The Power Is Now Magazine | August, 2021

AUGUST 2021 Vol. 08 | Issue 8

JUST HOW LOW CAN MORTGAGE RATES GO AND FOR HOW LONG?

WOMEN’S EQUALITY DAY

Page 134

AN ECONOMIC REBOUND FOR CALIFORNIA! Page 8

Page 16

MARC MORIAL

President of the National Urban League

HAVE YOU READ OUR PAST ISSUES YET? the power is now

magazine CENTRAL EDITION Vol. 08 | Issue 7

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

CLICK HERE TO READ US ONLINE!

HEADQUARTERS The Power Is Now Media Inc. 3739 6th Street Riverside, CA 92501 Ph: (800) 401-8994 | Fax: (800) 401-8994 info@thepowerisnow.com www.thepowerisnow.com

the power is now

magazine IMPORTANT STATEMENT OF COPYRIGHT:

1ST AND 3RD TUESDAYS OF THE MONTH 7:00 PM TO 8:30 PM ERIC L. FRAZIER MBA

Host NMLS 461807 President and CEO o: (800) 401-8994 ext. 703 c: (714) 475-8629 eric.frazier@thepowerisnow.com www.thepowerisnow.com

Special Guests! for more details go to

thepowerisnow.com/events

The PIN Magazine™ is owned and published electronically by The Power Is Now Media, Inc. Copywrite 2020 The Power Is Now Media Inc. All rights reserved.

“The PIN Magazine” and distinctive logo are trademarks owned by The Power Is Now Media, Inc. “ThePINMagazine.com”, is a trademark of The Power Is Now Media, Inc. “Magazine.thepowerisnow.com”, is a trademark of The Power Is Now Media, Inc. No part of this electronic magazine or website may be reproduced without the written consent of The Power Is Now Media, Inc. Requests for permission should be directed to: info@thepowerisnow.com

CONTENTS

AUGUST 2021 Pg. 20. Opinion: Could Tech be the end for the Real estate Brokerage Firms?

IN OUR CENTRAL EDITION: Pg. 25. Looking at NAR Report In Details: June 2021 Commercial Market Insights, by Steve Peterson.

Pg. 29. Opinion: ways a buyer mess up when getting a mortgage, by Norman Green.

Pg. 33. Why North Texas Housing is Blazing Hot!, by Johnnie Morine.

Pg. 37. Texas Real Estate agents are Overwhelmed. The Future is in the South and Here’s Why! by Sharon Bartlett.

POWER ECONOMICS

EAST COAST EDITION:

Pg. 8. An economic Rebound for California!

What does this mean for the state’s high rising real estate market?

Pg. 43. Making a good return on Property investment in Maryland, by Emerick Peace.

Pg. 47. Let’s talk about Insurance! What is your option when it comes to home insurance in Florida?, by Adriana Montes.

POWER REAL ESTATE Pg. 10. The Great South Migration: An Erashaping Exodus for the Northerners real estate markets Pg. 14. The Housing Market Inventory is just about to get better. Here’s why!

POWER LENDING

Pg. 16. Mortgage Predictions: Just how low can mortgage rates go and for How Long?

POWER TECHNOLOGY Pg. 18. 5 mobile apps in 2021 that will revolutionize your house hunting experience.

4

l

WEST COAST EDITION: Pg. 53. Appreciation rate, Trends, and Arizona Housing Market data, by Yvonne McFadden.

Pg. 57. 5 housing market predictions for Arizona Housing Market in 2021, by Peggie Simons.

Pg. 61. Top 5 hottest markets in the Inland Empire in 2021, by Kamesha Keesee.

Pg. 66. Just how safe is Fontana Housing Market? , by Ameer Elahee.

Pg. 69. Your Ultimate Homebuyer Checklist: Budgeting for homeownership in 2021 in Riverside, by Ruby Frazier.

Pg. 72. Meet Marc Morial, President of The National Urban League.

Pg. 77. Looking at Irvine Housing Market: Future opportunities for homebuyers, by Cornelius Jackson.

Pg. 81. Real Estate Market update with Jenny Gonzalez: Corona CA Edition, by Jenny Gonzalez.

Pg. 86. San Bernardino Real Estate Market Update: Housing market trends, Prices and looking Beyond, by Danon Burnside.

Pg. 89. Five facts no one is telling you about the San Diego Real Estate market, by Denise Matthis.

Pg. 93. Is Oakland real estate market a good investment market right now? , by Kenneth Session.

Pg. 97. Expert Opinion: Sacramento Housing market is Red Hot Right Now!, by Robert Langston.

Pg. 101. Whittier & La Habra on spotlight: Just how safe are the two cities for investors? ,

by Briana Frazier.

Pg. 105. Expert Advice: should I invest in LA Housing Market, by Adrian Bates.

Pg. 109. Los Angeles Housing Market:

Prices|Trends|Forecasts , by Success Money.

Pg. 113. Housing Market Analysis. Is this the right time to invest in Richmond Market? ,

by Joe Fisher.

POWER LEGAL Pg. 116. Redfin Report: African Americans still face massive barriers to homeownership!

Pg. 120. CFPB: Lenders engaged in discrimination, redlining, and reported bad data!

POWER MORTGAGE Pg. 122. Forbearance loans continue to decline steadily.

Pg. 124. Fannie Mae Economic Group Shines a Spotlight on what’s causing the housing market inflation problem in the country.

POWER HEALTH Pg. 128. Special Feature: Focusing on growing Mental Health Issues in America.

Pg. 130. Let’s Talk About Foot Health

POWER HISTORY Pg. 132. MLK and his Dream! 58 years Later…

Where are we?

Pg. 134. Women’s Equality Day. l

5

FROM THE EDITOR

W

August is here, again! Time does fly here in America, I don’t know about you but I feel 2021 probably will be the fastest year yet. The summer heat is blistering but you know what’s scorching even more? The real estate housing market. It’s red hot and no one is safe, not the buyers, not the sellers, and certainly not the market itself! The main problem we are experiencing right now as a country is the little to no supply of inventory. In fact, some reports have it that we need at least 2+ million homes for us to return to a state of normality. Can you believe that? Meanwhile, the mortgage rates are very low which is spicing the atmosphere with the “buying aroma!”

People want to buy now to take advantage of the low mortgage rates, the problem is sellers do not want to sell because if they do, they may not find another property to buy. It is that crazy!

There is hope though, at least the construction statistics show hope for the future! But for how long and how fast before people stop hurting? While the red hot real estate market is just trying to get back on its feet and run, another year will probably pass before the real estate market is running marathons.

Every time I think about the current state of the real estate market right now I go crazy, and given the fact that a wave of foreclosure is possibly underway, it gets me overwhelmed. I do not think we are really ready to deal with that especially after the fact that the country’s real estate market is a mess right now!

Despite the sad current affairs of the real estate market, I am happy because of the progress we have made so far as a company. We started the year right with The Power Is Now Fair Housing series in April where I interviewed industry experts on the 1968 Fair Housing Act. In addition, the Homeownership series was another milestone that we have so far achieved.

Last but not least, one of the projects that we have undertaken is to give back to the community with The Power Is Now Wealth Initiative. We are committed to supporting minority groups to achieve the dream of homeownership, with a particular focus on the African American Community. Homeownership is a dream for many African Americans denied because of the long history of racism and discrimination in the United States.

Our strategy is simple, to use our online presence and platforms to provide media support to organizations that desire to see the rate of homeownership increase for African Americans. One of the things we realized is that there are numerous opportunities for everyone but people do not know about them!

Through The Wealth Initiative, We will promote, support, educate and inspire the African American community to achieve the dream of homeownership in partnership with community organizations that have established relationships and access to the African American community. To learn more about this 6

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

program, go to www.thepowerisnow.com.

Magazine and many more interesting stories.

This issue of the TPIN magazine is fully loaded with articles to keep you informed all through the month. Within this issue ofthe PIN magazine you will find pages bubbling with information such as the Great South Migration which is An Era-shaping Exodus for the Northerners real estate markets. This story highlights the plight of homebuyers in some of the nation’s costly housing markets such as California, New Jersey and New York. We why the Housing Market Inventory is about to get better as well as give you some of our mortgage predictions for the rest of the year. The cover highlights Marc Morial, the President of the National Urban League.

He is an entrepreneur, a lawyer, a Professor. A Legislator has been a mayor, held top leadership positions, and now a CEO of the largest civil rights organization in the country. Read more about Marc’s story only on this issue of The PIN

At this moment, I would like to thank our power team for their continuous hard work and committment to making The PIN magazine a reality and also to you our readers. We would be nothing without you. Our team is dedicated to you. We want the best for you which means we are committed to bringing you the best from us. Take a moment and share this magazine with family and friends.

WWW.THEPOWERISNOW.COM

Remember, knowledge is power and The Power Is Now! ERIC L. FRAZIER MBA President and CEO The Power Is Now Media, Inc.

l

7

An economic Rebound for California!

What does this mean for the state’s high rising real estate market?

C

alifornia was one of the states to take aggressive action to protect its citizen from the Coronavirus pandemic. And this did not only protect the citizens but also made sure that the economy was still afloat. In addition, the efforts against the pandemic set the stage for a much faster recovery, something that cannot be said of some states and countries. In fact, California is showing agility in recovery leading the nation according to a report from UCLA. Perhaps aiding in the faster recovery is California’s strong technology and white-collar jobs. Still, to add to that, there has been a relatively rapid boost in home building, and all these factors coupled together buoy the economy of California and ultimately offset the slower return from the touristdependent leisure and hospitality sector.

No doubt that the Covid-19 pandemic was one of the worst health crises we faced this decade but the numbers seem really promising. Nationally, the UCLA forecast shows that the gross domestic product will spike 7.1 percent this year tapering to 5.0 percent in 2022 followed by s steady growth of 2.2 percent in 2023. What makes this a unique recovery is its rapid pace!

It is even more remarkable if we compare this rate of recovery with the 2007-10 recession. However, there were some measures enacted which perhaps better explain the rate of recovery for both the state of California and the nation. Chief among them was the pandemic stimulus and the spending programs that were enacted by the government shortly after Covid-19 was declared a public health in the country.

“We never fully bounced back after a tepid response to the great financial crisis,” Feler said. “That led to negative economic, political, and social effects. So we learned a lesson. This time, we pumped a lot more money into the economy.”

123rf.com

Leo Feler, a UCLA Anderson Forecast’s senior economist said “we are about to have one of the best years of economic growth that we’ve had since World War II.” This unparalleled growth while being recorded in most other states is a remarkable feat for the state that was once crippled by the Pandemic. “We’re looking at a boom time for the U.S. economy.”

8

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

Taking this case close to home, the state lost almost over three-quarters of its jobs. Most of these jobs were in the category where we have a high degree of human-to-human contact, for instance in the leisure and hospitality sector, in the retail sector, and many others which primarily fall in the services category. The governor did something interesting, he eased the business restrictions with the state resuming full operations in mid-June.

Still, while this is good news for the state, the unemployment rate will remain among the key concerns for the state “because California is a more entrepreneurial state with a younger population,” Jerry Nickelsburg, the forecast director said.

“People earlier in their career tend to have more unemployment.”

The forecast report predicts that by the end of the year, the state’s rate of unemployment will average at 5.9% compared to the national average of 4.5%. While that raises concerns, it is important to highlight that the state is expected to add jobs faster than the national average.

In fact, UCLA predicts that by the end of the year 2023, unemployment will average at 4% compared with the 3.7% nationally.

Despite a shared optimism not just by the UCLA economists but by also some 71 economists surveyed by Bloomberg who projected a 6.6% GDP growth, we still face uncertainty especially given the fact that Californians are set to leave the state for regions with lower costs of housing. This ultimately will affect the rate at which recovery happens in the country. Nevertheless, this exodus might be proverbial especially after the fact that there is a spike in residential construction triggered by the housing shortage and low-interest rates. It is estimated that by the end of the year 2023, at least some new 391,000 units will be built. It is a positive step in the right direction, but still not enough to solve the state’s dearth of affordable units.

Data Sources https://www.latimes.com/business/story/2021-06-02/lafi-california-economy-recovery-ucla-forecast-june-2021 https://laborcenter.berkeley.edu/california-cant-affordto-repeat-the-great-recession-state-spending-iscritical-to-economic-recovery/ https://calmatters.org/commentary/my-turn/2021/05/ california-leads-our-national-recovery-despiteperpetual-naysayers/

WWW.THEPOWERISNOW.COM

l

9

real estate

•

I

t didn’t start with the pandemic. It certainly won’t stop after the pandemic! The great south migration can only be stopped by one thing- affordability!

Homebuyers looking to reenter the housing market is today looking to buy in the areas that are located outside the densely populated areas. Illinois, New York and New Jersey are some of the states that have so far recorded the most outbound moves while moving to the west, California is losing its population at a rapid rate. Here’s what we know so far; • • • 10

•

People now prefer living in Texas and Idaho than in California.

The most significant outbound move has been recorded in the states of Illinois, New York and New Jersey.

In 2020, the states of Idaho, Arizona, Tennessee,

l

South Carolina and North Carolina recorded the most inbound moves with Tennessee taking the lead.

More people are flooding the states of Florida, Texas and Colorado which are now in the top eight states for inbound migration.

The pandemic never stopped people from moving. On the contrary, in some instances, people moved at rates higher than they did in 2019. On average, inbound moves were recorded at comparable rates to 2019.

WHY ARE PEOPLE MOVING? Real estate is becoming a hot topic mostly in areas recording high outbound moves. Take California for example, once hailed as the golden land for golden opportunities, which has now become a nightmare for most low-to-middle income earners. The median price for a house in California now stands at $813,930 according to a recent report by the California Association of Realtors. This is almost triple the national average. And that is not all, California has four of the country’s five most expensive residential markets that is, the Silicon Valley, San Francisco, Orange County, and San Diego. In addition, the THE POWER IS NOW MAGAZINE | AUGUST 2021

123rf.com

THE GREAT SOUTH MIGRATION: AN ERA-SHAPING EXODUS FOR THE NORTHERNERS REAL ESTATE MARKETS

poverty rate in California is even worse, Californians account for 12 percent of the country’s population, but a quarter lives below the poverty line and are homeless. In terms of the share of its population that is cost-burdened, California has the highest share with people spending more than 30 percent of their incomes on housing alone.

policies, and provisions that simply do not work, just to name a few! When you combine all these factors together, the result is a severe shortage of affordable housing which consequently pushes the prices of the homes upward. The problem had been boiling for quite some time but has now reached a critical point for the state and the people cannot take it anymore. And while the state itself has in the recent past been passing sweeping bills to address the housing shortage in the state, and also tech giants throwing billions of dollars into the problem, that is not enough to remedy the situation. “Broadly speaking, there is no solution to the California housing crisis without the construction of millions of new houses,” said David Garcia, policy director for the Terner Center for Housing Innovation at the University of California, Berkeley.

However, it would be unfair to say that California is alone in this. In fact, as severe as this may sound, the rest of the country is slowly approaching the condition California is in right now. Reports show that during the longest economic expansion to ever be recorded in the United States, the country built fewer homes than it usually does which has been putting pressure on housing prices all over the country.

“California is not alone,” said Chris Herbert, the managing director of Harvard’s Joint Center for Housing Studies.

“It’s just more extreme.”

HOW DID WE GET HERE? Bad policies, bad governance, outdated zoning laws, tax WWW.THEPOWERISNOW.COM

CALIFORNIA MAY BE WORSE… BUT NEW YORK CITY Just like many other densely populated areas, New York city’s

housing supply is by far worse.

The demand for housing by far outpaces the supply just like in California, where prices are forced to spike beyond what people can actually afford.

There’s however a general consensus that the state needs to build more housing to accommodate the increasing demand which now brings another issue of contention, whereby there is a disagreement about what kinds of buildings should be built and how large they need to be. Housing in the State of New York is a top issue and will have huge implications for the future of the state and while many bills have been passed, I say it is about time we stopped talking and actualize the building plan. Elections are already on the way, and I like it that not only do many of the candidates agree to the house to be a major challenge for the state this means they also propose to spend more on housing which means, in the next five to ten years, we might be experiencing a construction boom in the states of California and New York. but, does that stop people from moving to other southern states?

Partly, It will stop the exodus! We are not building fast enough. In fact, a 2016 report by McKinsey & Co. estimates that California needs at least 3.5 million more homes by the middle of the next decade. This is one of the things Governor Gavin Newsom has taken very seriously and made part of his administration’s goals.

At the current rate, it may take the state until 2050 to realize it.

Another reason why people are moving out of these states in droves is that they are looking for better employment opportunities elsewhere and the southern

l

11

states offer a better solution. But, if we can provide a solution such that Californians do not have to spend more than 40 percent of their income on housing, then we’ll also have solved the southern migration problem. One thing we have to agree on is the fact that this migration is not a California’s or New York’s problem, but rather a national problem. Over the past decade, we have seen a rise in homelessness coupled with anti-development sentimentalism and growing frustration among the nation’s middle-class workers who have been consistently locked out of the housing market.

Inbound migration will just create another problem where the competition will be stiff; consider this, housing costs are relative which means, for the people leaving the expensive states and cities, they will find almost any other city relatively flush with a selection of affordable homes. However, for the natives who are tethered to the economy, the influx of outsiders only puts pressure on housing costs.

Jobs Supply and Could they too be A Problem?

Let’s talk about jobs, I just briefly touched on this issue but leaving without doing somewhat a full coverage, I would be doing a disservice to this article. What you realize about any community, jobs are the primary growth catalyst and here in the united states, the nation’s inequality highlights this fact perfectly. The United States is growing bifurcated where one section -the high-paying jobs- is flush with opportunities in the tech and finance industry while the other- the low-paying jobs- in retail and personal services. If you thought this mass exodus involved people alone, you are so wrong. Big businesses are also moving out of California for states like Florida, Texas, and Arizona.

In 2020 alone, Oracle, Palantir, and HewlettPackard were among the companies announcing they would be relocating their headquarters from California.

The jobs in California and the incomes are simply not enough to offset the rising and high taxes, the

cost of living, and the tight regulations. To help you understand just how worse the problem is, in 2020 over 135,000 people left California, marking the third-largest loss to ever be recorded in the state.

This was however heightened by the rise of remote working due to the pandemic, which gave people more options to choose where they work from. A recent survey by a company called Blind found that two of every three Bay Area workers would leave the area permanently if they could continue to work from home indefinitely.

Therefore, leading the exodus are the younger less educated, and lower-income people who are being replaced by high-income earners with graduate degrees, and this will eventually create a bigger gentrification problem.

SO, WHERE DO WE GO FROM HERE? These states experiencing some sort of hemorrhage needs to build more! But what happens where the local jurisdictions hold powers over what gets built, as in California?

Many state officials have often caved to the Not In My Backyard (NIMBY) pressure in the name of protecting the environment. Some zones were downzoned in the 70s which effectively made it harder to build further contributing to racial segregation and sprawl. To as much as threequarters of the residential area in LA is restricted to single-family homes.

Further, environmental pressures in California have also made the problem worse. According to Stephen Levy, director of the Center for Continuing Study of the California Economy in Palo Alto “At some point, the regions that are under pressure to build more housing are going to find areas that are prone to more frequent fires.”

The Governor of California isn’t taking this problem lightly. He has vowed to be more aggressive and in some instances even suing a city for refusing to build affordable structures.

Sources https://www.bloomberg.com/graphics/2019-california-housing-crisis/ https://www.nytimes.com/2021/02/12/business/economy/california-housing-crisis.html https://www.foxbusiness.com/real-estate/suburbs-southern-states-surge-popularity https://www.ppic.org/blog/whos-leaving-california-and-whos-moving-in/ https://www.cnbc.com/2021/01/23/why-companies-are-fleeing-california.html https://usblog.teamblind.com/wp-content/uploads/2020/05/RelocationSurvey.pdf https://kutv.com/news/nation-world/where-are-americans-moving-report-shows-migration-to-western-southern-states https://www.foxbusiness.com/economy/americans-fleeing-ny-california-illinois-for-arizona-idaho-and-others https://www.cssny.org/publications/entry/rental-housing-affordability-in-urban-new-york-a-statewide-crisis

12

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

The Housing Market Inventory is just about to get better.

Here’s why.

This is one of the most controversial topics I have to cover this year because in part it is true. If you have been following the real estate news all through the year, two things must have come out clearly to you already. First, inventory is tight, there is no activity in new construction and some regions are suffering more than others. Take an example of California, New York, or New Jersey which are some of the markets that have recorded a high ‘hemorrhage’ of people due to high real estate prices. Second, there is a cloud of optimism with so many experts arguing that the housing market is about to get better, especially in the markets that have high real estate prices.

