The effects of the COVID-19 continue to negatively impact the real estate industry. Business is unusual, and while the real effects will vary from sector to sector, the extent of the impact of the virus will largely depend upon the duration of the economic shutdown.
Some of the most affected sectors of the diverse real estate industry include hotels, restaurants, bars, and entertainment centers. These are followed closely by the retail and housing sectors. And while the supply chain has been disrupted due to the lockdowns and quarantines, real estate professionals are now more united than never and are adapting to this new environment.
The election cycle is almost here, which means now more than ever, the minority organizations must come together to lobby for a better position in the future. Access to credit has been and continues to be an issue for minorities. The Community Reinvestment Act was supposed to address this issue, but it has not. Underwriting guidelines and FICO scoring since its inception has had a disparate impact on Black and Brown people widening the gap of homeownership between blacks and whites. The lack of wealth creation especially among African American’s because of long standing history of discrimination in housing since the emancipation proclamation. NAREB is fully engaged on all the above stated issues and advocating for African Americans and people of color.
Currently, the homeownership rate among African Americans now stands at 44 percent nationwide. That compared to the rate of the Non-Hispanic Whites; there is a 30-percentage point difference. If we are serious about closing this gap, it is crucial that as a community, we come together and lobby for better and equal chances.
To bring needed attention and action to the homeownership needs of African Americans, NAREB is hosting The Spring Policy Conference, which will be broadcasted through the Zoom Platform. This is a conference that is meant to provide the tools and the infrastructure necessary for the members and the community at large to bring “Democracy in Housing.”
Homeownership education and awareness for the community are vital towards improving the statistics in homeownership among the Black community in the country. One thing that’s clear is that homeownership is complicated. Choosing and maintaining a home as well as making the purchase decision can be challenging, and that is why you will find most people struggling to understand the choices presented to them.
That aside, buying your primary residence from experience can also be a significant challenge as most people will purchase one home in their lifetime. What is common among so many buyers are that they overestimate their ability to form a financial plan and stick to it. And these challenges are quite common, especially among the low-to-moderate income earners. Research shows that buyers in this bracket underestimate their household debt by $5,000 or even more. In most cases, these buyers will take out a larger mortgage debt relative to their incomes.
As such, all-round homeownership education and financial literacy are important in the journey towards raising the number of homeowners in our community. The Spring Policy Agenda is a conference that aims to raise awareness and promote education among African American buyers.
I believe in the power of education and time after time, I have seen what it can do. The challenge for the African American community is not the lack of wealth or affordability to buy a home. The Gross Domestic Product of African Americans in the United States is 1.3 Trillion dollars, which is more than the country Russia. The challenges are many, but they are not insurmountable, and I cannot get into the details in this article, but the key components are access to information, homeownership counseling, mentoring and financial literacy. The uncertainties about Homeownership are something that buyers always worry about. Expected and unexpected maintenance costs and the struggle to maintain their mortgage payment and lacking any real reserves for emergencies. These are all legitimate concerns and there are real solutions in homeownership literacy programs. In most cases, buyers want to hear that it will all be okay and that requires a support system.
What NAREB is doing is a commendable. They are leading and advocating for the changes that need to have now for all people who desire to make homeownership a realty. Please join me and many others on May 20 – 22, 2020, for the 2020 Spring Policy Agenda. This is one event that you do not want to miss. It is a free event and because it is online you can join the meeting from the comfort of your home or office and receive information that will impact your life or business. To register for the event, click here.
Homeownership challenges are not unique, they cut across every community, but I believe that with the right support and guidance, homeownership can be a reality for every family in every community. As such, The Power Is Now Media has put up a great team of agents known as VIP agents who are spread across the country and ready to assist you in the journey to homeownership. To check whether we have agents in your county, click the following link https://thepowerisnow.com/vipagentsservices/. You can also contact me directly for a referral if we do not have an agent in your area. Stay up to date with current real estate news and housing developments by visiting our blogs page at https://thepowerisnow.com/blog/ daily. If you’d like to set an appointment and speak to me directly, use the following link, https://calendly.com/thepowerisnow/ericfrazier.
About The Power Is Now Media
The Power Is Now Media Inc., is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for home ownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media Inc. corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com.
Eric Lawrence Frazier
President & CEO
The Power Is Now Media, Inc.