JUNE 2022 Vol. 09 | Issue 6
Ray Carlisle President and CEO of NAREB Investment Division (NID)
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magazine CENTRAL EDITION Vol. 09 | Issue 6
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
CONTRIBUTORS The Power Is Now Research Team
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CONTENTS
POWER GREEN Pg. 8. World Environment Day 2022: Embracing Green Housing Technology.
POWER ECONOMICS Pg. 12. Inflation outlook for consumers falls from record high.
POWER REAL ESTATE Pg. 14. Housing supply is finally improving as high prices and rising rates weigh on sale.
POWER TECHNOLOGY Pg. 18. Technology And Its Impact In Real Estate Business.
FROM OUR VIP AGENTS: Pg. 23. A snapshot of the Texas housing market, by Sharon Bartlett. Pg. 27. The Blight of Homeownership in Maryland: Fighting the Residential Segregation in Maryland, by Emerick Peace. 4
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JUNE 2022 Pg. 31. Homeownership in Florida: How does it compare with other states?, by Adriana Montes. Pg. 35. Arizona Real Estate Market, by Yvonne McFadden. Pg. 39. SKnow Your City Better: Payson AZ Real Estate Market, by Tamra Lee. Pg. 43. Centenial Colorado. Expanding homeownership opportunities, by Walter Huff. Pg. 47. Snapshot of the Ohio Real Estate Market, by Heith Mohler. Pg. 51. Saving for your first home, by Adrian Bates. Pg. 55. Riverside market update, by Ruby Frazier. Pg. 58. Ray Carlisle, President and CEO of NAREB, Investment Division Pg. 69. Looking to invest in Corona housing market?, by Jenny Gonzalez. Pg. 73. The Unfortunate Case of Homeownership in the Silicon Valley, by Ian Batra. Pg. 77. Don’t wait to buy! Buy now, by Kamesha Keesee. Pg. 81. Long Beach housing market, by Kate Nash. Pg. 83. Sacramento market overview, by Serina Lowden.
Pg. 87. Can you buy a property without a realtor?, by Candace Thrower. Pg. 91. Budgeting for homeownership in 2022, by Briana Frazier. Pg. 96. Avoid Staying Stagnant: Finding your new home for the next stage of life, by Connie Watson. Pg. 99. Is credit all that important in today’s housing market?, by Edwin Engelke. Pg. 103. Expanding homeownership opportunities for minorities in Minnesota, by Francine Marsolek. Pg. 107. The future of the 421, a property tax exemption in New York City, by Harriet Robertson Pg. 111. North Carolina Homeownership Trend in Household Formation and Homeownership, by Janet Petrozelle. Pg. 115. The Pros of Using VA Loans for Homeownership in El Cajo, by John Costigan. Pg. 119. Nashville is unaffordable! Navigating complex household market, by Marqueze Williams. Pg. 122. The Potential Risks to Buyers and Sellers in a FSBO Transaction, by Rose Ogbonna. Pg. 127. San Francisco Housing Market Outlook, by Norman Green. Pg. 131. New York state homeowner assistance fund, by Sandra Cotthaus. Pg. 133. New Haven Connecticut Homeownership and Household Formation, by Steven Rivkin. Pg. 135. Tips for a Buyer Struggling to Save for Down payment and Closing Costs, by James Joseph.
PRESENTS:
The 2022 Homeownership Series
Hosted by: Eric L. Frazier MBA Watch on our App
POWER LEGAL Pg. 138. CFPB Issues Advisory Opinion on Coverage of Fair Lending Laws.
POWER HEALTH Pg. 140. World Sickle Cell Day. Pg. 142. June is Alzheimer’s and Brain Awareness Month. l
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June 2022 FROM THE EDITOR Dear readers, Welcome to our mid-year issue of The Power Is Now Media National Magazine. June is homeownership month, Pride Month, and Juneteenth. It is also a reminder that we are halfway through the year, and we must recognize where we are in our goals and re-evaluate our current strategizes for the second half of the year. Juneteenth is one of the oldest celebrations honoring the end of slavery in the state of Texas two years after the Emancipation Proclamation in 1863. It is a celebration reminding African Americans that they are free, but economic freedom, equal credit, and housing opportunities are still elusive dreams for many. One of the many promises made to African Americans and minorities is a level playing field in life and economic opportunity. Yet, while, to some degree, there has been improvement, the rate of homeownership and wealth gap between the Whites and mainly African Americans has not changed since the passing of the 1964 Civil Right Act or the Fair Housing Act of 1968. This month, The Power is Now Media, Inc launched the second season of The Homeownership series, which documents the challenges many have had to overcome to achieve the American dream of homeownership. We interviewed first-time homebuyers, community leaders and real estate professionals, and housing executives willing to share their journey to homeownership. Check out last year’s series also on our website at www. thepowerisnow.com. Speaking of Homeownership, real estate inventory is improving, and home prices are reducing across the Country. Everyone is talking about the housing market, with many experts now convinced that a significant market adjustment and increase in foreclosures is imminent. Mortgage applications have been dropping significantly because rates are higher, and the uncertainty about the economy and inflation has put many buyers on hold. My recommendation is to move forward. Inventory is so low that prices will continue to rise and maybe interest rates. In the long run, you rarely can go wrong with real estate. 6 | JUNE 2022
In this month’s cover, we feature Ray Carlisle, the President and CEO of the National Association of Real Estate Brokers, Investment Division (NID Housing). NID is a HUD-approved national intermediary housing counseling and community development organization. Mr. Carlisle is also the second Honorary President of the National Association of Real Estate Brokers (NAREB), founded in 1947. Please go to https://www.nidhousing.com/ and www. nareb.com and learn more about the Role of NID in promoting fair housing in the Country. This issue is fully loaded with articles to keep you well informed throughout the month. We spotlight several markets, including; Arizona, Corona, Sacramento, San Francisco, Ohio, Nashville, North Carolina, and many others. We also tell you why Maryland faces a unique
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housing problem 50 years after segregationist policies were made illegal. I want to thank our Power Team for their continuous hard work and commitment to making The Power Is Now Magazine a reality and to you, our readers. We would be nothing without you. We want the best for you, which means we are committed to bringing you the best from us. So take a moment and share this magazine with family and friends. Remember, knowledge is power, and The Power Is Now!
ERIC L. FRAZIER MBA President and CEO The Power Is Now Media, Inc.
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JUNE 2022 | 7
POWER GREEN
World Environment Day 2022: Embracing Green Housing Technology community to strengthen cooperation and show leadership in the transformation toward a more sustainable society. Speaking of sustainability, global warming is at dangerous levels and it seems that as we progress, more and more emissions are happening which threatens the livability of humans. Unless we act immediately, it might be impossible for us to stave off the consequences of climate change.
This year also marks a historic milestone for the United Nation Environment Programme (UNEP) and for the global community. It marks exactly 50 years since the establishment of UNEP as an outcome of the Stockholm Conference. This year’s event will be held in Sweden and will serve as an opportunity for the international
Going back to pre-industrial times, the world was cooler. Right now, the global temperatures have risen 1.2°C and while that might seem insignificant, it’s not! Each fraction of a degree counts and has severe impacts. In fact, research shows that suppose the rise reaches 2°C, we will be dealing with intense droughts,
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more devastating floods, more wildfires, and more dangerous storms. In a recent UN Climate Change Conference of the Parties (COP26), UN SecretaryGeneral António Guterres had this to say, “Our fragile planet is hanging by a thread. We are still knocking on the door of climate catastrophe. It is time to go into emergency mode — or our chance of reaching netzero will itself be zero.” We are living in a desperate situation but that doesn’t mean we cannot do anything. There are a lot of things we can do as individuals to change the narrative.
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orld environment day was formally officiated in 1972 with the first celebration taking place in 1974. In the following years, this day has developed and evolved as a platform to raise awareness of the many problems affecting the earth. The Global Campaign this year, dubbed #OnlyOneEarth is a call for transformative changes to policies and choices to enable cleaner, greener, and sustainable living in harmony with nature.
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The climate emergency demands action from all of us. We need to get to net-zero greenhouse gas emissions by 2050 and everyone has a role to play,” said Niklas Hagelberg, UNEP’s Climate Change Coordinator. “We, as individuals, must change our consumption habits and pressure those who represent us – our employers, our politicians – to move rapidly to a low-carbon world.
We Have #OnlyOneEarth… We Have to Take Care of It
“Only One Earth” was the slogan for the 1972 Stockholm Conference; 50 years on, this truth still holds – this planet is our only home. With nature in emergency mode, the #OnlyOneEarth campaign for World Environment Day 2022, wants you to celebrate the
planet through collective environmental action.
#OnlyOneEarth
advocates for transformative environmental change on a global scale. The campaign shines a spotlight on climate action, nature action , and pollution action while encouraging everyone, everywhere to live sustainably. While our individual consumption choices do make
a difference, it is collective action that will create the transformative environmental change we need, so we can advance to a more sustainable and just Earth, where everyone can flourish. REAL ESTATE INDUSTRY ROLE IN GREEN TECHNOLOGY As industry leaders, one of the best ways to respond to this call by UN is re-emphasizing the importance of green building technology. There is a reason for this. Did you know that one sixth of the world’s fresh water withdrawals, one quarter of its wood harvest and about two-fifths of its materials and energy flows JUNE 2022 | 9
are used for buildings? Going green is an opportunity to use the resources at our disposal efficiently to create sustainable buildings that will ultimately improve our livelihood. Going green is one of those proactive measures the industry has pursued and a model that many other industries should adopt DEFINITION OF GREEN BUILDINGS A green building which is interchangeably referred to as a sustainable building is a building that uses water and renewable energy to improve the environment, climate, and general human health and
wellness. By also utilizing its construction, site planning, and design, it enhances the quality of life and preserves natural resources. ECONOMIC REASONING BEHIND GREEN BUILDING While upfront the cost of setting up a green building may be exponentially high by some standards, especially when comparing them to non-green buildings the savings potential dramatically increases over the years compared to the nongreen buildings. Basically, a green building adopts a project life cycle cost analysis that determines the appropriate up-front expenditure. This approach calculates the costs
over the useful life of the asset. The main economic benefits of green building technology include improving occupant health, comfort, and productivity, and reducing pollution and landfill waste. While it may not be easy to quantify these benefits, over time we start to see these benefits materialize. ADVANTAGES OF GREEN BUILDINGS The establishment and betterment of the environment greatly depend on the development and design of sustainable buildings in the communities. These advantages are classified into three, namely; Social, Economic, and Environmental.
SOCIAL
ENVIRONMENTAL
ECONOMIC
zz Upgrade the standard of living. zz Boosts comfort, wellness, and health of people who work and live in such houses. zz Increases the condition of air in these spaces zz Reduces non-renewable utility usage
zz Reduce, re-use, and recycle waste-causing materials. zz Regulates climate change and ozone layer depletion. zz Conserve natural resources like water. zz Generates/uses biogas. zz Increases biodiversity and enhances ecosystems. zz Ameliorate the standard of water and air.
zz Decreased cost of utilities for home occupants. zz Enhanced job opportunities. zz Reduced construction and operational costs. zz Increased cash on cash return for investors. zz Higher worker and occupant productivity. zz Value of property appreciates.
As an individual, you have a specific role to play and spur a change in your own capacity. For instance, you can choose not to invest in financial institutions that do not support green initiatives. You can also choose to buy a home that is 100% green or upgrade your home to green technology if you already own a home. There are so many ways you can join in the movement and help support green initiatives. 10 | JUNE 2022
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POWER ECONOMICS
The inflation outlook for consumers has fallen from a record high
Since 1981, the highest level has been recorded of 12 month inflation at 8.5% in March this year. Recently. Fed raised a benchmark interest rate by half a percentage point which is the biggest hike in 22 years, and it is the second increase in the year. American people are still concerned about the high cost of living where the household spending is forecasted to move high 8% over the next year, as revealed by the New Fed Survey. This is a 0.3% point high from last month. In a Monday morning interview, president Neel Kashkari told CNBC that they have their job to do and have to bring inflation back down. Additionally, home prices that were expected to rise are not going to change, and people will spend more on the household. However, oil prices were lower by 4.4% in April, and the gas price fell by 5.2%, which is optimistic for the customers. 12 | JUNE 2022
The inflation rate has greatly affected the real estate sector, where household demand has continued to move up and the house price. The mortgage rate is also high, moving homebuyers out of the market. The cost of living is also much high for most residents, which is becoming unbearable for most people. As a result, people are moving from expensive high homes to less expensive houses which are affordable to them. The migration rate has also increased as people seek an alternative way to bare with the current situation. However, as the demand increases, household sellers are keeping the pace to grasp more profit in this season, which seems not to last long. During high inflation home, buyers tend to reduce in the market because of the unaffordable prices and household supply increase. Home prices are expected to continue rising as demand and construction costs increase, and people need to dig deeper into their pockets. People are looking for side hustle jobs to top up their income and slowly get back into the market to overcome the current problem. Inflation is also expected to move back like it was before. As president Neel Kashkari said, people will be back in the market as it was before.
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n April 2022, a federal reserve survey revealed that customers expect the best in all possible ways about inflation. However, customers are still expecting to spend more this year compared to the past years. Compared to June 2013, there is a decrease of 0.3 percent from the March record, which was quite high. Inflation fell to a median of 6.3% expectation over the next year, and now it is at a 0.3 percentage point.
POWER REAL ESTATE
Housing supply is finally improving as high prices and rising rates weigh on sale
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or the past two years, there has been an imbalance between the supply and demand sides, mainly due to the Covid-19 pandemic. During the first pandemic wave, many people lost their employment which effectively meant that their affordability was deeply compromised. During this time, many people started counting on the government to support their living, and many others relied on their long-term savings. In such conditions, home buying ability was largely affected!
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And it makes sense! During the pandemic years, many homebuyers were priced out of the market. Prices rose so fast that many low-tomoderate income people could hardly keep up. The rates are rising, which means many people are getting out of the market. Sellers are scared and are releasing their homes for sale to capture the high prices before the market normalizes. We all knew that it was just a matter of time for the market to stabilize; after all, when there is a high swing, it is likely that there will be a corrective measure. While this corrective measure might not be significant enough to favor many buyers, it at least gives the market a breathing space.
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April data suggests a positive turn of events is on the horizon for weary buyers: If the trends we’re seeing now hold true, we could potentially see year-overyear inventory growth within the next few weeks, said Danielle Hale, chief economist for Realtor.com.
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For many years, the housing supply had been low due to the high mortgage rate, high property prices, and other factors such as low construction rate and government policies, among others. According to a response to Realtor.com data, the supply of homes has finally started to improve as the monthto-month mortgage cost on a $400,000 residence, with a 20% down cost, which is now greater than it was in March 2020, according to a response to Realtor. com data.
Entering 2022, the economic condition of most people began improving, especially in the months immediately after the vaccination had been rolled out. During this time, many people began resuming work, and to date, there seems to be a state of normalcy. In fact, many areas are recording high employment stats, which means many people who were locked out of the market during the pandemic years will be making a comeback.
High mortgages in the market have decreased homeownership demand, and house supply which was an issue in the past years, has now started to improve. Housing demand in the market is influenced by the size, quality of neighborhood amenities, location, and distance from the city center. People willing to buy a home and afford it at a high price have occupied the classic city model housing. Large house loan prices with higher housing rates have side-lined with the level of competition, and this has improved house supply . During the pandemic years, one trend was prevalent. People preferred less expensive properties, and since many were already working remotely, they migrated to other areas where houses were cheaper. Now that the pandemic is manageable, many people have resumed their old position or found new positions, which means they can confidently afford the new cheaper home. In areas where they migrated, the housing situation is getting better with supply rising, but this is not sustainable. Sustainable supply is where we have new construction happening and adding more properties to the market.
When house demand is high, property prices also increase, and home sellers will try to improve on supply to grasp the high profit made from home selling. In April, the stock was 12% lessen than in the same month last year. In the seven final days in April, exhibits stock was down only about 3% from 12 months in the past. This is the right time for these buyers who wish to get home and market it in the future with unprecedented price growth. This is because the high supply that is present now will not be sustained for long due to the high demand that is competing with the improving supply. When one buys a house now and markets it in a few months to come, the house price will rise, thus making more profit. In April this year, house loans rose to their highest level since June 2009, and today’s mortgage rate is 5.33%, while the average rate for 15 years fixed rate is 4.406%, forcing home buyers to leave the market. As a result, the home supply is improved but will not be sustained for a long period as investors look for alternative means to get back to the market.
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We’re Starting Over, Inc. - a 501(c)(3) organization dedicated to supporting and uplifting people experiencing the effects of mass incarceration, systemic racism, housing insecurity, substance addiction, and mental health issues. We believe that people impacted by these issues are the ones closest to the solutions, which is why we are a Black-led and criminal justice-impacted organization engaged in this work. From experience, we’ve learned that housing is critical, but alone, it is not enough to support those exiting prisons or the streets. We not only provide transitional housing, but also include holistic services such as peer support, case management, employment, wellness, and reentry services. We also work to address the root causes of our houseguests’ difficult situations, leading grassroots organizing and policy initiatives in the Inland Empire region and statewide. Established in 2009, we’ve served over 1,400 men, women, and families in Riverside and Los Angeles Counties through the reentry and transition process. We believe that the past does not define our future. We’re invested in creating safe and equitable opportunities for all members of our community, and especially those with past convictions. Housing opportunities are crucial for our community members and directly affect their ability to thrive. Starting Over, Inc. is committed to reducing and eliminating the many barriers to life after incarceration. We have a deep commitment to identifying and implementing evidence-based approaches to strong communities and families. We seek to creating program/project solutions where the need exists in our community. We do lots of things at Starting Over, Inc. - but our primary goal is to address the immediate effects and root causes of incarceration, be it through housing, employment, legislation, or community organizing. To get involved with our initiatives, access our services, or support our work through donations, you can reach us at (951) 898-0862 or office@startingoverinc.org.
6355 Riverside Ave Suite 100, Riverside, CA 92506
We currently operate eight homes in LA and Riverside Counties open to men, women, and children, with options for sober living or harm-reduction housing. All of our services are available to our houseguests, many of whom have been unable to obtain housing after being released due to their conviction histories.
Our Case Management specialists provide support to our guests with obtaining necessary documents/identification and accessing insurance, education, healthcare, clothing, food, & more.
Our houseguests are not alone - our support specialists, having experienced incarceration, addiction, and homelessness themselves - understand our guests' needs and the barriers they face. We’re here to meet our guests wherever they are in their journeys and to support them moving forward through empowerment, support with recovery, referrals, and mentorship.
Mass incarceration affects not just individuals, but families - many of our community members and guests experience family separation at the hands of the child welfare system. The FREE Project is system-impacted led and organizes parents and family members in a non-judgemental space, advising on best practices and dependency court procedures. We recently sponsored and passed a statewide bill that eliminates major barriers to child placement and allows family members with criminal convictions unrelated to caring for children to be considered as placement options allowing for suitable family members with criminal convictions to step up in times of crisis.
