Designated Realtor®—June 2024

Important Dates & Deadlines

WHAT’S BUZZING IN REAL ESTATE?

1

Upcoming Important Dates Regarding NAR’s Settlement : June 18 marks the deadline to opt-in to be released under the settlement, while Aug. 17 signifies when practice changes go into effect, as well as the date of the class action notice. Click here for the settlement timeline at a glance

2 Bill S-3192, known as The Real Estate Consumer Protection Enhancement Act, recently passed in the Senate. This bill aims to enhance transparency for both consumers and real estate licensees. Learn more

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In a significant victory for New Jersey Realtors®, the state Supreme Court ruled in favor of independent contractor status in the James Kennedy, II vs. Weichert Co. case, emphasizing the importance of written agreements in defining broker-salesperson relationships. Read the court opinion.

an office night out at the New Jersey Realtors®

Opportunity Foundation’s fundraiser at the Somerset Patriots game on June 20

Have you been a Realtor® for 25 years or more? Apply for NJ Realtors® Quarter Century Club by Sept. 27 to commemorate your service to the industry and receive special recognition at 2024 Realtors® Triple Play.

Plan a volunteer activity for your office for the 2024 Realtor® Volunteer Days, June 1-9. Click here to discover ways you can make a difference

this June

tools and resources to promote the benefits of

and showcase your commitment to

2024 REALTOR ® Legislative Meetings: Advocating for Business and Homeownership

New Jersey Realtors® met with federal representatives at the 2024 Realtors® Legislative Meetings in Washington, D.C. from May 4-9 to support Realtor® businesses and property rights. Specifically, New Jersey Realtor® advocates discussed expanding protections under the Fair Housing Act, ensuring Veterans Affairs buyers maintain professional representation, maintaining independent contractor status under the Fair Labor Standards Act for real estate agents, and more.

Key legislative priorities this year focused on addressing housing affordability by increasing inventory and supporting small business owners. This includes backing bipartisan bills like the More Homes on the Market Act, the Neighborhood Homes Investment Act, and the Affordable Housing Credit Improvement Act. Additionally, efforts are underway to preserve the 199A-qualified business income deduction and 1031 like-kind exchanges, and to update tax laws to make homeownership more accessible.

Following the conclusion of the meetings, the U.S. Department of Veterans Affairs plans to temporarily lift its ban on buyers directly paying for professional real estate representation. This change will remain in effect until the VA decides to engage in a formal rulemaking process, according to a VA official at a Mortgage Bankers Association conference in New York.

Although not an official announcement, VA Deputy Director of Policy Michelle Corridon’s comments were welcomed by the real estate industry. Currently, the VA’s home loan guaranty program is the only one that explicitly prohibits this practice. As a result, veteran buyers often face limited options when sellers do not offer compensation to the buyer’s agent, potentially leaving veterans without professional representation or forcing them to switch to less favorable loan products.

These initiatives highlight our ongoing commitment to supporting fair housing, ensuring equal access to professional representation, and helping more people achieve homeownership.

Important Updates from the NAR Board of Directors

• Following the National Association of Realtors® proposed settlement, June 18 marks the deadline to opt-in to the settlement for release, while Aug. 17 signifies when practice and policy changes go into effect, as well as the date for plaintiffs to issue the class action notice. Visit facts.realtor for frequently asked questions, resources, and a settlement timeline.

• NAR’s Professional Standards Directors have agreed on three proposals from the Professional Standards Committee. These proposals include changes to Article 4 of the Code of Ethics and the addition of new Standards of Practice 4-1 and 4-2. These changes aim to clarify the Code of Ethics regarding conflicts of interest and to provide better protection for buyers, sellers, lessors, and lessees. If approved by the NAR Delegate Body in November, these amendments will become effective on Jan. 1, 2025.

• NAR is undergoing significant changes to foster a more inclusive and respectful environment. This transformation is being driven by the Culture Transformation Commission, a group within NAR comprised of over 70 members, including state and local association staff and NAR staff. Their mission is to identify and eliminate barriers to creating an inclusive, welcoming, and respectful organization for all. The tri-chairs of the commission Christina Pappas, Michelle Mills Clement, and Gayle Bobo, provided an update on the commission’s progress in recommending organizational changes to foster a welcoming and positive work environment at NAR, while also emphasizing its core mission. Mills Clement highlighted NAR’s leadership role as the world’s largest real estate association, aiming to set a model not only for the real estate industry but also for associations globally.

