MARCH 2022 Vol. 09 | Issue 3
KETANJI BROWN Nominee of The Supreme Court
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magazine CENTRAL EDITION Vol. 09 | Issue 3
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
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CONTENTS
MARCH 2022 FROM OUR VIP AGENTS:
POWER GREEN Pg. 8. 120, 000 Californians urge Gov. Newsom to save rooftop solars
POWER ECONOMICS Pg. 12. Forecasters project steady jobs growth: What Does This Mean For the Real Estate Market?
POWER REAL ESTATE Pg. 14. Analysis: Looking into the first quarter of America’s hottest housing markets
POWER LENDING Pg. 16. How Will Rising Interest Rates Affect Housing in 2022?
POWER TECHNOLOGY Pg. 18. MetaVerse Real Estate: What is it? What Are the Risks and Rewards of Investing in this metaverse real estate boom? 4
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Pg. 21. Which mortgage is right for you? Part Six: Home Buyer Down Payment Strategies for First Time Homebuyers, by Sharon Bartlett. Pg. 27. Baltimore Real Estate Market: Insights on The market and Predictions for 2022, by Emerick Peace. Pg. 31. Rental costs in Florida have skyrocketed in 2021 by as much as 30 percent, by Adriana Montes. Pg. 35. Arizona Housing Market: Price | Trends Forecast for 2022, by Yvonne McFadden. Pg. 39. 2022 Colroado Real Estate Market Report, by Walter Huff. Pg. 41. Los Angeles Housing Market: Price, Trends, Forecast for Q1, 2022, by Adrian Bates. Pg. 43. Inland Empire Housing Market and Appreciation data for investors, by Ruby Frazier. Pg. 42. Ketanji Brown Jackson, Nominee of The Supreme Court Pg. 53. Down Payment and Closing Costs Assistance In Corona, CA , by Jenny Gonzalez.
Pg. 59. Placer County Real Estate, by John Brophy. Pg. 63. How safe is Corona, CA Real Estate Market in Q1, 2022, by Kamesha Keesee. Pg. 67. Real Estate investment in Long Beach California, by Kate Nash. Pg. 71. Sacramento Apartment Market Ranks Among Nation Most Competitive, by Serina Lowden. Pg. 71. Cash Sales of San Diego Homes Hit Their Highest Level in 7 Years, by Candace Thrower. Pg. 77. Riverside County Housing Affordability: The Housing Element Program , by Briana Frazier.
POWER HEALTH Pg. 84. Schools Play A Vital Role In Ensuring Equitable Recovery From The Pandemic for Our Kids
POWER HISTORY Pg. 86. The History of The Oldest Minority Owned and Female Owned Construction Management Firm in America
POWER LEGAL Pg. 80. Crypto, CRA, data sharing: Bank regulators’ ambitious priorities for 2022
POWER MORTGAGE Pg. 82. Home Prices Are Expected to Moderate over the next 12 months. What Does this mean for the Mortgage Industry?
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5
March 2022 FROM THE EDITOR
I
t is still hard to believe that it’s two years now since the pandemic hit our world. In the past two years, we have been forced to make compromises that changed the way we lived our lives. Some changes are permanent than others. But, as every cloud has a silver, I think the pandemic has helped to highlight some of the disparities world governments had shunned for years. From the pandemic, we enter another crisis that’s threatening world peace; the Russian-Ukraine war! No one ever believed that in a century that is infested with nuclear weapons countries would turn against each other, it was inconceivable, yet that’s exactly what is happening. The inscrutable and implacable Russian President, Vladimir Putin decided to launch a vicious attack on Ukraine, which by the way has a population of about 44 million people, disregarding its democratic nature. But, Ukrainians are showing resilience showing Putin that they are no pushovers, something that the Russians perhaps never expected. Nonetheless, what Putin is doing at the moment qualifies him a place in line with the czars of imperial Russia. His invasion in a democratic republic could be likened to the annexation of Austria by the Nazis in the late 30’s which as you probably know was the precursor to the infamous World War II. and ironically, Putin claims that his attack’s primary objective was the ‘de-Nazification’ of Ukraine. Anyway, I don’t want to dwell much on the politics around the Russian-Ukraine war, but I condemn the Russian president for his actions that have left millions of Ukrainians homeless. March is the Women’s International Month celebrated annually on March 8th. 2022 will mark the 104 anniversary of women’s suffrage. As such, to honor our women, this month we have Ketanji Brown Jackson, a phenomenal woman and justice recently nominated to the Supreme Court of the United States. If Jackson is confirmed, she will be the first African American Woman to serve on the Supreme Court. Ketanji is 51 years old, she’s married with two daughters. Also, if confirmed, she will be one of the youngest justices. Jackson will be making history, not just as an African American woman on the supreme court, she will also be the first public defender on the court. and this significant: in a court that lacks diversity in the judicial careers of its members, it is unsurprising that no current justice has represented criminal defendants, despite the many cases brought to the court. On to some other news, the economy seems to be doing really well. Forecasters project steady growth but are a growing economy always translate to a better performing real estate market? This is a question we’ll be seeking to answer in our economic section. 6 | MARCH 2022
In addition, we all knew that mortgage rates would be rising this year, but by how much? No one really knows, but right now we are at 4%, many experts expected the rates to be somewhere between 3-3.5% but not this high. As such, what does this mean for the real estate market? In our lending section, we try to explore the answers that lie ahead given the current rates and what to expect for the real estate market in 2022.
This issue is information-packed and I can say with confidence that this is one of the resourceful magazines that you will ever find. We leave nothing unturned making sure that you are informed all through the month. here, you will find valuable information as a buyer, seller, or investor that will help you make informed decisions. As such, take a moment to read and share our current issue.
One of the interesting topics we cover this month is the MetaVerse real estate boom. We analyze what it is, the risks and rewards of investing in this new trend. Find out more only on this issue of the Power Is Now Magazine.
Like us on Facebook and follow us on Twitter to keep interacting with the Power Is Now Media, Inc. You have the power to change anything and everything in your life but you have to seize the power because the Power Is Now. It is with this note that I send you love, warmth, and the March Sunshine your way. Always remember, “we are at our best and we maximize our success when we act now!”
The Power Is Now Magazine cannot be complete without highlighting some of the markets and this month we have analyzed Arizona, Corona, CA, Los Angeles, Baltimore and Placer County, CA. Learn more about these markets and how to invest safely in these and many more markets only on this issue.
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MARCH 2022 | 7
POWER GREEN
120, 000 Californians urge Gov. Newsom to save rooftop Solar
Save California Solar coalition event photo Samantha May Photography)
The move comes after a meeting that was done on Dec 8, 2021, which saw Environment California Research & Policy Center and over a hundred solar supporters delivered a petition signed by more than 120,000 Californians to officials at the California State Capitol urging the Governor and the California Public Utilities Commission to protect a key incentive for rooftop solar. The program, dubbed “net metering,” reimburses Californians for any extra electricity their solar panels provide back to the grid.
8 | MARCH 2022
“Rooftop solar needs to continue to grow quickly for California to reach its clean energy goals,” said Laura Deehan, state director at Environment California Research & Policy Center. “Gov. Newsom has the golden opportunity to help California reach its climate goals, keep the lights on and protect our state’s precious open spaces. Over 120,000 Californians agree: Gov. Newsom needs to stand up to the state’s investor-owned utilities and keep rooftop solar within reach for California families and businesses.” The state is committed to ensuring 100 percent clean electricity in the next two decades and the officials estimate that to achieve this the state will need to quadruple the current rooftop solar capacity. There’s are a lot of merits to this, rooftop solar reduces the need for costly investments in the grid system. In fact, in 2018, the state grid operators determined that California could forego $2.6 Billion in future spending on transmission and other projects pertaining to the grid
PHOTO FROM 123RF
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bout 120,000 Californians including supporters, consumers, affordable housing advocates, church leaders, environmentalists, conservationists, and climate activists all agree that the governor needs to stand up to the state’s investorowned utilities and keep rooftop solar within reach for the California Families.
os captured at Capitol Park, Sacramento, Calif. (Credit:
projects largely due to increases in rooftop solar and energy efficiency. Despite the numerous benefits of solar energy, Pacific Gas and Electric (PG&E), Southern California Edison (SoCal Edison), and San Diego Gas & Electric (SDG&E) are using the common utility playbook described in Blocking Rooftop Solar to persuade CPUC to create the nation’s highest fixed solar charges and cut the net metering in California.
“Rooftop solar is among the best and fastest ways to generate clean renewable power,” Deehan said. “We don’t have time to mess around. California should be doing everything it can to accelerate rooftop solar, not slow it down. Gov. Newsom needs to save rooftop solar.” MARCH 2022 | 9
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*Advertisement contains general program information, is not an offer for extension of credit nor a commitment to lend and is subject to change without notice. Example based on 97% Conventional First Mortgage Loan combined with 7% in down payment and clossing cost assistance. For complete program guidelines, loan applications, interest rates and annual percentage rates (APRs) contact a GSFA Participating Lender. Golden State Finance Authority (GSFA) is a duly constituted public entity and agency. Copyright © 2021.
POWER ECONOMICS
Forecasters project steady jobs growth: What Does This Mean for the Real Estate Market?