T

oday, the prices for new and existing homes are at a record high and the demand is still skyrocketing. The rates are relatively low which partly explains why people are in a hurry to buy. Going by the data from Zillow, homes are staying on the market for an average of 6 days only nationally marking quite a remarkable turnaround. However, how stiff the competition is and the need to supply more homes, otherwise, this is only the beginning of prices soaring beyond anything we’ve ever seen.

only added to the thirst for new homes. Plus, there’s also the fear that if people do not buy now, they might be locked out for while before such opportunities present themselves again in the future. All these market conditions seem to favor one particular group of people, the majority of the millennial of whom are just reaching the prime buying years. As such, going forward, we should be expecting a sky-high demand for new homes which presents a set of new challenges for the federal government and the states alike.

There are a few factors that have led to this phenomenon. The first and perhaps the most obvious one is the Covid-19 pandemic which has accelerated the home buying process for most people. Earlier, we mentioned in a previous article that homes have never been this important. In addition to that, the historically low-interest rates

KEEPING UP WITH THE DEMAND This is a giant issue that we have to face altogether. For a long time now, we have focused on the millennials forgetting the Gen-Zers whose older members are now 24 years old and ready to become a homebuyer. The demand might quadruple in the next 5 years, which is why we

14

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

construction more than doubled in the midwest states putting downward pressure on the home prices. In addition, the northeast and Southern states also recorded faster rates of new home construction while home building activity slowed in the western states. To add to that, new construction for both Single-family homes and multifamily properties increased by 15 percent and 30 percent respectively.

must not delay our efforts to build any longer.

Homebuying in America is poised to become more expensive if not impossible. The total inventory hit a record low of just 2.7 months’ supply in September last year and sunk even lower to 2.5 months’ supply in October.

According to a recent report by NAR homebuying hit a record high in August last year while a separate Bloomberg report found that going by the current supply rate, the US is likely to run out of homes sooner than later.

It is however not all in vain as builders have been working round the clock to remedy the situation.

In fact, going by the census data, construction in the country for new homes in September last year started at a seasonally adjusted annual rate of 1.42 million which is a 1.9 percent increase from the previous month and an 11 percent increase year over year.

123rf.com

THERE IS HOPE AFTER ALL… Perhaps this is a trend only starting to gain traction. Numerous reports now show promising activity in new homes construction in the country surging after the winter weather than slowed down the activity in February this year. In March alone, the United States started at a seasonally adjusted annual rate of 1.74 million which is an incredible 19 percent increase from what was recorded in February and a 37 percent increase year over year.

That is not all, there was an increased pace for construction permits in march even though by smaller increments. To put it into perspective, new home construction permits happened at a seasonally adjusted annual rate of 1.77 million just a 2.7 percent increase from February and a 30 percent increase year over year.

Perhaps to explain the south migration, WWW.THEPOWERISNOW.COM

TAKING THE PROBLEM HEADS ON! America’s problem is not the high prices of homes rather the lack of homes. In fact, a recent analysis by Freddie Mac estimates that the U.S. is 4 million units shy of meeting the demand of new homebuyers. Since 2018, this deficit has only grown wider to as much as 50 percent. This problem cuts across the board wherein sellers are facing the same problem as the buyers. If you cannot find a new home to buy, how are you going to sell your current home? In fact, data shows that in March this year, there were 117,000 fewer sellers on the market for existing homes.

“There is a strong understanding of the role and increase in new homes plays in today’s housing market and we hope this momentum will continue throughout the year to ensure there are homes to meet the extreme demand from buyers,” said Bill Banfield, Rocket Mortgage’s executive vice president of capital markets.

In order to solve this problem once and for all, we need to build more, at least build at a steady pace. However, America’s affordability has been compromised due in part to the rising lumber cost and high mortgage rates. “With the cost of lumber reaching new highs, however, the higher costs are being passed on to consumers. While new construction is a critical component in rebalancing the current dynamics, lack of affordability will continue to weigh on the housing market for the remainder of 2021,” said George Ratiu, senior economist at Realtor.com.

Sources https://www.marketwatch.com/story/new-home-construction-rebounds-sharplyas-america-faces-dire-housing-shortage-11618577442 https://www.housingwire.com/articles/housing-inventory-is-about-to-get-betterheres-why/ https://africa.businessinsider.com/design/how-2020-broke-the-housing-marketso-many-homes-are-selling-that-we-could-run-out-of/d550b45 https://www.cnbc.com/2021/06/17/why-experts-say-you-might-want-to-waitto-buy-a-new-house.html l

15

Mortgage Predictions: Just how low can mortgage rates go and for how long?

A

ll through 2020, mortgage rates remained low, setting new record lows in December and January of less than 3 percent. Since then, the mortgage rates have climbed setting a new trajectory for this year. However, the direction that trajectory will shift towards largely depends on inflation. One thing that is for sure, most experts agree that the rates will not remain at rock bottom, and might rise significantly to as high as 3.5% or even 4.25% before the year ends.

The good news is that today, the mortgage rates are still low, which means that homebuyers can take advantage of this opportunity to buy now and lock in a great deal!

IT’S NOT TOO LATE! As the economy begins to reopen, one thing is certain, that mortgage rates and refinance rates will begin to rise. That doesn’t however mean that one day we’ll wake up to find the rates sky-high. It is a gradual process. For instance, so far, the mortgage market has been marked by a gradual rise and fall of the mortgage rates to what we have now. That means that for those looking to buy their homes this year, there is still a pretty good chance to lock in exceptionally low rates. And while no one can predict with true certainty about the future of the mortgage rates, the general consensus is that there is a big likelihood that the mortgage rates might rise in 2021.

“Our long-term view for mortgage rates in 2021 is higher,” says Realtor.com chief economist Danielle Hale. “As the economic outlook strengthens, thanks to progress against coronavirus and vaccines plus a dose of stimulus from the government, this pushes up expectations for economic growth and inflation, driving long-term bond rates higher.”

One of the key goals and a positive sign of a strong economic recovery is getting people back on track to work faster. To achieve this fast, the government has to speed up the vaccination process “Mortgage rates should rise as we are in the early stages of getting our economy working again,” says Logan Mohtashami, housing data analyst at HousingWire.

However, the mortgage rates could remain relatively low if there is any unexpected bad news especially concerning the Covid-19 or even the vaccine distribution. Therefore, if the process of vaccination goes smoothly and there is a speedy recovery, we should expect the mortgage rates to start climbing.

16

l

123rf.com

MORTGAGE RATE PREDICTIONS FOR 2021 Data from Freddie Mac shows that since the beginning of the year, the average 30-year fixed mortgage rate increased roughly 0.4 percent, and every sign points to the rate actually rising higher as we progress with the year.

THE POWER IS NOW MAGAZINE | AUGUST 2021

One thing we have to keep in mind is that longterm Treasury bond rates are a key indicator of the mortgage rates. Last year the 10 year Treasury yield bottomed in August. Since March 2021, the yield hovered between 1.5% and 1.7%. “Mortgage rates have been coming back down while bond yields have been rising since they were never properly priced during this crisis. However, we are getting close to a traditional relationship with bonds and mortgage rates,” added Logan. This can only mean one thing, the more the yield from long-term bond yields rises, the more the mortgage rates will rise higher.

In addition, whatever happens to the stock market going forward has a big impact on the mortgage rates. “We haven’t had a 10% plus correction [in the stock market] since March of 2020,” Mohtashami says. “[A drop in the stock market] will provide a rally in bonds, but should only be short term.”

We mentioned something about inflation which will largely influence the direction mortgage rates to take going into the future. According to Greg McBride, CFA, Bankrate chief financial analyst, the covid-19 vaccines have brought new optimism to the US economy.

“The tug of war over whether mortgage rates will move higher or lower from here largely revolves around inflation,” McBride says. “If inflation does indeed prove temporary, any increases in mortgage rates will be limited.

So far the evidence suggests only a temporary spike in inflation. This should keep rates in the low 3’s in the coming months. But if the Fed is deemed behind the curve and the inflation genie gets out of the bottle, that’s a whole different story.”

WHAT’S THE TREND? A RISE…?

There have been small increases in the mortgage rate since the beginning of the year and all indicators point to the rate rising. Early in the year, the rate spiked to 3.18 percent and then fell back to under 3%. This means that if you are looking to refinance, there is a good chance that you will secure a good rate. But there are some experts who argue that the refinancing boom of 2020 will slow down dramatically by the second half of 2021.

“We think refi volume is going to fall off pretty sharply, particularly in the second half of 2021 as

WWW.THEPOWERISNOW.COM

the economy really finds its footing,” says Michael Fratantoni, chief economist at the Mortgage Bankers Association.

Nonetheless, what the FED does going forward will have a significant impact on the mortgage rates and while it doesnt set the mortgage rates, the central bank sets the overall ate environment.

When the pandemic began, the FED slashed the federal funds rate and signaled an intent to keep the rates down for a while; this means little to no upward pressure on the mortgage rates.

“I think the Fed is going to keep their foot on the gas, keeping short-term rates at essentially zero through 2022, and only very slowly begin to raise rates in 2023,” Fratantoni says.

WHAT DO HOUSING AUTHORITIES SAY ABOUT MORTGAGE RATES Many housing authorities agree that the mortgage rates will hold in the low to mid 3 percent throughout the rest of the year, not unless there are unexpected events disrupting the economy.

According to major housing authorities - Fannie Mae, Freddie Mac, and the National Association of Realtors the average 30-year mortgage rate could fall between 3.0% and 3.30% by the end of summer. Here’s a summary of their predictions.

Housing Authority Fannie Mae National Assoc. of Home Builders National Association of Realtors Mortgage Bankers Association Freddie Mac Wells Fargo Average Prediction

30-Yr Mortgage Rate Prediction (Q3 2021) 3.00% 3.13% 3.20% 3.20% 3.30% 3.30% 3.19%

Sources https://time.com/nextadvisor/mortgages/mortgage-predictions-2021/ http://www.freddiemac.com/pmms/archive.html https://time.com/nextadvisor/mortgages/monthly-mortgage-forecast-andpredictions/ https://themortgagereports.com/76960/mortgage-rate-predictions-late-2021 https://www.bankrate.com/mortgages/mortgage-rate-forecast/

l

17

technology

One thing I love about the home buying application is that they will help you sort out everything based on your liking, by filtering your set criteria

123rf.com

5 MOBILE APPS IN 2021 THAT WILL REVOLUTIONIZE YOUR HOUSE HUNTING EXPERIENCE

H

ouse hunting has never been a pleasant experience. You have search and scroll through endless listings until you find your perfect match and then make numerous calls just to find the perfect opportunity. A while back, before the pandemic, people in the house hunting groove used to drive to neighborhoods and properties, tour homes while also making sure that there are social services and amenities available which altogether was daunting and intimidating.

With a homebuying app, this process can be eased out which will ultimately help you save your time investment considerably. One thing i love about the home buying application is that they will help you sort out everything based on your liking, by filtering your set criteria. After you have filtered everything, the next step is ruling the listings and properties that you dont like and eventually, you’ll have your shortlist. After you have a selection of your preferred homes, you can visit just the homes you like.

So what are the mobile apps to use for house hunting in 2021?

18

l

1. ZILLOW Zillow is one of the most downloaded real estate applicaton for both Apple and Android phones. Zillow as an application has a massive scope in inventory and services. The app allows its users to access free foreclosure data as well as request pre-approval assistance. In addition to these awesome features, zillow app is highly customizable and allows access to a bunch of filters that are useful for your house hunting. In terms of user base, Zillow boasts of more than 200 million unique visitors on a monthly basis.

One of the main attractions to the Zillow products is that it features 3D home tour with panoramic images, all this while simultaneously following along on a floor plan of the space.

It has a clean user interface and allows you to store your property’s information and see how its value estimates will change over time.

THE POWER IS NOW MAGAZINE | AUGUST 2021

2. REALTOR.COM This is an application connected to the National Association of Realtors which is a big pro for the application as users can easily get in touch with the Realtors located nearby. A big win for the application is the search functionality which allows users to include specific details about the property they are looking for. For instance, users can search for properties with multiple floors, a fireplace, center air and even community swimming pool or security features. Additionally, the Realtor.com application allows users to take a photo of a real estate sign you see in the neighborhood and get the details about the property almost instantly. However, one of the biggest issue i found with this application is that the more specific filters you may be looking for depend on the listing agent using the right keyword which means that if you are struggling to find everything you may need in your new home, you may have to widen your search and keep searching for the details you may need through the listing photos.

the areas where there are properties listed by Redfin or any other broker. In addition, the application will give you additional information like whether the home is likely to sell fast through the Hot Homes feature. In addition to all this awesome features, Redfin application allows its users to schedule a tour, either virtually or in person with a Redfin agent or directly through the application.

4. TRULIA Trulia application is best known for its powerful search functionality as it lets the users which lets the users to view properties listed in several ways. In addition to that, Trulia lets users view the properties, the area crime rate, shopping areas around the property, any eating establishments, schools around, the estimated commute times and the neighborhood demographic statistics.

The application lets access

to users to examine millions of listing nationally using 34 neighborhood map overlays.

These map overlays are really useful as they provide users with more insight about what it is like to live not just ion the home but also in the neighborhood.

5. HOMESNAP Homesnap fits in this category because because it has some of the best realtor options to choose from. With Homesnap, a user can be able to see the realtors available, their teams and brokers as well as view production metrics, agents ranking and their report and so much more. I love the application because it provide users with the prospecting tools, unparalleled client collaboration features and a direct connection to the MLS. Sources; https://www.investopedia.com/best-home-buyingapps-5079632 https://realestate.usnews.com/real-estate/slideshows/ the-best-apps-for-house-hunting?slide=5

3. REDFIN REAL ESTATE This is one the best real estate and home search application i’ve seen so far. Because Redfin uses an out of the box business model with agents and professionals affiliated with the company specializing different stages of the home buying process, the compay application serves as a way for buyers and sellers to communicate with the agents.

The application gives you access to a map that interactively highlights WWW.THEPOWERISNOW.COM

l

19

for the Real estate Brokerage Firms?

OPINION: COULD TECH BE THE END

We live in the age of AI. Everything seems automated heck even our homes are ‘automated!’

20

l

Speaking of homes, has real estate really caught up with the current developments in technology? It may seem like an obvious question but we all know the real estate industry tends to be shy to change!

The short answer, real estate is catching up with technology, and while the progress has been slow, I am happy that we are beginning to see the impact it has in the industry.

T

echnology is disruptive and probably this is the main reason why its adoption in the real estate industry has taken forever.

One of the fears most realtors, listing agents, real estate agents, brokers, mortgage servicers, and many other stakeholders have is whether technology and in particular AI will replace the human element in real estate.

We’ve seen technology replacing most other industries and a good case to mention is the finance industry. The ‘encroachment of technology and AI in real estate is causing apprehension among many stakeholders who feel that their jobs are being threatened. The good thing is that technology and ita adoption in real estate is a conversation that is not a surprise to many people, we’ve had this debate for so long and since we began accepting the new reality, a wide variety of technologies have come up and have revolutionized the real estate landscape. But it is also important to recognize the role of the human element in the changes that are taking place in the industry- but more so, what technology has done to revolutionize how real

estate agents do and approach their jobs.- take an example of augmented reality which has usurped the way they handle their assignments.

Technology might be the best thing so far that has happened to the real estate industry and therefore today we are going to take a deep dive and look at the role of technology, more specifically AI in real estate and whether real estate agents and other stakeholders should be concerned or emboldened by its adoption and prominence.

THE CURRENT STATE OF AI IN THE REAL ESTATE INDUSTRY The real estate industry is so huge! In fact, it has a global market size of $280.6 trillion. When it comes to technology investment, it is estimated that the industry has made $9.6 billion worth of investments. Much of this investment has been done in the area of proptech. However, it should be noted that this phenomenon is changing rapidly with the potential of AI being gradually recognized.

Though full adoption is yet to materialize, there have been numerous advancements in the usage and affordability of technology that have been the

THE POWER IS NOW MAGAZINE | AUGUST 2021

key drivers in its adoption among many real estate businesses now more than ever. In fact, the last decade has seen a significant rise in new technologies been adopted in real estate.

Proptech is perhaps the most recognized form of tech adoption in the real estate industry and basically, it involves the use of technology to impact the way realtors do business. This majorly is done through introducing new digital ways that are disruptive to the industry. One typical example would be the iBuyer model which utilizes algorithms to buy and sell properties in just a matter of days. This removes the need for a realtor in the buy-sell process. The rise of iBuyer is one of the extreme examples of how proptech is changing the real estate landscape.

Interesting: in 2019, investment in proptech was $14 billion in the first half of the year.

By comparison, that’s more than the entirety of 2017 ($12.7 billion) The way realtors and perceive the adoption of real estate will matter a lot. At present, the adoption is significant, but not so prevalent. AI as a business tool is just getting started, its popular days are yet to come, but we are fast approaching that.

THE GROWING ROLE OF AI IN REAL ESTATE INDUSTRY The power of AI is overwhelming and it has a tremendous transformative capacity. AI has helped so many companies automate their operations which in turn has increased efficiency. One report by PwC found that AI could potentially raise the global GDP by 14% between 2017 and 2030. In addition, another report by Gartner found that as many as 37% of organizations have adopted some form of AI in their business operations. However, Gartner warns that a spike in the rate of adoption could result in loss of employment which is an opinion shared by Brooking Institute that found that 25% of all the U.S. employment or 36

WWW.THEPOWERISNOW.COM

million jobs fall in the high-risk category to bear the brunt of automation. If so, this will have severe impacts as far as human capital is concerned.

Today, many operations are being handled by some software and not just in real estate, but in so many other industries which speaks to the fact that jobs will be replaced at some point. A study by Altus Group found that 48% of the executives are “using or already trying out AI and machine learning” but there is valid data supporting that we are still very far from seeing real estate agents being replaced by machines.

Part of that is because real estate needs some human touch to it. There is some specificity in the industry that calls for a human-to-human interaction which means, rather than replacing the agents, AI will be forced to work hand in hand with the agents, helping them to make databased decisions.

If you think about the sales transaction process, it is complex, heightened with emotion, and heavily reliant on the human overseer to tactfully direct a successful closing.

To achieve this, agents have to be extremely experienced and have the right observation skill to close the deal successfully, and given the fact that AI cannot accurately detect emotions, the human side of it will remain for a while.

So as a real estate agent, you should not be worried about your job or whether AI will replace you, i think technology comes to ease up the whole process, the specificity required in the real estate industry, as well as the reliance on interpersonal know-how, makes human touch more precious, which are some of the things AI cannot do.

Sources: https://asperbrothers.com/blog/ai-in-real-estate/ https://www.fastcompany.com/90540856/will-silicon-valley-put-real-estate-brokers-out-ofbusiness https://www.impactmybiz.com/blog/will-ai-replace-real-estate-agents/

l

21

SELECT A VIP AGEN Adrian Bates Los Angeles

Adriana Montes Florida

Ameer Elahee Fontana

Cornelius Jackson Irvine

Danon Burnside San Bernardino

Denise Matthis San Diego

Joe L. Fisher Richmond

Johnnie Morine Texas

Jenny Gonzalez Corona

Kamesha Keesee Corona

Kenneth Session Bay Area

Briana Frazier Los Angeles

Emerick A. Peace Maryland

Julius Cartwright Ohio

NT IN YOUR AREA Monica Hill Menifee

Norman Green San Francisco

Ruby Frazier Riverside

Sharon Bartlett Texas

Yvonne McFadden Arizona

Peggie Simmons Arizona

Robert Langston Fairfield

Steve Peterson Oakland

Success Money LA Area

LOOKING AT NAR REPORT IN DETAILS: JUNE 2021 COMMERCIAL INSIGHTS

By Steve Peterson The effects of the Covid-19 pandemic rippled through the economy and had a massive impact on Commercial Real Estate investment. Government measures led to the shut down of offices and businesses while people moved to work at home while others lost their job altogether. The little businesses that stayed open were barely staying afloat as the pandemic ravaged through the country.

But as the economy recovers, what are the strides made forward this year?

ACQUISITION. The rate at which investors acquire WWW.THEPOWERISNOW.COM

commercial real estate properties has grown at 1% below last year’s levels during the January-May period. When the pandemic hit, these levels dropped as much as 10% last year. As the economy continues to recover, the acquisition rate of commercial properties will continue to increase. It is unlikely that the rate will reach pre-pandemic statistics, as many firms have begun adopting the work-fromhome workstyle.

MULTI-FAMILY ACQUISITION. The Apartment market is now the year’s most vital asset, rising by 24% in the first four months of the year. It has the most significant deal volume of $62.9 billion. This year’s acquisition for multi-family homes accounted for $2.5 million, with garden or low rises

123rf.com

A

nd stimulus checks did little to prevent the massive setback felt through the industry. Additionally, the government issued an eviction ban that made it difficult for investors to collect rent from their rental properties. The loss of income significantly affected these investors as some faced the possibility of foreclosure on their properties.