BY LISA FANT

The State of LGBTQ+ Homeownership

Each June, Pride Month commemorates the 1969 Stonewall Uprising, a pivotal moment in the history of the Gay Liberation Movement in the U.S. It’s a time not only to honor this milestone but also to celebrate the LGBTQ+ community and its profound impact on history. Vibrant parades and festivals attract millions of attendees throughout the month. Yet, amid the festivities, there exists a sobering reality: a significant gap persists in LGBTQ+ homeownership rates, revealing enduring barriers that hinder access to this fundamental aspect of the American Dream.

In the realm where homeownership represents stability and security, LGBTQ+ individuals and couples frequently encounter challenges marked by discrimination, fear, and systemic inequalities. According to the LGBTQ+ Real Estate Alliance’s annual report, The LGBTQ+ Journey to Homeownership, the LGBTQ+ community has a homeownership rate of just 49.8%, which is far behind the American average of 65.9% and non-Hispanic whites at 75.8%. While the report indicates that societal acceptance levels of the LGBTQ+ community, homeownership disparities underscore the complex challenges and discrimination faced by the community in achieving housing equality.

BARRIERS TO HOMEOWNERSHIP

Rising mortgage rates and home prices, lack of inventory, debt burden, and limited understanding of the homebuying and lending processes are just some of the common barriers to homeownership. However, the LGBTQ+ community’s path to homeownership is made even more difficult because of discrimination and the fear of discrimination. According to the LGBTQ+ Alliance’s report, The Center for American Progress reported 29% of LGBTQ+ people reported experiencing some kind of housing discrimination or harassment in a housing setting this past year. In their 2023 Fair Housing Trends report, The National Fair Housing Alliance reported a rise in sex-based housing discrimination complaints including those against gender identity and sexual orientation. Sex (including complaints based on sexual orientation or gender identity) was the third most frequent basis of discrimination, following disability and race, with 2,490 complaints (7.5% of all complaints) in the U.S. in 2023.

HOUSING DISCRIMINATION FACING THE

LGBTQ+ COMMUNITY

The types of housing discrimination faced by members of the LGBTQ+ community are not always limited to discrimination due to sex or gender identity alone. Discrimination can occur because of race, color, religion, national origin, disability, familial status, and sex (including sexual orientation and gender identity). Refusal to rent or show housing, steering, or discrimination during the lending process are just some of the ways LGBTQ+ individuals may encounter obstacles in accessing housing opportunities. Additionally, discriminatory practices can manifest in unequal treatment, harassment, or the imposition of different terms or conditions based on an individual’s LGBTQ+ status. These discriminatory practices not only infringe upon individuals’ rights but also perpetuate systemic inequalities and undermine efforts to create inclusive and equitable communities.

DISCRIMINATION IMPACTS WEALTH BUILDING

Discrimination against LGBTQ+ individuals, beginning at a young age, can significantly impact academic performance, setting off a chain reaction extending into college and the professional sphere. Over 35% of LGBTQ+ individuals have reported experiencing bullying and discrimination during high school, which has had lasting effects on their academic achievements and earning potential, according to the LGBTQ+ Real Estate Alliance’s report. Moreover, as of June 2020, amidst the onset of the pandemic, half of the LGBTQ+ respondents surveyed reported facing discrimination in the workplace, adversely affecting their financial stability. Since then, instances of workplace discrimination have surged, with 21% reporting being denied promotions, raises, equal pay, or training opportunities based on their gender identity or sexual orientation.

Discrimination in education and the workforce can result in lower income and fewer opportunities for career advancement, making it more challenging to save for a down payment or qualify for a mortgage. Additionally, discrimination in the housing market itself can manifest in various forms, such as denial of housing opportunities or unequal treatment by

landlords or real estate agents. These barriers compound over time, perpetuating disparities in homeownership rates between LGBTQ+ individuals and their non-LGBTQ+ counterparts.

FEAR OF DISCRIMINATION

Outright discrimination is prevalent, yet it’s not solely about discrimination; the fear of facing discrimination also contributes to the hurdles in LGBTQ+ homeownership. Many LGBTQ+ individuals and couples hesitate to pursue homeownership due to concerns about encountering prejudice or being treated unfairly in the housing market. This fear can stem from past experiences of discrimination or from hearing about the experiences of others within the community. As a result, LGBTQ+ individuals may feel reluctant to engage in the homebuying process or may opt for alternative housing arrangements to avoid potential discrimination. A 2023 report by the The National Association of Gay and Lesbian Real Estate Professionals reports surveyed how discrimination shows itself and causes members of the LGBTQ+ community to:

• Feel anxious about how welcoming their new community/ neighbors will be (43%)

• Be cautious in hiring the right professionals (38%)

• Be overly concerned about with how new community/ neighborhood would react if they started a family (35%)

NEW JERSEY LEADS BY EXAMPLE

While not all states have laws in place to protect the LGBTQ+ community from discrimination, New Jersey stands out for its comprehensive protections. The New Jersey Law Against Discrimination explicitly prohibits discrimination based on gender, sexual orientation, gender identity or expression, disability, and other protected characteristics.