Many of the country’s top economists expect that the rate of growth of Gross Domestic Product to remain strong throughout the year due to a robust job recovery according to a survey of forecasters by the Philadelphia Federal Reserve. This group of economists also speculate that inflation will stabilize in the long term. Meanwhile, the Federal Reserve is under intense pressure to act more aggressively to control inflation after a recent report showed that inflation is growing at an extremely rapid rate, the fastest in 40 years. However, not all policymakers agree that the FED should launch the rate increases with a half percentage point increase. Some are convinced that the FED should speed up or slow down the rate increases based on what happens with inflation. GDP is expected to grow by 1.8% in the first quarter, down from 3.9% expected growth in November. Still, the forecasters expect that the economy will grow by 3.7% for the year, down only slightly from the previous expectations.
12 | MARCH 2022
SO WHAT DOES THIS MEAN FOR THE REAL ESTATE MARKET? In today’s real estate, we see markets becoming more and more divided, some are trying so hard to remain in balance with the supply and demand but many are being affected by what is happening nationally with inflation. From a distant view, we see that the economy is doing really fine, it has been growing at an annual rate of almost 2.5% and for those of you who don’t know, this is actually impressive. Especially given the current health pandemic. With a projection of 3.7% this year, this means that the unemployment rate is lowering, the stock market will be doing extremely well and exports rising. The housing market is affected by the state of the economy, the interest rates, incomes and the size of population. Looking at these factors individually we see that in a state where there is economic growth, obviously there are rising incomes. People have more to spend on houses which in turn increases the prices of houses up. In fact, demand for housing is noted as an income elastic; the more the income the bigger proportion of it will be spent on housing. In a similar fashion, in a failing economy, less money get to the people and affordability decreases. People simply cannot afford to buy houses and those that already have, they will be falling behind on their mortgages. When it comes to employment numbers, it is expected that jobs will increase during the year bringing the number to unemployed to record lows. This means many people will have the buying power which result to increased housing competition. Interest rates are another factor we have to look at. Interest rates will affect the cost of monthly mortgage payments. When there is high interest rates, this will increase the cost of mortgage payments and will cause lower demand for buying a house. Additionally, higher interest rates makes renting more appealing compared to buying houses. And the opposite is true. Last year was marked by relatively low interest rates which made the prices of homes to skyrocket.
PHOTOS FROM 123RF
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he GDP growth in the first quarter is growing a slower rate, but according to many forecasters, the Federal Reserve may be able to control the rate of inflation and still keep the rate of growth on track.
BROTHER BE WELL Wellness for Boys and Men of Color
ADDRESSING HEALTH EQUITY
Closing the mental health equity gap for boys and men of color.
BUILDING COMMUNITY
Brotherhood in a virtual healing space for scale and impact.
brotherbewell.com
ADVANCING INNOVATION
Culturally-appropriate multimedia resources and pathways to care.
POWER REAL ESTATE
ANALYSIS:
Looking into the first quarter of America’s hottest housing markets
January is characterized as a slow season, but despite that, many of the America’s real estate markets are already heating up and surprisingly in the most unusual cities and metro areas. According to Realtor.com analysis, Manchester, NH ranked as the nation’s hottest market in January despite it being a really cold place. We know that in January people usually tend to go for warmer places, but Manchester? That seemed odd. The area property listings received 3.4 times more visitors than the national average with homes staying on the market for an average of 33 days (the national average being 61 days). Because of this crazy demand, the median listing price has risen 11.1% over the past year to $450,000 which is way above the national median of $375,000. Deciding on the best places to settle for you and your family can be tricky as there are so many deciding factors beyond the return on 14 | MARCH 2022
investment. Job opportunities, amenities, crime rates are some of the key factors one needs to investigate before moving to a new place. In overall, according to Realtor.com analysis the nation’s hottest market is just a highlight of more affordable areas in the outskirts of bigger cities. According to George Ratiu, the manager of economic research for Realtor.com, “Manchester, NH, sits squarely at the very intersection of current trends,” adding that “it’s a short distance from the Boston metropolitan area.” In Boston Metro, the median home prices skyrocketed to $275,000 in January which is one of the factors driving people to look for homes farther inwards that are more affordable. Manchester is located two hours away which to many is perfect compromise.
“Remote work has moved from a pandemic necessity to a preferred reality for millions of workers across the country,” says Ratiu. “In practice, these changes are spotlighting communities located within a two-hour drive from a major urban employment center, a broadening of the traditional commute radius.” Apart from convenience residents of Manchester save on taxes too.
PHOTOS FROM 123RF
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f anything, we can all agree that last year’s real estate activity was kind of an anomaly, and understandably so. We had the pandemic that disrupted everything and while after sometime we expected that this anomaly would correct itself, this might not be happening any time soon.
“New Hampshire is attractive for its lack of state income and sales taxes, which can help many higher-income families keep thousands of dollars from wages in their pockets every year,” Ratiu explains. SO WHAT CAN WE EXPECT THIS YEAR? Earlier indication pointed to the fact that tjis year’s real estate market becoming too hot to handle. “The first weeks of 2022 point to an unseasonably active real estate market across the country,” says Ratiu.
“As we look toward the spring season, we expect the combination of growing new homes and more homeowners listing their properties to offer buyers more options,” he says, “and also lead to a moderation in price growth.”
The primary culprit to this frantic rise being the rising mortagge rates. “Buyers are seeking to close on homes in an effort to beat rising mortgage rates,” says Ratiu. While many buyers are in a panic mode right now, it is likely that the warmer months will bring some sort of relief.
MARCH 2022 | 15
POWER LENDING
If anything, the first quarter of 2022 is edging closer to what a normal housing season/year looks like. As we approach the home buying season, which this year began early, homebuyers still have tough choices to make, but, this won’t feel anything remotely close to what 2021 was like.
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ast year, we saw prices shooting as high up as 20% at many points. And while this trend is expected to continue, the rate at which prices appreciate is expected to slow down. Many experts concur price increases will be at roughly half the price we saw during the peak of 2021. The housing market has suffered and continues to suffer through many of the same problems as the broad economy. This includes the supply and demand imbalance, labor shortages, material shortages and record low inventories. Inflation is another bottleneck plaguing both the economies, but now that the policy makers have recognized that inflation induced problems, the dollar is beginning to diminish. Mortgage rates on the other hand are beginning to rise, further eroding
PHOTOS FROM 123RF
How Will Rising Interest Rates Affect Housing in 2022?
affordability especially for the first time buyers. The housing projection for 2022 reports that came out earlier showed that the rising mortgage rates would only have modest impact on the demand and while mortgage rates to date haven’t risen that much, buyers still face bidding wars. However, it is expected that the bidding wars will not be as intense as they were in 2021. This comes as a strong warning to the sellers that they should not be as selective when choosing between offers. In 2021, one trend that we saw with most sellers is that they mostly accepted all-cash offers and conventional loan offers with appraisal contingencies waived. For the buyers, rising interest rates means that you have to be
more flexible with the terms of your purchase contract, even if you are not necessarily getting a deal on the price. Remember, the spring of 2022 will still be a seller’s market, but it will be less competitive for the buyers than the previous spring. There is a high chance that the spring of 2022 will look more like a regular spring season. The number of new and existing inventory for sale will increase, but, it will be lower than what a normal market offers. The mortgage rates will go up which to some extent will significantly affect buyer’s affordability. Thus, understanding your finances is really important as it will help you determine the upper limits of your budget. On the other hand, for sellers, you’ll want to stay ahead of any maintenance
Another not so interesting consequence of the rising interest rate is that there will be a severe shortage of homes for sale relative to demand. This will be the primary driver of positive house price growth. According to Odeta Kushi, deputy chief economist at First American Financial Corporation, a real estate services firm; “It’s really the severe shortage of homes for sale relative to demand that will be the primary driver of continued positive house price growth,” she says. Many millennials are hitting the prime buying age, and there aren’t enough homes built to meet this demand.
upgrades even before putting your home. Another projection is that home buying demand will fall, but not plummet. Over the last 12 months, we saw many buyers rushing into the market and they are unlikely to be buying another home in 2022. While it’s not expected that there will be a sharp drop in home prices, fluctuations will only be local. Homebuyers need to put more focus on the fundamentals of what makes a home purchase a good move. It is advisable to also interrogate the motive, if buying a home makes sense with your current employment situation and family status, then the timing is probably right, you should buy.
Many buyers, and it doesn’t matter the generation, looking to make a move this year must be well prepared. And the good thing is that this year, many have a little more time to make up their mind compared to 2021, “but given that it will still be a seller’s market, they’ll still likely have to move fast to keep up with that market velocity,” Kushi says. Going into the market, make sure that you have your budget right and plan ahead of what you are willing to spend for a property. Buying a home isn’t just another financial decision, it is a deciding factor about your lifestyle. As such, buying a home should make sense for your personal and financial situation.
MARCH 2022 | 17
POWER TECHNOLOGY
MetaVerse Real Estate:
What is it? What Are the Risks and Rewards of Investing in this metaverse real estate boom?
C
rypto whales are really fighting to get parcels of virtual land which to the ordinary person, this does not make any sense at all. Last year, the real estate in this new strange world, called the metaverse reached half a billion dollars, and if this trend continues, it is possible that its sale might reach and even exceed 1 billion dollars this year. 18 | MARCH 2022
PHOTOS FROM 123RF
The world of cryptocurrency seems to be taking us all by surprise and with this technology, we have opened a whole new sphere, the virtual world!