Industrial and retail properties were also hit badly, as they worked at low capacity while facing the challenge of keeping up with e-commerce.

l

25

rising at a faster pace of 28% to 44 billion. These properties are commonly found in the suburbs, and if the current statistics are to go by, there seems to be an excellent demand for low-rises in the suburbs.

On the other hand, Mid-rises had a rise of 14% to $29 billion.

Low-rises might have a higher demand, but data shows that mid-rises have higher pricecap rates. As a whole, both of these kinds of properties have had their cap rates drop at the beginning of the year but have remained unchanged for April and May. However, apartment properties have the least risk spread at 3.4%, a drop from last year’s 4.6%.

OFFICE ACQUISITION. Office acquisitions are at a low start this year as investors are still holding off from investing in office spaces as they continue to assess work-from-home workstyle policies. Currently, office acquisition has risen to 15% above last year’s level during January-May 2021. Unfortunately, that means the year-to-year acquisition has dropped by -18% in central business district areas and by -13% in the suburbs.

Office acquisitions in the central

26

l

business district have accounted for 13% of all acquisitions, compared to the 15% of last year.

INDUSTRIAL. The industrial acquisition has exceeded pandemic figures and is highly sought after by investors. The purchase of these properties, $2.5 million or over, went up by 70% and accounted for a deal volume of $5.3 billion.

Warehouses are especially attractive and are responsible for at least 77% of the deal volume in May. However, the year-toyear cap rate is unchanged as it is currently at 5.9% from last year’s 5.8%. The acquisition for flex properties went up by 55%, while their cap rate decreased to 6.0%. The latter means that flex prices are firming up.

Additionally, the average price per square foot for both the flex and industrial increased in May. RETAIL. Acquisition for retail, industrial properties of $2.5 million and above rose by 76% in May, centers increased by 180% while those of shops went down by -4%. Centers formed the bulk of all retail acquisitions at 69% in May. A trend established for the past one-and-a-half years. The investors’ preference has not yet reached pre-pandemic levels as the retail market bears the

past challenging year’s effect and faces stiff competition from online stores. The cap rates for shops have remained unchanged at 6.5% and 7.1%, respectively.

HOTEL. Investors are finding full-service hotels more desirable than limited-service hotels. This preference may be because the former offers different streams of revenue while the other does not. However, both have grown by 113% and 40% for the first five months, respectively. It is essential to add that limitedservice hotels are especially attractive to investors looking to convert them to rental properties as they are a significant revenue source. The cap rates for the fullservice hotel have dropped to 5.3%, while that of limited-service is at 7.1%.

There’s no doubt that the pandemic rained havoc on the commercial real estate industry, and it is going to take time for it to recover. As it does, the economy is recovering as well and will better impact the industry. Businesses in time will go back to operating at total capacity; more people will get their jobs back and transition to some extent working in the office.

Source: https://www.nar.realtor/ commercial-marketinsights

THE POWER IS NOW MAGAZINE | AUGUST 2021

We help you achieve the American dream of homeownership!

ONLINE HOMEBUYER SEMINAR JOIN THIS SATURDAY Register at https://joinnow.live/s/a3o0dm Learn about: • • • •

•

•

• •

Home Purchase Strategies and Programs to Help You Buy Now! What you need to know about California Housing Crisis and why you must buy now.

Projected Home Prices in Califonia and why you must buy Now. How Easy it is to Qualify for a Forgiveable Loan for Down Payment and Closing Cost from The Golden State Finance Agency up to 27,500 dollars.

How Easy it is to Qualify for a Loan with No Payment for Down Payment and Closing with The California Housing Finance Agency.

How Doctors, CPA, Ph.D.’s and Attorney can Qualify for a Purchase loan to 750k and only 5% down with No Mortgage Insurance.

How Interest-Only loans work and can increase your purchasing power.

Why a Construction Loan may be the right move for you now?

Host:

JENNY GONZALEZ Real Estate Agent CALDRE 01249788 c: (951) 316-0374 jengonzalezre@gmail.com

Speakers: ERIC FRAZIER MBA NMLS ID: 461807 Vice President and Mortgage Advisor First Bank NMLS ID: 551928 o: (619) 476-3269 c: (714) 475-8629 eric.frazier@fbol.com

CAROLYN SUNSERI

Director of Marketing Golden State Finance Authority o: (916) 384-1619 f: (916) 444-3219 csunseri@rcrcnet.org

By Norman Green

Ways a Buyer Mess Up When Getting a Mortgage Getting a mortgage is a popular step most first-time homebuyers take when purchasing their homes. Yet, it’s the most dangerous, complicated, and stressful process. Most homebuyers attest to how difficult getting a mortgage is, and some lenders aren’t even trying to simplify the process.

Here are some of the ways a buyer mess up when getting a mortgage.

WWW.THEPOWERISNOW.COM

Ways a Buyer Mess Up When Getting a Mortgage WAITING TO HAVE YOUR 20% DOWN PAYMENT COMPLETE Making a 20% down payment is a conventional rule when one is applying for a mortgage. You must have heard it from lenders, bankers, and even read it all up on real estate sites. Making a 20% down payment is beneficial because it prevents you from paying additional monthly fees, also known as Private Mortgage Insurance.

Considering the current mortgage rate and the relatively stable economy, waiting for the golden 20% might not just be ideal anymore. This is because the more the clock ticks, the higher the mortgage rate could go. Not forgetting that home prices could also go up. l

29

123rf.com

H

owever, some first-time homebuyers do make mistakes in the process because they fail to make proper research. Many things can go wrong when trying to get a mortgage, and if you are not vigilant, you could fall into a massive trap.

In essence, you shouldn’t wait to get a 20% down payment before applying for a house loan. Instead, it would be best if you discussed with your lender to know a flexible figure to deposit. You should ensure that the figure doesn’t affect your finances or your salary.

NEGOTIATING WITH ONE LENDER Negotiating with one lender when trying to apply for a mortgage is a fatal error. You could be missing out on other big deals from other lenders that you might have gotten if you hadn’t stopped with just one lender.

Mortgage lenders have varying interest rates and incredible offers that can save you a huge deal in the long run. You might be surprised to see some of these rates be way lower than expected.

money around shows that you want to cover up something. Don’t be surprised if you get turned down.

You should also avoid applying for new credit because your credit score will undergo some scrutiny. Doing this will make the lender think you are desperate. We advise that you stay put and avoid applying for any new credit.

CONCLUSION Applying for a mortgage loan isn’t the easiest process. However, you need to do your part to avoid long processes and so much paperwork.

Don’t apply for new credit; shift money around; meet with one lender, and wait till you have your 20% down payment.

So, don’t stop at negotiating with just one lender.

Meet two to three others and make sure you are getting the best offer. Start searching for lenders at least three months before you start your search for a home.

Visit The Power Is Now Media, Inc. and read/watch more real estate and mortgage news, videos, and information on current developments in the real estate industry on Facebook Live and our YouTube channel. The Power Is Now Media, Inc. is leading the conversation in real estate.

NOT KNOWING THE DIFFERENCE BETWEEN PREQUALIFIED AND PRE-APPROVED A lot of first-time homebuyers think this is the same, but it isn’t. To be pre-qualified means that the lender has agreed to check all the information presented to them, such as your income, credit score, assets, etc. After that, you will let the lender know the amount you want. There’s no guarantee that you will get the money, though.

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com.

After the pre-qualification is the pre-approval. The lender will crosscheck your credit, income, and assets. After verification, the lender will sign you a letter committing to finance your home.

When looking for a mortgage, being pre-approved is the real deal and not pre-qualified.

SHIFTING YOUR MONEY AROUND This is the last thing you want to do because it’s would be a red flag on your part. The lender would want to check if your finances have remained stable over a few months to a year, so moving

30

l

References https://www.nerdwallet.com/article/mortgages/first-time-home-buyer-mistakesthat-are-easy-to-avoid https://www.google.com/amp/s/www.realtor.com/advice/finance/ways-homebuyers-mess-up-mortgage/amp/ https://www.google.com/amp/s/www.bankrate.com/mortgages/avoid-mortgageclosing-missteps/amp/ https://themortgagereports.com/255/how-to-unapprove-your-mortgageapproval-in-process

THE POWER IS NOW MAGAZINE | AUGUST 2021

ONLINE HOMEBUYER SEMINAR

www.first.bank

FIRST BANK WISDOM ®:

There’s no place like your own home.

Let’s get you there.

Learn about: • • • • • • • • • •

The Housing Crisis in California The Real Estate Market - Time to buy and time to sell Hear from Local Real Estate Experts about the challenges and opportunities Down Payment Assistance from Golden State Financing Authority Down Payment and Closing Cost Assistance from CALHFA First Bank Mortgage Programs How to Buy a 4 Unit Apartment Building as a First Time Home Buyer Strategies to Buy your First Home with Friends and Family Documentation Requirements for All Loans Questions and Answers

FRIDAY, AUGUST 13

10:00 to 11:30 AM HOST:

Register at https://joinnow.live/s/8coHQE

SPEAKERS: ERIC L. FRAZIER MBA NMLS ID: 461807 Vice President and Mortgage Advisor

www.first.bank

First Bank NMLS ID: 551928 o: (619) 476-3269 Eric.Frazier@fbol.com

CAROLYN SUNSERI Director of Marketing Golden State Finance Authority o: (916) 384-1619 f: (916) 444-3219 csunseri@rcrcnet.org

By Johnnie Morine

t’s no surprise to see the housing market in North Texas getting hotter as time passes. The writing on the wall was clear, but only a few people understood the letters. In the case of North Texas, it has always been clear that the rise of home prices would happen sooner than later.

FACTORS RESPONSIBLE FOR THE RISING HOME PRICES IN NORTH TEXAS While several factors are responsible for the sudden rush of homes in North Texas, such as the pandemic, the most common reason is the imbalanced demand and supply.

Generally, there’s a shortage of homes across the United States, leading to bidding wars amongst potential buyers with cash.

Buyers compete for the available homes for sale, and in some cases, they end up outbidding each other.

According to June reports from the Dallas Morning News, house prices rose 26% compared to the same period in 2020. This is an indication that prices are unlikely to drop. Buyers are outbidding each other to put themselves on top, offering all kinds

I also blame some agents as catalysts for the rising home prices. Clever agents will raise the price to see that one buyer will beat the price. This causes the buyers to make offers that are far above the asking price.

I

WWW.THEPOWERISNOW.COM

123rf.com

Why North Texas Housing is Blazing Hot!

of incentives. But, what caused the current redhot market in North Texas? I’ll tell you why.

l

33

The second reason for the housing market explosion is immigration. Over the years, North Texas has had a sound economy, which is agriculture-based. That’s why everyone wants to move there. In 2016 alone, over 400,000 immigrants were recorded, and between 2016 and 2017, the population had hit 28.3 million people. All these people can’t be homeless - they need a roof over their heads. Hence, the reason for the blazing hot market in North Texas.

The other reason is the rising costs of lumber and other building materials. The rise has kept many builders in limbo, hence why building constructions are moving at a slow pace that resulted in low home supply.

WILL THE HOUSING MARKET IN NORTH TEXAS CRASH? No, I don’t think so. Why? Because the state has got a good economy. I don’t expect housing to burst anytime soon, provided the demand continues to outweigh the supply. What is currently happening may be permanent, and the hope that the bubble will burst might be a mere fantasy.

123rf.com

CONCLUSION This is an excellent period for sellers to make profits from their properties. If you are a buyer, I suggest that you get into the market because, in a few months, you will look back and realize how lucky you were to purchase a property when the price was still reasonable.

34

Overpaying for houses is now a trend in

l

North Texas, so if you don’t put on your A-game, other pros in the game will keep snatching houses under your nose. You just have to be prepared and ready to spend.

Visit The Power Is Now Media, Inc. and read/watch more real estate and mortgage news, videos, and information on current developments in the real estate industry on Facebook Live and our YouTube channel.

The Power Is Now Media, Inc. is leading the conversation in real estate.

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderateincome and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www. thepowerisnow.com.

References https://www.forbes.com/sites/candaceevans/2018/05/17/12things-you-need-to-know-about-north-texas-realestate/?sh=6ddcc8522cd8 https://www.fox4news.com/news/hot-north-texas-real-estate-markethas-buyers-struggling-to-keep-up.amp https://comptroller.texas.gov/economy/fiscal-notes/2018/march/ housing.php https://www.wfaa.com/amp/article/news/politics/north-texas-redhot-housing-market-buyers-contracts-no-guaranteed-final-salesprice/287-015807ac-44e8-4199-a383-682d79cd953e

THE POWER IS NOW MAGAZINE | AUGUST 2021

YOU DESERVE TO LIVE SAFE FROM SEXUAL HARASSMENT.

Sexual harassment by a landlord or anyone related to your housing violates the Fair Housing Act. If you receive unwelcome sexual advances or are threatened with eviction because you refuse to provide sexual favors, you may file a fair housing complaint.

To file a complaint, go to

hud.gov/fairhousing or call 1-800-669-9777 If you fear for your safety, call 911.

FAIR HOUSING IS YOUR RIGHT. USE IT. A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.

By Sharon Bartlett

TEXAS REAL ESTATE AGENTS ARE OVERWHELMED. THE FUTURE IS IN THE SOUTH, AND HERE’S WHY?

T

exas housing market is one of the hottest selling markets in the U.S. and the whole of North America. Several property owners are selling while buyers are snapping up houses as fast as they could.

The housing market has provided an opportunity for sellers to make a profit and real estate agents who are currently overwhelmed by contracts and negotiations to earn more. A lot of buyers need help getting home. Plus, some of them are outsiders who aren’t familiar with the state.

Therefore, they need a real estate agent.

WWW.THEPOWERISNOW.COM

123rf.com

NORTH TEXAS IS A MORE PREFERRED DESTINATION FOR TOURISTS From a historical and statistical perspective, North Texas has been the eye candy of most tourists and immigrants. This is because the North has a more stable economy and slightly more attractive spots. Until a few years ago, l

37

the real estate market started to skyrocket because of the increasing demand and low supply. The ongoing boom caused bidding wars and crushed low-class and middle-class homebuyers’ hopes of purchasing a home.

Despite being more popular and eyecatching than South Texas, the future of the real estate business is now in the latter.

House prices are also gradually skyrocketing, although it’s nothing compared to what’s happening in the Northern part yet. Sales are also increasing massively and the solid job market is another reason for the healthy market.

Four River Association of Realtors reports that the average costs of houses in Seguin rose 40% in February 2021 compared to 2020. Buyers who intended to purchase a home with last year’s information were unable to get home to match their budget.

Inventory for February was made up of 29% of houses priced between a hundred thousand dollars and $199,999. Those worth between two hundred thousand dollars and $299,000 accounted for 55.6%.

JOB SECURITY IS AMONGST THE FACTORS DRIVING HOME SALES Undoubtedly, this makes South Texas a seller’s market. The inventory is one month, which means that houses are selling pretty fast. Real estate agents can make a good deal from properties sold in this period.

Cities like Seguin have become an attractive spot for investors because of their closeness to metro cities, easy commute, and high job diversities. While other cities prevented their employees from working during the pandemic, people still worked in South Texas.

The market is getting competitive as the day passes. Therefore, this could be a chance for buyers to make a move before prices go up further. However, they can’t do this without the help of a Texas real estate agent. Houses face multiple offers now, and buyers are on each other’s necks to win a bidding war. It’s 38

l

essential to contact an experienced realtor to win a contract negotiation.

CONCLUSION Yes! The future of the real estate business is now in South Texas. Judging by the market analysis, house prices may double in the next twelve months as more people immigrate and job opportunities remain stable. The housing bubble may not burst because of Texas’s stable and robust economy.

Visit The Power Is Now Media, Inc. and read/watch more real estate and mortgage news, videos, and information on current developments in the real estate industry on Facebook Live and our YouTube channel.

The Power Is Now Media, Inc. is leading the conversation in real estate.

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com.

References https://www.seguinedc.com/news-and-media/p/item/34335/housingmarket-booming-in-south-texas https://www.dmagazine.com/publications/d-magazine/2020/ september/dallas-real-estate-market-pandemic-2020/ https://www.texasmonthly.com/news-politics/texas-real-estate-boom/ https://learn.roofstock.com/blog/dallas-real-estate-market

THE POWER IS NOW MAGAZINE | AUGUST 2021

They told us to “Live someplace else.”

We have rights. We called HUD.

SCAN HERE FOR MORE INFO

We found a three-bedroom apartment we loved in a great neighborhood with good schools and a beautiful park. But the landlord told us to live someplace else that would be better for our family.

We filed a complaint with HUD, and now we have a wonderful place to live.

Here are some telltale signs of housing discrimination against families with children:

• • • •

Allowing only one child per bedroom Charging a higher security deposit for families with kids Limiting families with children to the first floor or certain buildings Refusing to rent to families with children

Fair Housing Is Your Right. Use It. Visit www.hud.gov/fairhousing or call the HUD Hotline 1-800-669-9777 (English/Español) 1-800-927-9275 (TTY)

A public service message from the U.S. Department of Housing and Urban Development in partnership with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.

THE POWER IS NOW

MAGAZINE

EAST COAST EDITION

123rf.com

EMERICK A. PEACE

#320004 240-882-0198 EmerickPeace@KW.com Your #1 Referral Source for Phenomenal Service in Washington, DC & Maryland

By Emerick Peace

F

or several reasons, Maryland is a great place to invest in real estate. Troubled and outmoded houses are readily available, with almost fifteen percent of homeowners defaulting on their mortgages. Maryland also has a thriving federal economy, with government employees and contractors accounting for a sizable part of the buyer market. This kind of work usually entails wellpaid employees with stable jobs who are seeking upgraded, higher-end homes.

Do you intend to invest in Baltimore rental properties? Real estate has created some of the world’s wealthiest individuals. There are many reasons to consider buying an investment property in Baltimore. Purchasing an investment property is the most effective method to supplement your income while also allowing you to take time off from your regular work.

However, to make your first investment property WWW.THEPOWERISNOW.COM

purchase a success, you must be aware of the essential factors to consider. Property investing in Baltimore in 2021 will benefit both experienced and novice investors. This is not only cost-effective, but it also yields a positive return on investment.

Investors profit significantly from the real estate industry. If you have experience in the real estate industry, there isn’t much to be concerned about while investing in a home in Baltimore. You will profit from tax advantages. The investors may deduct every possible expenditure, from mortgage interest to maintenance expenses to property management fees.

The two main methods to earn money in real estate are income and appreciation. This implies that investors buy a property and then wait for it to grow in value before selling it for a profit.

Real estate investors may utilize the property as a regular source of income by renting it out or leasing it. In addition, most investors make the l

123rf.com

Maryland:

Making a good return on Property investment

43

most of their profits by taking advantage of tax breaks. There are hundreds of homes to choose from, but you must consider what kind of property would best fit your personality and lifestyle.

However, you must also consider your budget while choosing your choice.

Experts advise against buying a stylish or costly house since the higher the housing price, the smaller the net rental income. You may also purchase it as a personal home and then convert it to a rental property. It would help if you also thought about the surroundings.

As the property owner, the area is one of the most significant factors that you, as the property owner, and tenants consider when renting an apartment in Baltimore. An essential factor that may help you earn consistent revenue from your rental property is its location. As a result, you must consider the area and the location while buying a home.

It is not essential to purchase a home in the most costly neighborhood; instead, you may choose a community based on its popularity and other advantages. It is preferable to drive by your potential home at various times of the day, as well as on weekends, to see if it fits your expectations.

You should also be concerned about vacancy rates if you haven’t yet bought a home. That’s because the vacancy is one of the most expensive costs for real estate owners. It is, nevertheless, a natural part of an investor’s life, and every investor should anticipate and be well prepared for it. You may get in touch with local property management firms in Baltimore to determine the typical vacancy rate in the area where you want to purchase a home.

One of the most frequent blunders that new or inexperienced investors make is not being aware of investment costs. Of course, they may be aware that repairs may occur from time to time, but that is not all; there are several additional costs to consider, including legal fees, evictions, property management fees, and many more.

The monthly expenditures for a property will typically equal fifty percent of the monthly revenue.

Like any other company, investing in real estate has advantages and disadvantages; you may earn a lot of money or have a bad experience. If you begin playing it cautiously by following some wise guidelines and enlisting the help of a competent management firm, you will undoubtedly come out on top.

Every Other Friday

10:00 AM - 11:00 AM

Promote Your Listings Online CALL ME FOR MORE INFORMATION ERIC LAWRENCE FRAZIER MBA (714) 361-2105 eric.frazier@fbol.com www.thepowerisnow.com

YOUR VOICE IS YOUR BRAND! INCREASE LEAD GENERATION, AND GIVE YOU THE POWER TO CLOSE MORE DEALS!

By Adriana Montes

LET’S TALK ABOUT INSURANCE!

What Is Your Option When It Comes to Home Insurance In Florida?