Through our Path to SEED program, we connect guests and community members with employment opportunities and provide training & support regarding obtaining and retaining employment, often a major hurdle for formerly incarcerated individuals.
Our free clinics provide relief for expungements, wills/trusts, immigration, and more with the support of local legal organizations.
In the past year, we’ve co-sponsored and/or supported nearly a dozen statewide bills to reduce the scale of mass incarceration and its collateral consequences. We’ve also worked locally to influence Riverside County to reduce criminal history look-back periods from 7 years to 3 years in 2017 and to enable youth coming out of probation to be able to stay with their family members in subsidized housing.
Our Participatory Defense organizing model (based on Silicon Valley De-Bug) empowers family and community members in the courtroom to positively impact their loved one’s outcome and to bring them home. As fiscal sponsor and start-up organization of Riverside All of Us or None (a chapter of a national initiative of formerly incarcerated people, family members, and allies advocating for the rights of the currently and formerly incarcerated people) we ensure that system impacted leadership remains at the center of the fight to keep our community together and address the social problems that incarceration purports to solve. Our community outreach team also disseminates voter registration and public health information regarding COVID-19, and we organize food and clothing relief for community members in need.
POWER TECHNOLOGY
Technology And Its Impact In
Real Estate Business Technology is a force that we can no longer deny and its impact on virtually anything is tremendous. It is shaping how businesses operate and even the rigid businesses are forced to adopt technology (either in part or in full) in order to match the competitiveness of the 21st business world. The real estate industry is no exception.
Basically, it continues to be one of the major catalysts for
Over the years, we have seen major technological advancements happening in the industry, especially with regard to how information is received and processed. The
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internet has also changed the landscape such that the way consumers get and react to information is so much different than a decade ago. But what are the specific areas that have been positively impacted by technology?
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change in not only the real estate industry but so many other industries in the market today.
hile the industry has been said to be fairly rigid and slow to adopt technology, we can see mega changes happening, revolutionizing how realtors and other stakeholders operate.
WORKPLACE DYNAMICS If you look at the current workplace organization, you will realize a lot of change. Technology has made it possible to telecommunicate, and work from virtual offices, and not only that, it has made it possible for the interconnection of businesses all over the globe. There has been an increase in flexibility of the work schedules and this has been made possible by the fact that people can now do more work at home or even travel. Another key factor attributed to dynamic technological advancement in the workplace is remote reporting relationships, managers and the employees can easily communicate from different cities and even countries. Look around! You will notice the difference there is in this market. The traditional way of handling things in the real estate industry has evolved into something complex. Let’s look into some changing elements in this industry.
THE RISE IN SMART CITIES It is estimated that about 68% of humankind will be living in cities by 2050 and this is already happening. This, therefore, means that 2.5 billion more people will be living in cities by 2050. As a result, the need for smart solutions such as the incorporation of the Internet of Things and the use of ICT is needed to strike the balance between human quality of life and the preservation of the natural environment. This has given a rise to Smart Cities. One study by PricewaterhouseCoopers (PwC), shows that the number of interconnected devices in the industry in 2015 was about 10 billion and is expected to grow exponentially. This is what is known as the Internet of Things (IoT). In most cases, the key element or the link between technological advances and real estate investment performance is PRODUCTIVITY. IoT helps very much in this area since it upgrades efficiency in diverse numerous ways. First deploying the sensors in the different cities will not only help in saving time but also money. This will make it possible to target the capacity use of the transportation system, the lighting, and the energy demand also, the sensors will help determine the parking availability and even the necessary potholes repairs to be made. JUNE 2022 | 19
THE USE OF AUGMENTED REALITY TO IMPROVE QUALITY OF LIFE
surely improve the way the industry players will be conducting site visits and market properties.
What is the link between Augmented Reality and improved quality of life?
TOURS- GUIDED BY THE BEACON TECHNOLOGY A recent trend and the kind in everybody’s mouth is the beacon technology. They allow for the background positioning and the detection which will in turn give the power to a phone which in reality and in truth makes it very “smart”
Before answering this question, what is augmented reality? In simple terms, think of augmented reality or AR as the enhanced version of the real physical world achieved through technology or the use of digital visual elements. The main goal of AR is to highlight some specific features of the physical world, increase the understanding of these different features, and derive smart and accessible insights that can be applied to real-world applications. Real estate companies have started to use Augmented Reality to level up their virtual tours in the market. The benefit of this technology is that it projects a digital image, for example, it gives the specifics of the interior of a house in the physical world. What makes this technology even better is its capability of modification for the day or night view in order to produce interior and exterior simulations.
ARCHITECTURE- ENERGY EFFICIENT In recent years, there has been a campaign for eco-friendly homes and energy-saving devices. In the overpopulated areas, developers are responding positively to the calls for energy efficiency. The US department of energy has developed the Home Energy Score, basically, this is a national rating system that reflects the energy efficiency of a home. In most cases, the agency will provide
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According to PwC, the consumer or the tenant can customize the experience by the visual ‘what if’ alterations. It is a powerful marketing tool with some definite enhancements. This technology will
They are used in the real estate industry in the sales to prospects signs. They are installed in the “For Sale” signs to help the agents detect a prospective buyer. This technology makes it possible for the buyer to get all the information he needs about the property through a particular listing app. In the same manner, the beacon can also give the buyers a guided tour to and through the property.
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recommendations on how one could achieve a high and efficient score and in return save money. The architecture nowadays is developed with the view of achieving a high energy efficient score and thus uses advanced house framing, cool roofs, and passive solar home designs.
DEVELOPMENT OF GREEN SPACES AMONG THE URBAN SPACES In reality, living in the region of green areas promotes healthy living. We all know the environment in most urban regions. The parks and the open spaces offer opportunities for physical activity, stress management, and most importantly social interactions. Real estate developers in conjunction with the local governments are realizing the need for green spaces and thus the more reason to incorporate these into the urban development planning. To further this step, the real estate developers are infusing landscaped areas and indoor gardens in newer projects. MARKET LISTING WITH THE HELP OF THE DRONES According to most tech experts, most real estate agents are using Unmanned Aerial Vehicles (UAVs) or drones to provide potential buyers with a comprehensive overview of the ongoing projects. This technology is providing a very special opportunity for most buyers to view the homes, the social amenities, and the surrounding areas. Taking advantage of this opportunity, most drone manufacturing companies are manufacturing drones with high-definition cameras and also with the ability to be controlled by a smartphone. Therefore, this presents the consumer with a very unique opportunity of seeing all the features of the home before making the decision to buy it. Drone photography is extravagant and it holds very real appeal to sellers of industrial properties, large tracts of land, and even large estates. Compared to all other years that have passed, the real estate technology outlook for 2022 is more vibrant. It doesn’t matter which part of the globe you are in, whether in the US or Europe or even in Asia buyers are really willing to purchase. Technology will be in full support of the growth of this industry. Internet of Things will continue to ply its mega role in powering the cities and projects. Therefore, let us hope for more raptures in technology and more improvements in the industry. JUNE 2022 | 21
A snapshot of the Texas housing market By Sharon Bartlett
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he Texas housing market is continuously evolving and growing. We can prove this by the sheer intensity of multiple offers and the incredibly low volume we are experiencing. Recently, research data from various sources was compiled by the Texas Association of Realtors to provide the market with a clear picture of how the housing market is performing. The research shows that in 2016 the homebuyers were strongly diversified; in case you were wondering. Nearly 30% of Texas homebuyers purchased their first homes in the last year. Also, the research showed that twice as many single women purchased their houses than single men in Texas. From the high international demand for Texas real estate, a boost in the economy was about $10 billion. The percentage
of the international buyers from Asia was as big as in Latin America. In 2016, the research stated that one in five international homebuyers from India bought a house in Texas. The kind of homes that homebuyers are looking for is also changing. Baby boomers and millennials in the urban are seeking alternatives that are low-maintenance to single-family homes. According to the 2016 Texas condominium midyear sales report, Texas obtained double-digit growth in condo sales volume and prices in four of Texas’s five major metropolitan areas. Texas homebuyers continuously benefit from home improvement efforts and remodeling. According to Texas remodel valuation report, projects that improve a home’s sustainability, JUNE 2022 | 23
curb attractiveness, and increase energy efficiency frequently yield higher recovery costs than projects cost.
HOUSING REPORTS In February, the US housing market rally exceeded expectations. However, according to the wall street journal, economists expected the numbers to drop 2.2% in March.
Throughout 2016, home sales and prices continued to rise due to an increase in population growth and a robust housing demand across Texas state. Even though the job growth was slow and there was an ongoing economic crisis in the energy industry, 2016 surpassed 2015 with the biggest annual sales in the history of Texas.
According to the NBC news report, house prices have risen by about 15 % and even by 30% in some cities in the past year. There has been a shortage of available housing even before the pandemic started two years ago.
OVERALL, THE NORTH TEXAS MARKET IN 2016 ACHIEVED NEW MILESTONES. 1. 101,529 homes were sold, breaking the previous record of 95,509 set ten years ago. This year’s outcome is 8% better than last year’s. 2. The total monetary volume of sales is $28,050,996,211, a 13 percent increase over 2015 and a new high. 3. The median sales price for residences was $225,000, up 10% from 2015 and a new high. 4. Home prices averaged $276,286 in 2016, a 7% rise over 2015 and a new high. 5. In 2016, the average number of days residences were on the market was 42. 6. In 2016, there were 18,355 active house listings on the market, down 1% from 2015. 7. The average price per square foot is $119, up 7% yearly.
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Acquiring homeownership does not come cheap that’s why experts recommend that you prepare with this knowledge. NORTH TEXAS HOUSING PRICES In March 2022, there was a 22% increase in the median home price which was caused by the following factors: coronavirus pandemic, inflation, and the increasing mortgage rates. Ryan Price, the chief economist for Virginia realtors, told NBC News that, “We expected rates to rise, but they were moving a little faster than many people had predicted.” You will find that a huge generation of urban millennial homebuyers is entering the housing market at a less ideal time. Stacy Esser of Stacy Esser Group Realty told NBC News, “What I think is so important for everyone to realize is that this question is not coming from COVID.”
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“This isn’t because we had this offer or people were rushing out of cities, and they wanted suburbia; This is the demand because of our demographics. We have the largest prepared buyer pool demographically than we’ve ever had in US history,” Stacy added.
BUDGET PREPARATION The most recent data shows that properties in all North Texas counties sell 4% above the asking price. A DFW broker, Chandler Crouch, said in an interview with
NBC 5, “If you don’t have the money to at least replenish the amount of money you’re financing to buy a home, it’s hard.” In addition, since there is stiff competition in the market, it’s difficult for the buyers who don’t have cash on hand. Hence, if you want to beat other buyers in the market, you must do what’s necessary to win.
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Crouch explains, “As unfortunate as it may sound to see interest rates rising, I’m hopeful that this will allow the market to correct a bit as we are in extreme times right now, and it needs to balance a bit. I don’t think the madness we are in can last much longer.”
ADVICE FOR TEXAS HOMEBUYERS 1. You should hire a real estate agent because it would be tough to independently negotiate and sort out paperwork. 2. Homebuyers should also know what they’re looking for in a home, be ready to move swiftly, and be aware that an offer rejection is almost certain. 3. It’s critical to consider your specific objectives while remaining open-minded and positive.
So, what this means is that if you purchase a house now, your monthly mortgage payments will increase by more hundred dollars higher than they were a year ago. NORTH TEXAS LOW INVENTORY Moreover, the supply of affordable housing remains limited across the country, particularly in North Texas. The limited housing pits homebuyers against each other to acquire the best deal.
If the mortgage rates rise, new buyers will have to pay more money.
Texas real estate research center reported 2,418 houses for sale in Dallas-Fort Worth in March, which is down by 88% from 20,853 available two years ago.
The average 30-year mortgage rate has surpassed 5% following the CNBC report for the first time in a decade.
Price said, “ We have rising prices; we have purchasing power that is falling while rates are rising because there are so few homes available.”
IMPACT OF MORTGAGE PRICES
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The Blight of Homeownership
in Maryland:
Fighting the Residential Segregation in Maryland
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By Emerick Peace
THE BLIGHT OF HOMEOWNERSHIP The Incident of blight is an issue of concern in Maryland. It has led to increased crime and in extreme cases murder. Due to the increased blight cases, the city mayor Stephanie Rawlings Blake and Housing Commissioner Paul T Graziano attended a press meeting to detail the revocation of family dwelling licenses for the crime-infested apartments. Revocation of licenses means that irresponsible landlords will not be able to file and receive direct state housing from the department of housing in the U.S. Those people further claim that eradication will foster the welfare of the community but also increase good health and safety. Could these old houses be set aside for blacks? This is a question people ask themselves as the whites in the federal state take good apartments leaving
old apartments out to the African Americans as they are ethnically discriminated against. FIGHTING THE RESIDENTIAL SEGREGATION IN MARYLAND. Homeownership is an important factor in the health and well-being of individuals. More importantly, it makes owners more stable and avoids the hustle of relocating from one place to another. It also plays a vital role in accumulating wealth, which is crucial to individuals’ health. It is good to note that inequality in wealth has imposed a major public health issue and this must be addressed. In Maryland, homeownership is affected by racial segregation where minority communities carry JUNE 2022 | 27
Segregation is said to be in existence from as early as 1800bc. During this period the whites did not live together with other races and set out the suburbs for the blacks to dwell. This racism extended to schools and other public amenities. These suburbs were not the only exclusion blacks would suffer, the whites segregated the blacks in monetary and industrial development. White residents and developers worked to ensure that their neighborhood did not have any blacks. Occurrences of crime led to the eviction of the blacks from their neighborhoods. Not only were the blacks associated with crime, but it was also difficult for black advocates to reverse this because white homeowners would argue out with the restrictive covenants and exclusion through physical design. Segregation among the non-whites was dire and extended to the realtors by not selling or renting out apartments to them. This was up to the mid-19th century, whereby developers would advertise the property and proudly restrict blacks and other races from getting the property. The issue is also termed deed restriction. By 1918 social zoning among the black and the white was abolished. However, it did not mean that racial segregation was over. Segregation laws were replaced so that the whites and blacks did not interact at the time. Between 1920 and 1930 the number of houses increased to 6,000 homes per year, giving people an opportunity to flee from old houses to new apartments. Slowly the blacks and white started living together but at the same time faced criticism, such as publishing the white people’s journal on the plot to evacuate the blacks
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FIGHTING THE RESIDENTIAL SEGREGATION IN MARYLAND. The largest group of people affected are the Pacific Islander adults, and they have the lowest number of homeowners also there are researchers that claim Blacks are the most affected when it comes to homeownership. Wealth inequality in Maryland is due to the deep and complex structural racism. The federal state is advised to follow policy recommendations to reduce the minority ethnic gap in homeownership. The policies include; supporting the mortgage for lower-value homes; increasing the purchasing power of apartments among the low-income minority group families, which is possible by expanding financial subsidies, taking up less segregating credit scoring practices so as to give the blacks an equal chance of credit scoring and also adding diversity in the appraisal profession. Homeownership is possible if the people of Maryland adopt practices that are focused on ending segregationist policies. Such practices include educating people about home purchasing from start to finish. Adjustments related to federal tax policy is crucial because it uses tax credits rather than deduction. If this is put in place then there will be more tax benefits from purchasing a house. There are people who claim that expanding financial support for low-income homeowners and implementing major housing laws protecting racial and ethnic minorities are the better ways.
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all the load, and to be more specific the African Americans. Low-income and ethnic minorities are deemed to transition from owning homes and getting back to rental apartments.
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Homeownership in Florida: How does it compare with other states? By Adriana Montes
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illions of Americans aspire to own homes. More than nine in every ten American investors consider owning a home to be either an essential or important component of the American dream. Homeownership can also be one of the best and most practical ways to build wealth both through appreciation of equity and tax deductions. According to the latest census report in the U.S., Florida has the 23rd lowest homeownership rate among all the states. In Florida, the typical
home is worth an estimated $245,100 in line with the national median of $240,500.Homeowners in the state are less likely than average to be paying down a mortgage. An estimated 56.3% of owner-occupied housing units in the state have a standing mortgage, compared to 61.7% nationwide. In addition to that, homeownership rates in the state stand at 66.2% higher than the national average. But, it is worth noting that there are so many factors that affect the homeownership JUNE 2022 | 31
rates, and depending on the location the housing costs may vary significantly which ultimately affects the rate of homeownership for a state. The typical home in Florida is worth an estimated $232,000 slightly more than the national median of $229,800. Several cities in Florida including Spring Hill near Tampa, Lehigh Acres near Fort Myers, and Palm Bay in Brevard County are listed as some of the best cities to invest in real estate in 2022 according to Policy genius. Based on the most recent reports from Florida Realtors, the Florida housing market is still a smart investment in 2022 with a tight inventory keeping housing prices high in the state high. It’s true that Florida has one of the hottest real estate markets in the country and for good reason. The state is bordered by the Gulf of Mexico, the Atlantic ocean, Alabama, and Georgia. Florida is an international tourist destination with year-round sunshine and world-class theme parks. The economy is dynamic and diverse, with dozens of global business headquarters and a government that is both pro-business and prodevelopment. Florida has gained more than 2.7 million new residents since 2010 making it the 3rd most populous after California and Texas. Home to over 21.5 million people Florida’s population grew by 14.6% compared to one decade earlier. Over the few years, Florida is projected to gain 845 new residents per day. One of the many reasons that Florida is expected to keep growing so fast is from marketing the state as the ideal business location. The proactive business-friendly government in Florida is an expert at attracting new high-wage jobs for workers who can compete on a global scale. The GDP of Florida is more than $1.1 trillion and has grown by more than 48%over the 32 | JUNE 2022
past ten years. Job growth in Florida increased 5.4% between January and September 2021, compared to just 0.8% nationally. The unemployment rate in Florida is just 4.6% with the leisure and hospitality, information, professional, and business services sectors showing the fastest sign of growth. Florida gained 84,500total jobs in September 2021 alone and remains on a long winning streak of job creation as WTXL in Tallahassee reports. Job growth is spread evenly thought the state with all major metro areas adding new jobs in nearly all of the major employment sectors. Florida Tax watch expects the labor force in Florida to increase by 2.9% in 2022. Home sales and prices are rising, inventory is going down and the number of buyers paying in cash for single-family homes has increased by almost half. The median home value in Florida is $328,576 according to Zillow as of October 2021. Florida median home values have grown by 23.9% over the past year. Over the past five years, home values in Florida have increased by nearly 69%. Single-family home prices in Florida are up 17.7% as of October 2021 compared to the previous year based on the most recent report from Florida Realtors. The most recent index shows that home prices in Florida have increased by more than 156% since October of 2000. Over the last five years, the prices of a home in Florida have grown by nearly 66% while over the last month prices have increased by 1.8%. When compiling housing affordability data for Florida, researchers compare median housing prices to median family incomes and mortgage interest rates in the state.
Florida is ranked #31 in affordability meaning that Florida has one of the least affordable housing markets among all fifty states and it has no personal state-level income tax.