Companies globally are even participating in the purchase of big parcels of land, and then developing them to lease them later which sounds surreal. One of the questions that you may be asking yourself is leasing these developed parcels to whom? Surprisingly, many people are willing to take a gamble. According to the CEO of
Metaverse Group, Lorne Sugarman, a company specializing in buying this virtual land developing it, and leasing it out, he compares the ‘great land grab to “the early days of European settlement in the US.” The Metaverse world will grow in value economic wise as more people and brands buy, and it is already happening. Early speculators,
professional real estate agents, and celebrities are already buying this land that doesn’t exist. So what is Metaverse? Many technologists say that Metaverse is the next level of the internet. It is like the real world only that it is not. In a virtual world, people can play games, connect with friends, attend meetings and even go to virtual concerts. BUT WHAT ARE THE RISKS? Some academics argue that Metaverse is as real as real gets, it not synthetic as many people believe, and people should invest in this virtual world, but according to Edward Castronova, a professor of media at Indiana University is having none of that and certainly won’t be investing in virtual property. He argues that the “current metaverse real estate boom is a speculation market,” and that booms “like this have been happening every four-five years since the early 2000s.” Even though short-term speculative gains are possible, Castranova has “never seen long-run value emerge from a virtual land product.”
LET’S TALK ABOUT THIS VIRTUAL LAND BOOM As you may have already guessed, a land boom simply happens when there is a rapid increase in the market value of the real property. The value or the price will continue to rise reaching unsustainable levels, then declines, sometimes rapidly. About a century ago, Florida experienced a land boom where prices rose to epic proportions and the land speculations were based on hype and lies rather than actual economic realities. If that doesn’t sound familiar, as I am sure it is not, let me bring you closer. Many of you experienced the financial crisis of 2007-2008 when the real estate burst had some real ripple effects. One thing is for sure, real estate bubbles can be extremely difficult to identify, the line between the intrinsic value and the current market value is a fine one. With Metaverse, however, identifying the real estate bubbles is easy. The period that occurs before a crash is called a froth. A frothy market is characterized by bullish investors that intentionally ignore the market fundamentals. Also, speculations and supercharged emotions reign, investors cast aside their rational thinking.
MARCH 2022 | 19
Which mortgage is right for you? Part VI 3 Home Buyer Down Payment Strategies for First Time Homebuyers By Sharon Bartlett
PHOTOS FROM 123RF
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y now you have a good idea of what mortgage is and how it works. If you are reading this I am glad that the idea is sinking and that you are learning. If your lender asks for over 5% downpayment, that’s sizeable enough to start stressing, I cannot emphasize enough that even in such situations, there’s help and we’ll cover the downpayment assistance programs in depth. Assuming that your lender asks for a 20% down and going by the current national median home price of $374,900
that would mean you’d have to raise almost $80,000. That’s a lot! Even a 5% down is still too much for many people. Fortunately, there are options to help you make the necessary downpayment you need. Today, we are looking at some strategies that you can apply to come up with a downpayment. LOW DOWNPAYMENT MORTGAGES FOR FIRST-TIME BUYERS We talked about mortgages before and if you are a first-time buyer there are several options available to you. Here’s a more elaborate list. MARCH 2022 | 21
MIN. CREDIT SCORE
MAX. DTI
LOAN TYPE
DESCRIPTION
MIN. DOWN PAYMENT
FHA
Government-insured mortgage for borrowers with low credit scores
3.5%
500
50%
Fannie Mae 97% LTV Standard
At least one borrower must be a first-time homebuyer
3%
620
50%
Fannie Mae HomeReady
For credit-worthy low-income borrowers
3%
620
50%1
Freddie Mac Home Possible
Very-low-, low-, and moderate-income borrowers
3%
660
45%1
VA
Military service members (including qualified reservists) who meet length and character of service requirements, and their unmarried surviving spouses
0%
None
None
USDA
Low- and very-low-income applicants in eligible rural areas
0%
None
41%2
Smaller downpayment requirement will allow you kick start your journey to homeownership faster. But what’s the drawback of smaller down payment? Making a smaller down payment may prompt other expenses such as mortgage insurance. Mortgage insurance protects the lender against loans that default. This is a requirement on all FHA loans and on conventional loans that do not meet the 20% downpayment. On the other hand, VA loans have a funding fee which is usually rolled into the monthly mortgage payments. Additionally, lower downpayment means you will pay more in interest rates. DOWN PAYMENT ASSISTANCE FROM THE STATE AND LOCAL GOVERNMENTS Now that I have previously mentioned the downpayment programs, it’s only fair that we dig deeper. Many states and local municipalities have down payment programs started by government agencies, nonprofits, foundations, and even employers. The assistance comes in the form of grants, some in the form of zero22 | MARCH 2022
interest or forgivable loans. In most cases, it is a matter of ensuring that your home matches a program based on the home’s location and the price.
“There are some myths and misperceptions around this,” Chrane says. “Sometimes people think, ‘Oh, this is only for really low-cost housing, in targeted census tracts, distressed neighborhoods … and very low-income households. It’s much more widely available than that.” DPA is often combined with other favorable mortgage interest rates or tax breaks. The applicants must first take first-time homebuyer classes which help in the preparation for successful homeownership. The main drawback I find with DPAs is that there is a set maximum sale price and some have income limits. And as such, not all homebuyers will qualify.
TAPPING INTO RETIREMENT SAVINGS This is a viable option. Some first-time home buyers tap into retirement savings for downpayment. But if you are to walk down this path approach it with caution. There are rules that govern tapping your retirement money for use before the age of 59.5 and will vary by the type of account.
CROWDFUNDING FOR A DOWNPAYMENT There are popular crowdfunding sites like FeatherTheNest.com and HomeFundlt.com that let you build an online profile and raise money for a downpayment. FeatherTheNest works like a gift registry where people can contribute to your downpayment or any other home needs and the funds will be funneled into a linked bank account. This is a service that works best, especially for newlyweds or engaged couples. On the other hand, since HomeFundlt is a product of CMG Financial, to use the service, one has to first get prequalified for a mortgage from CMG Financial first. You can use the HomeFundlt crowdfunding tool to raise money for your downpayment. In addition, you can also have an opportunity to raise $1,500 in closing costs grant with free homebuyer education. Is crowdfunding good? It depends. One thing I can caution you with with crowdfunding is that you watch out for the fees or obligations when using crowdfunding. With FeatherTheNest, the transaction and credit card processing fees total 7.9% plus 30 cents on each donation. The HomeFundlt does not charge fees but the limitation is that you have to use CMG Financial.
People with 401(k) accounts (employersponsored) can withdraw their money early. However, note that you will have to pay income taxes and an additional 10% tax penalty on your withdrawals. If your account allows loans, you must repay the loan with interest to avoid income taxes and possible penalties. Some of the 401(k) accounts give more than five years to repay the loan for a primary home. If for some reason you leave your job, the loan must be repaid or rolled into an eligible retirement account by the next tax filing deadline, failure to which it might attract taxes and penalties on the borrowed money. The traditional IRA withdrawals for first-time home purchases are allowed up to $10,000. You will have to pay the income taxes on the withdrawn money, but you will not face any additional penalties if the money was used to buy or build a first-time home. Lastly, for Roth IRA account holders, withdrawals are tax-free and do not attract any penalties if you are using the money to purchase your first home. The only condition is that you must be the account holder for at least five years. Taking money from your retirement account isn’t the best strategy since it can set you back on long-term savings, making it hard for you to catch up. In addition, you might miss the chance to grow your money tax-free. I wouldn’t recommend this option as with many people, you might already be behind on your mortgage payments. MARCH 2022 | 23
Baltimore Real Estate Market:
Insights on The market and Predictions for 2022 By Emerick Peace
Today, we look at a city that has been making headlines of late and that is the city of Baltimore.
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or the better part of last year, the real estate market in Baltimore was thriving (still is) with days on the market reaching an all-time low. According to a recent article by Baltimore Sun, the suburban areas around Baltimore such as Joppa and Laurel are experiencing stiff competition with some homes selling in just under 6 days. The Covid-19 pandemic made an impact on many sectors of the local economy while also enhancing some. One of the consequences of the pandemic was the boom in the real estate market. Presently, the real estate market in Baltimore is doing well because of the lowinterest rates and but that is poised to change with the recent rise in rates. But, at present, the real estate market is a top performer, however,
this is a trend that has been recorded throughout the country. Here are some of the trends that are helping to drive demand in Baltimore. RENTAL VACANCIES ARE UP The vacancy rate in Baltimore is currently at 5.6% which is an increase of 0.2% from last year. On a national level, it is noticeable that the vacancy rate is 6.8% which means that while the rate may be high in the city, it is not particularly high or alarming considering the national rate. But, it is alarming enough since, at any moment, the rate could fluctuate, but that most will depend on what happens with the single-family market. Still, Baltimore presents itself as one of the best renter markets with ATTOM Data Solutions ranking it as the 4th best market for the growth in single-family rental yield. Young singles and couples without children are the main drivers of demand for rental properties in Baltimore. MARCH 2022 | 27
THE UNEMPLOYMENT RATE IS STILL HIGH The city’s proximity to the capital has led to years of federal investment. It was particularly hit hard by the pandemic but the good news is that it is recovering. The employment sectors such as construction, manufacturing, trade, transportation, and financial activities seem to be catching up faster according to recent data from BLS. Because of the pandemic, the unemployment rate in Baltimore peaked at a high of 9% and since then, the rate has dropped to 5.8% as of February 2021. It has since declined to 4.9% (Q4, 2021) according to data from BLS. It is likely that as the city continues to recover and businesses continue to reopen, the rate of unemployment will drop, more so as the restaurant and hospitality industry recovers. STATE OF THE REAL ESTATE MARKET IN BALTIMORE Just to summarize; There were 1,052 housing units in Baltimore that went under contract as of December 2021 versus 1,148 housing units around the same period in 2019. In January this year, the total number of homes sold was lower representing an 8.4% decrease over the month of December 2020. In addition, the median sale price was $297,250 which is up 28 | MARCH 2022
8.5% or $23,300 more from the previous year. Looking at this data, it means that sellers are reactionary to the changes in demand where they are increasing the home prices to counter the demand. Furthermore, the median sale price for Baltimore City was $200,000, an increase of 2.2% or $4,300 more as compared to last year. About 943 homes were sold in Baltimore city in December versus 958 sold around the same time a year ago representing a 1.6% drop in sales. The median days on market were 9 in Baltimore County and 17 in Baltimore City. WHAT ARE THE PREDICTED TRENDS FOR 2022? Baltimore was a seller’s market in January 2022 and it is likely that the trend will continue before cooling down. Data from Realtor.com show that in January, the median list price of homes in the County was $299,900 trending up 7.1 years over year. If this trend sustains, the market may be hot and the homes will be selling really fast. This puts sellers at a great advantage. The sale to list price ratio in Baltimore currently stands at 100%. Ideally, buyers prefer a sale to ask price ratio that’s closer to 90%. Many sellers in Baltimore have managed to hold good leverage in these negotiations in the past month and data supports the fact that many have been selling their homes for 100% of the asking price.