HOMEOWNERS INSURANCE IN FLORIDA Florida is prone to storms, hurricanes, and other natural disasters. The Sunshine State is home to Mother Nature’s disasters. Somehow, these storms have a strong preference for Florida, dating back to the hurricane incident in Miami in 1926. Then the notable hurricanes happened in 2004 and 2005.

Irma followed suit, uprooting homes from their foundations and rendering countless indigenes homeless.

Before the 2004 and 2005 incidence, insurance WWW.THEPOWERISNOW.COM

companies insured homeowners’ properties for a relatively small fee. However, many companies rescinded their decision after that because their revenues dwindled significantly, leaving Floridians with fewer and more expensive insurance options.

Insurance companies will now offer homeowners insurance premiums almost up to 40% higher cost. These companies argue that insuring Florida properties is riskier and a detriment to their revenue generation. Surprisingly, this new insurance policy doesn’t cover flood, so you may likely add flood insurance to your total insurance cost amounting to almost $3,800 yearly.

According to Security First Insurance Co, many insurance companies don’t insure properties predating 2010 or has a coverage value less than $300,000 in Orlando. They only insure

123rf.com

T

o some homebuyers, purchasing a home in Florida is their most significant accomplishment, but is it? Before you get overwhelmed with excitement to move in, you have to know one thing - you need to know your options when it comes to getting homeowners insurance.

l

47

properties with more than $300,000 coverage, and homeowners would have to pay an estimated $2,350, which is higher than the $1,252 national average.

that you add umbrella insurance to avoid being underinsured. Some insurance companies try to hide this information to save more money for themselves.

Just so that you know, homeowners insurance doesn’t only cover hurricanes or storms. Some also cover theft, dog bites, fire, etc.

CONCLUSION Homeowners’ insurance in Florida is expensive because of the severe weather, so the risks are higher. However, it’s necessary to obtain one. The good news is you can lower your premium if you maintain a good credit score, install home security systems, and renovate the home.

WHAT ARE HOMEOWNERS’ OPTIONS REGARDING PURCHASING A HOMEOWNER INSURANCE IN FLORIDA? Homeowners have limited options for insuring their homes, and the fact is they don’t have a choice either. The insurance policies have been set up to squeeze money out of homeowners, but you won’t blame them.

Purchasing homeowners insurance remains the biggest challenge for a first-time homebuyer because of the several things involved. The insurance company will crosscheck your age, credit score, age of the house, and overall condition.

Now, what type of homeowner insurance should you go for?

As a homeowner, you will face three options - Actual Cash Value, Replacement Cost, and Ordinance.

Visit The Power Is Now Media, Inc. and read/watch more real estate and mortgage news, videos, and information on current developments in the real estate industry on Facebook Live and our YouTube channel. The Power Is Now Media, Inc. is leading the conversation in real estate.

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California.

We are advocates for homeownership, wealth building, and financial literacy for low to moderateincome and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com.

The insured who opt for ACV will receive a depreciation in the amount they paid for the item lost or damaged. For instance, if your car got damaged by a fallen tree, the company will pay for the item’s actual value at the time of its loss.

Replacement Cost means you will get paid the exact amount for any damaged property. There’s no depreciation. The ordinance is best if you are looking to extend the coverage limit beyond 50%. People who opt for this plan consider the possibility of a storm or hurricane in your area.

Whatever plan you choose, it’s recommended 48

l

References https://www.bankrate.com/insurance/homeowners-insurance/what-is-ahomeowners-insurance-premium/ https://w3ins.com/news/florida-homeowners-insurance-tips-you-should-know/ https://www.forbes.com/advisor/homeowners-insurance/why-is-homeownersinsurance-in-florida-such-a-disaster/ https://www.alliedinsgroup.net/insurance-business/benefits-of-homeownersinsurance-florida/amp/

THE POWER IS NOW MAGAZINE | AUGUST 2021

Install smart home technology, upgrade your computers, put in a home theater, improve your home office and remote learning environment, set up a home security system...

There’s no end to what you could do!

Is your house asking for a

HOME TECH UPGRADE? HOM E EQU ITY LI N E OF CR E DIT as low as

2.99

% apr

for the first 12 months

as low as

4.25

% apr

after

Sign up for autodebit & SAVE!

ERIC LAWRENCE FRAZIER MBA [First Name] [Last Name] Vice President and Mortgage Advisor [Title] Office: (800) 261-1634 ext. 703 Branch Name Fax: (314) 264-0211 NMLS#: [XXXXXX] NMLS#461807 [(XXX)] [XXX-XXXX] eric.frazier@fbol.com

[FirstName].[LastName]@fbol.com

11010 Limonite Ave. Miraloma CA 91752

firstbanks.com 800-760-BANK

*The Annual Percentage Rate (APR) is a variable rate based upon an index and a margin. The APR will vary with the Prime Rate (the index) as published in the Wall Street Journal. The variable rate APR will range from Prime + 0% to Prime + .425%, depending on the applicant’s credit score. This variable rate is based on auto-debit of payments from a First Bank checking account. If not auto-debiting payments from a First Bank checking account, add .75% to the rate. The APR may increase or decrease but will not exceed 18% nor will fall below 4.25% except during the 12 month promotional period. During the promotional period the rate will be based on applicant’s credit score with either Prime - 0.26% or Prime + 0.34% and both promotional rates requires auto-debit of payments from a First Bank checking account. As of September 1st, 2020, the APR ranges from 4.25% to 4.425% and the promotional rate is 2.99% or 3.59%. Rates are subject to change. This promotional rate is available only for consumer checking account clients of First Bank who do not have a HELOC with First Bank as of August 31st, 2020. Offer available for applications accepted during September 1st – September 30th 2020. No closing costs on lines up to $1,000,000 for standard documentation; third-party fees to be paid by borrower for loans over $1,000,000. Member FDIC

THE POWER IS NOW

MAGAZINE

WEST COAST EDITION

By Yvonne McFadden

Appreciation Rate, Trends, and Arizona Housing Market data

T

PRICE APPRECIATION. The Arizona market has seen average prices of homes and median prices go up more than the previous years. The median WWW.THEPINMAGAZINE.COM

l

123rf.com

According to the National Low Income Housing Coalition’s (NLIHC) report, 36% of residents in Arizona are renters.

he housing market in Arizona, for most of 2021 has been booming despite the global pandemic shaking the economy to the core. In fact, the market has even performed better than predicted by experts in 2020. A boom that can be confidently attributed to the historically low-interest rates, has greatly influenced housing affordability. The current demand for homes and the low supply have also played a role in Arizona’s housing market success. It is good news to see the housing market thrive and bounce back from a COVID-19 induced slump.

53

sales price went up to $390,000, while the average sales price hit $504,600 in May. The low inventory and high demand have culminated in a spike in home appreciation. For example, according to ARMLS, Phoenix home appreciation has gone up to a whopping 237.84%, as per the median sales price.

This appreciation has made Arizona rank first in the U.S. for the year-over-year home price increase.

The price appreciation and high demand for homes have made the home value of Arizona homes go up by 22.7%, an increase that is expected to go even higher in the coming months. For those thinking of moving to Arizona, Austin, Tampa, Denver, Phoenix, and Nashville are, in 2021, the most affordable metro areas to settle in compared to the sunny coastal cities.

INVENTORY. As 2020 drew to a close, the number of homes listed hit a record low, but that seems to have changed with the new year. New listings in April this year were up 10.4 % year-to-year, while the total active listing saw a month-over-month increase of 5.3%. However, despite the entry of new homes into the market, the supply is nowhere near meeting the demand. The year-over-year listings have seen a deep of -43.1% with a 1.5 months’ home supply. The latter means that homes are selling faster than the year before.

It is important to point out that home sales for May 2021 have grown by 33% compared to the previous years. And it is keeping in mind that this was a month that saw sales drop by 3.7% compared to March. April and May experienced a sales slump, but the slump lasted for a short while as the market picked up quickly in June.

SELLERS’ MARKET. The Arizona housing market has in 2021 been a sellers’ market. People looking to buy are facing a very competitive market, and the market is set to remain so for the rest of the year. The high prices of homes are responsible for creating an environment where would-be-homeowners can afford homes in Arizona. Many of these would-behomeowners are being out-priced in bidding wars and are ultimately dropping out of the housing market.

RENT IN ARIZONA. According to the National Low Income Housing Coalition’s (NLIHC) report, 36% of residents in Arizona are renters. That makes over 900,000 households in Arizona renters. Rent prices in Arizona have climbed up, making renters find it hard to make payments. Low-income earners have been unable to keep up with these soaring rents.

Noradarestate.com, in an article, stated that a worker had to make at least $21.10 per hour to find the rent affordable. In reality, these workers make a minimum wage of $12.00/hr.

The housing market in Arizona is currently very strong. The demand for homes is driven upwards as the population grows as more people move into the metro area. The low-interest rates are also influencing the buying power of Americans looking to buy homes. As the vaccine continues to roll out, the listings could go up.

Source: https://www.noradarealestate.com/blog/phoenix-real-estate-market/.

Watch Yvonne McFadden talking about market updates on The Power Is Now Youtube Channel

By Peggie Simmons

T

he low cost of living and equally high quality of living in Arizona is drawing in a lot of people to the area. An understandable fact, seeing that Arizona is one of the relatively cheap places to live in 2021. Unfortunately, though, inventory is currently very slim. So slim that demand by a large margin supersedes supply. The inventory in Arizona for the previous and current quarter has been moving pretty fast. In fact, for the second quarter, the months’ supply has been just 1.05 months. The supply and demand dynamics, coupled with the low interest rates, have pushed price appreciation up 22.7% from the previous year. The high home prices have seen a lot of people leave the market, that and the fact that there are too many bidding wars. The curtains are falling on the second quarter, and many people are curious to know what the rest of the year has in store for us.

WWW.THEPOWERISNOW.COM

1. INTEREST RATES. For the past year and this year included, mortgages have had historically low-interest rates, which has boosted many people’s purchasing power. The 30-year fixed-rate mortgage for the past year has been hovering at 2.75%, while the interest rates of refinancing a home were at 2.45%. However, this year they have gone up although very slightly. In the first week of July 2021, the interest rates for a 30-year fixed were around 3.05%, a slight rise from June’s 2.99%. Refinancing rates have also gone up to 2.75%, according to Smartasset. com. Although the interest rates have gone up, you must agree they are still low. Thankfully, interest rates are not expected to rise beyond the 3.00% average as the federal reserve waits for the economy to recover. Something that may take months to do. l

57

123rf.com

5

housing market predictions for Arizona Housing market

2. INVENTORY. In an interview with 12news.com, Pollack, CEO of Elliot D. Pollack & CO, stated that the housing market is currently driven by low supply and high demand. According to him, the housing market has only a week’s supply of homes when in reality, the market needs at least a six-month supply. Even though the supply has improved from last year, with April seeing a 10.4% raise, the supply is still painfully small. A situation that Pollack says could last into the foreseeable future. With the current housing market, people are making payments on a house they even haven’t seen or have just taken a virtual tour off to beat the competition. To survive in this market, you will need to make many concessions, unless you are a seller-the market is perfect for you.

3. MILLENNIALS ENTERING THE HOUSING MARKET. For good reasons, Arizona has seen more and more people enter the housing market. Millennials are taking the lion’s share when it comes to real estate transactions. 4.8 million millennials are, for a couple of years, turning thirty.

An age that is characterized by most of them wanting to settle down and begin their homeownership journeys.

This generational peak is expected to take place in 2021,2022, and 2023— something that will see millennials “take over” real estate.

5. DOWN PAYMENT. Would-be-homeowners in Arizona are putting down more on their down payments. The key motivating factor is to avoid the private insurance mortgage that lenders would charge on down payments made less than 20%. Most time, loan appraisals are not necessary, saving them even more money.

The pandemic has shifted ground for real estate. A lot of faucets within the industry have been impacted in one way or the other. With the current high prices for homes, it might be tempting to wait out the market. It is understandable to want to do so, but it is wiser to invest now than later with these predictions.

Sources: https://azbigmedia.com/real-estate/residential-real-estate/5-arizona-housingmarket-predictions-for-2021/. https://www.noradarealestate.com/blog/phoenix-real-estate-market/. https://www.forbes.com/sites/ellenparis/2021/03/25/heres-why-millennialhomebuyers-are-braving-todays-real-estate-market/. https://www.12news.com/article/news/local/arizona/phoenix-real-estate-market2021-is-booming-but-is-it-a-bubble-that-will-burst/75-f099df53-6619-4d7a-8f7f5492a427d8cf.

4. RENT. Rental prices in Arizona are continuing to rise through the year. So, if it is possible to hold off selling your home and rent instead, it would be an excellent investment. Rental income averages at $2000 and $2500 in good neighborhoods; this investment will be a good source of passive income while at the same time retaining equity that will be very useful when buying the next home.

58

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

By Kamesha Keesee

Top 5 hottest markets in Inland Empire 2021

T

he housing market in the Inland Empire heated up after the Federal Reserve decided to cut interest rates. So hot is the market that it ranked fourth in February as the hottest real estate market out of twenty-five metropolitan areas. The reduced interest rates greatly motivated first-time homeowners and millennials to get into the housing market, leaving their renting days behind. These favorable factors created an environment that saw the demand for homes go up, and so did prices.

Unfortunately, the inventory available is not much for the available supply. The construction of new single-family homes has gone up in the Inland Empire, playing in favor of the housing market by sating to some extent the housing market. Unfortunately, the construction of multi-family homes has dropped, posing yet another challenge. But with the vaccine rollout, the economy is recovering, and the housing market in the Inland Empire continues to simmer on. Some of the hottest real estate markets in Inland Empire include the following:

WWW.THEPOWERISNOW.COM

over the list price and 9% for very hot homes.

Homes in the valley have a median list price of $460K, a 27.8 % increase from last year. Sales $/ Sq. Ft. have also gone up 29.8% to $266.

2. CORONA. Homes in Corona have a median listing price l

61

123rf.com

1. MORENO VALLEY. Moreno Valley has probably the most competitive housing market in all of the Inland Empire with an 83 out of 100 score on Redfin’s Competitive Score. Houses on the market only spend at least 11 days on the market and 5 days for the hot homes. People buying homes in Moreno Valley have to pay approximately 5%

123rf.com

of $630K, the median listing home price/Sq. Ft. $323 and median sold price of $637K. Those looking for homes in Corona should brace themselves to have a bidding war and pay 4.3% over the listing price. And if they are bidding on the very hot homes, they should expect to pay 9% more than the listing price. Inventory in Corona is moving pretty fast, as regular homes spend at least 18 days on the market and around six days for the very hot homes.

3. RANCHO CUCAMONGA. This market has one of the best neighborhoods in California. Its competitive score on the Redfin Competitive Score is 80 out of 100. Homes here have a high median listing home price of $678K, increasing 26.4% from last year. The sale price/ sq. Ft. has a median price of 364, which has gone up 20.3% from 2020. Houses in Rancho are selling very fast as they barely spend 16 days on the market in cooler neighborhoods but only 6 days in the hotter neighborhoods.

People are paying 3% over the listing price and 7% for the hotter homes for the great neighborhoods.

4. RIVERSIDE. The housing market in Riverside is not only very competitive in the California region but also nationally. In a Zillow Survey, it ranked first as the most likely city to outperform the national average. Homes in Riverside are only spending 15 days on the market. As for very hot homes, they are spending at least six days. The market is so competitive that people pay 3% over the listing price and 7% over the listing price for homes. The median listing price is up 25.3%

62

l

from last year at $552K. The median sale price/ sq. Ft. has also gone up 24.0% from last year and is $315.

5. SAN BERNARDINO. Of the five, San Bernardino has the lowest median listing price of $405K, a 24.6% increase from last year. Median sales /Sq. Ft. has gone up by a whopping 24.4% from 2020 and is now at $280. Homes are moving off the market relatively quickly, 19 days for most homes and only 6 days for hot homes. People looking to buy there should keep in mind that they will probably pay 3% above the list price and 8% above the listing price for the very hot homes.

The Inland Empire boasts of having great cities and great neighborhoods. These neighborhoods, however, have a hefty price tag attached to them. Investing in either town will require patience and savviness as the competition for the tight inventory is stiff. But as the economy recovers, it should prove to be a good decision.

Sources: https://www.redfin.com/city/16659/CA/San-Bernardino/housing-market https://www.realtor.com/realestateandhomes-search/San-Bernardino_CA/ overview https://www.redfin.com/city/4249/CA/Corona/housing-market https://www.realtor.com/realestateandhomes-search/Corona_CA/overview https://www.redfin.com/city/15935/CA/Riverside/housing-market https://www.realtor.com/realestateandhomes-search/Riverside_CA/overview https://www.redfin.com/city/12621/CA/Moreno-Valley/housing-market https://www.realtor.com/realestateandhomes-search/Moreno-Valley_CA/ overview https://www.redfin.com/city/15390/CA/Rancho-Cucamonga/housing-market https://www.realtor.com/realestateandhomes-search/Rancho-Cucamonga_CA/ overview

THE POWER IS NOW MAGAZINE | AUGUST 2021

3 TOURS. 2 PURPLE HEARTS. 1 EVICTION NOTICE.

SCAN HERE FOR MORE INFO

When my landlord found out I had Post-Traumatic Stress Disorder (PTSD), I received an eviction notice. That’s when I called HUD for help. If you feel that you’ve been discriminated against because of a mental or emotional injury or disability, report it to HUD or your local fair housing center.

Visit hud.gov/fairhousing or call the HUD Hotline 1-800-669-9777 (English/Español) FAIR HOUSING IS YOUR RIGHT. USE IT!

A public service message from the U.S. Department of Housing and Urban Development in partnership with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.

By Ameer Elahee

2021

is witnessing a lot of hyperactive buyers as the low-interest rates have made it possible for them to join the market. The sudden rush in the market has driven the overall home sales up. However, the flush of entry has been met with shrinking inventory and price appreciation of double digits. The current unprecedented high prices might cause concerns of whether the market will crash as it did in the great recession. Begging the question of whether this would be an ideal time to enter the housing market. Going by May and June’s real estate data, the good news is that the hot market is beginning to cool off. It is currently very hard to observe this as the market is still primarily a sellers’ market, but a normal, healthier market balance will be restored in the months to come.

WWW.THEPOWERISNOW.COM

HIGHER LENDING STANDARDS. In 2007 and 2008, mortgages were very accessible through subprime lending. Lenders were willing to grant loans to anyone without carefully assessing their applicants’ credit history. So, when the housing crisis hit, lenders were brought to their knees as people were unable to make good on their debt. Since then, mortgage requirements are a lot more stringent. Applicants have to pay a down payment and private mortgage insurance if they put down less than 20% of the loan amount.

On top of that, applicants go through a rigorous asset and income check. They must prove that they can afford the loan they are l

65

123rf.com

JUST HOW SAFE IS THE FONTANA HOUSING MARKET

paying for. In this regard, the housing market is safe.

SUPPLY. As the COVID-19 haze begins to clear, the market is seeing more homes being listed than last year. New single-family constructions have also increased. As a result, home sales for existing homes are up 9%, while newly built homes have gone up 21% in 2021. Homes are still selling fast and only spend 20 days on the market. On the other hand, a home’s median days on the market have increased from 27 days to 31 days. The increase signals a return to normalcy and not a crash. If anything, the housing demand in Fontana is still strong as people are willing to pay 9% over the listed price to secure their dream markets. If it were a crashing market, the housing market would have already exhausted the demand and would have an excess supply of inventory.

MORTGAGE FORBEARANCE. The Great Recession pushed peoples’ homes into foreclosure when they could not make payments on their mortgages. Additionally, there were numerous job losses as the economy reeled from

66

l

the effects of the recession. It might be concerning, as we saw over 20 million job losses countrywide, that people won’t make payments. Unlike the great recession, the government has cushioned its citizens through the forbearance program. People will be able to postpone their payments until they are financially stable. The economy is in recovery, and people are going back to employment and making payments.

If you are a home buyer looking to invest in Fontana, it safe to say that it is a good idea.

However, it will be a good idea to bring your A game as the competition is quite stiff. You are likely to get a good deal as Fontana is relatively more affordable than other cities in California. If, on the other hand, you are looking to sell, now is a great time, as you are likely to get a good return from the sale.

Sources: https://azbigmedia.com/real-estate/residential-real-estate/is-a-housing-marketcrash-on-the-way-in-2021/ https://www.noradarealestate.com/blog/housing-market-predictions/ https://www.ramseysolutions.com/real-estate/housing-market-forecast

THE POWER IS NOW MAGAZINE | AUGUST 2021

Do you know

Peppermint Ridge?

We provide a community of loving homes and empowering support services for individuals with intellectual and developmental disabilities.

We

support and encourage our residents to live their

lives and fulfill their dreams by fully embracing their indvidual abilities and interests. With 24-hour specialized care and staffing, we provide comfortable, secure homes and recognize that everyone feels a sense of belonging when they have familiar places in which to spend time with family and friends.