Arizona Real Estate Market
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By Yvonne McFadden
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or many years Arizona has been a destination for retirees and those people who love spending time in the great outdoors. It offers a moderate climate that provides opportunities for outdoor activities and a wide variety of dramatic landscapes. Right now, homes in the Arizona market are at price higher because the demand is high but this varies depending on the market, the city, county, neighborhood or town. Currently, the median sale price is $ 444,400 and homes are spending an average of 35 days on the market. The average home value is at $ 436,441 which is an increase of 2.32% month over month. There are about 6,774 homes currently listed on the market which means a 0.4 months of housing supply. This is so below the recommended 3 months worth of supply for a normal market. WWW.THEPINMAGAZINE.COM
Arizona has been one of the greatest markets for buyers and investors alike and it is likely that this trend will be sustained for the foreseeable future. The homeownership rate is increasing compared to the past two years when the pandemic was at its peak. The listing price is much high than the home value and population growth is increasing rapidly. However, the inventory rate is low. In just one year, the population in Arizona has grown to 7,276,316 from a population of 6.6 million. Population growth has been a result of most people migrating to the state to occupy affordable homes as compared to other areas. This has increased household demand which has over 900,000 renters household accounting for 36% of the total number of the house. As a result, home prices increased. In 2020, there were about 3,080 000 housing units in Arizona which was l
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increased to 30.9% between 2021 April and 2022 April. This is a great growth as compared to the 21% that was recorded in April 2020. And 8.48% which was between 2019- 2020 April as drawn from the Zillow home value index. This data is a clear indication that property value is increasing annually. In October 2021, the average home price was at $ 396, 235 which was a 31.5 % increase, and the rent price change is 27.6%. In January of this year, housing prices in the Arizona market have risen by 31% as compared to the 12.5% that was recorded in 2019. However, the house price increase rate may slow down in 2023 as forecasted by many experts. The current trend on home prices and real estate appreciation this year is likely to raise. Last year’s appreciation rate was 11.85% which is equal to an annual appreciation of 56.50%
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The pandemic has eased and most people have gone back to their jobs this year. This has significantly raised house demand, increasing the home price while the supply is seemingly dwindling. People have started going back to expensive homes and classic ones because they can now afford them. Children have also gone back to school as well as university students who are now renting homes in Arizona. The pandemic has made people create new opportunities trying to make a move and they are now back in the market.
an increment of 8.3% from 2010. This year, the household has increased by 6.7%. Property value in the Arizona market has 36 | JUNE 2022
Moving forward, people will have a better chance to find a home in Arizona although they will face high competitive sellers market. This is because the first-time buyers’ demand outmatches the inventory available. The mortgage rate is rising as well as the listing price and people need to raise their income by looking for an extra income to overcome unaffordability challenges. Home sellers are expecting to enter the market as buyer competition remains high and home sales are expected to grow more at a better sustainable pace as compared to last year.
Know Your City Better:
Payson AZ Real Estate Market By Tamra Lee Ulmer
new home construction.
Getting a perfect home in Payson is dependent on preference and choice also schools and other public amenities. It is also worth considering the homes on the market through realtor.com. As confirmed in April 2022 prices per square foot of meridian home listing was at $304k and those of homes sold price was at $483. It indicates that prices were lower by 0.94% of the said MARKET TREND IN PAYSON price in April 2022. Reason fostering this tread Currently there are 398 home to be sold in Payson. Among this 34 of them were newly listed is because there were more people willing to buy homes in Payson than there were homes within the last several weeks. There are also 14 condos to be sold out and a foreclosure too. More available in the market that year. All the same there are researchers that object this by saying to that there are 7 rental homes to be issued to tenants and the price ranges from $950 to $7.5 k that Payson home value is at 36.7 % higher over the pat one year. monthly. Potential clients are advised to look out for open houses, price cut, fore closures, recently sold out houses, new home communities and According to Payson housing market JUNE 2022 | 39
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GEOGRAPHICAL DATA. Payson is located in Arizona, USA and has houses ranging from $8.5k to $5.6M. It has 23 zip codes, Sun rise desert Vistas has home [rice listing of $1.5M and is thus the most expensive zip codes whereas 86333 has a home price listing of $350 k making it the most affordable area in Payson.
overview prices of homes is $2400,000 and is 16.4%compared to January 2021.He states that homes stay in the market for 69 days which is 13 days more as compared to February 2021.In order to get a home in Payson potential clients are urged to find top agent who are able to sell homes faster than their competitors and those who are able to help you get your dream home faster. To better maneuver in the current market of Payson client either buying or selling are advised to understand the local estate trend. Premises in Payson stay in the market for approximately 53 days. This trend in the market for meridian days has skyrocketed since last month and a little bit down since last year. SCHOOLS LOCATED IN PAYSON. Payson has 9 public schools with a good reputation and other great schools. There is also a possibility of finding one private and a charter school. Among the best public schools in Payson are Julia Randall Elementary school and Payson Elementary school. Verification of enrollment is by contacting the school directly or the district which the school is located. More information will
be provided by the National Center for Education Statistics. For the great schools several factors are considered to rate such schools such as test performance, college readiness and equity data. AMENITIES IN PAYSON AZ Payson AZ is neighbored by vast social amenities. It has various grocery stores such as Bashas’ and Safe way among others. Possibility of finding Cafes on the street of Arizona is high. It is the home of Bosa donuts, Sweet country cream, Starbucks, Dutch Bros coffee, Dunkin and Mc Donald’s among other coffee shops. It also has various restaurants such as Duza’s kitchen, Rim country and wood fired pizza, The pinon café, Pizza factory, Tonto Rim Bar and Grill among others. Gas Station in Payson is numerous including: Maverick, Northern Energy, Giant, Circle K, One stop gas and grocery among many others. The city also host pharmacies and some examples include: Safe way Pharmacy and Payson Apothecary pharmacy. Living in Payson is therefore a worth considering choice as almost all social amenities are located in every street.
LOCAL INSIGHTS ABOUT PAYSON, AZ POPULAR WOOD HILL Woodhill is well-maintained and polular. Woodhill was developed in the late 1990 and is fortunate to be among the few with sidewalks. The area has pine trees and some houses have beautiful mountain views giving the area good natural ambiance.
EFFECT OF CLIMATE ON HOUSING IN PAYSON AZ. Natural hazards such as fire, storms, drought, floods and heat risks have chances of affecting homes in Payson. There is a likelihood of flooding in Payson that will affect averagely 1226 homes which is 12% already at risk of flooding. The flooding rate of Payson is increasing slower than the Natural average. In 2022 alone flood caused damage on property worth around $61 dollars. To guard against loss of property at least 1% of the people are encouraged to have flood insurance of which premiums go for about $225 dollars to $1143 per month. 40 | JUNE 2022
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PAYSON OUTDOOR ADVENTURES. Payson is a good deal for the outdoor man. In the small town there can be activities such as hunting, fishing and hiking among many other possibilities. The town is home to about 15500 and has an elevation of about 5000. Payson has good weather throughout the whole year and is home to the great western culture.
Centennial Colorado Expanding homeownership opportunities to the minority in the state that has the 11th lowest homeownership rate By Walter Huff
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entennial is one of the best places to live in Denver.
9 out of 10 respondents rate the overall quality of life as good and excellent in research conducted in 2016 by the National Research Center. People living in Centennial experience a dense suburban feel, and most residents own their homes. Most people are attracted to many restaurants, public schools, parks, and coffee shops in Centennial. In 2021, the homeownership rate was 64.9%
by the second quarter, according to the U.S. Census Bureau. This was a decline from the 71.6% homeownership rate in 2015. Centennial is among the bottom-ranked in homeownership in the United States. But this is an isolated city problem, but generally, Colorado also has the 11th lowest homeownership rate in the country. Two thousand twenty home listings dropped by 1.8% in Centennial compared to 2019, where there was an increase of 17.7% in home listings. The median home price in April 2022 JUNE 2022 | 43
was $625k, which was an increase year over year. Because Centennial is a sellers’ market, home prices will continue going up, which explains the 17.7 percent increase. Population growth in Colorado is growing steadily, which means that demand will keep rising. In terms of ethnic composition, the white population in Colorado is 84.18%, the black population is 4.07%, and the Asian population is 3.03%. Hispanic are 18.7%, while Alaska Natives alone, 1.1% and 0.2% are Native Hawaiian.
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To expand homeownership for the minorities in Centennial Colorado, the president set a goal to increase homeownership for the minority by 5.5 million families. To achieve this homeownership challenge by the minority, the president joined with several companies and organizations committed to increasing homeownership for the minority groups. He also signed the American down payment act for $ 200 million per year, and it has helped about 40,000 families with their down payment and closing cost. In addition, the president proposed a $2.7 billion USDA loan guarantee to support homeownership among the minority groups. To low-income borrowers who cannot secure a mortgage via a convectional lender are supported by these programs from the state and federal government. As a result, more homebuyers can buy homes in Centennial, and homeownership is at a high rate. Centennial homeownership is increasing at a high rate because of the improved financial status of households associated with higher income and an improved economy. Improvement of the employment rate has increased homeownership because people can afford to buy a home to live in centile. Property values are also expected to rise. People in the construction are expected to put an extra effort into improving house supply in the future. 44 | JUNE 2022
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Snapshot of the Ohio Real Estate Market
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By Heith Mohler
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he Ohio real estate market was robust in 2021 and it is highly likely that this trend will continue to gain pace as we head into Q2, 2022. The market was largely characterized by a strong buyer demand and shortages of inventory almost in every large metro area in the state. There were about 36,489 homes sold in the Central Ohio housing market according to a report published by the Columbus Realtors. This year, many buyers are looking to reprieve from the states heated market. In fact, one of Ohio’s metro has been ranked https://www.noradarealestate.com/blog/ columbus-ohio-real-estate-market/ https://www.ohiorealtors.org/home-sales-newsrelease/ In terms of racial diversity, 82% of the Ohioans are white, closely followed by people of African American descent who make up about 12% of the total population. 3% of the population are
Hispanic, 2% are multiracial, and 1% are Asians. As of early 2016, the US census reported that the median household income for the Ohioans was $48,308 and approximately 15% of the residents in the county are living below the poverty threshold. Notably, Ohio is the home to at least 140 institutions of higher learning. These include the nationally ranked schools like the Ohio State, Case Western Reserve, Kenyon College, and Oberlin College. In terms of education, people in Ohio are relatively well educated with more than a quarter of the population having a Bachelor’s degree. Over 88% of the residents in Ohio are high school graduates. OHIO REAL ESTATE MARKET Like almost all parts of the country, the demand for new housing units continues to outpace the supply. This has put upward pressure on prices. According to the Columbus Realtors, the JUNE 2022 | 47
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total sales that were closed in 2019 in Central Ohio rose about 2% reaching a mark, 31,520. Additionally, the average sales price also rose 6%, reaching $227,658. According to Zillow, in 2020, the median home value for homes in the state of Ohio is $153,593. This shows that over the past year, home values have gone up 5.3% and Zillow predicts that the prices will fall -1.4% within the next year. Looking at the Ohio real estate market, we have to spotlight the Columbus, Cleveland, and Cincinnati housing markets. Columbus is the state’s capital and has come to be largely known for its rich historic neighbourhoods. These include the Victorian village, among others. Columbus median home value is $174,109. Data shows that the home values in Columbus have appreciated 8.4% over the past year, and they are predicted to fall -0.6% within the next year. 48 | JUNE 2022
Cleveland, located in northeastern Ohio, is another real estate market significant to the state of Ohio. Located on the shores of Lake Erie, the city offers a historical experience that you never want to miss. In total, the city has about 176 neighbourhoods, 25 historic districts, and more than 250 landmarks. The city’s median home value is $68,757. It is important to note that Cleveland is a black majority city with 52% of the population composed of African Americans. Further away in the hills of the Ohio River Valley in the Southwestern corner of the state in Cincinnati. Neighbourhoods here range from tree-lined streets with some of the nation’s inexpensive homes in the hills overlooking the city. The median home values in Cincinnati is 165,613. The market is very hot, characterizing a seller’s market. Over the past year, home values in Cincinnati have gone up 4.9%, and Zillow predicts that they will fall -1.3% within the next year.
Saving for your first home By Adrian Bates
E
verybody longs for a place that he can call his own and if not now, then somewhere in the future. You are young, so full of vitality and all that keeps recurring in your head is saving for your dream house. But the problem is, how do you save? Millennials are encouraged to save for their dream houses in the future and the many changes that are witnessed now can help in paving the way for the future. For most, having the burden of taking care of their student loans, and saving for a future purchase seems like a huge financial challenge.
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Getting into the property market requires more than your strength financially but also your willingness. There are several tools, services as well as grants that are suitably designed to make it easier for you to save for your future dream house. START YOUR SAVING NOW You must get started now for a better dream house in the future. However, before you can even begin, you should make sure that your source of finance is to start your savings plan. This will go a long way in helping you make your initial deposit. A homeownership path is not an easy path and somewhere along the road, you will be tempted to quit but with a savings account right now,
everything will streamline itself. On the surface, the task may seem daunting, especially if you know the source of your fund is a little tight. “Buying a home is one of the largest purchases you are ever going to make, so you need to make sure you are prepared”-Rachel Cruze, Financial Expert. GUARD YOUR SAVINGS ACCOUNT Saving can be a tough call and therefore, depending on your circumstances and ability, you need to shelter your savings plan using what you can easily achieve. Most financial experts will agree that as you are starting to save for your future home, go for the optimum standards where you will neither strain funding the account nor give the account an insufficient amount. “Without taking the proper steps, a home can quickly turn from a blessing into a curse.”Rachel Cruz When saving, go for a plan that you will be comfortable with. As a matter of fact, you should keep padding your savings account regularly. According to the National Association of Realtors, 61% of most homebuyers are using their saving to make a down payment for their dream house. Therefore, it is never a bad thing to always make sure that your account is insufficient. That is what it means to guard your savings account. JUNE 2022 | 51
WHY START SAVING NOW? Why can’t it be after employment? Or some other time in the future? Well, time is changing so rapidly and people have come to a realization of having a place they call their own. The population is growing at a rapid rate and therefore, having your own space is important. A stockpile of money takes time and time in the future is an asset that you may not have. Do not be fooled that if you consider saving in the future, you will have your stockpile overnight. That normally happens in an ideal world. “Obviously, saving money takes time, so it’s never too early to start.”- Brian Koss The problem with most people is that they have the opportunity to start saving now but they want to wait until there is no more time.
“If you are young and thinking about buying a home someday, don’t wait to save-start now.”Brian Koss, Mortgage Network. IN ADDITION TO YOUR SAVINGS… Most people will want to save money and then use the fund as their initial down payment. This according to most financial experts is a mistake. When saving to purchase a home in the future, most people will only concentrate on the down payment forgetting that there is something extra they ought to do. According to Rachel Cruz, a person saving for his or her future home should also consider saving an addition of three to six months for emergency funding. This will not only help you cover any additional expenses- “in doing so, you are building a solid foundation for your finances,”
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“Conventional wisdom holds that individuals need to save six to nine months’ worth of living expenses in an emergency fund. This is in addition to saving specifically for your home,”Kevin Gallegos, Freedom Financial Network. Extended savings for young savers will help them to cover the savings fund in case something goes wrong with the purchase they make. More often than not, most people especially the young when getting into a new home they’ve purchased will enter poor because they only considered saving only for the down payment. Saving process Finally, you are ready to get things started and you are excited to save for your dream house. The saving process is simpler. First, you have to prepare a budget and stick to the budget. A mistake most Millennials do is spending on nonessential items and impulse buying. This kind of spending will only limit your dream of owning a house.
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These are the people who you will find still stuck on rentals while their age mates have managed to settle down in their own homes.
YOUR CREDIT SCORE IS INTEGRAL TO YOUR SAVING It is important that Millennials have a clue about their credit score status. A credit score is a number that has a great impact on determining your future purchasing power. Millennials who want to save for their homeownership should be concerned to know what their credit score situation is. Most of the lender [mortgage] credit card companies and also the employers will be concerned with your credit profile.
“ “The biggest obstacle to saving money is changing your habits,” “Sometimes sticking to a major goal is easier when you include family, friends and workmates in the challenge, because they can hold you accountable. Another tool is to keep pictures of your dream home in your wallet, on the fridge and next to your computer, so that you are reminded of your goal any time you’re about to spend money elsewhere.”- Brian Koss One way to be committed to your budget plan is to ensure that once all the non-discretionary expenses are paid, you should deposit what is left of them in the savings account. According to Susan Chong, most people should do and recommends starting the savings process by creating a timeline for the most ideal time to buy the house. She further argues that people should take the money saved specifically for the home and subtract 20%-the down payment, what is left of the money should be divided by the number of months you have until you want to buy, and hit the target each month.
“One in five Americans has errors on their credit report — errors that could cost you a higher interest rate on your credit cards, a home mortgage or even your car insurance. If you want to buy a home, get fiscally fit. Time will be your friend if you start early.”- Edward Carroll, senior loan officer.
Remember that you determine what comes your way and thus, take control of your credit by keeping the usage at around 35%of the available credit, also, more importantly, make sure that your bills are settled at the right time. THE BOTTOM LINE Be knowledgeable, buying a home is one of the most important things that will ever happen in your life and if you are not conscious about it or have little information about it, this may do you good damage, something that you may not like. Therefore, when planning to save for your first home, knowledge is key. Also as a smart millennial, you should record and make an analysis of your monthly expenditure to determine the chances of savings and where they occur best. That way, you will have no problem saving for your first home. JUNE 2022 | 53
Riverside Market Update
By Ruby Frazier
PHOTOS FROM 123RF
The Riverside market has continued to grow as years pass by due to the high demand for houses mainly driven by the high population. Since 2000, the population has increased by a whopping 30 percent due to decreased poverty, high employment rates, improved supply of houses, and suitable mortgage rates. Riverside market has also recorded a high homeownership rate of 67.1% higher than the national average as it has been a great place for most people to live in. Homeownership in the Riverside market is more affordable to most people than its neighbor - LA and Orange counties, which is also a pulling factor for most people to prefer it.
R
iverside real estate home price has increased by 18.4% for a single-family home which is now up to $564,000. This year, if you are to buy a new home, you have to work with the local team agent to buy offmarket listings, which will help widen your home search. Although the home price seems not to move down south of California, the prices are starting to ease, as revealed by the latest market report from CAR. In most southern California markets, home prices remained the same though they moved down within Los Angeles, which contradicts the past years where all counties in southern California have seen double-digit growth. TREAD IN RIVERSIDE MARKETS There is a 50 percent absorption rate as homes are spending an average of 28 days in the market. In post COVID world, the mortgage rate seems to be moving up, which has eased the demand for houses in the Riverside market. Due to high demand and low supply, home
price increases as sellers think this is the most suitable time to make more profit. The median house price of single-family houses that are in existence has moved up to $560000. Riverside counties have created a seller’s market where inventory has reduced because of the buyer’s demand. The single-family home is 5083, which is a drop of 5.4% in the past three months. Inventory has reduced from last year, but homes are still moving faster in the luxury home, with an average of $1003315price in Palm Springs that take 28 days in the market. COVID- 19 has increased the value of the house in the market, strict lender requirements, and raised house demand. This is as we expected the pandemic to disrupt the real estate market and causes house price to rise quickly to an irrational level. Although the inventory is still low, we do not expect the housing market in the riverside real estate to drop; however, the price is starting to ease, according to the late market report. JUNE 2022 | 55
COVER STORY
RAY CARLISLE
President and Co-Founder of the National Association of Real Estate Brokers, Investment Division (NID)
If you look back, on the last 20 years, studying the greatest influencers in the world, the likes of Gandhi, Christ, Martin Luther King, Mother Teresa, Bhutto, Margaret Thatcher, Rosa Parks, John Maxwell, and so many others, you realize that it was not just their actions that made them influential or great people. It was not because of the power they wielded, nor the money, position, or even authority. They were influential people because of who they were and the traits that they possessed.