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Rental costs in Florida have skyrocketed in 2021 by as much as 30 percent By Adriana Montes This makes Florida a no-go zone for renters and one of the questions many people are asking is, ‘why is this legal?’
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ell, legally, a landlord has the power to raise the rent on a new lease and they can do that at their will. However, in light of the current situation, legislators are trying to attack the issue through a bill filed recently. SOME RENTERS have already experienced the rise by 29% and term this as ‘criminal’ According to Attorney Denita Jones with the Legal Aid Society of Palm Beach County, “Unless the Florida Attorney General’s Office intervenes or the legislator puts a cap on the rental increase, there’s really not much anyone can do,” Jones said. WHAT DOES RENT RISING IN FLORIDA MEAN FOR THE OVERALL HOUSING MARKET? Landlords in South Florida for long have been
living in a free market where they can do as they please, they will raise their rents, and unsurprisingly find people ready to take the units. This has made them notorious and the people whose bank accounts couldn’t keep up were hastily left behind. 2021 was a hard year for many people as they tried to recover their lost jobs. Meanwhile, South Florida landlords saw this as a unique opportunity to accelerate the trend capitalizing on the fact that there are too few new apartments that have been built and affordable housing far from reach. While that is happening, renters in Florida have little to no control of the market which by the way makes Florida one of the worst places to rent. These tensions have reignited the conversation over rent control- a proposal that has always failed in the past. But seeing rent control working in other states, the situation might soon change. MARCH 2022 | 31
In California for instance, landlords cannot raise rents anyhow! Even if they do, they cannot raise the rents more than 5-10% over the cost of living increases. This applies statewide, but local jurisdictions have their mandates over rent increases. In the cap the Free State of Florida however, rents across Palm Beach have jumped by 21% since the start of the year 2021. This does not make any sense at all because, in areas where the economy is largely dependent on tourism, people in these areas earn low wages in the service and hospitality industry which means they are losing more on housing. In their place, there are well-moneyed tenants willing to offer more over the asking prices and sometimes provide years’ worth of upfront rent. Looking at this situation, there is simply no incentive for the landlords not to take advantage of the money being thrown at their way, especially given that housing is a basic necessity.
The current law allows landlords in Florida to set rents as they see fit. The only exception would be in instances where a “housing emergency so grave as to constitute a serious menace to the general public.” Proving a housing crisis of such magnitude falls on the local governments who must then have an election to pass rent control ordinances. This would then be followed by an annual election to maintain the ordinance afterwards. So far, several bills that have been tabled at the state level to grant more control to local governments have been unsuccessful. Opponents of the rent control trust in the free market insisting that this issue is one about quantity. If there are more buildings, there will be more competition in the market. Currently, the demand for new apartment outpaces the supply which pushes prices higher up. In Palm Beach, for instance, it is estimated that 6,600 new rental apartments are needed over the next two years. In addition, they argue that rent controls make it hard for developers and derail the economy.
Regardless, one thing is clear, Florida Renters need affordable housing. These renters are stuck in between a rock and a hard place while landlords undoubtedly continue to raise their rents. Something needs to be done to ensure that both sides can continue to live comfortably in South Florida.
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Arizona Housing Market: Price, Trends Forecast for 2022 By Yvonne McFadden
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hoenix has been one of the most active housing markets in the United States. Phoenix had the highest year-over-year gain in the country in September, with a 33.1 percent increase. According to the latest S&P CoreLogic Case-Shiller Indices results, Tampa was right behind Phoenix with a 27.7 percent increase, followed by Miami with a 25.2 percent year-over-year gain. Home price growth in the United States was 19.5 percent in September, down from 19.8 percent the previous month. With the new year still very, well new, what will the Arizona market be like: PRICE APPRECIATION According to a housing market forecast released by Realtor.com, Phoenix home prices are expected to rise 6.8 percent in 2022. The projected increase is based on the Valley’s recent median home price of $485,000. Towards the end of the year, Realtor.com released its Top Housing Markets of 2022 report, where Metro Phoenix ranked 19th among the cities that would lead the nation in listing price appreciation and home sales growth in 2022. WWW.THEPINMAGAZINE.COM
“Prices will likely continue to go up, just given the fact that there’s such limited supply out there, but it can’t continue to appreciate at that same pace,” Erik Bildman, the vice president of real estate startup Sundae, said. “We’re predicting somewhere in the high single digits to low teens for next year.” HOME SALES We should anticipate strong home sales growth in Arizona as more sellers enter the market and fierce buyer competition. In 2022, Phoenix is expected to see a 14.3 percent increase in home sales, a 7.5 percent increase in home prices, l
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and a combined sales and price change of +6.8 percent, according to the report. HOME AFFORDABILITY Affordability will become increasingly difficult as interest rates and prices rise, but working remotely may broaden search areas and allow relatively young homebuyers to find their first homes quicker than they might otherwise. And, with more than 45 million millennials between the ages of 26 and 35 entering the market in 2022, we expect the need to stay competitive, according to Danielle Hale, Chief Economist Realtor.com. MORTGAGE RATES Interest rates on mortgages will rise in 2022. According to the National Bankers Association, the 30-year fixed-rate mortgage will reach 4%. Although that is historically a low rate, it comes as a surprise to folks used to 2.5 percent, 2.75
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percent, 3 percent, and 3.25 percent. INVENTORY In 2022, inventory will improve in Arizona, although this improvement will be slight. The housing market as a whole will remain competitive, forecasts Steve Hensley, the advisory manager for Zonda, a housing market research firm. The scarcity of available homes, combined with low mortgage rates, will continue to entice motivated homebuyers into the Arizona housing market. Realtor.com predicts home sales will rise in most metro areas in 2022, following the national trend. While some real estate markets are expected to experience a drop in home sales, these drops are expected to be modest. In fact, in many areas where declines are expected, 2022 is expected to have the second-highest sales level in the last 15 years, being outdone only by 2021.
2022 Colorado Real Estate Market Report By Walter Huff In as much as the pandemic made the Colorado real estate market shake and rattle for a while, the market showed resilience and was every bit as dynamic. In fact, looking back in 2021, it was the recordbreaking year for the days on the market, median sales prices, and mortgage rates for the colorado real estate market.
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n order to understand the market accurately, we need to understand the dynamics of the market in 2021.