There

is a true sense of family at Peppermint Ridge. Of the 94 adults who

live at The Ridge, 38 have lived here for more than 20 years, with 10 of those calling The Ridge home for 40 years or more. Residents have the opportunity to flex their muscles of independence while developing rich lives of their own away from their loved ones. About 30% of our residents have no family, so other Ridgers and our staff have become their family.

Many

caring companies, organizations and individuals in

the community enjoy getting to know The Ridge by helping on small projects, hosting fundraisers, lending a hand at events, volunteering in our office, and assisting residents in activities such as arts and crafts, pool days, horseback riding, music and piano lessons, and exercise classes.

825 Magnolia Ave • Corona CA 92879 • 951.273.7320 www.PeppermintRidge.org • Tax ID: 95-2409851

123rf.com

By Ruby Frazier

Your ultimate guide

Homebuyer Checklist: Budgeting for homeownership in 2021 in Riverside 1. EVALUATE YOUR GOALS. Buying a home is good and all, but it is important to know what kind of property you might be interested in owning. How long do you see yourself in that house? Is it a short-term or long-term investment? Ask yourself why you want to buy a home. Do you spend a lot of your income on rent? It is also important to know how you plan to finance the purchase from your savings or mortgage. The next would be, WWW.THEPOWERISNOW.COM

going through your finances and determining whether you can afford the home. Carefully reflecting on these factors will help you decide if a townhouse, condominium, single-family, or multi-family is ideal for you.

2. FIND A HOME. Now that you have a clearer picture of what you want and can afford, it’s time to find your new house. You can do it by yourself by checking online listings, or you can find yourself a real estate agent. If you find a home online or through family and friends, finding a real estate agent would be a great idea. It will set the tone that you know what you are doing when dealing with sellers. Also, a great tip is to focus on homes that haven’t had their full potential realized. They are a lot cheaper. Finally, don’t let minor imperfections in an otherwise great home discourage you from making an offer.

You can always make changes later. l

69

3. SECURE FINANCING. Once more, look through your finances, credit score, and credit history. These are things that lenders tend to look at as they consider your application. 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.

4. MAKE AN OFFER. Before you offer the seller, look at your budget again and factor in the closing costs, unexpected costs, and neighborhood association fees.

Establish whether you can still afford the home or not. If you can, with the guide of a real estate agent, you will 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. At this point, hold your breath; your offer can be accepted or rejected. If your offer is accepted, you will make a good-faith deposit and transition into escrow. Escrow is a period where the seller removes the home from the market with the hope you’ll find no faults with it upon inspection, and you’ll buy it.

5. HOME INSPECTION. When you fall in love with a home, it can be hard to consider all the possible flaws. It is, therefore, important to engage an independent certified home inspector recommended to you by your 70

l

realtor or you found. The inspector will carefully assess the home’s structural soundness, the appliances, and generally the state of the home.

If the inspection reveals serious flaws with the home that the seller didn’t mention, you should cancel your agreement and ask for your deposit back.

6. CLOSE. 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.

Sources: https://www.investopedia.com/homeownership-4689706 https://www.investopedia.com/personal-finance/ how-set-budget-your-first-home/

THE POWER IS NOW MAGAZINE | AUGUST 2021

We help you achieve the American dream of homeownership!

ONLINE HOMEBUYER SEMINAR JOIN August 28, 10 AM Register at https://buyhomeseminars.com Learn about: • • • •

•

•

• •

Home Purchase Strategies and Programs to Help You Buy Now! What you need to know about California Housing Crisis and why you must buy now.

Projected Home Prices in Califonia and why you must buy Now. How Easy it is to Qualify for a Forgiveable Loan for Down Payment and Closing Cost from The Golden State Finance Agency up to 27,500 dollars.

How Easy it is to Qualify for a Loan with No Payment for Down Payment and Closing with The California Housing Finance Agency.

How Doctors, CPA, Ph.D.’s and Attorney can Qualify for a Purchase loan to 750k and only 5% down with No Mortgage Insurance.

How Interest-Only loans work and can increase your purchasing power.

Why a Construction Loan may be the right move for you now?

Host:

FRAZIER GROUP REALTY o: (951) 686-5261 f: (714) 908-7298 3739 6th Street Riverside, CA 92501 www.fraziergrouprealty.com

Speakers: ERIC FRAZIER MBA NMLS ID: 461807 Vice President and Mortgage Advisor First Bank NMLS ID: 551928 o: (619) 476-3269 c: (714) 475-8629 eric.frazier@fbol.com

CAROLYN SUNSERI

Director of Marketing Golden State Finance Authority o: (916) 384-1619 f: (916) 444-3219 csunseri@rcrcnet.org

-vuu-community-le/ -league-ceo-keynote http://richmondfree

press.com

0/national-urban /news/2016/dec/1

MEET

MARK MORIAL

M

arc H. Morial is the president and CEO of the National Urban League. He is an entrepreneur, a lawyer, a Professor.

A Legislator has been a mayor, held top leadership positions, and now a CEO of the largest civil rights organization in the country.

There’s no amount of words that can describe what Marc has been able to accomplish in just a short span of time. Yet, his accomplishments go beyond him! His career expands over the last 25 years and everywhere he has been trusted to lead, Marc has shown exemplary leadership and we can see that as he is one of the decorated servant leaders in the country.

72

l

CALLING ATTENTION TO THE IMPACT OF COVID-19 ON AFRICAN AMERICANS Lately, Marc has been very vocal about the disparate impact the pandemic has had on African Americans and other minority communities in the country. Data from CDC and others showed that African Americans and other minorities had a hospitalization rate of 5.3 times higher than that of non-Hispanic white people, which raises concerns. In fact, an analysis by the Associated Press of the state and local data revealed the more shocking news that one-third of the fatalities reported in the US were African Americans.

THE POWER IS NOW MAGAZINE | AUGUST 2021

One of the voices that have been very resilient, calling attention to the impact of the pandemic on African American live is Marc’s.

Marc championed more data on all the elements related to Covid-19 calling for universal testing urging the system to close the gaps in the healthcare system. In an interview with Business Journal, Marc said that he has talked to the members of the congress about the issue with the Covid-19 and how it had impacted the African American community as well as other communities and more so when it came to the misrepresentation of data. He further added that he had spent some time to generate public attention on the issue.

When asked for his opinion on the fact that African Americans and Latinos health care workers were mostly at the greatest risk of exposure but nonetheless made up the largest percentage of frontline workers, Marc had this to say;

One of the voices that have been very resilient, calling attention to the impact of the pandemic on African American live is Marc’s.

“And for many other professions which are low wage workers, particularly in the health care field. If you think of health care, you need to add on the maintenance assistants and nurses — in many instances, they are disproportionately black, Latino, Asian, South Asian doing those jobs. A friend of mine shared with me yesterday that several of her friends had become infected with the virus — all of them were workers in nursing homes or hospices.

There are studies that indicate that in 90% of the professions that

WWW.THEPOWERISNOW.COM

are considered essential, in many of them African-Americans are disproportionately represented.”

SUPPORTING SMALL BUSINESSES THROUGH ADVOCACY Another area Morial has been vocal is when it comes to small businesses. Morial demanded that the next package from the government include monies for small businesses that have been legitimately hurt by the pandemic.

Marc told Black Enterprise that the national Urban League considered the action by the Senate to pass a $484 billion bill meant for small businesses and hospitals a win but more needed to be done.

“Without our advocacy, the package would not include the $60 billion disaster loan fund or the funding for CDFIs (Community Development Financial Institutions) and small banks, Morial said. “We continue to advocate for desperately needed funding for local governments.”

In the prior weeks leading up to this historic moment, the National Urban League had reported that massive restaurant chains and still operating businesses received the PPP funds that were intended for small businesses. Eventually, these small businesses had to shut down operations because they couldn’t stay afloat.

“Struggling small businesses in

l

73

the nation’s hardest-hit regions have not received a dime from the Paycheck Protection Program, intended for businesses with fewer than 500 employees, while hundreds of millions of dollars have gone to corporations that employ thousands, like Ruth’s Hospitality Group and Potbelly Corporation,” Morial said in a press release.

“Executives whose annual compensation is in the multi-millions skirted the intent of the program by applying through subsidiaries, depriving legitimate small businesses of the aid they desperately need to survive.”

All through the package disbursement process, the National Urban League had been at the forefront of it all. The whole time, Morial and his organization were in discussions with the nation’s top powerful leaders in the capital include Congresswoman Maxine Waters, Senators Chuck Schumer, Cory Booker, Chris Van Holland, and Ben Cardin.

In addition to that, Morial said that the National Urban League is working on including a language that specifically addresses the Black-owned businesses along with other minority businesses BUT WHO IS MARC REALLY? As an Entrepreneur, Morial started several successful small businesses -- an apparel wholesale company, a special events company, and a janitorial company, his first venture at age 15 with two childhood friends.

As a Lawyer, Morial won the Louisiana State Bar Association’s Pro Bono Publico Award for his legal service to the poor and disadvantaged. He was also one of the youngest lawyers, at age 26, to argue and win a major case before the Louisiana Supreme Court. As a Professor, Morial served on the adjunct faculty of Xavier University in Louisiana, where he taught Constitutional Law, and Business Law. As a Louisiana State

74

l

rural, remote and unbanked businesses as priorities. “And,” he said, “we are pushing for the COVID-19 legislation to include these provisions.”

This is important, and it serves a greater purpose aside from the apparent one which is the Covid-19.

Some of the provisions the National Urban League will come up with will be used in the future and recommendations to the congress will come in handy especially when dealing with small businesses in the country. For instance, let’s talk about the PPP loans; this loan does not consider the small businesses size standard base on gross sales. The basis is on the number of employees who work at individual locations and not the total workforce.

“The lifeblood of the communities we serve are the Main Street mom-and-pop establishments, like barbers and beauty shops, neighborhood cafes, and specialty services that may employ only a few dozen or fewer workers,” Morial said. “Those are the businesses we’re fighting to protect, and we expect Congress to protect them as well.” half, and New Orleans’ poverty rate fell according to the 2000 Census.

Senator, Morial was named Legislative Rookie of the Year, Education Senator of the Year, and Environmental Senator of the Year, while authoring laws on a wide range of important subjects.

As Mayor of New Orleans, Morial was a popular chief executive with a broad multi-racial coalition who led New Orleans’ 1990’s renaissance and left office with a 70% approval rating. With vigor and creativity, he passionately attacked his city’s vast urban problems. Violent crimes and murders dropped by 60%, the unemployment rate was cut in

The city’s economy experienced its most dramatic growth in over 20 years as the Convention Center was expanded, thousands of new hotel rooms were built, the Downtown Casino and Sports Arena opened and New Orleans hosted Super Bowls and Music Festivals, as well as International and Hemispheric Summits.

The NBA also returned to New Orleans as he led the effort to relocate the Hornets from Charlotte.

During his tenure, New Orleans won the All-American City Award in 1996 for the first time in 50 years, as well as the prestigious City Livability Award, and finished

THE POWER IS NOW MAGAZINE | AUGUST 2021

first in the National Night Out Against Crime Competition on two occasions.

He produced eight balanced budgets and led the passage of a new City Charter which authorized the creation of a City Revenue Estimating Conference, an Ethics Board, and Inspector General.

Elected by his peers as President of the bi-partisan U.S. Conference of Mayors (USCM), he served during the 9/11 Crisis and championed the creation of the Department of Homeland Security, and the Federalization of airport security screeners.

The USCM achieved unparalleled visibility and prominence under his leadership.

BECOMING PRESIDENT OF THE URBAN LEAGUE As President of the National Urban League since 2003, he has been the primary catalyst for an era of change -- a transformation for the 100-year-old civil rights organization. His energetic and skilled leadership has expanded the League’s work around an Empowerment agenda, which is redefining civil rights in the 21st century with a renewed emphasis on closing the economic gaps between Whites and Blacks as well as rich and poor Americans.

Under his stewardship, the League has had record fundraising success towards a 250MM, five-year fundraising goal and he has secured the BBB nonprofit certification, which has established the NUL as a leading national nonprofit.

His creativity has led to

WWW.THEPOWERISNOW.COM

initiatives such as the Urban Youth Empowerment Program to assist young adults in securing sustainable jobs, and Entrepreneurship Centers in 5 cities to help the growth of small businesses. Also, Morial created the National Urban League Empowerment Fund, which has pumped almost $200 million into urban impact businesses including minority businesses through both debt and equity investments.

historic civil rights organization dedicated to economic empowerment, equality, and social justice. Founded in 1910 and headquartered in New York City, the Urban League collaborates at the national and local levels with community leaders, policymakers, and corporate partners to elevate the standards of living for African Americans and other historically underserved groups.

A graduate of the prestigious University of Pennsylvania with a degree in Economics and African American Studies, he also holds a law degree from the Georgetown University Law Center in Washington, D.C., as well as honorary degrees from Xavier University, Wilberforce University, and the University of South Carolina Upstate.

With 90 affiliates serving 300 communities in 37 states and the District of Columbia, the Urban League spearheads the development of social programs and authoritative public policy research, and advocate for policies and services that close the equality gap. At the community level, the National Urban League and its affiliates provide direct services that improve the lives of more than two million people annually.

He serves as an Executive Committee member of the Leadership Conference on Civil Rights, the Black Leadership Forum, and Leadership 18, and is a Board Member of the Muhammad Ali Center, and the New Jersey Performing Arts Center.

He has been recognized as one of the 100 most influential Black Americans by Ebony Magazine, as well as one of the Top 50 Nonprofit Executives by the Nonprofit Times.

Morial, a history, arts, music, and sports enthusiast, has an adult daughter and is married to broadcast journalist Michelle Miller. Together they have two young children.

THE NATIONAL URBAN LEAGUE The National Urban League is a

Sources https://westfaironline.com/123802/ exclusive-national-urban-leaguepresident-marc-morial-addresses-theracial-disparities-among-coronavirusvictims/ https://www.blackenterprise.com/natonalurban-league-demands-ppp-funding-goto-legitimate-imperiled-small-businesses/ https://nul.org/mission-and-history https://www.linkedin.com/in/marc-morial59b05130/ https://www.energy.gov/diversity/ contributors/marc-morial

l

75

By Cornelius Jackson

T

he coastal city of Irvine is experiencing a real estate boom. The low-interest-rate has given people great purchasing power, and they have entered the housing market in full swing. The demand for homes in Irvine has gone up, even though it is one of the pricier coastal cities. The warm weather and the great school district are making the city even more attractive. The demand has been so great that home prices have gone up by double digits. Unfortunately, the housing market has little supply, and buyers have to make multiple offers on different homes before closing in on their dream homes. The high appreciation has also seen people leave the market as they get priced out. But these factors are making the housing market in Irvine a seller’s market. It would be an ideal time to sell as the economy recovers and demand is still high. But as we are well into the year, is the market going to look any different?

INVENTORY The number of homes listed in Irvine went up by 32% in May 2021, from the same time last year. The number of new homes listed was 360 this year in May, while last

WWW.THEPOWERISNOW.COM

l

123rf.com

Looking at Irvine Housing Market: Future Opportunities

77

year, May had only 273 new homes enter the market. Most cities in California are experiencing a rise in home sales.

Irvine in Orange County is no exception. More homes were sold in May this year than last year, 435 and 367 respectively. The number of pending sales tripled in May as well, 105 last year to 353 this year. From these statistics, it is clear that May was the busiest month in terms of home sales and that the supply is trying to catch up with the high demand.

DAYS ON THE MARKET Homes on the market in Irvine are having multiple offers made. The low supply and demand are making it a very competitive market for buyers.

Homebuyers are, in most cases, buying over the listed home price. The pandemic has made it challenging to show homes, so people have virtual showings. The average days that a house is staying on the market in Irvine was in June 49 days, an increase from 45 days in April. Houses are exiting the market very fast at this rate.

PRICE APPRECIATION Irvine is one of the most expensive cities in California. The current gold rush in the housing market has driven people into the market, increasing the demand for homes and the prices.

78

l

As of June 2021, the prices of homes had gone up by 24.6% from last year. The median listing home prices have also gone up in recent months. They have been rising in double digits.

For example, in June, the median home listing price was $1,100,100, a rise from March, which saw the median home listing price at $998,000. However, homes in Irvine are more or less selling at the listed price, experiencing slight variation.

Real estate experts feel that price appreciation will still rise in the coming months. The lowinterest rates are still pushing buyers into the market. Not only that, millennials are going to continue to enter the market as they get to an age where they want to invest in a home. And as people continue to get vaccinated, they are more likely to list their homes. The demand and the supply dynamics will therefore continue to feed the booming housing economy.

Sources: https://www.realtor.com/realestateandhomes-search/Irvine_CA/overview https://www.redfin.com/city/9361/CA/Irvine/housing-market https://www.forbes.com/sites/andrewdepietro/2021/06/30/the-hottest-housingmarkets-in-california-in-2021/

THE POWER IS NOW MAGAZINE | AUGUST 2021

2021

By Jenny Gonzalez 123rf.com

Real Estate Market Update with

Jenny Gonzalez: Corona CA Edition

T

he Corona market, like in many parts of the country, is very hot. The limited housing supply and high demand have characterized the Corona housing market.

Prices for homes have appreciated, and buying a home is now very affordable with the historically low mortgage rates. The available inventory is flying off the marketsomething that makes you wonder if it is at all possible to buy a home in the current housing Corona Market. Is buying or renting wise? Before making any decision, you must first look at the current trends.

WWW.THEPOWERISNOW.COM

SELLERS’ VS. BUYERS’ MARKET. The Corona housing market is a strong seller’s market, and according to real-time data from Michael Lewis Marketing Suite, the market is moving from 97 to 95 on the Richter scale: a drop that might be attributed to more homes being listed on the market. The Corona market, as of June 30th, has seen an increase in the active listing. The housing market has 133 active listings—the highest seen since we started COVID. INVENTORY. There has been an increase in the inventory coming onto the market. The increase has had an across-board impact on real estate trends in Corona. The median l

81

list price in Corona was at $675K and is currently at $650K. The number of days a listing stayed on the market has significantly improved. The current days on the market were previously down to zero and are now averaging seven days on the market. A doubling of inventory from March, which saw 60-80 homes come onto the market.

The increase in inventory is still not enough to sate the demand. In fact, the market is currently at 40% from where we should be.

PRICES. Prices as well have begun going down, perhaps because of the increase in inventory. According to data from Michael Lewis Marketing Suite, prices in Corona have dropped by 11%. Additionally, rent prices have decreased—something that can be attributed to buyer fatigue due to the market’s competitive nature. People are, therefore, finding alternative places to live or are staying. The rental price might have also gone down because people are sizing up the market and are waiting for more inventory to enter the market.

SALES PRICE VS. LIST PRICE. The average median list prices Vs. the median sales price is currently at 104.5%. Meaning, homebuyers are paying 4.5% over the list price. When a seller lists a property on average on the entire MLS, the average sales price vs. list price is 103.2%. That’s up 4% in one month. Corona is at 104.5% and 4.5% from last month. The bottom-line being that homes in Corona are selling above listing prices. It would be a waste of both your time and that of your real estate agent if you went offering low prices.

My advice to clients is, if you are looking at 540, you look at 500 and under. If you are looking for 580, you look at 500 and over.

HOMES FOR FIRST-TIME BUYERS. It isn’t easy to find entry homes in Corona without knowing someone or being an outstanding agent.

But there are homes 1400 Square feet, three bedrooms, and two baths that are going for and are spending zero to five days on the market.

Homebuyers have an option of buying a home with 500 more square feet for $635K with a seven-day average on the market. The next level of homes is going for $750K, 2,800 square feet and spending just three days on the market .

82

l

This indicates that more people are buying seven hundred thousand homes than six hundred homes.

However, homes worth $1M are staying on the market for a more extended period on the market.

The million-dollar homes, which were pretty much seven days on the market, are now waiting on the market for 21 days on the market. This trend shifts from the previous trends, where high-value homes were selling faster and were a lot more on the market.

IS NOW A GOOD TIME TO BUY? With the prices bouncing up and down in Corona, is it a good time to buy? It is an excellent time to buy whether we are in a price bubble or not; prices and property values even before the pandemic tend to fluctuate. Moreover, it may be impossible to see a period such as this where the mortgage rates are this low. When buying a home during this period, it is essential to focus on the interest rates, home prices, and monthly payments. It will help if you compare what you are making now and what it is comfortable with you.

The housing market is currently very hot in Corona.

The market is still as competitive even with more houses being listed. The prices are fluctuating now, perhaps because of more inventory or buyer fatigue. It would be advisable to buy now while interest rates are lower than weight for more homes to enter the market and for the prices to drop. Price drops are not set in stone and are not worth gambling on.

Sources https://www.youtube.com/watch?v=bRw8MufNawU.

THE POWER IS NOW MAGAZINE | AUGUST 2021

By Danon Burnside

San Bernardino Real estate market update: Housing Market Trends, Prices and looking beyond.