In
the 21st century, we are also seeing an upshot- adding to the list of these great peoplepeople who are changing lives on so many fronts through their efforts, more so in the housing industry. This is actually one of the industries where the lines of equality and justice grow thinner and where if people are not careful they may become misguided and cross the boundaries of justice and do what’s right. The housing industry is very different from most other industries. It is extremely easy for a realtor to discriminate and deny equal opportunity to a client for whatever reason. And as such, our cover this month goes into detail about housing, his journey, and his accomplishments so far. 58 | JUNE 2022
MR. RAY CARLISLE AND HOW HE JOINED THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS Ray joined The National Association of Real Estate Brokers (NAREB) in 1968 inspired by the 1967 NAREB Convention in San Francisco where Dr. Martin Luther King Jr. was the keynote speaker. In his address to the large gathering of Black and Whites alike, Dr. King talked about Black Power and how much money it would take the community to restore urban areas. One thing was evident, resources were needed both in terms of money and intellectual capital. “He was addressing the term black power. What is black power, it’s economic power, that’s what he was telling us, and that registered with me.” Even before the convection, Ray was already so much involved in the real estate industry and even though not as a real estate agent. He comes from a family that has
been in real estate since 1939 and therefore naturally, he would follow in the footsteps of his parents and grandparents before him. But, the more he got involved with the inner dynamics of the real estate world, the more it dawned on him the many vices that were happening back then. Back then, discrimination used to happen so openly that it was considered a lifestyle. Ray first noticed the way black real estate professionals had to compare themselves to the white and he notes, “ it was foreign to me.” He could never come to terms with how a respected black real estate professional and a highly respected business person in their community were segregated or had to segregate and subordinate themselves to their white peers in a community. That confused him, he couldn’t understand it! And therefore he saw NAREB as the vehicle that could connect him to meet with other giants in the industry from all over the country. The platform helped him become more aware of the challenges that black real estate professionals faced- breaking these barriers to becoming multi-millionaires. “And so my study was how did they do it with all of these challenges, with all the discrimination the lack of access to credit. Women couldn’t buy a house without their husbands and it, therefore, relegated them to living in poverty even if they had good jobs, they’d be college-educated and so fair housing was something that we all really didn’t understand, it was a bridge to economic freedom and economic security.” “when I say freedom it’s the freedom for women to be able to purchase on their own.” NAREB became more like a church to Ray and he notes, “...and so homeownership is a community-building effort in my mind and it’s a natural connection to the church. The church is the strongest institution in our communities. We gather ourselves at the church and we learn to respect one another. We learn to hold one another accountable. it shouldn’t just be inside the church stone it should be something that used to be and needs to be returned back to the community and so NAREB was that church, that community, and that business all in one.” THE QUESTION OF LAND, PROPERTY OWNERSHIP, AND FAIRNESS EQUALITY AND FREEDOM African Americans from time immemorial always owned land and have always had a special connection to their land. According to Ray, that is where you build your own property, and take care 60 | JUNE 2022
of your family and that is where you protect your family therefore for the blacks do not own land they are separating themselves from their roots. They owned their lands, but it so happened that they were made slaves that farmed those lands and enriched the people that held them against their will. It is important to recognize that, without the African Americans, the Whites wouldn’t have been able to amass the wealth that they now have. Ray argues that a person owns the land because their spirit and soul are connected to the land. NAREB as an organization shared that same ideology and naturally, Ray found a second home and a church in NAREB. He proudly says that he knows every single NAREB President personally since the third president of the organization. Therefore, it is an organization that he is so proud of. Interestingly, The First Black Congressman from California Augustus Hawkins, who by the way helped establish the Congressional Black Caucus, when he was a state assemblyperson in 1935 no year passed without him producing a fair housing bill. Of Course, the bills never passed. This goes to show that the fight for equality in social matters did not start with NAREB or the 1968 Fair Housing Act. it was always there and dates back to African American ancestors. “We were promised the 40 acres in the mule but we didn’t get it…. But what do we do now?
Acquire, own, nurture the land and grow wealth with that land.!” It is important that everyone gets that the fight for land ownership, property rights, equality, freedom, and fairness has been an ongoing fight for African Americans. In a fight for freedom and for housing, it seems to me we can’t get anything done without federal intervention. We can’t just depend on people to do the right thing, especially toward African Americans and the fight continues. Out of Ray’s membership and involvement with the National Association of Real Estate Brokers he formed The NID - the hud counseling agency. THE FORMATION OF THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS, INVESTMENT DIVISION (NID HOUSING) The National Association of Real Estate Brokers, Investment Division (NID Housing) began with Tom Holmes- the NAREB President from 1985 to 87 when he created the five of the NAREB affiliate divisions and the idea behind it was fairly simple yet futuristic. He asked Ray to take over the NID affiliate which at the time according to Mr. Carlisle was confusing.
PHOTOS FROM WWW.NIDHOUSING.COM
Tom saw what an asset Carlisle would be to the NID given his experience which he drew from the fact that Mr. Carlisle had been an investor in real estate- his father before him was also an
investor and therefore he was the right man for this job. In addition, growing up at a time when discrimination was rampant and still managed to create a lot of wealth through real estate is also a contributing factor to why Tom chose Ray as the person for the job. Ray recounts, “and he (Tom) said realtors need to understand how you did that. I actually thought that all of them, because they had a real estate license, realized that that was a natural transition to own real estate yourself; how are you going to sell somebody’s property and you don’t own any yourself? are you going to preach wealth when you haven’t demonstrated that the possibilities of increasing wealth even in a discriminatory environment was a lucrative opportunity?.... and so I kind of answered my own question to him.” Tom Holmes would later go on to do some amazing partnerships with Fannie Mae and The Department of Housing and Urban Development which he asked Ray to manage. But, they would later discover that none of these government institutions wanted to work with NAREB as in the earlier days of its formation, NAREB had positioned itself as a politically active organization like most other black organizations and not as an economic development organization. “We were more advocates than we were real policy developers for civil rights. certainly, the policy development for self-sustaining and self-sufficient, selfgenerated economic growth and that’s the premise that NID was founded on and also on backgrounds like mine and many of my colleagues. Many of my peers like Tom Holmes and Evan Reeves and I could name a hundred others. Those are the people that I met there that’s why I knew what Tom was talking about was doable.”
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Ray soon realized that they faced one unique problem in actualizing the dream of NID and that was Black people, and it’s not just Black people but most people don’t really have a history or background of working together because of the mentality that, “if I put my expertise in here what am I going to get?” Also, there is this phenomenon that once what you’re working on is successful, everyone wants to be the boss. These were unique problems that needed to be addressed almost immediately. So, now the question was, “what can we create that can bring these disparate desires together and continue in that phrase of working together?” This thinking was what put NID in the right frame of mind because most of the time people complain that they need affirmative action and the need to be integrated to get opportunities. That’s a true thing. Not everyone has equal access and or opportunities and having one doesn’t necessarily mean having the other.
be successful in their respective communities, the only way they can grow their business is if there are other successful businesses and business people in that community, and that way they collaborate to nurture their businesses. An investment in your community means nurturing those new and old businesses. This is the idea behind NID- collective investment in that sense. “...the three most successful businesses that we don’t talk a lot about are our cash flow businesses - these are barbershops, beauty shops, churches, and funeral homes. Nobody really knows how much money they make so let us look at that and let us monetize them. The NID monetizes every community we know that that community has equity.”
“When I think about the opportunities we do have as blacks, we can do things just like they did in Tulsa and several other communities we have in our urban areas in Harlem, in San Francisco and Oakland, auburn street and Georgia you go all over the country we always have successful business districts. it’s not new but what we did have, we had a community that was forced to do business with each other because you couldn’t do business outside of that community.” It is true that humans fear what they do not understand and the concept of collective investment has always been foreign to most. This is one of the biggest challenges that Ray Faced. Ideally, when you talk about collective investment, many people think that they will give somebody else their money to manage it but in reality, collective investment means taking care of your business and that business complements another business in your community. According to Ray, when a person happens to 62 | JUNE 2022
If a community is faced with redlining or discriminatory policies, NID comes in and invests in that community by organizing and showing members of this community their equity and how to build and sustain it. Over the years, NAREB has been so instrumental in creating policies to format such discriminatory practices. For instance, the rewriting of the HUD 203K program. When this program was originally written in 89 to 91, it included stripped commercial properties. The Department of Housing and
PHOTOS FROM WWW.NIDHOUSING.COM
Urban Development which HUD cannot insure a commercial loan but people can borrow money to do the framework and the underground. The NID comes in, looks at the equity in the community, and advises the residents on how to make their communities and neighborhoods desirable places. “…your location is your equity, your equity is your money and your money is your power!” NID THEN, NOW, AND IN FUTURE NID Mission is simple, “The development and promotion of policies and programs that foster sustainable economic and social growth and well-being for Realtist members and the clients and communities they traditionally serve”. NID has and continues to successfully work with federal and state lawmakers and government agencies, major financial services
corporations, and national major trade and civil rights advocacy groups in the furtherance of its urban and rural areas’ social and economic development mission. NID was the longest-serving Technical Assistance Advisor to the FIDC Resolution Trust Affordable Housing Program (199196) and continuous advisor since its founding to HUD/FHA, the GSE, Office of Comptroller of the Currency, Treasury, Transportation, and Justice Departments, and key legislative committees on fair and affordable housing and community development issues. The NID Housing Counseling Agency (NID-HCA) is a separate and independent IRS 501-c-3 public benefit organization and is one of the largest and most respected HUD Approved National Housing Counseling Intermediary Organizations in the HUD program with an approved activity of Community Development. JUNE 2022 | 63
INTRODUCTION CAL-ALHFA (California Association of Local Housing Finance Agencies) was established in 1989 to represent local housing agencies and professionals in the California State Legislature and State housing programs. We also work on housing issues at the federal level. CAL-ALHFA is a non-profit organization with a broad-based membership including public and private agencies that develop, finance, and administer programs to create affordable housing in California. Our core membership is small and medium sized local agencies that have to follow state mandates, but often lack the personnel and financial resources to do so.
PURPOSE From the beginning, the founders of CAL-ALHFA felt that local government agencies interested in affordable housing matters needed better representation at the state level because their concerns were often not addressed in the development of single family and multifamily housing programs and policies. The purpose of CAL-ALHFA is to provide that representation, based on input from all our members, including our lenders, investors, developers, and consultants. It includes participation in the California State Legislature’s legislative process and participation in program and policy development in all the State’s affordable housing agencies.
ONGOING ACTIVITIES ▪
Legislative Advocacy. Sponsoring, supporting (or opposing), and tracking housing legislation including fair housing; bond financing; state program development and administration; relocation; land use law, including planning and zoning; housing element law; and other legislation which affects affordable housing development. Program Advocacy. Tracking program developments in CalHFA, HCD, the Tax Credit Program, and the Debt Limit Allocation Program. Assisting in the development of program policies and procedures.
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Education. Sponsoring webinars, conferences, symposia, and workshops to provide information on new developments in the field of affordable housing.
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Newsletters and Legislative Alerts. Preparing and distributing regular newsletters and as-needed legislative alerts to inform members of current activities.
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Individual Member Services. Providing advocacy and advice on district or agency matters as requested.
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Professional Networking. Providing a forum for industry activists to share ideas, information, and expertise with their colleagues.
RECENT ACTIVITIES Return to the Capitol – April 2022 For the first time since 2020, advocates can attend legislative hearings in person, and testify on bills of interest to the affordable housing community. We can now meet our colleagues face-to-face on an impromptu basis. have a lobby in which we can do our work as lobbyists.
In other words, we now
Middle Income Housing Webinar – November 2021 Bond Purchase of existing market rate multifamily housing and converting them to lower rent middle income (workforce) housing. Presentations included: Discussion of the pros and cons of this program Examples of successful conversions Potential legislation needed.* *AB1850 – Ward. Establishes minimum standard for JPA acquisitions and is currently moving through the legislature. CAL-ALHFA is a supporter of this bill, which was at least partially written on the recommendations that came from this webinar.
Single Family Symposium – October 2021 Discussions included: Increasing Minority Homeownership with a presentation by The Power Is Now Innovators in Down Payment Assistance Rural Broadband Expansion Closed Loop Pump Storage – Wildfire / PSPS Prevention
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CAL-ALHFA Annual Meeting – October 2021 Keynote Speaker – Senator Scott Weiner Discussions Included: State Programs Update Legislative Update
UPCOMING Density Bonus Webinar – May 18, 2022 Following a presentation by leading density bonus expert Jon Goetz, two cities, the City of Pasadena and the city of San Jose will describe how they developed their density bonus ordinances and how they administer them.
Single Family Symposium – October 24, 2022 In Person – Sacramento Holiday Inn Cosponsored by The Power Is Now, the Symposium will cover all aspects of minority home ownership programs, updates on Fair Housing activities, and presentations by state, regional and local homeownership programs.
CAL-ALHFA Annual Meeting – October 25, 2022 In Person – Sacramento Holiday Inn CAL-ALHFA’s Annual Meeting summarizes the major events of the year in Sacramento, and features key State legislators, Senior Staff from all major housing agencies, and a discussion of future legislative actions, presented by the Chief Consultants of the Senate and Assembly Housing Committees
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BROTHER BE WELL Wellness for Boys and Men of Color
ADDRESSING HEALTH EQUITY
Closing the mental health equity gap for boys and men of color.
BUILDING COMMUNITY
Brotherhood in a virtual healing space for scale and impact.
brotherbewell.com
ADVANCING INNOVATION
Culturally-appropriate multimedia resources and pathways to care.
PHOTO FROM 123RF
Looking to invest in Corona Housing Market?
Here are a few things you should know about this market By Jenny Gonzalez
G
etting yourself a home is one of the greatest and biggest financial moves in a person’s life. In 2021 the value of homes were recorded to be $100,000 higher compared to 2019 to 2020 in the U.S As most American search for larger economic friendly homes and remote work flexibility it means that most American are no longer bound to economic an location time zone. Before getting a house it is crucial to study the market of housing and most important having financial literacy about your own situation, bearing in mind the employment instabilities brought by Covid 19.
Covid 19 has led to many people shifting from high rental apartment to buying single family houses with a backyard. This is because many parents feel like they need to have a pool or a back yard especially those with children doing remote learning and themselves as parent working permanently from home. BEAR THIS IN MIND. Due to covid 19 pandemic realtors set out limited time for show of houses and property and at the same time keep up with the public health regulations. Prospective buyers are hence required to have an approval letter stating how much they are able to borrow in order to purchase a home. JUNE 2022 | 69
Currently the home tours are private and expedient which means that unlike initially where by people would meander around open houses with magnifying glass, research is done heavily online and show house time has been reduced to about 15 minutes or lesser. WHAT YOU NEED TO KNOW. The housing market is relatively stable. The prices of houses have remained more or less the same as they were even before the onset of Covid 19.Howerer according to Alison Cennname the prices of homes are expected to go higher from 13.6% to 16%. This is because demand will exceed supply and will be one of the factors leading to high prices. INTEREST RATES ARE LOW. Recently borrowing has become more manageable due to lower payments per month. The lower the interest rate the lower the amount of payment monthly. This interest plan has led to many first time home buyers ask about lock rates for better deals in the long term. The low interest serves as great incentives for the buyers but is important to have full details of your financial picture before making decisions based on interest rates alone. Issues such as certainties of your job even after the Covid 19 crisis and the amount of debt loan are among the factors that are supposed to be put in place with regard to interest rates. SUPPLY CHAIN ISSUES. Keeping an eye on supply chain will help track the housing market. Home prices could go down if supply exceeds home demand. This has not been the case for the longest time due to construction material shortages and delays. Home prices will go down if the construction of homes is made a smoother process.
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KNOW HOW MUCH HOME ONE CAN AFFORD. Among the most important factors to consider before buying a home is its cost. Most people are discouraged from buying what they cannot comfortably pay for. Prospective home owners should spend nothing more than 30% of monthly gross salary. It is note worth considering that most houses are more expensive than their price listing and potential buyers are supposed to have that in mind before bidding for homes. Buyers should know their spending limit and thus stick to that to avoid financial instabilities and the uncertainties of the crisis. GET READY FOR MULTIPLE CHECKS. As a potential home buyer and or real estate investor, you need to get prepared to a number of credit checks. Also following the economic crisis most lenders ask for a 20% down payment or even more money. More to those lenders need to keep track long term employment which will serve as evidence that the future income streams are unlikely to be interrupted by future crisis if there are any. WHAT DO PROSPECTIVE TENANT AND FUTURE OWNERS WANT IN THEIR HOMES. According to J.P Morgan “The right investment is always better than a quick investment. “Due to Covid 19 among the most crucial factor s in buying a home is office space. Most people prefer to work remotely and getting beck to office might take longer. This is because productivity is still high even from home. Potential buyer(s) therefore looks for a home where by they are able to separate their work life and family life in one space. It therefore beneficial to consider properties that have office spaces with a door that closes or multi-spaces that could serving as a nursery, large walk in closet or an office depending on the renovations. Buyer are encouraged to find houses that best suites them.
The Unfortunate Case of Homeownership in the Silicon Valley By Ian batra
Even Tech Workers Cannot Afford Homes In Silicon Valley
Living in San Francisco is becoming expensive by the day. Average paid workers such as teachers, firefighters, and service industry workers find it difficult to live in San Francisco. On the contrary Tech, workers are the most paid workers but also it is difficult for them to live in Silicon Valley. Reasons behind this problem are workers’ salaries and wages have remained constant for the longest time and on the other hand the prices of houses are increasing by the day. The California Association of Realtors shows that an average house in San Francisco is about 1.2 million dollars. Only about 12 percent of San Francisco residents were able to buy
median-priced homes by the end of 2017. In San Mateo County the number increased to 14 percent and 15 percent in Santa Clare County. The affordability rating was at 26 percent for single-family homes and 56 percent around the state in the same year. Tech workers still complain that the housing cost is too high and for that reason plan to leave the State. There are 13 major tech companies in San Francisco. Workers of the company claim that they are underpaid and want more money to enable them to afford houses in San Francisco. Among those complaining are eBay and cisco workers however Facebook and Google workers are struggling to live in San Francisco. The problem in housing has raised alerts in major tech companies like Facebook and JUNE 2022 | 73
PHOTOS FROM 123RF
LIVING IN SAN FRANCISCO IS EXORBITANTLY EXPENSIVE.