Inventory moved fast in 2021 in Northern Colorado just like in many other cities which created an extremely competitive market. Traditionally, a normal balanced market has about 6 months’ worth of supply which means that enough houses are available that it would take six months to sell them all. Except for the homes worth over $1 million, supply was tight and in some cases less than two months across the region. Many people are led to believe that 2021 saw a constricted level of inventory, but some experts argue otherwise saying that the United States as a whole saw 6.1 million homes sold during the year which is the highest number since 2006. Locally, Colorado had an increase in the number of annual closed sales. This brings to question the issue of the ‘inventory’ myth. The fact is that there is no inventory, it is there but it’s not standing! Another trend to watch in 2022 is the continuation of the home buying rush that started in 2020 hitting its full speed in 2021. Buyers are competing for the resale properties and bidding up prices. Many more looked to new constructions as a solution and while that was
happening, homebuilders had enough problems to deal with. The supply chain wasn’t as easy as it used to be and this put many builders in a bind. As the price of lumber soared, many builders were forced to squeeze their margins on projects that were already under contract. For new contracts, it became increasingly more difficult to accurately price their customers. All in all, adjusting and readjusting contracts became an uncomfortable condition of doing business. In addition to the fluctuating costs, lack of access to basic materials for building also made it hard for builders and consumers alike. Consequently, many builders were forced to stop taking on new contracts until prices would be more predictable and the supplies more reliable. Now to add to all these problems, lack of buildable lots was also an issue. In response to the buyer demand, builders burned through their available lots in 2020 and early 2021. 2022 will be another interesting year for the Colorado real estate market. But the dynamics of the rising interest rates may hamper the growth opportunities of the housing market. But one thing that is for sure, is homeownership equity growth will continue its upward trajectory. Unfortunately, new construction will continue to be limited imposed by the lack of skilled labor as well as supply chain issues for materials. MARCH 2022 | 39
Los Angeles Housing Market: Price, Trends, and Forecast for Q1 2022 By Adrian Bates
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he median home value is $926 667, up 13.7 percent from the previous year in Los Angeles, while the median price of homes has dropped by 6.7 percent. Los Angeles County months’ supply of inventory (SFH) is at 1.8 months, with median days on the market of 34. In comparison to last year, the number of new listings has decreased by 19.5 percent to 1,050. There were 1,531 homes sold, up by 0.3 percent from the previous year. HOME VALUES HAVE RISEN across the Los Angeles metro region due to a lack of supply and strong demand. Los Angeles has appreciated at a pace of 114.72 percent over the last ten years, according to NeighborhoodScout.com. This equates to a 7.94 percent yearly real estate appreciation, putting Los Angeles in the top 10 percent of all cities for real estate appreciation. The market has gained 15.9 percent in the previous year and 3.19 percent in the last quarter. If the market in Los Angeles remains stable, it is expected to increase by 13.40 percent. BECAUSE OF ITS ENORMOUS POPULATION, Los Angeles is currently more inexpensive for renters than for buyers. The state’s price-to-rent ratio is 28.73 and is expected to stay that way in the first quarter of the year. On average, rent for a studio apartment in Los Angeles jumped by 4% in the last month to $1,550, the average rent for a 1-bedroom
apartment increased by 4% to $1,600, twobedroom apartment rents on average are at $2,993 a rise of 11% from the previous year and 1% from month to month. A three-bedroom apartment costs $4,250 on average. This is a 7% increase over the previous year. FOR ALL TYPES OF MORTGAGES, Los Angeles purchasers are receiving mortgage loans with interest rates of 3% or less. Since the start of the Covid -19 epidemic, these rates have been at historic lows, giving purchasers a lot of buying power and causing a lot of demand. Mortgage rates are expected to rise by 4% in 2022, according to real estate analysts. The rate is still favorable for securing a loan, therefore demand will continue to be strong. AS LOS ANGELES CONTINUES TO BE ONE OF THE FASTEST-GROWING CITIES in the United States, there will be more demand for buyers and investors. With less, construction of new homes may take place, supply will still be less than the present demand which means housing prices will still be high. 2022 will see continued growth in home value and competitive buyers, but with a steadier and more moderate pace. MARCH 2022 | 41
Inland Empire Housing Market and Appreciation data for investors By Ruby Frazier
have climbed by 13% in the last year. “Further worsening the affordability gap to homeownership and fueling significant rent increases,” says Kevin Green of Marcus & Millichap. According to web ads for the property, rents at the complex now run from $1,967 per month for a one-bedroom to $2,653 per month for a two-bedroom. In December, the average rent in the city was $2,074 for an 881-square-foot flat, up from the previous year.
Given the region’s rapid population increase he Inland Empire has long been regarded and high demand from competitive purchasers, supply is crucial to the market’s viability. Potential as one of Southern California’s most buyers may be put off by rising costs, which are cheap housing markets. However, due to historically low mortgage rates, an avalanche of likely to continue this year in the absence of a supply of new homes. According to the Federal purchasers has just flooded the Inland Empire Reserve Economic Data (FRED), the number of housing market, driving home values through the ceiling. The property market is booming, with new housing units permitted by building permits properties selling faster for more than the asking in Inland has increased every year over the past price, and with so many people relocating there, ten years. Nonetheless, the economy is improving, with company activity exceeding national growth the real estate market has grown incredibly hot, in the most recent quarter. However, signals making it extremely expensive to live there. point to a downturn this year, with housing expenses among the issues limiting labor and The median price in the Inland Empire increased unemployment. The Inland Empire is one of the by 17.6 percent year over year, to $529,000. best regions to invest in real estate since it has The median listing property price in Inland was all the economic growth factors favorable to real $469.9K a month ago. This was 17.5 percent estate. The population will continue to grow, year over year, according to realtor.com. A pushing demand even higher, with approximately home’s average listing price per square foot was 215,000 new work possibilities and a 7.6% $295. A home’s median sold price was $465.5K. decrease in unemployment. It is the best time for The high demand for homes in comparison to the all real investors. supply available, as well as low mortgage rates, are all factors contributing to rising prices.
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New Standard Equities paid roughly $342,000 per unit, which is on the top end of the price range, have climbed by 34% in the last year. Single-family home prices in the Inland Empire
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COVER STORY
The Power Is Now Media, Inc Applauds the Nomination of Judge Ketanji Brown Jackson to the Supreme Court!
KETANJI BROWN JACKSON
Nominee of the Supreme Court Ketanji Brown was born in Washington
DC in 1970 but was raised in Miami Florida. Her parents were both graduates of Historically Black Colleges and Universities. Ketanji’s father, Johnny Brown was a lawyer who rose to the ranks to become the chief attorney for the Miami Dade County school attorney. Meanwhile, her mother, Ellery was a school principal at New Worlds School of the Arts. While Jackson was in college, her uncle was sentenced to life imprisonment after being found guilty of dealing cocaine. Years later Jackson would persuade a law firm to take his case pro bono and the then president, Barack Obama eventually commuted his sentence. Most of her junior life was spent in Miami where she grew up, attending the Miami Palmetto Senior High School. She graduated from the school in 1988. In her senior year, Jackson won the national Oratory title at the National Catholic
Forensic League Championship in New Orleans. This is the second-largest high school debate tournament in the United States. After graduating from high school, Jackson studied government at Harvard University. While in Harvard, Jackson performed improv comedy and also combined the classes with drama. At one point, a student displayed a confederate flag from his dorm window. Jackson led protests to condemn this act. She graduated in 1992 with an A.B. Magna cum Laude. She wrote one of the best theses to date entitled “The Hand of Oppression: Plea Bargaining Processes and the Coercion of Criminal Defendants”. After her graduation, she worked as a staff reporter and researcher for Time Magazine before returning to school to pursue law. She ended up being the supervising editor for the Harvard Law Review. In 1996, Jackson graduated from Harvard Law School with a Juris Doctor cum laude.
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HER CAREER Soon after graduating, Jackson worked several posts as a law clerk. Between the years 1996 and 1998, she worked as a law clerk to Judge Patti B. Saris of the U.S District Court for the District of Massachusetts and to Judge Bruce M. Selya of the U.S. Court of Appeals for the First Circuit before proceeding to practice privately at Baker Botts. Between the years 2000 and 2003, Jackson practiced law privately for several law firms. She first worked with a Bostonbased law firm, Goodwin Procter and then at Feinberg & Rozen LLP. The next two years that followed, she served as an assistant special counsel to the United States Sentencing Commission. after which she was an assistant federal public defender in Washington D.C a position she held for 2 years, from 2005 to 2007. While working as an assistant federal public defender, Jackson handled cases before the U.S. Court of Appeals for the D.C. Circuit. A quick review of the cases she handled shows that Jackson “won uncommon victories against the government that shortened or erased lengthy prison terms”. Entry to the U.S. Sentencing Commission In 2009, Barack Obama nominated Jackson to be
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Judge Ketanji Brown Jackson speaks after President Joe Biden announced Jackson as his nominee to the Supreme Court in the Cross Hall of the White House, Friday, Feb. 25, 2022, in Washington. Vice President Kamala Harris listens at right. (AP Photo/Carolyn Kaster)
the vice-chair of the United States Sentencing Commission. She was confirmed by the Senate unanimously in February 2010. She served at the commission until 2014 and during her tenure, the commission retroactively amended the Sentencing guidelines to reduce the guideline for crack cocaine offenses. The commission also enacted the ‘drugs minus two’ amendment which implemented a two offense-level reduction for drug crimes. Fast forward to 2012, Barrack again nominated Jackson to serve as the Judge for the US District Court for the District of Columbia. She was confirmed by the full Senate by voice vote in March 2013. During her tenure at the District Court, Jackson had to go head to head with President Trump. She actually wrote multiple decisions that were averse to the position of the Trump administration. For instance, she ordered Trump’s former White House Counsel Donald McGahn to comply with a legislative subpoena. Nonetheless, her tenure was also marked by challenges, especially to an executive agency’s actions that raised a lot of questions of administrative law.