These protections go beyond the basic safeguards provided by the federal Fair Housing Act, ensuring LGBTQ+ individuals are treated fairly and equitably in the housing market and fostering an inclusive environment for all residents, including in the realm of homeownership. Through these efforts, New Jersey continues to lead by example in promoting equality and combating discrimination.

Concerned with how new community/ neighborhood would react if they started a family 43% 35%

Anxious about how welcoming new community/ neighbors will be

Top Shore Region Towns with Most New Listings

BY LISA FANT

According to New Jersey Realtors®

April year-to-date total market data, the housing market in New Jersey’s shore region is maintaining steady inventory levels. Despite elevated sale prices and mortgage rates hovering around seven percent, the market continues to see a consistent flow of new listings across the shore region. These are the top towns in New Jersey’s shore region boasting the most new listings, offering insights into the diverse neighborhoods that define this coastal area.

The data includes single-family homes, townhouses/condos, and adult community homes.

1

TOMS RIVER

623 New Listings Year-to-Date

Named after the river marking its southern border, Toms River offers a unique blend of quiet coastal living and urban convenience. With a population surpassing 98,000 residents, according to the U.S. Census, Toms River is a bustling suburban hub. The city features a diverse range of housing options, with 103 new listings in adult communities and 59 in townhouses and condos. Boasting various waterfront communities and parks, Toms River provides ample opportunities for outdoor recreation, including boating, fishing, and activities at Shelter Cove Park, which features tennis courts, soccer fields, and nature trails.

2 MANCHESTER TOWNSHIP

529 New Listings Year-to-Date Manchester Township, nestled in New Jersey’s Pinelands, offers a vibrant community with a population of around 46,000 residents, according to the U.S. Census. The town is known for its historic sites, parks, and lakes, and hosts several community events throughout the year, including annual Manchester Day and the summer concert series at Harry Wright Lake. While the town has a range of housing options from singlefamily homes to adult communities, adult communities account for 430 of Manchester Township’s new listings.

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BERKELEY TOWNSHIP

484 New Listings Year-to-Date

Berkeley Township, nestled along the Barnegat Bay and extending into the Pine Barrens, is a tight-knit community with waterfront properties, suburban neighborhoods, and preserved natural areas. It includes unincorporated communities such as Bayville, Holiday City-Berkeley, Holiday Heights, Silver Ridge, Pinewald, and Manitou Park. According to the U.S. Census, 41% of Berkeley Township residents are over the age of 65, with 335 of the township’s 484 listings located in adult communities. Home to Island Beach State Park, residents and visitors enjoy ample opportunities for boating, fishing, birdwatching, and surfing, as well as views of the Barnegat Lighthouse. Berkeley Township fosters a strong sense of community through regular events and summer concerts, year-round senior programs, and sports groups.

4

BRICK TOWNSHIP

481 New Listings Year-to-Date

Bordering the Metedeconk River, Brick Township offers a waterfront lifestyle amidst a vibrant suburban community. With a population exceeding 75,000 residents, according to the U.S. Census, it stands as one of Ocean County’s largest municipalities. Unlike Berkeley and Manchester, Brick Township’s new listings are predominantly comprised of single-family homes, totaling 329. The township boasts a variety of residential neighborhoods, shopping centers, beaches, and parks, catering to both residents and visitors with a diverse range of activities. Boating, fishing, and water sports thrive in Brick, thanks to the township’s extensive shoreline and marinas.

5

OCEAN CITY

338 New Listings Year-to-Date

Located on a barrier island along the Atlantic Ocean, Ocean City is a top destination for beach enthusiasts and tourists. With a year-round population of just above 11,000 residents, according to the U.S. Census, this number surges during the summer months as tourists flock to enjoy Ocean City beaches, shops, amusement parks, and boardwalks. The area boasts a blend of residential areas, condominiums, and vacation rentals, catering to both permanent residents and seasonal guests. The majority of new listings in Ocean City were townhouses and condos, totaling 232 homes, alongside 101 single-family homes. Beyond its beautiful coastline, Ocean City offers a variety of shops, restaurants, and entertainment venues, providing plenty of options for both residents and visitors to enjoy.

TOMS RIVER MANCHESTER TOWNSHIP

BERKELEY TOWNSHIP

BRICK TOWNSHIP

OCEAN CITY