Google. Facebook Company at one time gave bonuses to their employees living near the company to relieve the housing struggles and save time when commuting. Other than that most companies provide a means of transport from Silicon Valley to San Francisco and other outskirt cities. In 2019 the Facebook CEO Mark Zuckerberg together with his wife did a charitable act of donating 500 billion dollars to reserve housing in San Francisco for its workers. It means for every 4.5 jobs created one house will be put up if the act is put in place. The building industry of the Bay area takes the act positively but however says that the market dynamics of houses will still face major problems as the money is not enough and suggest that the issue is solvable if more houses are put up. Large firms opt to work with cities to reserve premises so that their employees have a place to live. Housing shortage and homelessness in the city have been termed as a human rights violation because of the high subsequently high prices of housing. Research shows that there are those workers who sleep in their cars as they have no place to sleep. They take their shower at the office gym and eat in the office kitchen and that is their norm. This mostly happens with tech workers employed on a contract basis. Their salary is normally slashed to less than half of the permanent employee’s salary working in the same capacity. Developers
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are encouraged to seek approvals so as to add more houses in San
Francisco. Putting up houses is a positive thing and will help relieve the housing crisis but the move is critiqued by people already owning houses by them claiming that putting up more houses will bring the noise to Silicon Valley Suburbs and also increase the rate of social crime. Such people are against the development of houses. Advocates in the area on the other hand term that restricting the development of houses is a selfish act and at the same time benefitting themselves at the expense of the minority and also taking advantage of the lowincome employees. There is also another strain that is against zoning laws in San Francisco and other neighboring cities. The laws allowed the development of multimillion luxury homes that only benefitted the wealthy and left out others in the short term displacing houses that are rent-controlled or other cheaper housing. Previously Silicon Valley has been accused of activists who are pro-development and do not consider the locals during housing plans and development. It is important that measure to control housing is put in place and also affordable housing quotas are put up. The possibility of this move will only be if the zoning measures are readjusted and consider the locals allow more houses to be put up, particularly in areas close to places of work. The ideology of putting up more houses gains support from Tech companies such as Facebook and Google but The county Democratic Party representative opposes the initiative. The condition of housing in Silicon Valley and the outskirts is a problem that is going to remain for quite a long time and transition will include even the political will among other factors.
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Don’t Wait To Buy! Buy Now By Kamesha Keesee
A
s we get closer to the spring season, the market is shaping up to be what we hoped for for the last two years, but that doesn’t mean that buyers will have it easy! There is still an uphill battle but it shouldn’t feel anything like 2020 or 2021. Last year, we witnessed the home values skyrocket by nearly 20% according to data from the S&P Case-Shiller national index of home prices and while we do not expect the home prices to drop anytime soon (at least not this year), the increasing rate is expected to slow down. Most experts agree that home values this year might be increasing at roughly half the rate we saw during the peak of 2021. Buyers will still face crazy bidding wars. But they aren’t as intense as it was last year. This means sellers may not be having the upper hand for long, they may not be as selective when choosing between offers. For instance, in 2021, a trend I noticed in most parts of the
PHOTOS FROM 123RF
The 2022 real estate market is looking more like a normal market!
Corona Housing Market was that all-cash offers and conventional loan offer where appraisal contingencies were waived were often needed to win bids. The market right now presents the perfect opportunities to buy as prices are reducing quite dramatically. If you are planning to buy during this year’s homebuying season in Corona, this is the time! RISING MORTGAGE RATES If you are keen and really interested in buying this year, you must have noted that the rates are 1.5 times higher than they were around this time last year. There are so many factors that are pushing the interest rates higher and in addition, there is the issue of rising inflation. What all this information means is that spring 2022 will be characterized by higher rates which can chip away at your buying power. You cannot wait any longer, waiting will compromise your JUNE 2022 | 77
affordability chances. The mistake that I see many people doing in Corona is that they try to time the rate and when that doesn’t go their way, it’s too late!
One of the positive trends I see is that sellers are increasingly letting go of their homes. Inventory levels are increasing slowly but it will not be enough to quench the market.
From a historical perspective, the 4%+ rate is still favorable which means, rather than waiting to get into the market sometime in the future, you need to get in right now!
Since we expect that the rates will be rising, it is important that as a buyer you understand your finances. I see a lot of buyers making the mistake of getting too emotionally attached to a property that they are willing to overlook their upper buying limit, and this year that is a mistake you do not want to make. It will cost you a lot, especially after the fact that the mortgage rates are rising.
The Corona housing market will still be dominated by sellers going into the 2022 spring market. But it will be less competitive for buyers than the previous spring. We’ll still experience high demand levels but that does not in any way compare to the 2021’s spring season where supply was wildly out of balance with demand levels. Remember, the spring season is typically the busiest season in terms of real estate activities but what I foresee is a typical pre-pandemic season this year.
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If you going to get a loan, be careful not to take a loan amount that is more than you are comfortable with. Since sellers do not have the upper hand as they did before (they do, but not as much), as a seller, you may want to get ahead of the maintenance and upgrades before putting the property on the market. Remember, buyers, are now seeing more properties than they were last year.
PHOTOS FROM 123RF
CORONA MARKET OUTLOOK
Long Beach Housing Market By Kate Nash In the long beach market, home values were seasonally adjusted, including the home’s middle price tier. In the past years, home values in the long beach market have increased by 17.8%. Currently, the home value of properties is $855000. Historically, the Long Beach market is one of the best areas to invest in as properties appreciate at a modest rate especially post the housing crisis. In the past ten years, housing demand has increased by over 70%. According to Zillow, in the year 2019, the Long Beach real estate market saw a rise in demand by 2.5%. Because the demand has been increasing day by day, it remains the best market for investors, with relatively affordable house prices for buyers. For instance, in 2019, the median property price was $783,409, which is less expensive than San Francisco, Los Angeles, and San Diego.
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n 2020, home demand declined because of the huge impact of COVID-19, where buyers reduced in numbers. This was a result of unemployment for some people. In 2021, however, the housing demand in long beach real estate started to rise because most people were now returning to their work which meant that they could comfortably afford a home. In May 2021, the demand for housing in long beach remained high, but the inventory for homes sale was low, with 483 properties in single-family.
To the investors, I think this is the best time to buy a house in the long beach real estate because the demand is seen to be increasing every day. As the demand increases, home values are also increasing, which will result in an increase in home prices in the future. The long beach market is showing no sign of a demand decrease, and investors should buy their homes now to be more profitable in the future. Last year’s median price was $855k for a home in the long beach, which has increased up to 18.8% in April 2022.
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Additionally, the average number of days a home went pending was around 26 days. This year has recorded an increase in demand where the average number of days a home is pending in the market is ten days only! From the latest report (April 2022), a home spends an average of 26 days in the market, which is an increase in demand from last year’s April when homes on sale could spend 34 days pending. This is a sign that most buyers who had been out of the market for various reasons are back, and the demand is also increasing. As demand increases, more houses are constructed to improve supply and try to balance the demand and supply in the market.
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Sacramento Market Overview By Serina Lowden
S
acramento’s real estate market has continued to grow at a high rate with an increase in home values, making the houses more expensive. Limited inventory has made Sacramento real estate remain competitive as buyers try to purchase a house in the market. The 2020 metro area of Sacramento Rose Arden- arcade was ranked in the 5th position in the US. The latest report shows that the median home price has moved up by 8% in the past years in the Sacramento market. 11.7% increase in rent has been recorded, indicating that the rental market is growing at a high pace. Home value increase has resulted in high demand for houses in Sacramento real estate, increasing home prices. In Sacramento, $475136 is the average price of a home, and the median home is 48.1% more
than the national average. The same median home in California is $734612 higher than in Sacramento. With this price difference, most buyers prefer to buy a home in Sacramento, which is affordable to many. However, Sacramento’s median home price has increased by 20.9% since last year despite the relatively affordable price, which is much more profitable to sellers. MARKET TREND ON SACRAMENTO REAL ESTATE Covid 19 has largely affected Sacramento real estate market, where most people lost their job, and their financial income was reduced. When the pandemic popped in the country, the rate people were buying a home in Sacramento reduced due to unemployment. This made the Fed drop the interest rate to 3. 45% which is a JUNE 2022 | 83
low level historically to promote buying activity among people. Due to the reduced interest rate, more buyers decided to utilize the opportunity and bought more homes and investors. As the pandemic is easing, more people are willing and ready to buy homes in Sacramento real estate than when the pandemic was starting. The unemployment rate is also decreasing as some people are getting back to their work, empowering people financially to buy more homes in the Sacramento market.
a high rate. In 2021, the Sacramento market was growing more than in 2020 due to the high employment rate and population increase. In the last few months of 2022, the Sacramento market has grown as compared to last year as the demand is increasing day by day. World and news latest report has ranked Sacramento as the best place to live in the US.
Covid 19 has compounded inventory shortage while demand and supply are yet to balance due to high competition. To solve this problem, builders have gone back to work to build more houses to improve supply. Therefore, in the next few years, more homes will be on the market, and this will be helpful to people wishing to get a house from Sacramento.
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Affordable housing is one of California’s best places to live for those seeking a costeffective place to raise a family.
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Sacramento has an amazing restaurant that most people wish to visit.
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Burgeoning food, wine, and beer scene
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The area has tree-lined streets with incredible shopping and outdoor recreation.
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Mild climate with low chances of violent crimes
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Sacramento has the most beautiful day trip location.
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PROJECTION FOR 2022 Sacramento real estate market home prices will continue to rise for the next months of the year due to the increased home value. Demand for Sacramento houses has continued to rise, which is even going to raise the price more. Pandemic impact on people is also seen to ease, and the interest rate may increase in the next few months of the year.
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THE INCREASING POPULATION HAS IMPROVED Sacramento’s real estate demand in the area over the past years. The migration pattern has increased over the past years as people are relocating to inland destinations like Sacramento from pricier coastal real estate. From 2010 to 2019, Sacramento’s population has increased at a rate of 10%, according to the latest census bureau figures. Additionally, according to the latest report, the number of days a house listed for sale spent in the Sacramento market has reduced to an average of 11 days. This is clear that home selling in Sacramento is moving at
WHY DO PEOPLE PREFER SACRAMENTO?
Can you buy your property
without a realtor?
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By Candace Thrower
A
s we go into the spring season, I kow you may be wondering if it is possible to buy a home without a realtor. The short version of my answer is no! Many buyers are hesitant to work with a realtor because they fear the realtor’s fees, but what they do not know is that the fees are covered by the sellers. What realtors do is guide the buyers through the process and therefore, before ruling the possibility of working with a realtor, this is a fact you need to be well aware of. A good real estate agent makes the work and the many transactions in a real estate deal
flow seamlessly and even before we get to the transaction part of it, realtors will present the best options to you they will set up appointments on your behalf, negotiate the deals all for free! But, it is the experience of the market and the understanding of the complex rules and regulations that help them keep a keen eye on the pitfalls and the possibilities of homebuying. When you start looking for homes to buy, having an agent by your side will ultimately feel like having a personal assistant. They will inquire about the property that you are interested in and also present a list of other viable options, arrange them all in order, and schedule appointments for every property you are interested in. JUNE 2022 | 87
What you need to understand is that from the housing hunting phase to closing, real estate agents have been through it a hundred times. They know what to do to expedite the process. Many agents are expert negotiators. They are the relationship builders who get information from the seller’s agent to help in the negotiation. Since they are familiar with the neighborhood, they already know the prices of comparable properties in the area and what the prices of the recently sold homes were. This information is priceless, and their experience helps them gauge what price a home is likely to sell for. In case you are willing to give the seller contingencies, they know what contingencies are appropriate. Speaking of contingencies, these are the conditions that need to be met before the sale 88 | JUNE 2022
goes through. Supposing that issues arise during the home inspection, the real estate agents will go back to the negotiation table and get the sellers to repair them or reach a concession with the sellers. Most importantly, real estate agents will keep the numbers in your favor. Another reason not to buy a house without a realtor is the time factor. You do not have to waste your time driving around. You will be able to get an idea of what houses look like before you visit them so you can make an informed decision. Some real estate agents will even come and show you the houses
they are selling. If you do not feel comfortable driving around in a strange neighborhood, then this may be the best option for you. CONCLUSION So if you decide that you want to use a realtor to help you buy a house, you need to make sure you find one who is trustworthy and knowledgeable. Look for someone you can trust who can really help you with all of your needs. Make sure they are licensed and bonded. Ask for references and check them out. Then you’ll be ready to make a decision.
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That’s not all! You must have known this, the real estate industry is rife with jargon, local phrases, and local rules and sadly experience in one part of the country doesn’t necessarily mean that it will be applied to the next county over. Most agents are well familiar with the industry lingo, and the local regulations. They know exactly what to ask the seller’s agent and the disclosures you should get. Imagine going to the negotiations table all by yourself! That’s suicidal.
Homebuyer Checklist: Budgeting for homeownership in 2022 in Riverside
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By Briana Frazier
T
he state of California is known to be the golden state of opportunities yet many of its residents are far from thriving. In fact, statistics show that many are living in poverty from paycheck to paycheck. That would also mean that quite a significant number of the residents here are not homeowners. According to a 2017 report by Making Ends Meet, the basic cost of living in many parts of the state is way more than many single individuals or families can expect to earn even if all adults were working full time. Such conditions would mean budgeting for homeownership is out of reach for many people.
BUT IS IT DOABLE? YES! Setting a realistic homebuying budget in the state of California, more so in the County of Riverside is one of the most important steps toward being financially conscious to own a home. The Census Bureau notes that the median household income between the years 2016 and 2020 was $70,732 while the per capita income during the same period was $29,913. At the same time, the Bureau reports that of the basic monthly budget, housing costs and utilities take up about $2,000- $2,200 a month! This means, that 35-39% of the household’s income is going to housing which is way more than the recommended 30%. Therefore, even before you start to think of buying a home, it is important to understand the economics of it, where you are financially, and whether it suits you to buy now. But that aside, if your budget allows it, now would be the perfect time to buy especially after the fact that inventory is on the rise.
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SO HOW DO YOU BUDGET FOR HOMEOWNERSHIP IN RIVERSIDE COUNTY? One of the most important steps is having a clear plan in mind. Buying a home is a wise decision but;
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What property are you interested in? Where do you want to buy it? In what timeframe? For how much? How will you finance this ambitious plan?
Do you see where I am going with? Buying a home is one of the most emotional processes people make and you cannot get it wrong the first time! Chances are, in your lifetime, you will never make such a huge purchase ever again. So why not take the time to think this through? One of the factors to really consider is how much of the property you can afford. To do this, I recommend you multiply your annual gross income by 2.5. *note: We are taking the gross income (what you make before taxes). In the Riverside County this adds up to; •
the gross income is about $6,252*2.5 = $15,630 (this estimate is not conclusive)
$2,200 in housing alone which is more than the recommended percentage. If we apply the same model to determine your contribution to housing in 2022, that would equate to $1,750. The question that remains is whether you are comfortable paying this figure without feeling the stretch. Moreover, you have to factor in any other debts you might be having before calculating your monthly mortgage payment. Now that you have a clear picture of what you can afford, now we can address the question of down payment. There are so many factors that have to be considered. For instance;
• Your mortgage type. • Credit history. And so much more. Basically, the down payment ranges from 3-20% of the purchase price of the home. I ADVISE YOU TO RAISE THE FULL 20 PERCENT… BUT WHAT IF YOU CAN’T? If you cannot pay the full 20 percent down and you financing your property through a conventional lender, you will be required to have private mortgage insurance (PMI) which is payable monthly. This adds up to your monthly contributions.
Considering your monthly contributions, you may want to stretch yourself and here, I would advise you to apply the 28% Rule.
That however doesn’t mean you should panic! In fact, there are people who have come to me with zero down payment and they are enjoying the full benefits of homeownership today. If you would like to get help, get in touch with me today.
Basically, this rule dictates that your mortgage payments should not be more than 28% of your gross income each month. Going by 2017 standards, a household was paying about
Essentially, it is important that you speak with your agent and or lender to get the best option available that would be tailored to your financial position. If you need help saving for a down
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payment, go to https://www.neverrentagain.com START HOUSE HUNTING Let’s recap, you have a plan in mind, and you know how you will finance the house. So the next step is to find your dream house. Ideally, I believe that you have taken your time to look at the properties you may be interested in. if not, online listings should guide you. This way you get a feel of what the market looks like and whether the odds are in your favor. Another way you can expedite this process is by working with a real estate agent. They know their markets better than anyone else. They know where the best gems are hidden and I also think it’s cheaper to work with a real estate agent. You will save a lot of time rather than finding the home yourself. Another great place to start would be referrals from family members and friends. Try asking around from your colleagues at which point if they suggest a property, engage with the real estate agent. Finally, don’t let minor imperfections in an otherwise great home discourage you from making an offer. You can always make changes later. Assuming that you have found the dream property, it is time to get your finances in order. Some of the most important things I suggest my clients look at are their credit history, their credit
scores, and their debt to income ratio. All these factors have a great impact on this process and will determine whether you get financing and who you get it with. It is important, therefore, to make sure that your financial health is in top shape. If it is, shop around and get a lender that offers you the best terms. When you do, make the loan application. Your lender can pre-approve your loan amount, but if, as you wait, do something that alters your credit history, the loan can fall through. Additionally, have a second mortgage lender you qualify for if your loan with the first lender falls through. At this point, you have the finances in order and are ready to go ahead with the purchase. Congratulations. Many people will go ahead and make the offer to the sellers but I suggest exercising caution here. Before making any offers to the seller, re-examine the budget. Engage your lender and really find out whether this is the best deal. Establish whether you can afford the home even if things go wrong. The reason I suggest this is because I have seen people get led by emotions and ended up making some really poor choices. Again, engage your agent when making the offer. They know just how much to offer on a property. With the current bidding wars in Riverside, it will have to be your best offer. Your real estate agent will present your offer to the seller’s real estate agent.