Fast forward to 2021, the Bloomberg Law reported that there were conservative activists who were pointing to certain decisions Jackson made in the past, which had been reversed on appeal, and because of this, they could have potential blemishes to her track record. Two of her popular decisions that were reversed include a decision where she ruled that three of Trump’s executive orders conflicted with the Federal employee rights to collective bargaining. When this case was taken to the court of appeal, her decision was reversed unanimously by the D.C. Circuit. another one of her decisions was made in 2019. It involved a challenge to a Department of Homeland Security decision to expand the agency’s definition of which noncitizens could be deported. Coming to her defense, the President of the liberal Alliance for Justice, Nan Aron said that Jackson “has written nearly 600 opinions and been reversed less than twelve times”. NOTABLE RULINGS BY KETANJI some of the notable rulings she has made over the years include; zz American Meat Institute v. U.S. Department of Agriculture (2013). In this case, Ketanji dismissed the requests by the meatpacking industry for a preliminary injunction to block a U.S. Department of Agriculture rule requiring them to identify animals’ country of origin. Jackson found that the rule likely did not violate the First Amendment. zz Depomed v. Department of Health and Human Services (2014). In this case, Jackson ruled that the Food and Drug Administration had violated the Administrative Procedure Act when it failed to grant pharmaceutical company Depomed market exclusivity for its orphan drug, Gralise. Jackson concluded that the Orphan Drug Act required the FDA to grant Gralise exclusivity. zz Pierce v. District of Columbia (2015). Here, she found that D.C. The Department of Corrections was in violation of the rights of a deaf inmate under the Americans with Disabilities Act because jail officials failed to assess the inmate’s need for accommodations when he first arrived at the jail. zz American Federation of Government Employees, AFL-CIO v. Trump (2018). In this case, Jackson invalidated provisions
of three executive orders that would have limited the time federal employee labor union officials could spend with union members, the issues that unions could bargain over in negotiations, and the rights of disciplined workers to appeal disciplinary actions. Jackson concluded that the executive orders violated the right of federal employees to collectively bargain, as guaranteed by the Federal Service Labor-Management Relations Statute. However, D.C. The Court of Appeals reversed this ruling on Jurisdictional grounds in 2019. zz In 2018, Jackson dismissed 40 wrongful death and product liability lawsuits stemming from the disappearance of Malaysia Airlines Flight 370, which had been combined into single multidistrict litigation. Jackson held that under the doctrine of forum non-conveniens, the suits should be brought in Malaysia, not the United States. The D.C. Circuit affirmed this ruling in 2020. zz Center for Biological Diversity v. McAleenan (2019) In this case, Jackson held that Congress had, through the Illegal Immigration Reform and Immigrant Responsibility Act, stripped federal courts of jurisdiction to hear nonconstitutional challenges to the U.S. Secretary of Homeland Security’s decision to waive certain environmental requirements to facilitate construction of a border wall on the United States and Mexico border.
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APPOINTMENT TO THE COURT OF APPEALS In 2021, the president (Joe Biden) announced that he will be nominating Jackson to serve as the US circuit judge for the Court of Appeals after the seat was vacated by Judge Merrick Garland. Her appointment to this seat was widely viewed as a waiting bench for the supreme court. During her confirmation hearing, Jackson was grilled about her previous rulings, especially the ruling she made against the Trump administration. She was finally confirmed in a 53-44 vote. Her first decision in the court was to invalidate a 2020 rule by the Federal Labor Relations Authority that had restricted the bargaining power of the Federal sector labor unions. NOMINATION TO THE SUPREME COURT OF THE UNITED STATES On February 25, 2022, the President announced that he would nominate Ketanji to succeed Stephen Breyer as an associate justice of the Supreme Court of the United States. If Jackson is confirmed, she will be the first African American Woman to serve on the Supreme Court. Ketanji is 51 years old, she’s married with two daughters. If confirmed, she will be one of the youngest justices. Will her ascension to the supreme court be easy? Well, it depends. Republicans seem
Picture source www.gruposaedal.com
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‘cautious’ and ‘reserved’ and not that she hasn’t won their hearts before, she has, in fact, she’s been confirmed by the Senate three times. but now, it seems it might be an uphill battle for her. So far the initial reaction of the GOP to her nomination is still muted. But, it is important to acknowledge that many GOPs think of Jackson as an ‘experienced’ person which favors. On the other hand, Democrats are all united behind Jackson. “With her exceptional qualifications, Judge Ketanji Brown Jackson will be a Justice who will uphold the Constitution and protect the rights of all Americans, including the voiceless and vulnerable,” Senate Majority Leader Charles E. Schumer (N.Y.) tweeted. If all the Democrats support her nomination, the president will not need any votes from the Republicans. but, support from the Republicans would make a difference as the president had prioritized bipartisanship. AND SHE IS LIKED… LIBERALS REALLY LIKE HER Even though they never pointed to Jackson by name, many liberal groups sent their letters to the president, championing Jackson. They hail her for her past work especially working with the disadvantaged in the justice system. In a similar fashion, civil rights groups have also rallied behind her and this is evident as attorney Ben Crump wrote that she would represent the African American community well.
Before finalizing this article, it is important to mention that she will be making history, not just as an African American woman on the supreme court, she will also be the first public defender on the court. and this significant: in a court that lacks diversity in the judicial careers of its members, it is unsurprising that no current justice has represented criminal defendants, despite the many cases brought to the court. no current justice has served as a public defender where the accused person cannot afford to pay for their attorney. Jackson has been a public defender and also served on the sentencing commission.
Down Payment and Closing Costs
Assistance In Corona, CA. By Jenny Gonzalez
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irst-time home buyers have a lot to deal with especially right now when prices are soaring. In fact, in Corona, Ca the median listing home price was $700K back in January up by 21.8% year over year. The median listing home price per square foot was $351. It is still a sellers’ market which means that more people are looking to buy than there are homes available for sale.
PHOTO FROM 123RF
Looking at the average days on the market data shows that homes in Corona sold after 54 days on the market. The trend for the median days on market in Corona, CA has gone up since last month. As such, down payment assistance would be a welcome move to many people. Statistics prove that many people still do not know that it is possible to get down payment assistance and of the few that know about these programs, many believe that down payment assistance is for the disadvantaged. These myths, misconceptions, and much other misinformation are some of the
topics we try to debunk on our weekly segment of The Power Is Now Homebuyers Townhall. When purchasing a home, making a downpayment is a must! But with the current hefty price tags of homes in Corona, CA, raising the money for the down payment seems impossible. That’s not all that a new homebuyer has to worry about, closing costs are another factor that has to be considered. This, therefore, means that even if you have saved up some cash to cover your downpayment, closing costs can drain down your efforts, you might just realize that you still owe some thousands of dollars in closing costs, which you might not afford at that particular point in time. So, is there any help for you? Well, if you are in the state of California, you might qualify for a forgivable loan down payment and closing costs through down payment and closing cost assistance programs if you meet certain criteria. MARCH 2022 | 53
WHAT IS DOWN PAYMENT AND CLOSING COST ASSISTANCE PROGRAMS? Although some mortgage programs require no down payment, a vast majority of others require that you make a down payment. The down payment is a substantial amount of cash equal to a certain percentage of the home’s price. Every state has its assistance programs for first-time homebuyers. Most times, the state housing commissions under the HUD offer these assistance programs to low and middle-income homebuyers. Non-profit organizations and private mortgage lenders also offer assistance. Forgivable loans, deferred-payment loans, and low-interest loans are called second mortgage loans and are usually offered to the homebuyer once the first mortgage is concluded. HOW TO QUALIFY FOR A FORGIVABLE LOAN DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAMS The requirements to qualify for a forgivable loan down payment and closing costs differ from state to state. Some states have less strict requirements than others. For example, to qualify for a forgivable loan in cities like New York, you must earn a considerable amount of income. Aside from the income, the other requirement you must meet is the credit score. These assistance programs require you to have a minimum FICO score of 620 and above. Other requirements include; • • • • • •
You must be a first-time homebuyer You must reside in the home for a number of years The home must be situated in a particular place according to the program The borrower must complete their classes in finance and homeownership The property chosen must be a single-family home You must choose a suitable lender ready to work with the program
Interestingly, there are about 2,000 DPA programs available countrywide. However, choosing the best from this figure can be confusing. Also, it’s important to note that these programs vary by location. Different programs are located in different areas and come with different requirements or terms and conditions. But if you’re looking
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for the best DPA program around California, I highly recommend you to consider using the Golden State Finance Authority program. WHAT IS GOLDEN STATE FINANCE AUTHORITY (GSFA)?
GSFA is a public agency/entity providing affordable housing programs. As a public entity in California, GSFA has distinguished itself as a leader in affordable housing finance, where it has helped over 80,000 individuals and families purchase a home over the last two decades. Moreover, the entity has provided more than $859 million in down payment assistance and has participated in the financing of over $13.7 million in first and second mortgages, according to Carolyn Sunseri, the Marketing Director of the Golden State Finance Authority (GSFA). GSFA has two affordable housing programs; the GSFA Platinum Program and the GSFA Open Doors Program, which are accompanied by down payment assistance up to 7% of the mortgage loan amount. “What that looks like is that on a $300,000 mortgage loan, 7% assistance is $21,000. So, by utilizing a program through GSFA, you’re getting a mortgage loan at a competitive interest rate, and then you’re being provided with $21,000 to put towards your down payment,” Carolyn explains. “Most of the time, that’s going to cover all of what you need in down payment money, and possibly even give you some assurance towards your closing cost.” WHAT MAKES GSFA UNIQUE You might be wondering why I’m highly recommending GSFA programs to you. Well, there are many legit reasons, but the most important to note is their flexibility and
accessibility. In most other programs, you do not qualify if you aren’t a first-time homebuyer. But at GSFA, you do not have to be a first-time homebuyer to qualify for a DPA.
“You don’t have to be a first-time homebuyer to qualify,” Carolyn states. “So, it could be someone returning to the housing market that owned a home in the past and wants to purchase a primary residence, or it could be somebody who’s first-timer buying a home, or maybe even leaving a home today and want to buy a home they’re going to be moving into as their primary residence.” Additionally, GSFA allows the FICO score, which goes as low as 620, further demonstrating its flexibility and another reason why I highly recommend it. “I think this is very flexible and allows a lot of people who may have perfect credit to be able to qualify with a mortgage loan with mortgage fund assistance,” Carolyn adds. CONCLUSION Coming up with a down payment is the most difficult thing when purchasing a home. However, you need not rack your head about how to raise funds to purchase that expensive home in Corona, CA with the plenty of options available. With assistance programs, you can get help raising funds for the down payment and closing cost. You can qualify for a forgivable loan and avoid paying closing costs once you fulfill all the requirements. If you are unsure if you would qualify for a forgivable loan down payment and closing cost, or don’t know where to look for the right one, don’t hesitate to reach out to us. We are experienced real estate advisors that will act in your best interest. We will also help you to get the best house deal in Corona, even with the rising home prices.