WWW.THEPOWERISNOW.COM

T

he competitive nature of the San Bernardino housing market and the low supply have blended and formed a perfect cocktail that has seen the market boom and the prices soar. The prices witnessed there have set records. The market is a sellers’ market, and as such, you would expect more homes to be listed. Unfortunately, inventory in San Bernardino is tight. Despite this, months like May have experienced record-high home sales. But as the bidding wars peak in the county and price appreciation continues to rise, buyers are opting to leave the market, pushing the sales down. Is this drop permanent? Will prices drop?

Market trends INVENTORY. The San Bernardino housing market is largely made of single-family homes, which make up 60.5% of the entire market. These are closely followed by apartment complexes making up 21.7% of the market. It, therefore, goes without saying that the majority of people in San Bernardino are renters. In fact, 55.0% of them are renters; homeowners make up just 45.0%. Unfortunately, with the current high demand, fewer newer homes are making it into the

l

85

market— newer homes built in 2000 and account for 7.9% of total homes in San Bernardino.

SALES. In January this year, home sales in San Bernardino were up 20.7% in a year, as 2,608 homes were sold. A figure last seen in 2006. But the numbers dropped by 11% in June this year and by 10% from April. However, new construction sales did go up 20% from last year. With the trend that has been seen in San Bernardino, the sales were expected to keep soaring, but as the prices went up, home affordability went down. In fact, home sales have been going down since April. The decrease can be attributed to heated bidding wars that might have seen would-be-homeowners exit the market even though May was the busiest month with home sales.

MARKET DAYS. Inventory in San Bernardino is fast-moving, even with the limited inventory. Homes are spending less and less time on the market. According to Realtor.com, homes listed are spending an average of 50 days on the market as of June 2021, which is a drop from April when they spent an average of 51 days and 53 days the month before, according to Realtor.com. The demand and supply in May hit a balance, but the housing market is still essentially a seller’s market. Homebuyers are having to have heated bidding wars to get their dream house.

Unfortunately, some might exit the market.

PRICES. The competitive nature of the market and the low supply have blended and formed a perfect cocktail that has seen the market boom and the prices soar. May 2021 witnessed the prices for singlefamily homes rise by 25.7% year-over-year. The median listing price and median sold price have been on the rise as well. The median listing price for May 2021 was $424,000, while the median sold price was $430,000. The median listing price steadily increased to $439,000, and the median sold price was $440,000. As of June, people paid 1.94% over the listing price. Prices will continue to rise through the year.

LOOKING BEYOND: Is this a good time to buy a house? Low-interest 86

l

rates have created the illusion that homes are more affordable. When the federal reserve first slashed interest rates, homes were affordable, but 12 months from then, that isn’t the case anymore.

Home appreciation has made homes even more expensive. You might be able to get a home at a relatively cheap interest rate but pay well over the median listing price. This means you are more likely to make higher mortgage payments than the pre-pandemic median listing price. But if you are a seller, it will be a great time to enter the market; you are going to make more with the current price appreciation. On the other hand, if you are a buyer, roll up your sleeves, inventory is tight, and you are going to table your best offer.

Sources: https://www.realtor.com/realestateandhomes-search/San-Bernardino_CA/ overview https://www.neighborhoodscout.com/ca/san-bernardino/real-estate https://californianewstimes.com/san-bernardino-county-home-sales-drop-11after-62000-price-jump-san-bernardino-sun/409743/

THE POWER IS NOW MAGAZINE | AUGUST 2021

Diversity is working.

Shouldn’t it also be living?

Your workplace thrives on diversity, so why shouldn’t your neighborhood? Diversity expands horizons, promotes understanding, prepares our kids. It promises us all a richer life. To better understand how neighborhood diversity will benefit you and your family, please log onto www.ARicherLife.org.

Celebrating the 40th Anniversary of the Fair Housing Act

By Denise Matthis

Five facts no one is telling you about the San Diego Real Estate market

T

he San Diego housing market was quick to heat up when the year began, but as we get into the middle of the year, housing experts feel that the market has begun cooling off. The economy is recovering well, and as a result, home sales are predicted to decline by real estate experts. This change may be because there is more certainty now than there was last year, and more people are willing to list their homes.

The employment rate, the GDP per capita, and average income have also increased. The new developments bear good news for homebuyers.

They will be able to find homes easily without much bidding. Home affordability with mortgage rates still low is still achievable. And as so, it is still a great time to enter the housing market.

WWW.THEPOWERISNOW.COM

But first, let’s take a deeper look into the San Diego Housing market.

1. BUILDING CONSTRUCTION IS UP Building permits were up 27% in the first quarter of 2021. Building permits for multifamily and condos had the highest increase of 39% and 8% for single-family homes.

Additionally, the construction industry hit a very productive margin, in the first quarter with nearly 3000 new home construction. The construction of multi-family, townhouses, and single-family homes went up by 22% in the first quarter of 2021 from last year’s quarter.

It is projected that more than ten new masterplanned communities will be built in North l

89

County San Diego.

If the number keeps trending up, it is expected that San Diego will reach pre-pandemic totals.

However, despite this increase, the number of new constructions is nowhere near what the market demands.

2. INVENTORY IS INCREASING For months this year, home supply was limited.

Perhaps because of the pandemic. But as the vaccine continues to be rolled out, inventory has gone up. July’s market action index has dropped from June and is at 97. The drop in the market action index may be attributed to the increased number of listed properties.

Unfortunately, the number of homes entering the market is still inadequate to meet the current demand.

3. MEDIAN LIST PRICES HAVE PLATEAUED. The median list price in San Diego has plateaued at $979,450. This plateau, to some, may mean that the housing market is weakening. But in reality, there’s always a plateau from June through to August.

4. A BALANCED MARKET. The housing market in June was described

by Zillow as “neutral.” And in fact, Redfin.com gives the market a score of 50 out of 100.

Homes, therefore listed on the San Diego housing market, are selling for nearly the amount listed.

Additionally, an

90

l

equilibrium between sales and inventory has been achieved. The competitiveness of the San Diego market might, therefore, be dropping.

5. PRICE INCREASE. It is unlikely that home prices will decrease in San Diego. Millennials and first-time homebuyers will continue to flood the market as they take advantage of low-interest rates.

They will continue driving the housing market.

The tight inventory will further contribute to home prices going up. Experts predict that come 2022, the home prices will have gone up another 10%.

The housing market in San Diego might be warming up, but it does not signify that the market will crash. Home affordability is still there, and the market is yet to exhaust the demand. It would be a good idea, therefore, to take advantage of the current rates and the new listings coming onto the market.

Sources: https://www.sandiegorealestatehunter.com/blog/san-diego-real-estate-marketforecast/ https://www.redfin.com/city/16904/CA/San-Diego/housing-market https://www.sandiegorealestatehunter.com/blog/san-diego-real-estate-marketstatistics/

123rf.com

By Kenneth Session

Is the Oakland Real Estate Market a Good Investment Market Right Now? The Oakland real estate market is currently very hot. Low interest rates and the stunning scenery are drawing homebuyers into the market. Unfortunately, eager homebuyers are finding a market with a deficient supply. As of May 2021, Oakland had 1.5 months’ supply, a sharp decline from 3.8 months witnessed last year in May. This market imbalance has pushed home prices higher. A situation that has made finding a home in Oakland very difficult and has made some buyers bow out of the market.

On the flip side, the market is great for sellers. The very competitive market is seeing homes sell for great prices. Additionally, as the economy recovers, job growth in Oakland will continue to rise as more businesses go back to the offices. But are these great incentives to invest in the Oakland real estate market?

I

f you are planning to invest in Oakland, it is essential to keep in mind that home prices have been trending up this past year and more in the

second quarter. The price growth in Oakland has gone up by 3.3% this year compared to last year.

The Median prices in Oakland are a bit on the higher side and are continuing to go up. In June, WWW.THEPOWERISNOW.COM

the median listing price was $950K. The demand is so high that homes are selling 17% over the list price, and according to Redfin.com, hot homes are seeing people pay 34% over the listing price.

Home sales have also increased in Oakland this past six months. Approximately 3,820 homes were sold during this period and with 76% of these l

93

June this year, a significant increase from the 259 sold last year. The growth can be attributed to the fact that more homes are coming onto the market.

Data from Compass showed a slight slump in the number of homes actively listed in April and May, but the numbers rose quickly in June.

being single-family homes, followed by 23% being condos, and the 4% left townhouses. This data shows that people are in the market for singlefamily homes. And as so, homes in Oakland are staying on the market for just 13 days, and the very hot homes, just eight days. So, if you are thinking of going into the market, be prepared to have a bidding war as listed homes receive multiple offers.

Offers being accepted have also been increasing in recent months, as listings have also increased.

And to bring it a lot closer, 466 homes were sold in

The competitive nature of the real estate market in Oakland in 2021 can be described as a sellers’ market. The unprecedented price increase has seen people be outpriced out of the market. In that regard, there have been both migrations into and out of the area. But experts advise that demand in Oakland is set to remain very strong for the next 12-months. And as more people get vaccinated, the uncertainty brought on by the pandemic will begin to clear, and people are going to go back to work.

Something that will further improve the economy.

Sources: https://www.bayareamarketreports.com/trend/oakland-berkeley-real-estatemarket-conditions-prices https://www.redfin.com/city/13654/CA/Oakland/housing-market

Every Tuesday Night

7:00 PM - 8:00 PM CALL ME FOR MORE INFORMATION ERIC LAWRENCE FRAZIER MBA (714) 361-2105 eric.frazier@fbol.com www.thepowerisnow.com

IT’S YOUR TIME TO BUY YOUR FIRST HOME. LET US HELP YOU BECOME A HOME OWNER!

Frazier Group Realty Inc. 3739 Sixth Street Riverside, CA 92501

“Your Real Estate Navigator” www.fraziergrouprealty.com rubyfrazier@fraziergrouprealty.com F: (714) 908-7298 Lic# 01751773

nytimes.com

O: (951) 686-5261

By Robert Langston

EXPERT Sacramento Housing Market OPINION: is Red Hot Right Now

WWW.THEPOWERISNOW.COM

PRICE APPRECIATION The home price in Sacramento in the last month has grown from 18% to 25% year-over-year. However, the median prices are not increasing at the same rate. The current median sale price of homes in Sacramento is $427K, a 26.5% increase from last year’s $365K. The median sale price/sq. Ft is now at $315, a whopping 26.0% increase.

The sale-to-price ratio for homes in Sacramento was at 104.62%. That means that people were paying 5% over the listing price. Depending on which side of the fence you are on, brought on by the supply and demand dynamics in Sacramento.

SUPPLY AND DEMAND The current supply of existing homes in Sacramento is currently not enough. The supply chain challenges experienced in the building community are not working in favor of the shortage. Low labor supply, high lumber expenses, and material shortages have made it impossible to build a home first enough to keep up with the demand.

123rf.com

S

acramento offers a cheaper alternative to buying a home other than settling in the more expensive San Jose.

Its housing market in recent months has been very hot and competitive. Millennials and firsttime homebuyers are entering the market as home affordability has dramatically improved since the reduction of interest rates. The demand has been high, but the ever-diminishing inventory has made it difficult for homebuyers to find homes. The little inventory that has made it into the market has had multiple offers made, resulting in heated bidding wars.

If you are entering the market, be patient, and know this;

l

97

The supply shortage has made it that homes listed only stay for about seven days. The very hot homes are waiting for a shorter time and are having people pay 10% over the listing price.

Single-family homes are the fastest moving inventory in Sacramento. Sales of these homes went up by 49.2% compared to last year. However, active listing in the market has dropped by 28.6% as of May 2020. The inventory is set to decrease even further as fewer and fewer homes come onto the market. The months of inventory supply in May rose to 0.8 months but reduced even further in June to 0.5 months.

INTEREST RATE AND AFFORDABILITY Mortgage rates are still low, making homeownership relatively affordable. Interest rates are still averaging at 3.0% and are unlikely to rise past that average as the federal reserve wishes to wait until the economy recovers. It is important to note that even though the debt is currently cheap, high home prices may make you leave the market. They are leaving the question,

98

l

how sustainable is this housing market if people are being priced out. According to Greg Aguirre, the president, and CEO of Capital Rivers, people priced out in the current housing market may become long-time renters, unable to afford their dream homes.

The housing market can’t remain hot forever, but now that it is, sellers should take advantage of this sellers’ market. As for homebuyers, the housing market is still safe. The millennials and first-time homebuyers entering the homeownership journey will fuel the housing market for the next twelve months. Something that could see prices grow even higher. It, therefore, might be a good idea to invest now.

Sources: https://www.bizjournals.com/sacramento/news/2021/06/30/whysacramento-s-housing-market-is-red-hot.html#:~:text=Sacramento’s%20 hot%20housing%20market%20is,many%20U.S.%20cities%20this%20 year.&text=%E2%80%9CHome%20prices%20have%20increased%20from,is%20 crazy%2C%E2%80%9D%20says%20Aguirre. https://www.noradarealestate.com/blog/sacramento-real-estate-market/ https://www.redfin.com/city/16409/CA/Sacramento/housing-market

THE POWER IS NOW MAGAZINE | AUGUST 2021

I WAS DENIED

HOUSING BECAUSE I HAVE AN

ASSISTANCE

ANIMAL. SO I CONTACTED

HUD FOR HELP.

SCAN HERE FOR MORE INFO

When a landlord tried to deny me housing because of my assistance animal, I contacted HUD and learned about my fair housing rights. For instance, landlords must make reasonable accommodations for persons with disabilities, such as allowing an assistance or emotional support animal in a no-pets building. If you believe you have experienced discrimination, contact HUD or your local fair housing center and file a complaint.

Visit hud.gov/fairhousing or call the HUD Hotline

1-800-669-9777 (English/Español) 1-800-927-9275 (TTY)

Fair Housing Is Your Right. Use It!

A public service message from the U.S. Department of Housing and Urban Development in partnership with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.

By Briana Frazier

Whittier & La Habra on spotlight: Just how safe are the two cities for investors

T

he number one question that people have been asking themselves this year is whether the housing market will crash. This is understandable as the Great Recession left a lingering bad taste in most people. The current price appreciation and the beating the economy took when the pandemic hit has also fed the overall anxiety that the housing market is in a price bubble. A bubble that may burst at any moment. It is okay to have these worries as investing in real estate is a big step. To know whether a market is safe, you will need to analyze different metrics within it. These include: the state of the economy, interest rates, the supply and demand dynamics. Now, how safe are the Whittier and La Habra housing markets?

WWW.THEPOWERISNOW.COM

INVENTORY It is no news that inventory all across the country has been slim, and California has been no exception. There have been more and more homes entering the market, but they are not nearly enough. Whittier, for example, in June had 157 new listings, a drop from the 172 homes listed in May. The number of homes sold in June was 150, increasing from the 115 homes sold in May. On the other hand, according to Zerodown.com, the number of homes coming into the market in La Habra is even smaller than that of La Habra. In June, there were 80 new home listings, increasing from the 68 from the month before.

More homes sold in June, though, with 55 homes sold, 3 more than those sold in May. The numbers show that there aren’t still enough homes getting into the market. There may be an imbalance in the supply and demand dynamics, but it doesn’t signify a crashing market. For that to happen, the supply of homes must greatly outweigh the demand. The opposite is true for both Whittier and La Habra. l

101

PRICES. In June 2021, the housing Market in California saw prices appreciate by 30% year-over-year.

In La Habra, these prices appreciated by 17.9%, and in Whittier up 20%. The median sale price, in Whittier, in June was $720k, up from $705K in May. In La Habra, the median price was in June $714K, increasing from $624,500 in May. The prices are likely to continue rising in the coming months as the demand is still high and the supply is still very low. Contrary to the great recession where prices dropped drastically.

rates are making debt financing accessible to many would-be homeowners. And as the economy continues to recover, there will be job growth, and people will be able to make their mortgage payments. Moreover, the current demand is still very strong and will not exhaust the current supply.

It is, therefore, to say that the housing market for the two cities is healthy and will not crash.

Sources: https://zerodown.com/explore/housing-market-analysis/california/greater-losangeles/los-angeles-county/whittier https://zerodown.com/explore/housing-market-analysis/california/greater-losangeles/orange-county/la-habra https://www.redfin.com/city/9975/CA/La-Habra/housing-market https://www.redfin.com/city/20869/CA/Whittier/housing-market

123rf.com

DEMAND. Both the real estate market in La Habra and Whittier are very competitive. Houses on the market are spending fewer days listed. In the 12 weeks leading up to July, the median days on the market in La Habra have decreased by 53.7%, that is, a decrease from 27 days to 12.5%. In Whittier, the drop is not as significant as La Habra’s, with the 20% drop, a drop from 25 days to just 20 days. The disparity in days in the two cities may indicate that La Habra is more competitive than Whittier. But for both, the competition has seen people in La Habra and Whittier pay 5% and 4% over the listing price, respectively.

However, even with the increase in home prices, home affordability is still there. Low mortgage 102

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

By Adrian Bates

Expert Advice: Should I Invest in the LA Housing Market

N

ow is the time to buy; a time such as this may never again present itself. A time where interest rates are at their historic low- lowinterest rates that make it possible to afford a bigger home. It is important to stress that you invest now, as what goes down undoubtedly goes up. Many people cite that down payment is the number one challenge that hinders them from buying homes. Golden State Financial Authority provides an array of down payment assistance programs that you can use. Some of which do not WWW.THEPOWERISNOW.COM

require an income limit. And as you shop around for an investment property, take a look at this overview of the LA housing market.

INVENTORY. There is little inventory coming on to the LA housing market, and the pandemic might be to blame. The number of active listings is also down, and the months’ supply is down to 1.9 months.

As of June, this year, data from CAR showed that even sales and pending sales were declining. These l

105

sales declined by -13.9%, and properties in escrow went down by -5.3% this June. And as so, the little available inventory is seeing a lot of offers.

Knowing this as an investor, expect to engage in bidding wars. It will be better to make the best offer going in.

PRICE APPRECIATION. As you enter the LA market, keep in mind that competition is quite stiff, and you will have to bring your A-game. I was working with a first-time homebuyer, she was only 26 years old, and she was in the market for a two-bedroom one bath home. For such a property, we were looking at $375K. It took 90 days to land property because of the bidding, and we saw the property move to $420K, ultimately stopping at $500k.

As of June 2021, the price appreciation in LA was 24.8%, and the sale-to-price ratio was 101.42%. So, if you are in the market looking to invest, keep in mind that you will pay over the listing price.

RENTAL PROPERTIES. It is a good idea to consider investing in rental properties, especially multi-family properties. As more people get the vaccine, life is regaining some semblance of normalcy, and people are moving back to the city. Therefore, there is a gap to be filled by providing these properties. The rent might be considerably lower this year than last year, with rent this year averaging $ 1,970 compared to the previous year’s $ 2,250. Alternatively, you might think of acquiring office spaces as companies will begin, albeit slowly, to go back to working in the office.

FORECLOSURES. Foreclosure is devastating to homeowners, and despite the government’s forbearance program, some homes are still facing foreclosure.

California as a whole ranked ninth with the most foreclosures this May, according to Sofi.com. One thousand five hundred twenty-nine of its units out of the 14,175,976 were facing foreclosure, and narrowing it down further, that’s one in every 9,271 households. For an investor, though, this might be a golden opportunity to invest in these properties as they are relatively cheap.

For first-time homebuyers, remember to keep all your essential documents. During the home-buying process, it is also crucial to not make big purchases such as cars, deposit money in offshore accounts, or even create considerable deposits in your account without documentation.

Activities such as these may lead to a cancellation of your mortgage application.

More importantly, get preapproved for a home you can afford. It makes the home buying process a tad easier.

Sources: https://www.noradarealestate.com/blog/losangeles-real-estate-market/ https://www.redfin.com/city/11203/CA/LosAngeles/housing-market https://www.realtor.com/realestateandhomessearch/Los-Angeles_CA/overview

106

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

By Success Money

Los Angeles Housing Market: Prices/Trends/Forecasts.

Similar to all other parts of the country, the housing market in Los Angeles is currently experiencing a boom. A strong comeback from the pandemic stall. Buyers motivated by low interest rates are entering the housing market with the hope of fulfilling their American dream of owning a home. And they are especially drawn to what L.A. has to offer, from the glitz of the entertainment world to the cultural diversity it has.

WWW.THEPOWERISNOW.COM

SALES Median Sale Prices in all the six Southern California regions have experienced a 33.1% increase this May, compared to the same time last year. The double-digit price growth across the region can be accounted for by the rise in the sale of single-family homes. Los Angeles had a massive 80.7% year-over-year increase.

In L.A., as of May, the median sale price was

123rf.com

T

he demand is, however, higher than what the market is currently supplying.