CLOSING When the home inspection reveals no major defects with the home, you can agree with the seller to fix or slash the amount they are selling the house to you. If they agree, you will then enter the closing process, where you will sign the paperwork. Your lender will perform an appraisal of the home; you will need to do a title search and get another loan if your down payment is less than 20%. This process is not set in stone and may fall through, so hold your breath. Buying a home you can’t fully afford can be your worst nightmare. When you are looking to buy a home, you should look beyond the monthly mortgage payments. Other expenses do crop up and can take a toll on you if they were not prepared. It is, therefore, important to prepare a budget where you take into account your debt-to-income ratio. A high ratio is an indication that you can’t afford the home. You may decide to take a second job or even wait until you are ready, and that’s okay. JUNE 2022 | 93
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Resources That Fit Your Needs
Frazier Group Realty Inc. 3739 Sixth Street Riverside, CA 92501
“Your Real Estate Navigator” www.fraziergrouprealty.com rubyfrazier@fraziergrouprealty.com O: (951) 686-5261 F: (714) 908-7298 Lic# 01751773
Avoid Staying Stagnant:
Finding your new home for the next stage of life
PHOTO FROM 123RF
By Connie Watson
H
ome is always tied to one’s needs, and most importantly, family. For most people, any decision of buying or selling a home is always connected to a significant life event. It could be a starter home for newlyweds, a bigger home for a growing family, or a move for a job, and a smaller house when the kids join college, and the list goes on. Although one’s home buying journey doesn’t have any similarity with their neighbor’s or friend’s, looking at the broader trends can help you understand what to look for when buying a home. With home buying being among the most significant investments most people make in their lives, no one would want to regret any home purchase they make. And taking your time now to figure out the exact thing you need in a home could save you a lot of trouble in the future. Let’s look at the broader trend of most people’s home buying journey. 96 | JUNE 2022
1. THE NEWLYWEDS OR PARTNERED COUPLE. Exchanging vows has been a triggering factor for homeownership for many centuries. Nonetheless, the trend has changed slightly as first-time homebuyers are buying homes even without exchanging vows. For the broader trend, newlyweds’ first-time homebuyers (most of who are millennials these days) go for the starter home— a place to start building a foundation. As you go for your starter home together, there are a few things you need to consider. The first thing is affordability. With high student loans on your shoulders and the experience of two recessions, affordability can be challenging for most millennial firsttime homebuyers. However, it would be best if you focused on buying a home you can afford. It’s apparent that you do not need tons
of space, and that’s why a starter home is the best option. A starter home can be a great investment and an excellent starting point when chosen carefully. It can help you build equity along with your savings as you position yourself to move to your next home for the next stage in life. The next thing to consider is the proximity to your workplace, commute time and lifestyle considerations. The location of your starter home will have significant impact on the quality of your lifestyle, including your working life. And that’s why it’s important to consider it carefully. 2. THE GROWING FAMILY. Having been in your first home for a few years, it’s now time to make another move. With the addition of kids and pets, it’s probably time to move to a larger and more family-friendly space. Besides the number of bedrooms, there are a few other things to consider in this next stage in life. First, the importance of school districts takes center stage. For most parents, the desire to give the best education to their kids, especially in middle and high school, goes beyond the desire for more space. A recent study revealed that 53% of homebuyers with kids under 18 say that school districts are a major factor in their home-buying decisions. However, well-funded and higher-ranking schools come with higher home prices. For that reason, many homebuyers choose to sacrifice a bit of space to find a preferred home in their desired location. Another important thing is lifestyle considerations. For most growing families, living space is a key priority. Your teenagers will want a space to hang out with their
friends, which calls for a finished basement or a recreation room. A good layout in the house can also ease family life. For example, an open layout is perfect if you want to be watching your little kids play in the living room while you make dinner. The functionality of the house is another important factor you’d want to keep an eye on. Will each room fit into your everyday life? Does it have a well-designed laundry room that will handle the massive loads of laundry for both infants and kids? Identify the features that will have the most significant impact on your everyday life and ensure they’re there. 3. THE EMPTY-NESTERS. The hustle and bustle of life are starting to calm down as kids grow older and go to college or move out to their own spaces. At this point, all the square footage that was under maximum usage in the previous phase of life can start becoming overwhelming. The need for that large space is now over, and it becomes unmanageable or simply unnecessary. With this new reality, the best solution is downsizing, mainly due to maintenance and livability. With several unutilized bedrooms and bathrooms, it becomes impractical to keep heating and cleaning. Finding a smaller home at this stage comes with less maintenance and fits your current lifestyle. All you need at this stage is a lovely large garden instead of a nice house that you can be tending to from time to time. Conclusively, it’s obvious that life never stands still. It’s always on the move, and so is your housing needs. Identifying the stage you’re currently in and where you’re headed can help save you a lot of time, energy and money in the long run.
You may contact Connie Watson at: (404) 453-3347 conniewatson1@ausdanbrook.com JUNE 2022 | 97
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Is credit all that important
in today’s housing market? By Edwin Engelke
WHAT IS CREDIT? Credit is your financial power in today’s world. In short, good credit determines whether you will qualify for a loan, a mortgage, or a student loan. On the other hand, bad credit may inhibit you from achieving many things, including getting a credit card with a low-interest rate and thus, making it more difficult for you to get any money for any purpose. Most financial experts advise on the importance of making sure that your credit reflects positively, and according to Liz Pulliam Weston, even if you are not in the market for a loan, good credit can have a major impact.
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“Your credit information can be a factor in whether or not you can rent a nice apartment, how much you pay for insurance or whether or not you can get a job.”-Liz Pulliam Weston, author of Your Credit Score.
One major impact of the credit is that, in most cases, employers, mortgage lenders, and credit card companies will use your credit information to determine how reliable and trustworthy you are. Therefore, a credit score doesn’t only apply to loans, it is a part of your financial life. CREDIT CARD VS. CASH PAYMENTS One thing that makes the cards more adaptable is the convenience factor. The ease with which the credit cards have been made considering their usage has made them more popular than cash payments. JUNE 2022 | 99
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M
ost companies have realized the importance of credit integration in people’s lives and have started to extend credit services to most areas. This means that it is almost possible to do anything with no cash at all in today’s world.
It is safer to use credit cards than cash. Security is now a factor that spenders have taken so seriously. The cards are very secure if you look at the security when using a credit card compared to using cash payments. With a credit card, there is increased spending. Statistics indicate that the average cash purchase comes at about $17, which is a big difference from the exponential credit cards. Credit cards stretch the average spending of a person to $66 per purchase, which is 21/2 more money for cash carriers. This has enabled most people to access many services such as making food purchases and other simple tasks. There is a high degree of flexibility for shoppers with a credit card, allowing them to make more frequent purchases. With a credit card, shoppers can go out and buy items as soon as they need them. Cash may run out but never with the credit facility. WHY CREDIT IS IMPORTANT Good credit is a superpower in terms of your finances. Many aspects of our lives are affected by credit card ratings, even if we are not using cash as payment. Conversely, cash payment doesn’t determine how well we qualify for loans; credit determines that. Therefore, having a good credit mix is very important. Credit rating may determine whether a lender approves a new loan or not. If your credit mix is in question or is in doubt, then qualifying for a loan, which may be a home loan, a student’s loan, or even the credit card companies themselves, may be difficult. Therefore, you need to be concerned with your credit even if you use cash as the only payment method.
When it comes to interest rates, the credit rating may affect that adversely or positively. Bad credit rates would influence high-interest rates on the available loans, such as the student loan. Other fees may also be affected if you have a negative credit rating. In the job industry, your credit rating may also affect your review by employers. Having a bad credit rating may do you considerable damage. You should understand that credit determines your reliability in the employer’s eyes, and if it reflects negatively, it may be hard for you to get a job. In the home industry, credit rating is also very crucial. Landlords will check this in determining whether to assign you a house to rent or not. Thus, most of your transactions are cash paid doesn’t mean that your credit eligibility is stellar. You have to make sure it is in balance constantly. GOOD AND BAD CREDIT Having good credit means that your bills are fully accounted for at the right time. You are making regular payments on each of your accounts until the balance is fully paid; you are improving your credit rating. On the other hand, bad credit means that you are having a very hard time trying to pay your bills. In this case, you may not have paid the amount due or couldn’t be able to pay in time. To improve bad credit to good, you have to start paying your bills regularly. Alternatively, you can make sure that the balances reflected on your credit cards are low and monitor your credit reports to ensure no mistakes are done.
THE BOTTOM LINE Cash payments are important for minimal daily transactions that may be inevitable, but what if you do not have the needed cash? Credit now comes into play. The credit applies when you do not have the cash to make the payments, and therefore most of the time, it is your saving grace most of the time. But even so, this doesn’t mean you drain and overspend on your credit; this may as well do you significant damage. Therefore, you have to learn how to ensure that your credit is good.
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Expanding homeownership opportunities for minorities in Minnesota By Francine Marsolek
T
he social-economic environment in recent days has a growth rate that is quite low and the net worth of the houses is generally poor. Such challenges are faced particularly by the many first-time buyers from low-to-moderate income households in Minnesota. The economic crisis has brought with it issues to the minority groups as their income has been significantly slashed while the rental and home costs have risen quite dramatically. Also when there is a poor economy, the number of renters increases drastically. Although the price of mortgages and the interest rate of houses are lower, it remains an impossible task for most people because they aren’t able to afford the down payment, or closing cost payment. in addition, there are very few places where they can source credit. Whether owning homes is a vehicle for wealth building, is a question that many stakeholders have yet to answer particularly due to the vulnerability of finance that the minorities face in post housing crisis era. Ways to handle this issue depend on reasons behind wealth accumulation, period of ownership, and other factors such as appreciation rate. EFFECTS OF HOMEOWNERSHIP Research indicates that most homeowners in Minnesota are white and are twenty times more likely to own a home than African Americans. Also, there are those people who argue out that low-income people have a slow rate of 43.8 percent than high-income households. Federal policies have made it easier to own houses, particularly for the minorities, and this
benefits the homeowners and the society at large. Homeownership has several advantages such as protection from unstable housing rates, more savings, and higher purchase power and a homeowner is able to borrow an amount equal to the home and refinance the loan at lower interest rates. It is worth noting that the benefits face critics as there are those that claim that homeownership is an investment that has various risks and uncertainties. Add many critics say that homeowners can end up losing money or get less return if they had rented it out. EXPANDING OWNERSHIP OPPORTUNITIES. Expanding the homeownership opportunities in Minnesota depends on several factors which must be worked on. Some actions require partnership in advance while others are possible with just a few key stakeholders and the action taken may have immediate effect or take time to get accomplished. It is important that homes are made priorities just like the roads and bridges because they will be there for a long time. It means that buildings should be invested in well enough and as a result, will lead to good education, health, and also good economic opportunities. Some people argue out that life successes begin at home. Minnesotans are urged to parent with various bodies such as government, nonprofit organizations, builders, and lenders making affordable homes a dream come true. They are encouraged to cope with the changing economy, plan for the labor required and make smart investments. JUNE 2022 | 103
Preserving the homes we already have is an important factor and maintaining their affordability at the same time. This is due to the high demand and which is at a higher rate than supply and the market-leading to increased cost of housing. Preservation is achievable by repairing to improve the quality of living by the current homeowners. Home prices rise by that day in Minnesota. It brings with it a lot of dangers to the economy as most employers are unable to keep up with the high workforce and many laborers risk losing their jobs which will not only affect them but the economic state as well. Researchers have found out that the issue is solvable by enabling 300,000 homes and apartments by 2030. It means that against 20,000 homes last year, the private sector will have to build 10,000 more or 50,000 homes in a year. However, there are those that say that well-designed houses that are affordable help in planning activities for future needs.
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Stable homes are key factors leading to the success of a family. Statistics show that more than half of the people living in Minnesota particularly low-income people spend more than half of their salary on home costs. The issue can be solved by doubling investment in state rental help and protection for renters can reverse this trend enabling kids to learn, parents to work, and a strong growing community. 70 percent of the people aged 65 years and above require long-term care related to daily living. The case is the same for people with disabilities and those who at one time had trauma. It is thus reasonable to incorporate medical and healthcare services in stable homes it will benefit the community at large by avoiding the expensive public system and emergency care units. People of Minnesota are advised to support and strengthen homeownership because it builds equity and plays a significant role in accumulating 104 | JUNE 2022
wealth. It creates stability and further connection within our communities. The possibility of this can be achieved by monetary coaching, home purchaser education, and providing a range of home mortgage products. CONCLUSION There is a need to address the dynamics in Minnesota by picking out their capabilities and finding creative solutions and areas of opportunity. Achieving affordable homes is possible by putting together resources, ideas, strategies, and even the labor needed as well as necessary partnership. Dressing the need for more affordable homes for Minnesotans, keeping the hikes we already have, building 300,000 by 2030, reducing the risk of eviction and heavy cost burdens among low-income Minnesotans stronger links and services in stable homes, and strong sustainable ownership among the wealth of ideas at the hands of Minnesotans and should be taken seriously so as to implement them leading to the success of all Minnesotans. Our homes matter and are our foundation and future at the same time thus action should be taken to build the future of Minnesota
Leading the Conversation About Real Estate!
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Director of Marketing Golden State Finance Authority o: (916) 384-1619 f: (916) 444-3219 csunseri@rcrcnet.org
The future of the 421
a property tax exemption in New York City By Harriet Robertson
HISTORICAL OVERVIEW As stated earlier the property tax exemption started in 1970, a time where by the New York was declining in investment and there was need to restore the condition. Since that time there have been adjustments made periodically to
foster growth of housing units that are more affordable by the occupants. The 421 program over the years has been able to construct about 3,000 properties with 117,000 thus benefiting the dweller. It is also worth considering that there are those who claim 421 tax exemptions was not after a simple and transparent property tax system but to reduce the burden of taxing in residential development after which it would bring in a new market rate in the city something that even the policy makers could not think of. Further the group says that with the tax exemption the housing problem shifted to affordability from abandonment. Adjustments started in 1980 where income restriction was included to the housing units responding to the house problem shift. The requirement was imposed in 1985 by the strongest markets in Manhattan at the time also
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ew York is a city in the U.S. In 1970, the city grew at a substantially slow rate and this conceived the idea of introducing the 421 tax exemption. The aim of tax exemption to date has been to make construction of multifamily houses in New York and its outskirts affordable. However some people argue that this method of tax exemption is the most unfair, opaque an expensive. They want other transparent methods adapted by the end of June 2022 as it is when the 421 tax exemption is deemed to end.
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Units Built Under 421-a 421 a program has played a significant role over the last ten tears enabling the advancement of ,multifamily development units. 68 % of the unit which is roughly (117042) are beneficiaries of the program. PROPERTY SIZES 74 percent (2367) of houses built over the last decade were between 4 and 29 units while 26 percent (819) of the same had 30 units and more. 421 versus 485w Enactments leading to enablement of affordable New York cover buildings that commenced construction
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between 1st January 2017 and 15 June 2022 and the houses will end in 15 June 2026. The programs required income restriction among all housing units. Building in 96 streets which is a middle income option 130% of AMI were added and required no income unit. The share of income restricted unit was added from the initial 20% to 25% and 30% depending on the choice of program. The ANY program brought with it an extension of 35years compared to the initial 20 years of initial programs. Lastly home ownership was only possible to up to 35 units. Houses constructed under the ANY program were for families earning over 100000 dollars in a tear. It means that a family of three would work and pay almost 3400 dollars in a month. The program need that 30 percent of the housing units are income restricted to 130 percent of AMI and is most widely used in the New York. Meanwhile option A and E have the highest cost of and the present expenditure on tax per income restricted unit to be on average 1.4 million dollars. As the ANY program is supposed to end in June 2022.Kathy Honchul who is a governor proposed a tax exemption program which is
the 485w and is also called Affordable Neighborhood for New Yorkers. Kathy Honchul states that the program will lead to “permanent and deeper affordability” and efficient use of tax payer money. ANNY program will be possible by lowering the income restricted units from as high as 13 percent of AMI to 90 percent, Also use of exemption of tax will be expanded for the condos and co-ops. As opposed to 421 which maintains affordability for up to 35 years, 485 will need permanent affordability for properties having 30 or more units and for those with less than 30 units dwellers will enjoy a permanent rent stabilization. CONCLUSION 421 tax exemption has faced criticism over the years and there has been claims that it a notorious system, regressive and unfair. Reports show that 421 tax benefits will not impair production of housing in the short term. The tax exemption program will end in June 2022. Honchul introduced a new tax exemption called 485w which will work towards achieving a structural reform to behave a more transparent, fairer and a better tax property system that will address the underlying inequities and support better the housing development in the New York city and thus bring with it affordable housing.
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called (Geographic Exclusion areas). In 2006 and 2007 negotiable certificates were abolished and Geographic exclusion area extended. Also in 2017 some changes which are deemed to expire on June 2022’ called the Affordable New York were made. The changes required income restricted units among all rental advancement and further raised the percentages compared to previous legislation. The NYC department of finance says that the tax expenditure has reached 1.77 billion for roughly 64000 exemptions.
North Carolina
Homeownership Trend in Household Formation and Homeownership By Janet Petrozelle
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n January 2021 homeownership rate in North Carolina was 65.80%, .as of data from the United State Federal Reserve.
Two years prior (January 2019), the Homeownership rate was 65.10 percent- a 6.6 percentage point drop from the historical high of 71.70 percent recorded in January 1999. North Carolina has seen modest growth in the past decade of 11.2 percent in terms of population growth. Last year alone, the state was ranked among the top 5 most preferred places due to its strong economy, good political ambiance, and other ecological factors. This effectively meant that the increase in Population would be felt in other areas, such as homeownership, and consequently, the state has seen increases in the housing demand, and most people bought homes to live there. The average cost of living index places North Carolina 5 basis points below the national average of 100. According to Investopedia.com, the cost of living indexes compares the expenses an average person can expect to acquire food, shelter, transportation, energy, clothing, education, healthcare, and entertainment in the different regions, according to Investopedia.com.
This puts the residents of North Carolina at an advantage. With a quite low cost of living in Carolina, most people prefer to invest and or buy in homes as they are extremely affordable. You will find out that home prices in North Carolina are reasonably priced, which makes them affordable to a majority of people in and out of the state. This has further exacerbated the demand for houses in the state. Most homebuyers prefer North Carolina because of: •
Easy access to health care.
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Abundant outdoor activities
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Low cost of living and economic opportunities
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Great sense of community
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Temperate weather and mild winter
A recent report from ATTOM shows that overall, North Carolina ranked the second to have seen modest growth rates in home equity and appreciation rates. To highlight this fact, by the end of last year (Q4, 2021), most homes in the state were considered to be 38.6% equity rich, while this year, it is reported that the home equity has grown to 44.2% across the state. For investors looking to invest in this rich state, you may be wondering, how consistent is this JUNE 2022 | 111
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growth? Research shows that equity gains have been consistent and not just in North Carolina but everywhere. Still, most markets experienced accelerated growth due to the pandemic, where home prices grew in double or triple digits, and in some cases, they quadrupled. If you take the state, for instance, at the end of 2020, the home equity was at 24%.
From the latest statistic, homeownership in North Carolina is as follow;
The North Carolina housing market is doing well and has kept pace with the national housing market. While, like most markets, it was affected by the Coronavirus pandemic, the unique combination of supply and demand imbalance, improved economic conditions, improved financial wellness for the buyers, and low unemployment rates have all fostered an environment in which local homes have appreciated exponentially. Looking at homeownership alone, the rate in North Carolina was 65.2% in 2018, 65.1% in 2019, and 68.7% in 2020, and in 2021 it was 65.8%.
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•
An occupied housing unit is 4,046, 348 while occupied rental houses unit are 1,403,639
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The homeownership rate is 64.6%
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Homeownership vacancy is 0,5 %
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The rental vacancy is 4.9%
Although the homeownership rate seems to have moved down from last year’s figure, the demand is still high as we can see there is only a low percentage of homeownership that are vacant and rental vacancy is still low. June is homeownership month, and we are just about to enter the spring season where which is traditionally known for heightened real estate activities. We expect the homeownership demand to continue rising, which will also lead to an increase in the home prices.
