR MOST IMPORTANT BUSINESS PRIORITIES, AND TO WHAT EXTENT HAS COVID-19 INFLUENCED THOSE PRIORITIES? From the survey, the GSE released the special topic analysis that contained the feedback. From the survey, the ma jority of lenders cited the health and safety of staff as the biggest challenge they are facing amid the Covid-19 pandemic. Clarity regarding updates to loan eligibility and navigating supply chain disruptions followed to make up the top three. Other concerns cited by lenders also included handling evolving regulatory and investor requirements, managing cash advances, and preparing for loss mitigation programs. On account of mortgage servicers, understanding, and navigating post-forbearance options for distressed borrowers was cited as the biggest challenge. It was then followed by gaining clarification on forbearance programs. “Mortgage banks are significantly more likely than depository institutions and credit unions to report people taking advantage of the situation and liquidity issues as top mortgage servicing challenges they faced as a result of COVID-19,” Fannie Mae stated. On the second question of the survey, for the fourth
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consecutive year, business process streamlining and consumer-facing technology was once again at the top of the list as the two most important business priorities. However, according to the Fannie Mae report, the importance of “business process streamlining” inclined 10% in terms of a priority this year compared to the 2019 survey. “Presumably, the prioritization of process streamlining by lenders is due in part to the recognition that at some point the current refinance boom will come to an end, and lenders will need to be more efficient in order to remain profitable in a potentially thinner origination market,” the vice president and deputy chief economist of Fannie Mae, Mark Palim, said. The impact of the pandemic on digital applications proves the polarization of lenders. From the survey, 40% cited that they don’t offer, or plan to odder a digital portal despite reports that all digital applications recorded an increase or consistency in usage. According to the report, the most significant increases in digital applications for loan originations were online applications and electronic income, employment and assets verification, video meetings between borrowers, and mortgage servicer’s personnel.
Work cited https://www.housingwire.com/ articles/fannie-mae-surveyshows-servicers-want-clarity-onpost-forbearance-options-forborrowers/
THE POWER IS NOW MAGAZINE | AUGUST 2020
Wellness could have so many definitions, which consequently mean the same thing. According to the World Health Organization (WHO), wellness is a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity. Elsewhere according to the National Wellness Institute, wellness is a conscious, self-directed, and evolving process of achieving full potential. In general, wellness is the state of actively pursuing to achieve good health in all dimensions. The dimensions I’m referring to here are physical wellness, psychological wellness, emotional wellness, social wellness, environmental wellness, and occupational wellness.
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he wellness of an individual plays a significant role in their life. That is why there was a need to set aside a period for celebrating the virtue of wellness nationally. Every day should be a wellness day, but the month of August was designated to celebrate and promote wellness in our society. The ultimate activities of the National Wellness Month take place on August 15, which is marked as the National Relaxation Day. The National Wellness Month was initiated and launched in August 2018 by the Live Love Spa. The month targets to inspire individuals to love themselves through self-care during the one-monthlong celebration of wellness. The wellness 122
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August is the National Wellness Month month is designed to make self-care easy, fast, and fun through the health and wellness campaign that enables participants to discover amazing deals from spa, fitness, and beauty hubs for the whole month. The organizers of the celebrations encourage interested participants to take the “I choose Wellness” pledge, and share on social media what wellness means to them and their plans to prioritize self-care throughout the month. The organizers also make the celebrations engaging by providing a complete wellness calendar that features daily inspirations for new easy wellness activities that individuals can incorporate into their everyday lives. You can view the wellness calendar at www.wellnessmonth.com. Besides taking part in the “I choose wellness” challenge and following the wellness calendar, here are a few self-care activities you can embrace to promote wellness throughout the month: • Stay hydrated by increasing your water intake. • Avoid too much snacks and junkies and add more fruits and vegetables to your meals. • Take enough sleep every night. • Enroll in yoga or a walking or aerobics class. • Learn to meditate, and if you already are, do it more. • Reduce the amount of sugar you consume. • Treat yourself or someone you love to a spa treatment once in a while. • Remember to care for your eyes. Most people in America go blind from preventable eye problems. Ensure you get annual eye exams to monitor the health of your eyes. The above tips will help you improve your wellness for all dimensions. Also, always remember not to be so hard on yourself, connect with others, and stay safe during this pandemic period. Work cited https://nationaldaycalendar.com/national-wellnessmonth-august/ THE POWER IS NOW MAGAZINE | AUGUST 2020