As a result of this increased demand and inventory scarcity, prices in L. A’s housing market have appreciated dramatically. It is, therefore, no surprise that this is, in turn, affecting affordability. Those able to afford a home have to pay well over the asking price, while those unable to are exiting the market.

l

109

$725,680, a 1.0% increase in MTM and 31% YOY. The sales, despite the rise, slowed in April by -5.2% and in May -3.2%. Experts, however, feel the drop was only temporary, and sales will pick up in June when 3,035 homes sold. A significant increase from last year’s 1,647 sales in June.

DEMAND AND SUPPLY Mortgages might have made debt more affordable and attracted buyers but failed in encouraging homeowners to list their homes on the market. The uncertainty created by the pandemic makes them cling to their homes. As a result, the inventory in L.A. is currently very tight. The supply and demand dynamics have led to price appreciation. Home affordability has been affected in light of these prices, as seen in April when sales were down as people left the market. For homebuyers still in the market, this departure of some spells an easier time for them when getting their offers accepted.

PRICES As of June 2021, home prices in Los Angeles appreciated by 24.8%, according to Redfin.com.

The current median sale price for homes in Los Angeles is currently $950,000. The sale-to-list price ratio for homes was 101.42. Therefore, homes sold

110

l

for 1.42% over the asking price. They are signaling that the housing market in L.A. is a sellers’ market.

That means that a lot more people are looking to buy homes than the homes available. Experts anticipate that unless the supply is somehow increased, L. A. will continue to appreciate further up.

FORECASTS As more people get the vaccine, people are going to go back to working at the office. The COVID-19 pandemic saw people work from home, seeing occupancy in rental apartments drop significantly at -18%. But recently, more people are moving back to the city, and several entertainment companies are reopening; studio apartments and one-bedroom units are starting to fill up. The rent is also notably lower this year than last year, with a one-bedroom in May previous year renting at $2,250 and this year going for $1,970.

Sources: https://www.noradarealestate.com/blog/los-angeles-real-estate-market/ https://www.redfin.com/city/11203/CA/Los-Angeles/housing-market https://www.realtor.com/realestateandhomes-search/Los-Angeles_CA/overview https://www.northcoastfinancialinc.com/5-major-mistakes-to-avoid-when-flippinghouses/

THE POWER IS NOW MAGAZINE | AUGUST 2021

By Joe L. Fisher

Richmond CA Housing Market Analysis: Is This the Right Time to Invest in Richmond Market?

T

he pandemic caused fiscal losses in various sectors of the U.S. economy, particularly the real estate industry. It’s not so much of a surprise that potential buyers are meticulous when it comes to investing in the housing market.

far as the real estate is concerned, this is the first time in years houses in the area are selling at this pace, but is this heading toward some burst, or is it a strong indication that everything is back to normal?

However, considering the recent positive developments and strong market indices in Richmond California, investors are asking if now is the right time to go into the housing market. Here is what we think you should do.

We don’t know for sure if the housing market in Richmond is heading into a burst, but the selling rate is a strong indication of a healthy market with buyer’s demand rising considerably. At some point this year, houses sold out really fast to the extent that house experts started to think that there’s no longer inventory since houses barely stayed a few days before being sold.

HOUSES ARE SELLING PRETTY FAST IN RICHMOND AREA Surprisingly, the Richmond area of California has defied all odds with its rising home sale. Homes in the area are selling out so fast that there are only a few houses for sale left. Redfin reports that home prices went up 18.4%, selling at over $670,000. As WWW.THEPOWERISNOW.COM

In an actual sense, there’s inventory. There would always be inventory, but the problem currently faced is that the listings barely stay a few days on the market before being snapped. June reports

l

113

show that houses spent just 13 days on the market compared to 18 days around the same time last year. Currently, the market has gotten even harder for first-time homebuyers to get into, albeit with the high number of sales recorded and rising costs.

From market analysis, we can attribute this selling pace to the low mortgage rates. Mortgage rates are currently below 3%, meaning that homebuyers can opt to finance their homes and pay flexible monthly rates provided they have all the requirements. The low mortgage rate has forced buyers to compete, pushing home prices further up.

Is this the right time to invest? The answer is yes. Prices will continue to rise and will unlikely drop anytime soon. Thankfully, the low mortgage rate can make house buying more convenient.

However, you need to prepare because the market is too competitive, especially for first-time buyers and mortgage-reliant buyers.

CONCLUSION We expect more houses to be listed as the year progresses. People who were afraid to sell when the Covid was at its peak may list their properties this year. The industry is still recovering from 114

l

the pandemic, but so far, the Richmond housing market is at its best.

Visit The Power Is Now Media, Inc. and read/watch more real estate and mortgage news, videos, and information on current developments in the real estate industry on Facebook Live and our YouTube channel. The Power Is Now Media, Inc. is leading the conversation in real estate.

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com.

References https://www.google.com/amp/s/www.sfgate.com/realestate/amp/Vallejo-realestate-Bay-Area-hottest-market-16139418.php https://www.redfin.com/city/15629/CA/Richmond/housing-market https://www.realtor.com/realestateandhomes-search/Richmond_CA/overview https://www.neighborhoodscout.com/ca/richmond/real-estate.amp

THE POWER IS NOW MAGAZINE | AUGUST 2021

ALL COUNTY DOCUMENT SERVICES OFFERING VIRTUAL PARALEGAL SERVICE Low Cost Quality Legal Assistance Payment Arrangements Available

Corona CA Legal Document Preparation Professional Paralegal Services without the high cost of attorney fees.

We offer Virtual Paralegal Services to honor the COVID-19 stay-at-home, so no need to come into the office, we do everything online and utilize the courts efiling system.

• • • • • • •

Living trust Probate Services Family Law Services Divorce Request for Order Marital Settlement Agreements Civil Services

Contact All County Document Services in Corona CA today for a free quote!

Licensed, Registered and Bonded Legal Document Assistant No: 271 License No: 659119 Notary Commission #2090397

Legal Assistance You Can Afford!

951-272-5855 951-207-1185 1234 Goldenview Drive Corona, CA 92882

123rf.com

Redfin Report: African Americans still face massive barriers to homeownership!

O

wning a home is one of the greatest achievements on American soil! Owning a home has been linked to building intergenerational wealth but the American homeownership story is one marked by a legacy of discrimination where minorities are completely left out of the picture in the country of the free!

Over the last decade, homeownership for African Americans has shown dramatic declines than it is for any other racial or ethnic group in the country.

In fact, data shows that in 2020, the rate of Black homeownership was just 1.5% higher than it was in the 70s when the race was partly legal.

Discrimination, especially in housing is a deeprooted legacy and what makes it worse is the fact that the government legalized it through its policies that were largely created to perpetuate private attitudes that date back to the days of slavery.

The Federal government started to push for the expansion of homeownership in the New Deal Era 116

l

through the innovations like the 30-year mortgage.

While there is a lot of documentation regarding discrimination against Blacks and other minorities, I feel like we are not talking enough about redlining which was legal and done by a federal institution.

Redlining labeled certain areas as high risk and therefore, applicants from those areas could not be given a loan. Did I mention that these were also the areas where most African Americans lived? It was even worse because the mortgage was denied to even the white folks who lived near the area. In fact, speaking at an interview about the 1968 Fair Housing Act with Eric Lawrence Frazier, The CEO and Founder of the Power Is Now Media, Craig Fergusson, the Vice President of the National Homebuyers Fund had this to say;

“...first of all the act was great but it was too late and I’m not sure enough was done and I’ll say this because everyone knows that the greatest form of creating wealth is homeownership… I mean if you go back to even the 1930s FHA wouldn’t insure homes for African-Americans they wouldn’t! They just refused FHA out of federal homeownership they just wouldn’t and they also wouldn’t insure homes to white neighborhoods that were close to black neighborhoods.”

THE POWER IS NOW MAGAZINE | AUGUST 2021

The African Americans and other minority communities in the U.S. were relegates to the redlined areas on government-sponsored maps and don’t forget, these were the areas with the most concentrated poverty and where getting proper housing was a miracle!

The Fair Housing Act of 1968 was a saving grace for the minorities, as it identified the segregationist practices and abolished them. In a special series dubbed the Fair Housing Series, Eric interviews key industry leaders about the Act and whether it has been successful in helping minorities. The act, while it changed most of the segregationist agendas, was meant for the future and ignored undoing the foundational racist approach on which homeownership in the country was built.

If you want to know that redlining worked, look at the homeownership rates for African Americans.

During this dark era, the residents of the redlined communities did not receive loans to purchase let alone renovate their homes. This ultimately started a domino effect where disrepair homes led to the decline of a community’s housing stock and with the fall of the community and neighborhood’s properties businesses were forced to shut their operations with no businesses tax revenues were lost and with no taxes funding for schools was depleted!

In fact, the redlined areas today struggle with high poverty rates and failing health infrastructure which consequently leads to shorter lifespans. A report by Redfin real estate brokerage found that African Americans are five times more likely to purchase a home in the formerly redlined areas than in the greenlined areas which has resulted in a continued decline of home equity. This to some extent explains the wealth gap between whites and African Americans.

According to Redfin, just 45.1% of African Americans bought homes or own homes as of the first quarter of 2021, 28.7% less compared with the non-Hispanic Whites.

WWW.THEPOWERISNOW.COM

LET’S DIG DEEPER INTO THE REDFIN STUDY Redfin reveals that 23% of the Whites made no financial sacrifices or commitment whatsoever to buy their first home against the 14% of the Blacks. At the same period, about 30% of African Americans had to take an extra job to cover the payments of their first jobs versus 22% of the White respondents.

Looking at the financial capacity of African Americans against the non-Hispanics whites, 21% of African American homeowners earned $150,000 or more at the time they were purchasing their first home comp[ared to just 11% of the White homeowners. Furthermore, 58% of the nonHispanic Whites were earning less than $50,000 when they first purchased their home versus just 34% of African American homeowners.

Shedding light to this data Daryl Fairweather, Redfin chief economist had this to say, “These findings suggest the financial standard for becoming a homeowner is higher for Black people than white people, making it more difficult for Black Americans to buy homes,” he adds, “Homeownership is closely tied to the American ideal of freedom, and specifically financial freedom. The fact that Black buyers report earning more money and making more financial sacrifices to enter the homeowner class is one example of how difficult it is for Black people in this country to achieve the American dream.”

A while back in June, Redfin had surveyed 1,500 homeowners where 74% of the African American respondents said that they had parents who were homeowners. This was 10 percentage points lower than the White Respondents. In addition, 67% of the Black respondents have grandparents who are homeowners versus 72 percent of the White Respondents.

l

117

A separate report by the Brooking Institute in 2018 found that, in the average U.S. Metropolitan area homes in the neighborhood where the population was at least 50% African American, homes were valued at roughly half price as homes in the White Neighborhoods. The report also found that the Metros that were greatly devalued were more segregated and produced less upward mobility for the African American children who grew up in those areas. Between the two communities, the devaluation of homes and businesses in the African American community has led to a cumulative loss of $156 billion in value nationwide.

THE SITUATION WITH MORTGAGES According to Redfin, 16% of African Americans had their mortgage applications rejected compared to

just 7% of the non-Hispanic Whites. Further, the report shows that African American homebuyers were more likely to be turned down due to debt and low credit scores than whites.

“Black people who succeed in buying a home have to be Superman or Superwoman,” said Bryan Greene, vice president of policy advocacy for the National Association of Realtors. “They need to have higher degrees, they have more debt, they face persistent rejection and generally carry around bigger burdens to achieve the same goal as white people.”

T

he CFPB has also been very vocal about tightening the regulations for mortgage services and originators that are found violating the protection laws. This includes practices like redlining, racist housing policies that continually block African Americans from accessing equitable and affordable housing through the provision of fair mortgage deals. In addition, the agency also found out that lenders engaged in deceptive practices including the violation of the Truth in Lending Act and the Equal Credit Opportunity Act, and further provided wrong data on the mortgage loans.

There is also a collective effort by the Department of Housing and Urban Development (HUD), the Mortgage Bankers Association, the National Association of Realtors, the National Association of Real Estate Brokers to increase the Black Homeownership rate. These agencies have come together to unveil a plan

118

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

meant to increase African American rate of homeownership significantly by 2030. These agencies vow to create more than 3 million more black homeowners by the end of the decade.

The future looks promising for African Americans. While the past over 200 years haven’t been a great time to be counted as an African American in the country of the “free!” the future looks bright and that is something to be happy about. However, in order to move forward, we need to address the evils of the past and I am glad that some of the institutions that perpetuated bigotry and discrimination against African Americans are taking responsibility and writing their wrongs! Owning up to these mistakes is where we begin, and then we can have a talk about reparations comfortably. What you need to realize is that the cumulative effects of the legal discrimination and segregationist policies against African Americans meant that they were paying more to become homeowners- else known as the Black tax of homeownership. What makes it worse is the fact that the ability to pay for a mortgage is based on a racist system, one that was built on a racist foundation which presents another huge barrier to homeownership.

These are the issues that we need to address first before moving forward. The move by NAR, the largest realtor organization in the country, to acknowledge that they played a big role in housing discrimination is such a great move. I am happy that the organization has even implemented an anti-bias training program for its members. Such are the actions ABOUT THE POWER IS NOW MEDIA The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com.

WWW.THEPOWERISNOW.COM

that make me truly hopeful and optimistic about the future! It is no more a “we will” talk, it is more of “we are” talks happening on the ground and for sure, I foresee increases in Black homeownership for the years to come.

Aside from that, I like what this administration has done. I may not agree with some of the policies, but Pres. Joe Biden’s first executive order to the HUD was “to take steps necessary to redress racially discriminatory federal housing policies.” this has automatically set the pace for the next four years of his presidency!

While we still have a long way to go, at least the journey is already started, it is up to you and me to keep the momentum going. And how can you do that? By simply taking on every opportunity now while there is still a choice. The rates are down, demand is skyhigh and the supply I so constrained. Prices will keep on rising further disadvantaging the African American population and other minorities given the fact that they are resource-constrained. But that doesnt have to be the case for you. Seize the power now, take control and reach out to Eric Lawrence Frazier MBA. with more than 40 years of experience in the real estate and mortgage industry, Eric is your go-to guy for anything real estate-related. Visit The Power Is Now Media, Inc. to read and watch more real estate and mortgage news, videos, and information on current developments in the real estate industry on Facebook Live and our YouTube channel. The Power Is Now Media, Inc. leading the conversation in real estate.

Sources: https://www.housingwire.com/articles/black-americans-still-face-massivehousing-barriers/ https://www.brookings.edu/research/devaluation-of-assets-in-blackneighborhoods/ https://www.redfin.com/news/redfin-survey-black-homeownershipfinancial-barriers/ https://www.americanprogress.org/issues/economy/ reports/2019/07/15/469838/racial-disparities-home-appreciation/ https://www.npr.org/sections/codeswitch/2021/05/08/991535564/ black-americans-and-the-racist-architecture-of-homeownership

l

119

T

he last two years haven’t been easy, especially for the people in business. More so, for the people in the real estate market, everything has been chaotic, and from the looks of things, it might stay that way for a while, not unless congress acts upon the requests by NAR and NAHB. Perhaps to bring you up to speed with the current developments in the real estate market, we all know that the rates are down and the forbearance period is or almost over. In addition, with the rates relatively down, demand has been sky-high and has been for the past 5 years, only heightening now because people are realizing that now more than ever, our homes have value, especially after the fact that most are taking their jobs from home. In any market, operating optimally, you would expect that demand will equal the supply, only that in our real estate market, demand is a triple threat.

There are no new homes, and the current supply of existing homes isn’t enough to sustain the sky-high demand. Prices are rising every single day because of increased competition! In a nutshell, it is a frantic market!

Ordinarily, operating in such an environment, some players will go off the book and break some rules, after all, everybody is on edge and who would care if some rules are bend just a little bit? Well, Consumer Financial Protection Board is and has been watching and its response? Tightening the screws on mortgage servicers and originators who have been found on the wrong side of the consumer protection laws.

in misconduct when dealing with consumers. To be specific, it says that some lenders engaged in deceptive business practices including the violation of the Truth in Lending Act and the Equal Credit Opportunity Act, while also providing wrongful and inaccurate data on mortgage loans.

Some of the practices CFPB uncovered with some lenders (which for some reason it did disclose who) were redlining after the lender received fewer applications from the minority neighborhoods. This obviously raised questions. Furthermore, it was discovered that the lender’s direct marketing and some open house materials used White models and that lender’s offices were concentrated in white neighborhoods and nearly all of its loan officers were white. Moreover, CFPB found that the loan officers from this lender send out internal emails that contained racist and derogatory remarks.

CFPB: Lenders engaged in discrimination, redlining, and reported bad data!

Among its revelations, CFPB uncovered that some lenders engaged

120

l

In its investigations, CFPB also found that there were several instances of “widespread errors” in the lenders’ data disclosures. It disclosed that the financial institutions that botched the credit scoring, rate spread, and debt-to-income data fields on the home mortgage disclosure act will have no choice but to correct and resubmit their disclosures.

There were instances where lenders also compensated loan originators differently on the basis of product type which is actually a violation of the Truth in Lending Act. according to CFPB, lenders gave less compensation for the bond loans subject to the requirements of a state Housing Finance Agency. In a separate statement, CFPB warned servicers about how they treat and manage borrowers coming out of forbearance. The Watchdog agency said that it is watching closely how the servicers work to prevent the wave of foreclosure about to happen this fall. In the statement, CFPB said, “Unprepared THE POWER IS NOW MAGAZINE | AUGUST 2021

is unacceptable,” which is a statement released just a day after the shocking news about lender misconduct.

CFPB also found out that mortgage servicers were in violation of Regulation X. This is a regulation that mandates lenders to provide borrowers with timely disclosure of the real estate settlement process.

This is usually done by filing for foreclosures when it was prohibited. There are instances where mortgage servicers misrepresented the foreclosure timelines to the borrowers by sending letters that claimed that they would not initiate foreclosure action until a specified date. Nevertheless, they started the foreclosure before the said date.

“The inaccurate representations regarding the day foreclosure action would be initiated were likely to mislead borrowers into believing that they had more time until foreclosure than they actually did,” the report notes.

In some cases, the lenders would initiate foreclosure proceedings after borrowers had appealed a decision on a loss-mitigation claim. The watchdog agency has come out clearly saying that it will be closely looking at how well servicers are; Being proactive. “Servicers should contact borrowers in forbearance before the end of the forbearance period so they have time to apply for help.”

WORKING WITH BORROWERS. “Servicers should work to ensure borrowers have all necessary information and should help borrowers in obtaining documents and other information needed to evaluate the borrowers for assistance.”

ADDRESSING LANGUAGE ACCESS. “The CFPB will look carefully at how servicers manage communications with borrowers with limited English proficiency and maintain compliance with the Equal Credit Opportunity Act and other laws.”

EVALUATING INCOME FAIRLY. “Where servicers use income in determining eligibility for loss mitigation options, servicers should evaluate borrowers’ income from public assistance, child support, alimony, or other sources in accordance with the Equal Credit Opportunity Act’s antiWWW.THEPOWERISNOW.COM

discrimination protections.”

Handling inquiries promptly. “The CFPB will closely examine servicer conduct where hold times are longer than industry averages.”

Preventing avoidable foreclosures. “The CFPB will expect servicers to comply with foreclosure restrictions in Regulation X and other federal and state restrictions in order to ensure that all homeowners have an opportunity to save their homes before foreclosure is initiated.”

“Our first priority is ensuring struggling families get the assistance they need,” Uejio said. “Servicers who put struggling families first have nothing to fear from our oversight, but we will hold accountable those who cause harm to homeowners and families.”

The tidal wave of foreclosures that’s about to happen is like nothing we’ve ever experienced!

Responsible servicers are on their toes to make sure that no detail is underlooked. However, there are still some services and lenders who are not willing to play by the rules of the game and have skipped, bend, or completely broken the rules of engagement and fair dealing with some consumers. What the agency is doing right now is a bold move as it serves as a warning to any lender or servicers who think they can do something and get away with it! As of March 29, MBA reported an estimate of 2.5 million homeowners in some form of forbearance. The number has been steadily increasing, slowly approaching a peak. This means, after the moratoria end, many homeowners will become distressed and they will need all the help they can get. And also, it means, there might be possible law breaking by servicers and lenders which is why these warnings by CFPB couldn’t have come at a better time than this.

Sources https://www.housingwire.com/articles/cfpb-warns-servicers-unprepared-isunacceptable/ https://www.housingwire.com/articles/cfpb-lenders-engaged-in-redliningreported-bad-data/

l

121

N

ew data was required to assess the COVID-19 pandemic’s impact on the US housing market, given the rapid and widespread adoption of mortgage forbearance in reaction to the epidemic. Several data sources answered this demand by providing timely mortgage payment information, which has helped monitor how families are coping with the epidemic.

According to mortgage statistics, some borrowers are having difficulty getting back on their feet. Data vendors responded swiftly to offer real-time forbearance and delinquency information.