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The Pros of Using VA Loans for Homeownership in El Cajon
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he VA loans became known in 1944 through the original Servicemen’s Readjustment Act. This act was signed into law by the then-president Franklin D. Roosevelt and provided veterans with a federally insured home with no down payment. The government made such an arrangement was made to provide housing and help to the veterans and their families. More than any other program in history, the Servicemen’s Readjustment Act helped improve the welfare of the veterans and their families, helping in the economy’s growth. The VA loan is a mortgage loan made available through a program established by the United States under the Department of Veterans Affairs. Just as the name suggests, VA loans assist service members, veterans, and eligible spouses to own a home. The VA sets everything from the qualifying standards, mortgage terms, and a portion of the loan. These loans are provided by private lenders. For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market. A VA loan is a down payment-free mortgage option issued by private lenders and partially insured by the Department of Veterans Affairs (VA). This flexible, $0down payment mortgage has helped more than 24 million service members become homeowners since 1944. At the same time, most eligible Veterans often bypass this homebuyer assistance program for various reasons such as lack of knowledge of its advantages and the notion of thinking the program involves a tedious process. Moreover, even most real estate agents and lenders lack a deep understanding of the program’s unique benefits and quirks. Whether you fall under these categories or not, take a few minutes to read the below facts about VA loans.
WHAT MAKES VA LOANS SPECIAL NO DOWN PAYMENT OR MORTGAGE INSURANCE IS REQUIRED. Did you know that you do not need to put down anything to get approved for a VA mortgage loan? While most mortgage programs such as FHA and Conventional loans require between 3%-5% down payment, VA loans require zero down payment. Moreover, with a VA loan, you get to avoid steep mortgage insurance fees, whereas private mortgage insurance (PMI) costs $150 per month on a $250,000 home. Consequently, with a VA loan, you can buy a home almost immediately, rather than having to save for years for a down payment. Also, by eliminating PMI, a buyer using a VA loan can afford a home worth $30,000 more with the same monthly payment. This means that VA loans save you money while tremendously increasing your buying power. VA LOAN BENEFITS ARE REUSABLE. The benefits that come with a VA loan are not one-and-done. You can use them as many times as possible as long as you pay off the loan each time you JUNE 2022 | 115
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By John Costigan
borrow. There are several ways you can reuse your benefits. One, assume that you purchased a home with a VA loan and you’ve outgrown it and need a bigger one. You can sell the home and pay off your VA loan completely, then reuse your benefits to buy another home. Another way is you can reuse your VA benefits as an eligible Veteran or Service person by getting a one-time restoration when you pay off the VA loan and want to keep the home but still want to buy another one, perhaps for investment purposes. It also applies if you refinance the VA mortgage with a non-VA loan. VA LOAN BENEFITS HAVE NO EXPIRY DATE. Once you’re declared eligible for a VA loan, it never expires. Even those who served 20, or 50 years ago can still buy a home today with a VA loan as long as they’re eligible. Eligibility is determined by the length of time served, and the period in which you served. For example, a U.S. Army Veteran with at least 90 days in service during the Vietnam era is likely eligible. To check if you’re eligible, first obtain your DD Form 214. With that document, a VA-approved lender can request your VA Certificate of Eligibility for you, or you can request it directly from VA’s eBenefits website. SURVIVING SPOUSES MAY BE ELIGIBLE. Un-remarried spouses of Servicepersons who died in action can buy a home with a VA loan with zero down payment, no mortgage insurance, and their VA funding fee is waived as well. This is no way to repay the fallen heroes but just a benefit to help surviving spouses move forward after tragedy. LOWER INTEREST RATES. 30-year VA mortgage loan rate was 2.720% and an APR of 3.070% as of February 11, 2021, according to Interest.com. This compares to a 30-year fixed rate of 2.820% and APR of 116 | JUNE 2022
3.110% market average as of February 10, 2021, according to Interest.com. Moreover, VA loans feature some of the lowest foreclosure rates of any loan type, further reducing risk for lenders. VA LOANS REQUIREMENTS AND ELIGIBILITY Just as the name suggests, most members of the military, veterans, reservists, and the National Guard are eligible to apply for VA loans. Also, the next of kin that is the spouses, of the military members who died while on duty, or even because of a service-connected disability is eligible for the VA loans. Active members of the military qualify for the VA loan after just 6 months of service. Reservists and the members of the National Guard have to wait for about 6 years to apply, if they are called to active duty, their eligibility status changes after just 181 days of service. You may qualify for the VA loans if; • • • •
You have served for 90 consecutive days of active service during wartime. You have served actively for 181 days during peacetime. You are married to a service member who died in active duty. You have been with the National Guard or Reserve for 6 years.
Unlike many other low down-payment mortgages options, VA loans do not require private mortgage insurance. The Federal Housing Administration and the conventional loans with a down payment of less than 20 percent require a PMI, which costs the borrower the life of the loan. The cost of getting a VA loan is lower compared to other types of low-down-payment mortgages, however, they still carry a one-time funding fee that varies depending on the amount of the down payment and the military category. This one-time fee offsets the taxpayers’ cost since there is no PMI or down payment required.
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Nashville is unaffordable! Navigating complex household market By Marqueze Williams
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ashville is one of the hottest real estate market in the country right now and this has a snowball effect to the social dynamics of this market. Even before the Pandemic hit in 2019, the average buyer was spending about 28% of their annual income on housing alone, which meant that many were already cost-burdened. In case you are wondering, when a household is cost burdened, this means they are paying more than 30 percent of its income towards housing expenses. The Department of Housing and Urban Development recommends a household to not use more than 30 percent of its income on housing, a point if breached then the household is put under the cost-burdened category. A household is said to be severely cost burdened if it spends more than 50 percent of its income towards housing expenses. While households in Nashville are not yet at either points, I feel that we are fast approaching these levels.
To put our discussion in perspective, majority of Nashville households are approaching the costburdened levels which means families are having it hard! In 2021, homebuyers who bought into this market for median properties were spending an average of 33% of their income which is relatively high considering that this income is being spent on housing alone. Keeping in mind the economy in the area is also high. While the real estate market in Nashville seems to be slowing down, the term ‘slow’ is used in this context as a relative term. Nashville was White Hot! But now, we are getting to the red hot levels. Demand is seems
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In order to make an argumentative case, we need to first understand what the term household and family means. A household according to the U.S. Census Bureau is defined as all the people who occupy a single housing unit regardless of their relationship to one another. Therefore this means that we could have a house occupied by four to six different people all working and contributing to the livelihood of this household. On the other hand, a family is defined as a group of two or more people related by birth, marriage or adoption residing together. JUNE 2022 | 119
to be growing stronger by the day despite rising mortgage rates and inflation rates! The robust performance of this market has earned it a place in the top 10 places to buy a house (more so for investment purposes).
to deal with the issue of rising prices.
Home prices have moved up by 24% over the past years and it has remained to be among the highest in the nation. The local government has tried on how to work with builders to strengthen construction and to at least make the prices affordable to people willing to enter the market them but it is still a challenge.
BUT WHY ARE PEOPLE STILL BUYING? Despite it being one of the overpriced markets in the country, Employment rate in Nashville is the highest in the country and there is a constant job growth in all sectors.
Inflation is also increasing at a rapid rate. This is bad for the industry overall. The effect of inflation is that the cost of construction materials is rising rapidly. This means, builders cannot build fast enough to keep up with the crazy demand. Consequently, home prices have also increasing and inventory’s rate is moving down. While the economy might be performing better with more low unemployment rates, the same cannot be said of the disposable income. House prices are rising exponentially but the salaries and wages have stagnated.Nashville market is a seller’s market and might stay that way for a while. We have to address the inventory problem if we want
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Due to low inventory, bidding wars are becoming more frantic which again pushes the prices of properties high up!
Nashville is one of the fast-growing cities in the United States and it was ranked as the 17th best place to live last year, with high quality of life. Compared to other cities like California and New York, Nashville market is cheaper and there is no income tax. Those who are going to buy home from Nashville are going to keep more of their income. Nashville houses are also going to increase in demand because there are tourists who want to rent home, retirees wasn’t to settle down and student who are closing schools will rent home to. House price in Nashville is also going to increase in the month of June and supply has to be improved.
The Potential Risks to Buyers and Sellers in a FSBO Transaction
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ccording to my analysis of the Maryland Housing Market, the average real estate commission is about 4.5 – 5.10% which is less than the national average of 5.49%.
the sellers opting for FSBO in Maryland already know their customers which means they do not want to waste time on marketing and other activities. This speeds off the process.
This means that a seller selling a home that’s worth $400,000, will pay $20,400 in realtor fees. These are the largest fees that you will have to pay in this process which makes sense why most people avoid them, by all means, paying them. This often means going into the market alone. Do I advise it? Let’s find out!
INTERESTING FACTS ABOUT FSBOS IN MARYLAND
Based on my research, the prices of FSBO houses in Maryland are 26% less compared to those sold using an Agent. Many people often prefer selling without an agent because of two reasons; •
To save
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To sell their homes faster.
THERE ARE SO MANY MOTIVES, BUT I FIND THESE TWO TO BE THE PRIMARY DRIVER FOR MANY PEOPLE. The first one is straightforward where a seller doesn’t feel the need to spend thousands of dollars for something they can do themselves. What you will realize is that many sellers who prefer using this route already know who their buyers are. Research shows that about half of 122 | JUNE 2022
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FSBOs are becoming so unpopular in the market.
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Many FSBOs in Maryland are selling less (26%) compared to agented homes (Median of $217,000 vs. $295,500).
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FSBO sellers represented about 8% of all home sales in 2020 in the country.
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From 1981 to 2020, FSBO sales dropped from 15% of all sales to 8%.
There is a reason why FSBOs are declining in the market and I find that most buyers in Maryland do not want to buy an FSBO. But, that doesn’t mean that they will ignore the ones that pop out during their search. Many buyers will get trapped by the ridiculously low prices. Remember, the real estate transactions are extremely complex which is something many buyers aren’t willing to overlook, and also, there is a rise of low commission real estate agents that are chipping away at the popularity of FSBOs. There are benefits associated with FSBOs including direct and effective negotiations and simplified schedules with the sellers.
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By Rose Ogbonna
While FSBOs look good on paper, you need to be cautious. The disadvantages of FSBOs outweigh the pros. Before proceeding with the purchase, you need to think things through. A small mistake can cost thousands of dollars, not to mention your peace of mind. I always tell my clients that real estate agents are professionals who have been trained for years on how to handle the complexities of this industry, something that a buyer or seller
alone cannot manage not unless they have a background in it. Additionally assuming you want to buy without an agent, consider where you are in the ‘buying pipeline.’ What I mean by that is, that many of the buyers still in the preliminary stages are not legally bound to use an agent, but if you have already signed the buyer’s agent contract, the contract binds them to work with the agent for the whole process. But that doesn’t mean that you cannot cancel the contract, you have the right to cancel the contract at any point with some specific valid reasons.
COMMON LEGAL ISSUES WITH FSBOS USE THE PROPER TERMINOLOGIES As a seller going into the market on your own, you need to describe your property using the right terminologies. Describe your property correctly. You must use the exact measurements, and the right property lines and describe accurately the history of the home. I don’t think this is something you want to do all by yourself. You may likely need professional help to cross-check what you find with the current records for the property. If you are not entirely sure about your listing, do not say it. Do fact-finding and ensure that you are 100 percent correct. DISCLOSURE In most cases, you will be required to disclose certain issues about your home. If you don’t, you risk being on the wrong side of the law. If you know that there is something wrong with the property you are required to disclose it to the buyer. In Maryland, the law requires you to give the buyer a list of the known defects or a disclaimer that says you’re selling the house as-is and even if that is the case, you must disclose the latent defects, that is, you must disclose the issues that couldn’t be discovered by reasonable observation or inspection. FAIR HOUSING LAWS There are potential loopholes for discrimination to slip in when selling the property on your own. Fair housing laws are there to protect people from discrimination and if you are selling the property with the help of a REALTOR, you need to be aware of the laws and abide by them. Fair Housing laws make it illegal to; JUNE 2022 | 123
• • •
• •
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Refuse to sell to any qualified buyer Use discriminatory terms and conditions in selling Use discriminatory notices or ads that indicate a preference or limitations on who’s allowed to buy your home Say that your home isn’t available when it is Treat someone differently because of race, color, national origin, disability, family status, religion, gender identity, sex, sexual orientation, source of income, or marital status Commit acts of prejudice, violence, intimidation, harassment, or abuse
With all the possibilities of buying an FSBO home, several risks come with it. I don’t think that this mode of buying homes perfectly suits everyone in the Real estate market. Currently, there are fewer buyers considering FSBO in Maryland, this may be due to the myths about FSBO which are misleading. I believe that it is the responsibility of every buyer in Maryland to understand and apply the tips for buying an FSBO home before considering the option to buy a house FSBO. Prospective buyers always look into the home options that are cost-effective and FSBO is not less of these options. It is easier and less risky to buy an FSBO home when you work with an agent. You need to work with an agent who has knowledge and experience in the real estate market. An agent that you can trust enough to offer you the legal advice you need to know about the market but mainly, you need an agent with expertise in establishing property values or who has the power to negotiate the best terms for a sale. Alternatively, it is preferable to choose the better option. You can just buy listed homes in MLS. You have the opportunity to become a homeowner without having to spend more than you can afford. You can own your dream home in one of the best MLS-listed homes right away, especially with the current low rates. Avoid the risks Of FSBO homes while you still can! 124 | JUNE 2022
Contact Rose Ogbonna at (301) 674-4542 rose.reobroker@gmail.com
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San Francisco Housing Market Outlook: How safe is the market right now for buyers, sellers and investors? By Norman Green the market for an average of 14 days. The rent market has also been affected quite significantly. The median rent in San Francisco has grown 9.5 percent to $2,270. one of the main factors that have been driving prices in this lucrative market is low mortgage rates that have had a direct impact on the buyer’s ability to afford a home in San Francisco. For more than a decade, the supply and demand forces have been growing out of balance reaching a tipping point in the last two yearsagain driven by the low mortgage rates. People came into the market in droves sending the house prices haywire. JUNE 2022 | 127
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hen you think about the San Francisco housing market, two things come to mind; skyrocketing housing prices resulting in one of the worst affordability crises the state has seen so far and the chronic lack of units for sale. By April 2020, the median listing price for homes in San Francisco was $1.3 million. This shows that the median home price in the Bay Area had risen 70 percent since 2012- inflation-adjusted. Fast forward to 2022, the median home values in San Francisco have grown to $1.5 million with a one-year appreciation rate of 7.3 percent. Additionally, our data shows that the number of new listings was down 27.8 percent with most homes staying on
Last year, the California Association of Realtors reported an uptick in demand for single-family homes in the suburbs some time mainly because many, people were relocating to the suburbs. While a good move, it hasn’t helped, in fact, it made things worse as property values in the suburbs skyrocketed. While it may not seem like so, the San Francisco market began cooling down earlier than the rest of the nation. Signs of the reduced activity in the market were first seen in the mid-last year. The pandemic has increased migration out of major cities, and it appears that the majority of the relocation will be permanent. Some of the most significant pandemic-related disruptions have occurred in San Francisco. But while that may be the case, purchasing a home in San Francisco will only get more expensive. In 2021, the market was hitting new highs each month, but because of the rising mortgage rates, the market will look very different this year. However, the San Francisco market is more of a ‘luxury’ market, with only the most affluent real estate investors likely to be able to afford San Francisco houses. By typical and average standards, the housing market in San Francisco is expensive for most people and will remain for years to come. However, this does not rule out the possibility of owning your ideal home in this hot market. Homeownership is easier than you think with the appropriate and trustworthy Realtor on your side. SAN FRANCISCO REAL ESTATE INVESTMENT 2022 The real question becomes if it is right to invest in the San Francisco Bay Area real estate market. The median price of homes in San Francisco is staggering, and most average families won’t be able to afford it. Although we don’t hold the final say on investment choices, evidence shows that positive things are waiting in the San Francisco future. An investment into this market will not diminish in value over time. 128 | JUNE 2022
Although interest rates have been low and now rising, luxury buyers have stormed the market and will continue to do so in outpouring numbers. This is backed by examples of why buyers pay over $1 million more than the asking price. There is a one billion dollar investment made into the Bay Area housing market as announced by a Google report; this fund is expected to fund a 10year housing project in the area. A wise investment in the San Francisco housing market could secure your future, and if you invest in areas with high population density and a high rate of employment growth, your investment will become very profitable. This is because these parts generally have a higher demand for housing. One of the best neighborhoods in San Francisco to consider for your investment is the Golden Fate Heights; it has more single-family homes and is relatively inexpensive, making it an absolute steal.
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New York state homeowner assistance fund By Sandra Cotthaus
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fter two years of dramatic real estate activity, the market is cooling down. In fact, going by the latest stats, homes are staying on the market for 134 days, up by 13 days compared to April Last year. Additionally, the home prices for a median property in Newburgh have increased at 10.8 percent compared to last year, now standing at $399,000. Several factors have led to this dramatic increase. In the last two years, the low mortgage rates were the primary driver, and many people felt the need to capitalize on the rate. Ultimately, many buyers would be forced into a bidding war which put pressure on the housing market. Additionally, the supply and demand imbalance also played a huge role where the available units weren’t enough to beat the demand. While the mortgage rate is rising, you’d expect the activity in the markets to cool down, which is happening, but because of inflation, builders aren’t building as they should! But, the population has been steadily decreasing, and over the last four years, Newburgh has lost about 0.6%. Population decrease results from high
living standards and increased poverty among people in Newburgh, making people migrate to other areas where they can afford it. Speaking of affordability, did you know? • • • •
Average affordable monthly apartment cost in Newburgh is $791.00 State of New York Median Income is $115,700 State of New York Median Metropolitan Income is $74,400 State of New York’s Median Non-Metropolitan Income is $62,500.
The high unemployment rate in Newburgh has made life harder for people to live there. Home prices in Newburgh are increasing rapidly, and people cannot simply keep up! This makes it worse for those people who wish to live in Newburgh but cannot afford it. To solve this challenge, the New York government started a program known as the homeowner’s assistance fund to assist homeowners at risk of default, displacement, and foreclosure. This program is funded by the
federal government and is administered by community renewal and New York state homes. The program mainly assists those who have been facing financial hardships since the Pandemic of covid 19. This fund also assists houserelated costs like loan payment assistance, utilities, loan reinstatement, insurance, Newburgh homeownership is seen to be growing at a low pace because of the challenges in the area. Population decrease shows that homeownership in Newburgh is also decreasing, although home prices are increasing. The inflation in the United States has increased home construction costs and significantly increased house prices in the past few months. This has continued to push people out of Newburgh. From the stats we are seeing right now, the future of the Newburgh real estate market seems uncertain. However, I like what the government is doing, recognizing the problem and stepping in to remedy it, which will improve the conditions shortly. While house prices in Newburgh aren’t the most enticing, low to median households can comfortably afford a house in Newburgh. JUNE 2022 | 131
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New Haven Connecticut Homeownership and Household Formation By Steven Rivkin
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he New Haven housing market is the second-largest in the state of Connecticut and the sixth-largest in New England. There are over a thousand people in New Haven, and its metro area consists of over a million people. Yale University is found in New Haven and greatly impacts the city. It offers the largest employment to people living in and thus improves people’s economy in the city. Students and people working in the university buy a home in the New Haven real estate, contributing to the growth of the haven real estate market. In Connecticut, New Haven is considered one of the best places because of its collegiate sports, museums, festivals, 56 Zagat- rated restaurants, and major concert events. This has attracted most people to live in the area, increasing homeownership demand and increasing home formation year after another. In October 2021, New Haven was ranked as the 60th best place to live on a list of 150 metropolitan areas. About 28 percent of New Haven residents are homeowners. The city has about 49,177 households. It has a median household income of over $68,000 a year, making it one of the richest cities in Connecticut. In 2018 and 2019, the population in New Haven decreased from 130,529 to 130,331 -a 0.152% decrease while the median house income grew by 2.63% to $42,222 between March 2022 and April of this year.