OFFICER IN GEORGE FLOYD DEATH ARRESTED AS OBAMA SHOWS LEADERSHIP WHILE TRUMP CALLS FOR ‘SHOOTING’ OF PROTESTERS As the world was busy battling the coronavirus pandemic, AfricanAmericans in America were busy fighting two pandemics. The AfricanAmericans had to put themselves at the risk of contracting the deadly Covid-19 and break the CDC guidelines to go out in the streets because enough was enough. Their rights and dignity had been suffocated for long enough from since the first Juneteenth centuries ago. The African-Americans were demonstrating to get justice for their fellow African-American who had been murdered by a white police officer in cold blood. 124
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he police officer, Derek Chauvin, was captured on video pressing his knee into the neck of a handcuffed harmless black man, George Floyd. The officer was arrested on May 29, after pressure built in from all over to serve justice for Floyd’s death. Massive protests had already picked momentum in many places around the U.S. including, Los Angeles, where protesters blocked the busy 101 freeway and in Minneapolis where Floyd was murdered. “Chauvin (who, along with four other officers, was fired after the incident) was taken into custody,” John Harrington, Minneapolis Public Safety Commissioner stated in a news release. In the wake of yet another loud racism event, the current U.S. President, Donald Trump, and his predecessor Barack Obama took different stances on the matter. As President Trump reached back to the Civil Rights era to quote a statement from an alleged racist former Miami police officer, his predecessor, Barack Obama demonstrated the kind of leadership that has
not been recorded since he left office years ago. In a statement regarding the death of George Floyd, Obama wrote, “It can’t be ‘normal.’ If we want our children to grow up in a nation that lives up to its highest ideals, we can and must be better,” Obama stated. “Being treated differently on account of race is tragically, painfully, maddeningly ‘normal’ for millions of Americans.” Meanwhile, the current U.S.U.S. President chose to add salt on the wound in the aftermath of Floyd’s death by using a quote that was first issued in 1967 by a Miami, Fla police officer Chief
THE POWER IS NOW MAGAZINE | AUGUST 2020
a larger point,” Enola Aird, founder, and president of Community Healing Network (CHN), said in a statement issued to NNPA Newswire. “The question we, Black people, need to be asking is this: Why are we so often the targets of such inhumanity? The roots of that inhumanity run deep… For more than 600 years, people of African ancestry have been seen as less than human because of the lie of white superiority and Black inferiority,” he stated. Elsewhere, the American Federation of Teachers (AFT) President Randi Weingarten, Secretary-Treasurer Loretta Johnson, and Executive Vice President Evelyn DeJesus also issued statements following the death of George Floyd. The statement read; “Hate is rising in the United States with a zeal, emboldened by the White House, among others. It is a stain on our humanity, and good people must gather together to resist and repel it. Nearly six years after the death of Eric Garner, how many more black men will die at the hands of authorities after saying, ‘I can’t breathe’? George Floyd had a right to live. Walter Headley. The chief led what he termed as “slum hoodlums taking advantage of the civil rights movement.” Fifty-three years ago, the chief stated, “When the looting starts, the shooting starts.”
The haunting question we must ask is: If Floyd had been white, would that police officer have continued to put his knee on Floyd’s neck after hearing him say he couldn’t breathe?
Fifty-three years later, as African-Americans were out in the streets protesting against the brutal killing of Floyd, the U.S.U.S. President tweeted, “When the looting starts, the shooting starts,” adding that he would “bring Minneapolis under control,” while describing protestors “thugs.”
Black families deserve to raise their children in a world that does not traffic in this gross inhumanity, and that does not also force them to bear the burden of confronting it. The fact this is not self-evident is, in itself, a moral failing of America.”
The tweet was denounced by many leaders, including Sen. Kamala Harris (D. Calif.), former U.S.U.S. vice president and Democratic Presidential nominee Joe Biden, and former US First Lady Hillary Clinton. “We join in condemning the continuing assaults on the lives and the dignity of Black people. But, sadly, the marches and the calls for justice are missing WWW.THEPOWERISNOW.COM
To my African-American brothers and sisters, freedom is not yet with us. Until the day, our rights and privileges will be heard, respected and served, and until when justice will be served equally to every American. Work cited http://amsterdamnews.com/news/2020/may/30/ officer-george-floyd-death-arrested-obama-shows-le/
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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. 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.