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Placer County Real Estate By John Brophy
If anything could describe Placer County’s real estate activity the last year – a crazy frenzy! And those are not my words but Cheryl Keller’s, the president of Placer County Association of Realtors (PCAR).
But, just like many other markets, placer county’s real estate market at the close of 2021 set the premise for the real estate activity in the first quarter of 2022 where a lack of inventory coupled with low-interest rates were the primary drivers of buoyed demand. According to Cheryl, “It has risen slightly in the latter half of the year,” she said. “In June, it was .7 (of a month) and then went up to one month. It has been pretty consistent, really.” In a normal market, we need at least 3 months of inventory but the high demand has disrupted the market where a lot of properties are receiving
multiple offers simply because the inventory is low. What are some of the statistics about this market you can use to make an informed decision? Total listings (new, for sale, pending, and sold) in December 2021 1. The number of new listings added to the market in Placer County this January was down 10% compared to January of last year. The total number of homes for sale at the end of the month was up 7%. 2. The number of homes pending sale was down 3.8% compared to last year. 3. The number of homes that closed in January was down 7% compared to last year. 4. The drop in pending sales and closed sales is directly related to the decline in homes listed for sale. If more homes were listed the sales would increase.
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123rf.com
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ormally, Placer County records the slowest activity in August but picks up around September and October. November is one of the strong months and then the market slows to pave way for the holiday season.
THE AVERAGE DAYS ON MARKET The Average days for properties listed on the market rose to 26 days as many homes that previously hadn’t been sold found buyers due to lack of new listings. However, data shows that as much as 57% of the homes were sold within 14 days of being listed and these homes sold for an average of 3% over the asking price. In addition, about 14% sold within 15 to 30 days and these are the ones that sold at their asking price on average with as much as 6% over the asking price and lastly, 29% sold after being listed 30 days or longer and of these, 30% sold for 2% less than their asking price on average. However, in one case sold for as much as 5% over. MULTIPLE OFFERS About 46% of the homes were sold with one
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offer or an undisclosed number of offers. Majorly, homes with 1 or an undisclosed number of offers sold for an average of 99% of their asking price in an average of 35 days. In addition, 54% of the homes sold with multiple offers whereas 17% had 2 offers. The homes that sold for their asking price on average with as much as 9% over in an average of 25 days. Moreover, 24% of the homes had 3 to 5 offers where they sold for an average of 2% over the asking price with as much as 8% over in an average of 16 days. The outlook for this year is projected to be an upward trajectory “but once interest rates go up a little, that will slow down multiple offers and, with that, the price increases. … I think they will increase but not as much as this year.” As such, buyers and investors looking to get into this lucrative market should do it now!
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How safe is Corona, CA Real Estate Market in Q1, 2022 By Kamesha Keesee
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here are three major indicators of a market crash. These are the economic downturn, high inflation rates, lending practices, and the supply and demand dynamic in Corona.
homebuyers were paying well over the asking price. According to market competitiveness slowed towards the end of the year than a month ago, but still high regardless.
HOUSING SUPPLY
Statewide, the median sales-price-to-list-price ratio remained above 100 percent; however, that figure dropped in November to101.4, the lowest since March 2021. As a result, homes are flying off the shelves at an alarming rate.
Later this year, new construction will supplement the current inventory. As a result, construction activity has increased towards the end of 2021, despite a lack of building labor and materials. In November, construction spending in the United States increased by 0.4 percent, while residential expenditure increased by 0.9 percent. Singlefamily homebuilding increased by 1.2 percent, while multi-family housing spending fell by 0.3 percent. Overall construction spending has gone up 9.3 percent year on year, but a portion of the increase can be attributed to the increasing cost environment.
The median number of days required to sell a single-family home in California was 11, unchanged from October and up from 9 days in November 2020. This trend is expected to continue through 2022. With new housing being built, inventory will remain tight for the foreseeable future.
The Producer Price Index (PPI) for building materials, for example, increased by 1.5 percent in November. Supply constraints may ease later this year, but COVID will continue to pose a threat to public health in the short term.
The housing demand in Corona outweighs the supply and cannot be met. This implies that inventory will not be idle; instead, it will move quickly. Home values will rise as a result of this demand. This indicates a healthy housing market. This will continue to be the case throughout the year as people move to Corona.
HOUSING DEMAND
PRICE APPRECIATION
For the most part, 2021 was characterized by a supply-demand imbalance. With demand high,
According to Redfin.com, Corona, CA’s housing market is highly competitive, with a score of 70 MARCH 2022 | 63
out of 100. Last month, the average Corona house price was $738K, a 25.7 percent increase over the previous year. The California Association of Realtors forecasted Thursday, Oct. 7, that the state’s white-hot real estate market is projected to cool in 2022, with price gains moderating and sales declining. However, most buyers’ inability to afford California’s ever-increasing home prices will continue to affect the state, driving even more residents out. HOME SALES Housing experts project sales will fall 5.2 percent next in 2022, with 416,800 homes changing hands. Although home sales in greater California are expected to drop this year, 2022 transaction volume is expected to be the second-highest in the last five years. It will also be slightly higher than the annual average of 414,000 transactions since the housing market began to recover from the Great Recession in 2012. FINALLY The lending rules are much stricter now than they were in 2007. In 2007, it was possible to purchase a home without a credit history, and down payments were meager. That meant that anyone could buy a house. This subprime lending inflated the housing bubble and caused home values to plummet. As a result, those who obtained mortgages could not service them, resulting in the 2008 financial crisis. Lenders are now lending to people with excellent credit scores to reduce the risks involved. Lenders will now thoroughly examine applicants’ financials before approving loans. In addition, banks now require applicants to make a substantial down payment and demonstrate their ability to repay the mortgage. This indicates that what occurred in 2007-2008 will not be repeated. 64 | MARCH 2022
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Real Estate Investment in Long Beach California By Kate Nash
According to the most recent data from Redfin, Long Beach home prices were up 20.8% compared to the year 2021 selling for a median price of $798K. It is a market dominated by sellers as homes were staying on the market for an average of 37 days. This is an improvement from last year’s 40 days on the market.
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he inventory available for sale in Long Beach according to Redfin was down to 220 from 277 recorded last year.
Just to summarize; zz The Long Beach housing market is a competitive market. zz Many of the homes listed got multiple offers. zz On average, homes sell for about 2% above the list price and will go pending for an average of 32 days.
Francisco or Los Angeles. In terms of the worker profile, Long Beach is neither a blue-collar nor a white-collar city, but instead, a mix of both workforces. Overall, we can classify long beach as a city of professionals, sales and office workers, and service providers. In fact, there are a lot of people living in this city who work in office and administrative positions accounting for about 11.77%, sales jobs account
zz The hot homes will sell at about 6% above the list price and will go pending for about 14 days. SO AS AN INVESTOR, YOU MAY BE WONDERING, IS LONG BEACH A GOOD PLACE TO INVEST? Long Beach is a large coastal city with a population of 466,742 people and 111 constituent neighborhoods. Some estimates put Long Beach as the 7th largest community in California.
123rf.com
When it comes to housing costs, Long Beach ranks among the most expensive cities in the country, but prices in Long Beach can’t compare to the real estate prices in some of the most expensive communities in California like San MARCH 2022 | 67
for 9.49% and management occupations account for 9.35%. Basically, the largest share of the population belongs to the middle-upper class. WHY WOULD YOU INVEST IN LONG BEACH? Strong job market – the city boasts of warm climate and thanks to this, the city is one of the most desirable locations for many company headquarters and high-profile events. For instance, during 2018, the Grand Prix alone brought to the city a stable influx of renters and those interested in buying commercial properties. A rise in demand for long-term accommodation – no doubt, long beach is a city doing so well economically and because of this many people are drawn to the city mostly looking for accommodation. The demand is currently higher than supply especially when it comes to single-family homes. This gives the owners of rental properties a distinct advantage when it
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comes to pricing. All-time low vacancy rates – in 2016 and 2017, the vacancy rates in long Beach fell from 18.8% to 14.8%. A trend easily noticeable is the fact that industrial properties are always in high demand which has brought the occupancy rate to a whopping 99%. Over the past decade, the city has experienced some of the highest home appreciation rates of any community in the country. Long Beach real estate appreciated 117.42% over the last 10 years which on average is 8.08% which puts the city in the top 10% nationally for real estate appreciation. As such, if you are a home buyer or an investor, this is a city with a proven track record of being the best long-term investment in America and I would definitely recommend you invest in it.