According to Black Knight data, forbearance and delinquency rates decreased from March to January this year. The rates of patience and failure have reached a halt in this graph.

Rates of forbearance peaked at nine percent in late May last year before gradually declining to about five percent by the end of January. This drop indicates that families’ overall financial situation has improved and that forbearance helped many households throughout the crisis.

National delinquency rates reached around eight percent in May of last year, then fell to about six percent by the end of January. The significant decreases in debts moving from

122

l

FORBEARANCE LOANS CONTINUE TO DECLINE STEADILY THE POWER IS NOW MAGAZINE | AUGUST 2021

current to newly overdue since the summer may be ascribed to this reduction. In December last year, the number of loans that were thirty and sixty days past due were both lower than they were in December two years ago. Although the number of early-day delinquencies has been declining, the increasing number of significant failures since the pandemic has significantly restricted the decrease in the total national delinquency rate.

According to an MBA Survey, the total number of loans under forbearance has dropped significantly, with about two million homeowners, according to MBA, are on forbearance programs. Fannie Mae and Freddie Mac’s share of forbearance loans fell three basis points to about two percent. The forbearance share for portfolio loans fell one basis point to about eight percent, while Ginnie Mae loans fell two basis points to about five percent.

Independent mortgage bank servicers’ percentage of loans in forbearance fell two basis points to about four percent. In comparison, depository servicers’ rate of loans in forbearance fell two basis points to a little more than four percent.

The share of loans in forbearance declined for weeks unending, with slight declines across almost

every loan category. The rate of forbearance exits slowed, but the pace of new forbearance requests remained at a superficial level of four basis points.

The continuous rise in aggregate forbearance figures is encouraging since better economic circumstances enable more homeowners to reclaim their homes. However, we continue to keep a careful eye on the number of forbearance re-entries, representing borrowers who left forbearance but were forced to re-enter due to difficulties. This week, re-entries accounted for about six percent of forbearance loans.

As the epidemic continues to affect people’s lives and livelihoods, policymakers and practitioners must keep an eye on individuals who exit forbearance after the time has expired, as well as tenants who are unable to pay their rent.

Homeowners who stay in forbearance for a more extended period are likely to be in worse financial shape than those who left sooner, necessitating more assistance to restart their mortgage payments. However, safeguards like the loss mitigation waterfall and the home equity buffer are intended to prevent even the most at-risk forbearance homeowners from foreclosure.

We need more data in the rental sector to properly assess individuals behind their rent payments and how much assistance is required. Renters are confused because estimates of total back rentals due by tenants vary considerably per institution. It’s uncertain if the funds in extra rental aid announced by the Biden administration would help renters, who have been affected worse by the epidemic than homeowners.

Policymakers can support homeowners and landlords throughout the epidemic by analyzing new and current housing data.

WWW.THEPOWERISNOW.COM

l

123

123rf.com

Fannie Mae Economic Group Shines a Spotlight on what’s causing the housing market inflation problem in the country

I

t is about time we started talking about housing and housing reform seriously! It will take a wave of inflation to convince the government that the housing policies they’ve long advocated for are the real cause of the problem we are suffering from. For a long time now, bad policies and zoning restrictions that do not make any sense have led us into this situation where home prices are rising at an unprecedented rate. A report by the Fannie Mae Economic Group says that the fast-rising housing prices have fueled the largest increase in inflation since the financial crisis of 2008.

124

l

THE RELATIONSHIP BETWEEN HOUSING PRICES AND INFLATION There is a symbiotic relationship between the housing market and the inflation measures. What you need to know is that any consumer good that is limited in supply, will influence inflation either positively or negatively. In this case, the home fits perfectly in this category. There are different factors that come into play and affect the prices of homes and one of the most prominent factors is interest rates. When the interest rate is low, people are enticed to buy homes leading to increased demand. If assuming that the supply of homes remains constant and the demand increases, certainly, the prices will go up and this is exactly what is happening in the country. Therefore, we can expect inflation to rise.

Currently, home prices are up 15 percent from last year and the situation with rent is getting even worse; tripling for the first six months of 2021.

And while Fannie Mae Economic Group believes that inflation acceleration could be considered temporary or transitory, pressure in all sectors of the economy will likely last into 2022 due to lagged effects from the skyrocketing prices of homes.

THE POWER IS NOW MAGAZINE | AUGUST 2021

Consequently, this will put upward pressure on inflation that will likely last through the year.

“We now view stronger and persistent inflation as the principal risk to our forecast, though uncertainties over consumer behaviors related to reopening and COVID-19 developments remain,” Fannie Mae’s ESR Group said.

“If a stronger underlying inflation trend develops, due to expectations rising or persistent labor market tightness, there is a risk of a wage-price spiral,” the group continued. “If this occurs, we believe it will likely lead to a substantial jump in longer-term interest rates and an earlier and more aggressive pace of Fed tightening.”

It is important to note that housing makes up about one-third of the key inflation measures, with the way the housing prices have been rising steadily, they could eventually boost inflation by as much as 2 percentage points by the end of 2022, but we won’t have to wait that long to begin experiencing the effects of this rise.

According to the latest edition of the monthly Consumer Price Index released by the Bureau of Labor Statistics, the cost of shelter rose by 0.5% between May and June which shows a 2.6% rise compared with the data from last year. Cumulatively, the rise in housing prices accounted for roughly a fifth of the overall increase in inflation for the month of June.

“The outlook for rents is key,” said Torsten Slok, chief economist at Apollo Global Management. “With rents going up as the economy reopens, we will continue to see more upward pressure on overall inflation.”

WWW.THEPOWERISNOW.COM

Most of the financial markets have now shrugged off the rise or rather the speculation in rising of inflation, especially after the fact that the Fed and the Fannie Mae Economic Group said that the inflation is directly tied to temporary factors that are likely to fade away as the country makes a full recovery from the pandemic. Yet, we see growing tensions from investors who are more worried about the long-term growth with the emergence of deadly and more lethal variants of the Covid-19.

Nonetheless, most are keen on what’s happening in the housing market. With home prices on the rise, and heightened social distancing measures plus remote working, all these led to an increased awareness of the importance of bigger spaces.

That unleashed pent-up demand as the massive millennial population reaches their peak homebuying years.

The easy-money approach taken by the Fed last year drove the mortgage rates down which further fueled the demand for housing, even when younger adults sought to leave the overly crowded and high price urban centers for spacier suburbs. While the high prices prevented wouldbe homeowners from being able to afford, the resulting impact was felt in the rental market which has since seen dramatic increases in rents.

The US inflation hiked itself from 1.68% in February all the way to 5% in June. supposing that the Fed was to tighten its policies, Fannie Mae expects the results to drag on upcoming housing market growth and even stifle home sales, house prices, construction, and mortgage origination.

“Our expectation is these high inflation readings now will abate,” said Jerome Powell, chairman of the Federal Reserve.

Speaking of which, home sale for existing inventory was up 45 percent in May year-over-year l

125

according to the National Association of Realtors.

The increased demand for new housing led to the typical home lasting just 17 days on the market with 89 percent of them being sold in less than a month in May. according to the group, the purchase of mortgage applications has never been this pronounced!

“This, combined with a continued lack of new listings, led us to downwardly revise our near-term forecast,” the ESR group said. “Existing home sales are now expected to approach a level in the third quarter only slightly higher than the 2019 average.”

To add to the frenzy in the housing market, there seems to be a persistent lack of ongoing labor and a persistent lack of buildable lots which in turn limits the production capacity for new homes and because many homebuilders are likely to struggle to build new units for some time, the group had to downwardly revise its near-term single-family housing forecast as well.

“We expect to refinance origination volume to be $2.3 trillion in 2021, a modest upward revision of $54 billion from last month’s forecast, as incoming application activity continued to stay at a relatively high level and interest rates remain low,” the group said. “We forecast refinance volume in 2022 to total $1.2 trillion, up from last month’s forecast, but a decline of 49 percent from 2021. Thus, we expect to refinance volume will pull back from the 2020 peak throughout our forecast horizon.”

Sources https://www.housingwire.com/articles/fannie-mae-and-the-housing-marketsinflation-problem/ https://www.politico.com/news/2021/07/11/housing-market-inflation-bidenrecovery-499027 https://www.marketwatch.com/story/an-inflation-storm-is-coming-for-the-u-shousing-market-11623419869

126

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

choosing where you live is a right. housing discrimination is wrong. discrimination because of race, color, religion or national origin is illegal. e only way to stop it is for you to report it.

Visit www.hud.gov/fairhousing or call the HUD Hotline

1-800-669-9777 (voice) 1-800-927-9275 (TTY) A public service message from the U.S. Department of Housing and Urban Development in partnership with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, family status or disability. For more information, visit www.hud.gov/fairhousing.

123rf.com

FOCUSING ON GROWING MENTAL HEALTH ISSUES IN AMERICA

I

n the United States, almost 20% of people have a mental health issue in any given year, and one in every 25 adults has a severe mental illness that affects their quality of life. Mental health treatment should be a big component of the American healthcare system, but that isn’t always the case.

According to the National Alliance of Mental Health, nearly ten million Americans now have a severe mental illness.

128

l

Mental diseases are illnesses that cause changes in thought, emotion, or behavior or these three.

Distress and difficulties functioning in social, job, or family activities are common symptoms of mental disorders. In the United States, mental disorders are quite prevalent. One in every 24 people (4.1%) has a severe mental illness, while one in every 12 people (8.5%) has a diagnosable drug use problem.

THE POWER IS NOW MAGAZINE | AUGUST 2021

illnesses are treatable and curable. Treatments are available to help individuals effectively manage mental health problems, and our knowledge of how the human brain works is constantly increasing.

Mental disorders come in a variety of shapes and sizes.

Some, like some phobias, are moderate and only have a little impact on everyday life. Other mental health issues are so serious that they may need hospitalization.

Anxiety disorders, severe depression, and bipolar disorder are the most prevalent mental illnesses.

Mental disorders include a wide range of problems with varying degrees of severity, ranging from mild to severe. Mental illness may be managed. The overwhelming majority of people with mental illnesses go about their everyday lives unaffected.

Mental disease is not anything that should make a person embarrassed and discussions surrounding mental health and illness should continue. It is like heart disease or diabetes, a medical condition. Mental WWW.THEPOWERISNOW.COM

According to the Anxiety and Depression Association of America, anxiety disorders are highly curable, although only around 37% of people afflicted get therapy. Anxiety and sadness are both quite prevalent diagnoses. For Americans aged 15 to 44, major depressive disorder is the main cause of disability. Women are more likely than males to suffer from this condition. Both men and women are affected by bipolar illnesses.

Bipolar disorder usually strikes people around the age of 25, although it may strike anybody at any age.

Interestingly, mental health professionals do a poor job of monitoring their mental health problems and those of their colleague according to a Psychology Today article.

Depression, and marital discord may affect psychiatrists, psychologists, and counselors the same way they do the general

public. Despite these issues, mental health professionals may be denied necessary treatment due to stigma or a lack of resources.

Mental health therapies are covered by laws governing health care. The laws, on the other hand, could be far better.

Many individuals are unaware that their insurance coverage covers mental health therapy while some individuals fall into a coverage gap and are unable to get treatment. Policymakers are unsure about what constitutes appropriate mental health care.

The federal government is attempting to provide funding for mental health treatment.

An appropriations measure passed seven years ago set aside $115 million for mental health programs. However, mental health services are still in short supply in certain areas of the nation. The mental health business requires well-trained clinical mental health counselors who can educate their coworkers and help to establish industrywide standards.

The American healthcare system is far from flawless, and the mental-health sector faces some of the most difficult problems.

Improvement is feasible, though, if mental health experts and politicians continue to work together. We can all work towards achieving measurable progress in due time. l

129

Let’s Talk About FOOT HEALTH

I

t’s easy to overlook your feet, but taking care of them pays off. Chronic foot discomfort and common foot issues may restrict mobility as we get older. Taking a few easy measures to care for your feet, on the other hand, may help you maintain your mobility. Despite their distance from your heart, the condition of your feet may have an impact on your entire health. Various factors may cause foot ache or discomfort, and you should not ignore it or dismiss it as a regular part of life.

For movement, healthy feet are essential. The typical individual walks about a hundred thousand miles in their lifetime. However, we frequently do not pay the same attention to our feet as we do on other areas of our bodies. Keeping your feet healthy should be part of your daily routine.

It is preferable to prevent than cure because a painful foot or leg can be debilitating once trouble sets in. Because our feet are so important for being active and independent, when anything goes wrong with them, it may be a mental burden as well.

HOW DO YOU TAKE CARE OF YOUR FEET? Shoe trends come and go, but wearing comfortable shoes for the rest of your life is one of the greatest ways to guarantee your mobility. Wearing tight shoes or high heels on occasion for a night out will not harm your feet in the long run. Choose supportive, comfy shoes if you know you’ll be on your feet for most of the day.

For jogging, aerobics, and other high-impact sports, invest in

well-fitting athletic shoes. Work shoes should have excellent arch support as well. This aids in the reduction of leg and foot weakness and pain. You may get arch support insoles from a pharmacy or an athletic shop if your shoes don’t offer adequate support.

With aging, the skin on the feet thins and becomes drier; callused feet may break and bleed, producing discomfort. After showers or baths, massage a thick moisturizing lotion into your feet as required to maintain the skin smooth. When you shower or bathe, properly wash and dry your feet. To prevent ingrown toenails, cut toenails straight across. Remove calluses using a pumice stone or a foot file.

Consider all of the activities that put a strain on your feet. Your work may demand you to stand or walk for long periods. Running, for example, may have a significant effect on your feet.

Women often stuff their feet into shoes that don’t provide enough space or support, such as floppy sandals or a pair of pumps that were too good to pass up.

Many individuals go about in shoes that are too small for them. This restricts blood flow to your feet, increases the risk of blisters, and makes walking or standing difficult, if not impossible. Having your feet measured may help you make smarter shoe purchases and reduce pain. At the end of a busy day, your feet are naturally larger. Buying shoes a half size larger to accommodate arch supports or custom orthotics will be extremely beneficial for you.

If discomfort in your feet prevents you from exercising or just moving about as much as you’d want, it’s time to see your doctor or a podiatrist, or a foot expert. Your toes, as well as your heart and lungs, will thank you.

Taking additional care of your feet and legs may go a long way toward keeping you healthy and happy.

130

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

123rf.com

MLK Jr.

and His Dream!

58 Later... where are we?

Many people amounting to 250,000 gathered outside the Lincoln Memorial in Washington, 58 years ago to hear Reverend Dr. Martin Luther King Jr., the legendary civil rights activist, delivered his heroic address. Dr. Martin Luther King’s crucial address on August 28, 1963, not only served to bring the Civil Rights Movement to the forefront, but it also placed pressure on Congress to enact the Civil Rights Act the following year, in 1964.

132

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

T

he revolutionary march in Washington was a once-in-a-lifetime event. Dr. King’s famous address talked of freedom, employment, equality, and a promise of a brighter future for everyone via his voice and words. Dr. Martin Luther King Jr. encouraged everyone in America to make democracy’s promises a reality. He recommended that everyone is treated with respect and that everyone is treated equally, as we are all created equal.

He also spoke out against police violence against minorities. He addressed the subject of universal voting rights, highlighting that everyone, regardless of race, or background should have the same rights in all aspects of life. It is interesting to note that every word he spoke may apply to both the periods he spoke in and those we live in now.

NOW, 58 YEARS LATER, we still have a long way to go in realizing Dr. Martin Luther King Jr.’s goal. Much of the discussion around the historical speech and march has centered on how little has changed.

Unemployment among blacks is double that of whites. The wealth disparity between races has widened. The gap in educational achievement has grown, black life expectancy has not kept pace, and the proportion of black males imprisoned has risen dramatically.

It is not as though racial relations have remained unchanged since 1963. Our conscious attitudes, or at least our aspirations to retain them, have come a long way.

WWW.THEPOWERISNOW.COM

BUT WHAT ABOUT HIS DREAM? Once upon a time, Martin Luther King Jr. had a dream. That ideal, imprinted in every American’s psyche for all time, has already been a reality and will only become more so as time passes. Infringement of the 14th Amendment is met with a harsh examination in the courts, demonstrating how important racial equality is to the US government.

Government policy has made King’s dream a reality, establishing the standard for Americans to follow in their daily lives.

It is easy to argue that the nation does not treat everyone fairly, particularly in the aftermath of the September 11 attacks and the surge of illegal immigration. However, in terms of social consciousness, understanding, and respect for all individuals, America is much more conscientious, understanding, and respectful of all people now than during King’s time.

Never before in history has the substance of a person’s character been valued more than the color of their skin. The first black president is a live example of this. The American culture is far more oblivious to racial and gender differences than just a few decades ago. Individuals now have the flexibility to go where they want to go on their merit, particularly in the workplace and school.

Martin Luther King Jr.’s ideal will be actualised when the race is no longer used to categorize individuals. His goal was for everyone to be treated equally and for no one to be seen as different. That won’t happen until the race is no longer a major factor. Prejudice still exists in many communities. The majority of prejudice is aimed at black Americans and Latinos. The dream of Martin Luther King will not come true unless everyone is treated equally. Nearly all of us think that individuals of all races should have equal opportunities in life fifty years after Martin Luther King’s death and the riots that followed. Now we must demonstrate that we are willing to take action. That is what it takes to commemorate Martin Luther King Jr.’s life and legacy. l

133

Brilliant women have proven stereotypes incorrect throughout the past century, demonstrating what women can do from Eleanor Roosevelt and Rosa Parks that were part of civil rights fights and to famous scientists like Marie Curie, and Rosalind Franklin. The past century has shown more than ever the things that women are capable of doing.

123rf.com

Women’s equality today has evolved to include a lot more than simply the ability to vote. Bodies such as Womankind Worldwide continue to strive to ensure that women everywhere have equal access to education and employment and combat oppression and violence against women and prejudice and stereotype. Every year, the President reads a proclamation honoring trailblazers in this civil rights struggle.

WOMEN’S Equality Day

S

ince its beginning in 1971, Women’s Equality Day has been celebrated on August 26 in the United States, celebrating American women’s development and progress on the way to equality. Many institutions, organizations, libraries, and businesses, have celebrated the day by organising events and activities that honor the journey of women on the way to equality. This day commemorates a watershed moment in the history of the fight for women’s equality and rights.

It all began from the 1970 National Organization for Women (NOW) strike which was a huge success in showing the breadth of support for women’s rights. The strike also aided in adopting the Equal Rights Amendment by Congress in 1972. In 1971, Congress designated August 26 as Women’s Equality Day, commemorating not only the adoption of the Nineteenth Amendment but also the ongoing efforts of women to attain complete equality. The legislation made it illegal for the federal government and states to deny individuals the right to vote because of their gender.

134

l

Women’s Equality Day may be commemorated in a variety of different ways. Paying homage to the great ladies who have made a huge impact on the cause is one of the finest things to do on this day.

Spend some time online researching to learn more about the subject. You may share material with your friends, family, and followers on social media to raise awareness among your whole family. It’s also a good idea to spend some time studying previous and current female leaders. You can learn about women who organize female rights conferences. There are several other powerful women about whom we suggest knowing more.

Visiting a women’s museum is another excellent way to celebrate Women’s Equality Day. If you check online, the number of women’s museums across the globe will likely surprise you. There are several museums devoted to displaying the history of these campaigns. You can find out whether there are any museums in your region by doing a simple internet search. Some may even be hosting special exhibits to commemorate the occasion.

Another way to mark Women’s Equality Day is to register to vote if you haven’t already done so. The greatest thing you can do on this day exercises your constitutionally guaranteed right to vote. Local and state elections are held once a year, making sure your registration is up to date. Go online and get all the information you need on how to vote.

THE POWER IS NOW MAGAZINE | AUGUST 2021

SOUNDS LIKE DISCRIMINATION.

What matters is how you look on paper – not how you sound over the phone.

Judging you by your race or national origin instead of your qualifications is discrimination. It’s unfair, it’s painful... and it’s against the law. The best way to stop housing discrimination is to report it.

If you believe you may be a victim of housing discrimination, contact HUD or your local Fair Housing Center:

Visit www.hud.gov/fairhousing or call the HUD Hotline 1-800-669-9777 (voice) 1-800-927-9275 (TTY)

Your Choice. Your Right. Your Home.

A public service message from the U.S. Department of Housing and Urban Development in partnership with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.

HOME OWNERSHIP

by Eric Lawrence Frazier MBA Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own.

Real Estate you own is not like cars that decay over time and you have to replace them.

Real Estate you own is not like clothes that go out of style and you have to buy new ones.

Real Estate you own is not like expensive vacations or experiences that only last a moment in time.

Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable.

Real Estate you own is not like staying at your parents house where you know can’t stay forever.

Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family.

Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned.

Home ownership is the place you build memories that can never be taken from you.

Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand.

Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life.

136

l

THE POWER IS NOW MAGAZINE | AUGUST 2021

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.