The inventory of homes for sale in New Haven has also increased at a rate of 2.3% while listing cost has increased by 20% more than in 2021. This year, the single-family home average price increased by 13% to 315,000 in Connecticut in March. Homeownership demand is increasing day by day, and the supply rate is decreasing each day. To keep an equal pace between demand and supply, more houses need to be constructed to sustain the market growth. Connecticut houses are selling faster because people are migrating from New York City to this state in search of a more suburban lifestyle. Others are looking for extra space in the area to spend more time at home. The median home listing price in new haven has increased by 7.2% in April 2022, which was $299k compared to last year’s listing price, which was $275k. The average number of days a home is spent in the market in new haven is 39 days which is less than the days a home was spent in the market last year. Some of the best neighborhoods in New Haven include Middlebury, Scholl District, Bethany, Downtown, Woodbridge school District, and Guilford. However, Bridgeport in Connecticut is one of the popular dangerous cities where there are 582 crime rates per 100,000 with a population of 150,000. Although the crime rate is higher than in other cities in New Haven, it cannot be ranked as high compared to crime in other cities outside New Haven.
New Haven home prices and the homeownership rate are expected to rise. Demand is still very high, which puts upward pressure on house prices. This means builders must increase their pace, which is not likely due to inflation. As long as the supply and demand sides remain imbalanced, we can count on prices to keep rising. JUNE 2022 | 133
Tips for a Buyer Struggling to Save for Down payment and Closing Costs By James Joseph
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here is no denying the fantastic feeling that comes with having a roof over your head, especially one that you can lay claim to ownership over. It automatically confers on you that respect, and you are viewed in a different light by your peers. Having a home of your own also allows you to tie important memories into the fabrics of the building you call home. But, the truth is, saving for a down payment to make your homeownership dream come true can be an uphill and thankless task sometimes. You would have to make specific changes to your budget and sacrifice a lot of temporary comfort for the dream. However, regardless of how difficult it is, it can be achieved, and your future self will thank you for making the sacrifice now. In this blog article, we would be identifying five easy ways you can easily save for your down payment. CUT YOUR BUDGET AND START SHOPPING SMART One vital thing you have to do if you want to save for your down payment would be to cut your budget and start shopping smartly. You can do without certain luxury goods during the period you are thinking of saving for your own house. Instead, you should only buy what you will need and avoid the pitfalls of buying those things you
have no use for —even if their price is low. By shopping smart and cutting your budget, you would be surprised at how much you can save when you do without those things you don’t probably need. SKIP VACATION I understand you need to give yourself that treat. And I know that you have worked so hard and you deserve to go on that vacation. But think about it, the possible expenses you could incur on that vacation could be better saved towards your down payments. Denying yourself a vacation so that you can be able to save more for your down payment could be a masterstroke as you could be able to go for that next vacation as a proud homeowner. Reduce your high-interest rate and debts one thing that may hinder you from saving more is when you have a high-interest rate on your credit card. It is always advisable to transfer your credit card balance to a card with a low-interest rate as it can help you save more. Debts also eat deep into our ability to save because we have to pay the debts and the interests that come with it. In some cases, the individual is unable to repay the loan, and he is stuck in an endless cycle of debt repayment. If it’s possible, pay off all of your debts and start on a clean slate that would allow you to save more. JUNE 2022 | 137
GET A SECOND JOB You can easily save more for your down payment if you get an extra source of income. Having an extra income source would greatly help you improve your chances of saving and make substantial contributions to your plan of getting a home. But, this means you would have to be more hardworking, and you would have to be careful to avoid burnout. DISCOVER IF YOU’RE QUALIFIED FOR A DOWN PAYMENT ASSISTANCE Agencies like the Federal Housing Administration, the US Department of Agriculture Rural Housing Service, and the Veterans Administration can help you make your down payment if you qualify for the assistance. All you would need to do is visit their nearest office and make inquiries to see if you qualify for the assistance scheme. Statistics prove that many people still do not know that it is possible to get down payment assistance and of the few that know about these programs, many believe that down payment assistance is for the disadvantaged. These myths, misconceptions, and much other misinformation are some of the topics we try to debunk on our weekly segment of The Power Is Now Homebuyers Townhall. When purchasing a home, making a down payment is a must! But with the current hefty price tags of homes in Whittier, CA, raising the money for the down payment seems impossible. That’s not all that a new home buyer has to worry about, closing costs are another factor that has to be considered. This, therefore, means that even if you have saved up some cash to cover your down payment, closing costs can 138 | JUNE 2022
drain down your efforts, you might just realize that you still owe some thousands of dollars in closing costs, which you might not afford at that particular point in time. So, is there any help for you? Well, if you are in the state of California, you might qualify for a forgivable loan down payment and closing costs through down payment and closing cost assistance programs if you meet certain criteria. The requirements to qualify for a forgivable loan down payment and closing costs differ from state to state. Some states have less strict requirements than others. For example, to qualify for a forgivable loan in cities like New York, you must earn a considerable amount of income. Aside from the income, the other requirement you must meet is the credit score. These assistance programs require you to have a minimum FICO score of 620 and above. Other requirements include; • •
You must be a first-time homebuyer You must reside in the home for a number of years
$859 million in down payment assistance and has participated in the financing of over $13.7 million in first and second mortgages, according to Carolyn Sunseri, the Marketing Director of the Golden State Finance Authority (GSFA). GSFA has two affordable housing programs; the GSFA Platinum Program and the GSFA Open Doors Program, which are accompanied by down payment assistance of up to 7% of the mortgage loan amount.
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The home must be situated in a particular place according to the program
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The borrower must complete their classes in finance and homeownership
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The property chosen must be a single-family home
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You must choose a suitable lender ready to work with the program
Interestingly, there are about 2,000 DPA programs available countrywide. However, choosing the best from this figure can be confusing. Also, it’s important to note that these programs vary by location. Different programs are located in different areas and come with different requirements or terms and conditions. But if you’re looking for the best DPA program around California, I highly recommend you to consider using the Golden State Finance Authority program. GSFA is a public agency/entity providing affordable housing programs. As a public entity in California, GSFA has distinguished itself as a leader in affordable housing finance, where it has helped over 80,000 individuals and families purchase a home over the last two decades. Moreover, the entity has provided more than
“What that looks like is that on a $300,000 mortgage loan, 7% assistance is $21,000. So, by utilizing a program through GSFA, you’re getting a mortgage loan at a competitive interest rate, and then you’re being provided with $21,000 to put towards your down payment,” Carolyn explains. “Most of the time, that’s going to cover all of what you need in down payment money, and possibly even give you some assurance towards your closing cost.”
Coming up with a down payment is the most difficult thing when purchasing a home. However, you need not rack your head about how to raise funds to purchase that expensive home in Whittier, CA with the plenty of options available. With assistance programs, you can get help raising funds for the down payment and closing cost. You can qualify for a forgivable loan and avoid paying closing costs once you fulfill all the requirements. If you are unsure if you would qualify for a forgivable loan down payment and closing cost, or don’t know where to look for the right one, don’t hesitate to reach out to us. We are experienced real estate advisors that will act in your best interest. We will also help you to get the best house deal in Whittier, even with the rising home prices. JUNE 2022 | 139
POWER LEGAL
CFPB Issues Advisory Opinion on Coverage of Fair Lending Laws
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qual Credit Opportunity Act continues to protect borrowers after they have applied for and received credit.
ECOA has helped people obtain credit on fair terms since 1974. Throughout its almost 50year history, ECOA has protected people and businesses against discrimination when seeking, applying for, and using credit. ECOA bans credit discrimination on the basis of race, color, religion, national origin, sex, marital status, and age. It also protects those who are receiving money from any public assistance program or exercising their rights under certain consumer protection laws. The CFPB issued today’s advisory opinion and accompanying analysis to clarify that ECOA protects people from discrimination in all aspects of a credit arrangement. The advisory opinion is consistent with a recent legal brief filed by the CFPB, the Federal Trade Commission, the Federal Reserve Board of Governors, and the U.S. Department of Justice. Among other things, the advisory opinion states that ECOA:
Earlier last month, the Consumer Financial Protection Bureau (CFPB) published an advisory opinion to affirm that the Equal Credit Opportunity Act (ECOA)—a landmark federal civil rights law protecting individuals and businesses against discrimination in accessing and using credit—bars lenders from discriminating against customers after they have received a loan, not just during the application process.
Continues to protect borrowers after they have applied for and received credit: Lenders are prohibited from discriminating against borrowers with existing credit. For example, ECOA prohibits lenders from lowering the credit limit of certain borrowers’ accounts or subjecting certain borrowers to more aggressive collections practices on a prohibited basis, such as race.
“The CFPB is ramping up its efforts to issue guidance and advisory opinions to assist entities with understanding their obligations under the law,” said CFPB Director Rohit Chopra. “Today’s advisory opinion and accompanying analysis make clear that anti-discrimination protections do not vanish once a customer obtains a loan.”
Requires lenders to provide “adverse action notices” to borrowers with existing credit: Adverse action notices explain why an unfavorable decision was made against a borrower. Credit applicants and borrowers receive these notices for reasons including that credit was denied, an existing account was terminated, or an account’s terms were unfavorably changed. “Adverse action notices” discourage discrimination, and they help applicants and borrowers learn the reasons for creditors’ decisions.
In 2020, the CFPB has an Advisory Opinion policy. Advisory opinions are one of many types of guidance documents that the agency issues to provide market participants with information about the application of federal consumer financial laws. 140 | JUNE 2022
Read the advisory opinion.
POWER HEALTH
World Sickle Cell Day
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he United Nations designated a day to increase sickle cell awareness nationally and internationally, and it is regarded as World Sickle Cell Day. On December 22, 2008, The United Nations General Assembly passed a resolution recognizing sickle cell disease as a public health issue and “one of the world’s leading genetic diseases.” The resolution encourages members to increase sickle cell awareness on a national and international scale on June 19 of every year. INFORMATION ABOUT SICKLE CELL DISEASE Sickle cell disorders are a group of diseases that affect red blood cells. Sickle cell disease is a genetic disorder, which implies that it is passed on by your parents, and you are born with it; you cannot contract it from other people. Sickle cell disease allows blood cells, which are normally spherical and flexible, to stiffen and become sickle-shaped, prohibiting blood cells and the oxygen they bring from flowing freely across the body and resulting in pain. This can result in severe pain episodes. These severe episodes are known as sickle cell crises. To control the pain, they are given strong analgesics such as morphine. 142 | JUNE 2022
People with sickle cell disease are also susceptible to acute chest syndrome, stroke, blindness, bone injury, and priapism (a penile erection that is persistent and painful). Organs such as the lungs, kidney, liver, heart, and spleen may be damaged in sickle cell patients over time. Complications of the disorder may also lead to death. The majority of sickle cell treatment is focused on treating and preventing complications. EPIDEMIOLOGY OF SICKLE CELL DISEASE According to estimates, one in every 400500 African American newborns and one in every 1,000-1,400 Hispanic newborns is born with SCD. Due to high birth rates and under-diagnosis in the population, Latinos are expected to outnumber African Americans hospitalized in California hospitals for SCD by 2013. All states in the United States now screen newborns for Sickle cell disease. It is estimated that one in every ten to twelve adult African
Around the world, supporters will wear red to raise awareness of sickle cell disease (SCD), sponsor a run or walk, shave or dye their hair, and share patient experiences with local media outlets. The event, organized by the Sickle Cell Society in the United Kingdom, is also an opportunity to help and celebrate people’s successes with sickle cell. On its World Sickle Cell Day website, the society stated that World Sickle Cell Day is the ideal opportunity to host an event or fundraiser to educate people in your neighborhood about sickle cell disease and support those who live with it.
Americans carries the SCD genetic trait. If both parents are carriers, each offspring has a one in four probability of developing SCD.
Since the COVID-19 pandemic puts these patients at increased risk of complications, the Sickle Cell Society recommends that participants wear masks and observe appropriate social distancing during in-person events on World Sickle Cell Day. CONCLUSION
PHOTOS FROM 123RF
Currently, the only treatment for SCD is a stem cell transplant that entirely replaces the patient’s immune system. The stem cells could be derived from cord blood or bone marrow. However, due to the complications of receiving high-dose chemotherapy for a transplant, this cure is only available to the most seriously ill patients, such as children who suffer from strokes., Researchers are conducting clinical trials to make transplants accessible to more SCD patients using Reduced Intensity Chemotherapy. HOW TO PARTICIPATE IN WORLD SICKLE CELL DISEASE DAY Supporters plan to mark World Sickle Cell Day, celebrated every June 19, raise awareness about red blood cell disease, and raise funds to combat it.
World Sickle Cell Awareness Day holds June 19 every year. The international awareness day is observed each year to increase understanding and public awareness of sickle cell disease and the challenges patients, caregivers, and families face. The World Health Organization (WHO) estimates that sickle cell disease affects approximately 100 million people worldwide, with over 300,000 children born each year. Sickle cell disease can affect people of any race, but it is more common in Hispanics and African Americans. SCD is a group of red blood cell disorders typically passed down from one’s parents. It causes a change in the oxygencarrying protein called hemoglobin found in red blood cells. JUNE 2022 | 143
POWER HEALTH
June is
Alzheimer’s and Brain Awareness Month
Alzheimer’s and other dementias affect 47 million people worldwide, and if nothing changes, 144 | JUNE 2022
this figure is projected to rise to 76 million by 2030. However, everybody should contribute to putting an end to this epidemic. The Alzheimer’s Association celebrates Alzheimer’s & Brain Awareness Month in June as an opportunity to raise awareness and combat this global epidemic. 10 WAYS TO LOVE YOUR BRAIN People may reduce their risk of cognitive impairment, according to growing evidence. The Alzheimer’s Association and its experts have produced a list of 10 Ways to Love Your Brain – tips that can help minimize the risk of cognitive decline:
PHOTOS FROM 123RF
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his disease destroys nerve cells and tissue in the brain, impairing a person’s ability to remember, think, and plan. The brain shrinks rapidly as the disease progresses due to cell death. People lose the ability to talk, remember family and friends, and care about themselves. Alzheimer’s disease, the most prevalent type of dementia, is one of the country’s most serious public health problems. It is the only one of the top ten causes of death in the United States that cannot be avoided, treated, or even slowed.
1. Break a sweat: Regular cardiovascular exercise raises your heart rate and improves blood flow to your body and brain. Several studies have discovered a link between physical activity and a lower risk of cognitive decline. 2. Go over your books: Formal education will help reduce your risk of cognitive impairment and dementia at any age. Take a class at a nearby college, community center, or online, for instance. 3. Butt your cigarette out: There is evidence that smoking raises the likelihood of cognitive impairment. Quitting smoking will reduce the risk to levels comparable to nonsmokers. 4. Follow your heart: Obesity, high blood pressure, and diabetes are all risk factors for cardiovascular disease and stroke, and they all have a detrimental effect on your
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cognitive health. If you take care of your heart, your brain will follow. Heads-up! - A brain injury will increase the chances of developing cognitive impairment and dementia. Wear a seat belt, wear a helmet while riding a bike or contact sports, and avoid falls. Keep the fuel upright: To help reduce the risk of cognitive loss, eat a safe and balanced diet high in vegetables and fruits and low in fat. Get some sleep: Insomnia or sleep apnea may cause memory and thoughts if you don’t get enough sleep. Look after your mental health: Some reports relate a history of depression to a higher risk of cognitive impairment, so seek medical attention if you are experiencing signs of
In addition to lowering your risk of cognitive impairment, these tips can also lower your risk of dementia. The evidence for lowering the risk of dementia is currently strongest compared to formal education and preventing head injury; other tips can also help reduce the risk. TAKE ACTION THROUGH VOLUNTEERING The Alzheimer’s Association, which has 75 chapters, has many volunteer opportunities available if you have a couple of hours a week to spare or can make a substantial time commitment. Among the volunteer opportunities are: Facilitator of a Support Group As a coordinator: You will lead monthly meetings in your group for adult children, family caregivers, spouses, or individuals living with dementia. Educator in the community If public speaking is one of your strongest suits, you might want to consider a career as a community educator. These speakers aid in providing education and expanding the Alzheimer’s
depression, anxiety, or other mental health issues. Often, make an effort to manage stress. 9. Make a friend: Maintaining social engagement can benefit brain health. Engage in social events that are important to you. Find ways to contribute to your community – if you like animals, try volunteering at a rescue shelter. Join a local choir or volunteer at an afterschool program if you enjoy singing. Alternatively, engage in sports with family and friends. 10. Brainstorm: Your mind should be challenged and activated. Build a piece of furniture. Put together a jigsaw puzzle. Make an artistic effort. Play games that need you to think creatively, such as a bridge. Challenging your mind can benefit your brain in both the short and long term.
Association program’s scope. You must give at least 12 presentations per year. In addition, volunteers are required for the organization’s annual activities, such as the Walk to End Alzheimer’s and The Longest Day. CONCLUSION Alzheimer’s disease often necessitates long-term treatment, and families are often burdened financially. There are many services available to assist families and caregivers in navigating these financial difficulties. The Alzheimer’s Association will help you find lowcost or no-cost community support programs such as support groups, respite care, transportation, and homedelivered meals. Living a balanced lifestyle is also one of the easiest but most profound ways to honor people living with Alzheimer’s. JUNE 2022 | 145
Home Ownership by Eric Lawrence Frazier MBA Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own. Real Estate you own is not like cars that decay over time and you have to replace them. Real Estate you own is not like clothes that go out of style and you have to buy new ones. Real Estate you own is not like expensive vacations or experiences that only last a moment in time. Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable. Real Estate you own is not like staying at your parents house where you know can’t stay forever.
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Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family. Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned. Home ownership is the place you build memories that can never be taken from you. Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand. Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life.
It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen. It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections
Home ownership It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire. It’s more than money saved, gifts recieved and grants obtained It’s more than the debt you incur to buy it. It’s more than the payments you make to own it. It’s more than the appreciation that comes with keeping it over time. It’s memories, it’s family, and it’s life that can happen in one place Until you say it’s time to move.