Saturday, December 31 2016
|Commentary by Desirée Patno
|RISMEDIA, Saturday, December 31, 2016— The housing ecosystem is evolving, and we're witnessing circumstances to be more favorable for underrepresented groups than previously. Will 2017 continue this progression?
While low mortgage rates are undermined by high home prices, buying in southern metros is at times more than 50 percent cheaper than renting, according to Trulia. Buyers in the West, where high rents often remain preferable to rising home prices, face a tougher task.
Agents must recognize these conditions and the fact that international investment in U.S. real estate is expected to continue. In the first half of this year, Asian investors invested $4.02 billion in New York real estate and $1.4 billion in San Francisco property alone—the top two most desired American destinations for their capital.
Women and Minorities
Single women accounted for 15 percent of homebuyers in 2015, compared to 9 percent single men. The desire to own a home, coupled with professional advancements, make women a formidable source of purchasing power; in fields like civil engineering, women increased 977 percent from 1970 to 2010, and the percentage of married couples where the woman earns at least $30,000 more than the man rose 3 percent between 2000 and 2015.
According to the U.S. Census Bureau, from 2014 to 2015, the Hispanic poverty level declined from 23.6 to 21.4 percent, and the median annual income of Hispanic-origin households rose 6.1 percent, from $42,540 to $45,148. Similarly, the poverty level of black households decreased to 24.1 percent from 26.2, and their median annual income increased 4.1 percent, from $35,439 to $36,898. As their incomes rise, minorities will progress out of poverty, and their presence among homebuyers will grow.
In addition to their personal advancements, women and minority homebuyers will be assisted by government policies in 2017.
Recently, the Federal Housing Finance Agency (FHFA) issued a Notice of Proposed Rulemaking (NPRM) on proposed amendments to its Minority and Women Inclusion regulations. Among proposed changes, the amendments would:
In October, Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), stated that redlining would be a priority for the Bureau in the coming year. By focusing on redlining, the Bureau is demonstrating that discriminatory practices remain a large issue, behooving the housing ecosystem to eradicate them and allow consumers to exercise their buying power.
- Encourage the regulated entities to expand contracting opportunities for minorities, women, and individuals with disabilities through subcontracting arrangements; and
- Require the regulated entities to amend their policies on equal opportunity in employment and contracting by adding sexual orientation, gender identity and status as a parent to the list of protected classifications.
Despite high home prices, 2017 is expected to observe noteworthy buying activity from several groups. Underrepresented groups will receive the attention and help of impending government policies, which will create a clearer path to homeownership.
A growing market of capable buyers will help strengthen the housing ecosystem and economy. These buyers are looking for the help of experienced professionals. Will you be ready for the buyers of 2017?
Desirée Patno is president and CEO of the National Association of Women in Real Estate Businesses (NAWRB).
For more information, please visit www.nawrb.com.
Wednesday, December 28 2016
North Dakota tops a list of states poised to have the healthiest economies in 2017, followed by Oklahoma and Texas. The list was compiled by business solutions site ExpertMarket.com, which culled data on housing, employment, and other trends in all 50 states. North Dakota had the highest growth in startup density of any other state, seeing an average increase of 5.56 percent in new business activity, according to the site. Its residents are also seeing the biggest growth in household incomes, with an average increase of 4.1 percent.
"There has been a huge surge in oil extraction in North Dakota, which has led to a steep rise in GDP growth and household income, which explains how they managed to take the top spot," says Bobbi Brant, an ExpertMarket.com researcher who authored the site's study.
States that topped the list represent those that have recovered from the recession the fastest and are continuing to see strong growth. "States that came out on top in our study have a bright future ahead of them, especially for 2017," Brant says.
These are the 10 states that topped ExpertMarket.com's list for strongest economic outlooks for 2017:
- North Dakota
Source: “These Are the States with the Best Economic Prospects for 2017,” Fast Company (Nov. 30, 2016)
Susanna Boyer, Broker-Associate, REO Director
C2EX, CDPE, CNE, CRS, GRI, SFR, TAHS, TRC, TRLP, WC Specialist
Cell Phone: 512-785-4568