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Sacramento Apartment Market
Ranks Among the Nation Most Competitive By Serina Lowden
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recent publication by RentCafe.com, Sacramento takes a position in the country’s top five most competitive rental market lists. The most competitive markets according to the report are those that have most attracted new residents from the highly densely populated areas. This attraction is associated with exhibiting the most affordable lifestyle, proximity to opportunities in the best states, and spacious grounds. Additionally, rent cafes took into consideration metrics of the occupancy rates of each market. The higher the rate of occupancy, the more competitive it is and less competitive if the occupancy rate is lower. The average number of days apartments are vacant, the lesser days the more competitive the market is and more days of vacancy means it’s less competitive. The report took into account competition for units and the average credit score of the apartment applicants. Sacramentos apartment has a recorded occupancy rate of 97 percent marking a 1.6 percent higher than the nation’s average occupancy rate of 95.4 percent. On average Sacramento’s vacant apartments sit on the market for only 24 days or less compared to the nation’s overall of 28 days. It is a clear indication
of how competitive the market is since a market is neutral if the number of days is more than 90 days.RentCafe records show that Sacramento has a fair median credit score of 653 which is higher than the nation’s average of 640. Each available vacant unit based on the report has an average of 23 applicants competing for it while the nation’s number of applicants for each vacant unit is only 14. According to the Yardi Matrix rent report, Sacramento saw a 14.5 percent rent growth which is only one percent of the nationwide figure. This kind of rent growth is not likely to decline with the consistently high demand and a lower rate of new apartment construction, said Doug Ressler, business manager of intelligence at Yardi Matrix. As recorded by Zumper average rent for a studio is 1295 a 1 percent down from last year, one-bedroom apartment has increased by 3 percent to $1590.A twobedroom with a 3 percent increment is $1911. The cost of rent in Sacrament as of January varies depending on size, location, and quality. Rent growth is however is the same in both “high class” apartments and lower scale apartments according to Yardi Matrix.
Based on the migration patterns observed by Ressler, the rental demand will continue
to hike as more people move to Sacramento. The fact that land is cheaper and highly available in Sacramento than in the surrounding areas, will keep the demand strong pishing the prices higher. The quality of life in Sacramento is great, especially given its proximity to larger and more glitzy cities like the Bay area. This makes it a highly desired location that exhibits all of the economic growth characteristics that promote real estate investments. MARCH 2022 | 71
Cash Sales of San Diego Homes Hit Their Highest Level in 7 Years By Serina Lowden
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he real estate market has been scorching hot. The market is witnessing the effects of an imbalanced supply-demand situation, with demand outpacing supply, causing median home prices in San Diego to rise 14.6 percent year over year to $847,750.It should, therefore, come as no surprise that San Diego, like all other real estate markets around the country, is a seller’s market. As a result, sellers are only interested in the best offers from potential purchasers. Most buyers are more than willing to offer purchase in cash, which is one of the appealing deals sellers are taking. As published by Attom Data Solutions, cash sales increased by 15.4 percent above loan purchases the prior year. According to the data, it’s been seven years since San Diego saw a 36.2 percent increase in cash transactions. It
was amid the Great Recession that hit the whole real estate sector in Q1 of 2013, since many credit programs were still on hold as a result of the property fall, necessitating more cash sales. This time, though, the increasing cash transactions are being pushed by competition for limited house inventories, forcing potential buyers to offer cash as their best deal, according to Raylene Brundage, a Windermere agent based in North County’s towns. WHY DO SELLERS PREFER CASH SALES OVER OTHER TYPES OF CREDIT SALES? A quicker and safer mode of payment- due to the formalities of inspections and assessments that come with a mortgage application, a deal involving a mortgage payment could take a month or more. It may cause the transaction to stall or perhaps stop. To avoid the hassle, MARCH 2022 | 73
sellers opt for cash purchases as a faster option to deposit funds into their bank accounts and get done with the deal. A quicker and safer form of payment - due to formalities of inspections and assessment of mortgage application, it might take a month or more for a deal that involves a mortgage payment. It can potentially slow down or stop the transaction. To avoid distress, sellers prefer cash purchases as a quicker way to add funds to their bank accounts and get done with the deal. There is no requirement for a credit check. It is required for sellers to obtain access to potential buyers’ credit reports, as little as it may appear. The seller may be less excited and uncertain about the transaction if the buyer has a low score. “Selling in cash removes a lot of uncertainty for the seller,” said Mark Goldman, a C2 Financial Corp. real estate analyst. According to atom, the majority of cash transactions in San Diego come from first-time buyers, veterans, and active military people who receive credit from relatives or institutions with cash on hand. According to their figures, institutional investors accounted for only 7.9% of sales in the third quarter of last year. Typically, a buyer must first provide proof of money before transferring it from a bank account to a seller to obtain a cash sale.
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In contrast to the advantages, cash sales have their drawbacks in that they encourage money laundering. As a result, the US Treasury Department announced additional limits on allcash sales to combat money laundering. As said by Himamauli Das, acting director of the Treasury Financial Crimes Enforcement Network, “Increased transparency in the real estate sector will limit the ability of corrupt officials and criminals to launder the proceeds of their illgotten gains through the US real estate market.” Second, sellers’ willingness to accept cash is not always guaranteed. Because most buyers are more exacting on repairs and less passionate about living there than first-time buyers, some sellers decline cash offers. San Diego market will continue thriving as a sellers’ market through this year, leaving buyers with no other option than to endure the rigors of trying to stand out in making the best cash purchase deals. It may be challenging to keep up with your financially stable buyer competitors forcing you to give up on your ambition to own a home. But you don’t have to get there. Becoming a homeowner in San Diego is as simple as getting into contact with one of the best real estate companies. The Power Is Now Medi Inc. is all you need. Get in touch with our reliable VIP agent, Candice Thrower, or the CEO Eric Lawrence Frazier to make 2022 become your homeownership dream come true year.
Riverside County Housing Affordability: The Housing Element Program By Briana Frazier
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iverside is one of the most populous counties in the State of California, having over 2.471 million residents as of the 2019 data from the United States Census Bureau. Most of the area’s population growth took place in the millennium Boom when there were a lot of construction jobs, and new home sales skyrocketed. However, following the 200810 recession, most people in the region were left homeless, and the region incurred deep losses in sales volume. Additionally, new construction stopped, and the county started recording high unemployment rates. According to an article published in our January Issue of the Power Is Now Magazine, Riverside county data shows that there were more homebuyers in the market and actually bought just a few homes compared to other quarters but ended up paying more especially in the last quarter of 2021. In addition, data also shows that Riverside County’s, a once safe haven for many buyers fleeing the Bay area, six-county median sales price hit a record high around the same period, despite the pandemic and slowing slaves. But, like in many other Metros, demand outstripped supply in riverside causing high prices, but one noticeable trend is that affordability concerns were slowing the buying pace. Following that article, we look at one of the issues that might impact Riverside County’s affordability. The county will have to resubmit its long-term blueprint for adding new housing. This is after the state officials found its initial plan lacking any affordable housing element in its unincorporated areas including parts of Coachella Valley.
This impacts affordability a great deal because depending on how long this process is delayed, housing will become more competitive or risk becoming fully ineligible for the millions of statelevel funding annually. Currently Riverside is a sellers’ market with homes staying on the market for an average of 63 days according to Realto.com. This is a trend that has gone up month over month. As such, any further delays could mean huge impacts for a state that is in dire need of affordable housing units. The state required an eight-year plan known as the Housing Element which is an integral part of the County’s General Plan. Although the Riverside County Board of Supervisors adopted the latest Housing Element in September, the California Department of Housing and Community Development rejected the county’s plan in late December outlining several matters that must be addressed before moving forward. Most of the deficiencies in the blueprint were all tied to the evaluation of housing needs, programs, and initiatives to address these needs, and also there was the issue of public participation in the drafting of the plan. And while the county is mandated to draft its plan for the unincorporated areas which by the way make up for about 16% of the county’s total population, cities in Coachella Valley have drafted their own long-term blueprints which accounts for their projected population growth. Unincorporated areas need to be taken seriously as the housing needs in these areas makeup just under a quarter of the county’s total housing needs determined through a state-mandated MARCH 2022 | 77
process known a Regional Housing Needs Allocation. This means Riverside County will have to plan for roughly 126,704 new housing units, compared to the unincorporated areas’ benchmark of 40,647. The state’s response to Riverside County’s plan is noteworthy according to Ashley Werner, a directing attorney for the Leadership Counsel for Justice and Accountability, a community organization in the eastern Coachella Valley that has closely monitored the county’s Housing Element process.
“If an Element is returned, it will be a handful of items that need to be addressed,” Werner told The Desert Sun. “In this case, there’s like entire components of the analysis that have been found lacking that the county is going to have to rectify, and then they’re going to have to change the programs in the Element to reflect that analysis. So, it’s both the fact that they were found out of compliance and how many components of the element are out of compliance.” PLANS TO RESUBMIT HOUSING ELEMENT IN MARCH The letter from the state categorically stated that if the county failed to resubmit its housing element within 120 days of the original deadline (October 15) meaning Feb 12, the county would be required to complete any rezoning within a year of the October deadline.
And though the February deadline accelerates the timeline for the zoning changes, the county is not seeking to make any plans of that nature and therefore officials anticipate returning the county’s revised Housing Element to the state’s department in early-to-mid march (this month). According to Federico, the county’s spokesperson. She added that this timeline “will create a path for the county to achieve certification of its Housing Element.” “According to recent changes to Housing Element law, February 12, 2022, deadline prompts rezoning of housing inventory sites within one year of the October 15, 2021, statutory deadline,” Federico said in an email. “If rezoning does not occur within one year, a jurisdiction will be placed on a four-year update cycle, rather than an eight-year update cycle.” “However, the county is not proposing — or required to — rezone any of the proposed housing inventory sites,” she added. “As a result, this requirement will not affect the goal to create an appropriate housing plan and receive certification.” The plan’s updated policies “will further address fair housing, infrastructure, development of large lots, farmworker housing, constraints to the development of group homes, funding for at-risk affordable units, and financing opportunities for accessory dwelling units,” Federico noted.
The county typically receives between $60 million and $69 million in state housing funds each year. “The awarded funding, along with other potential funding sources available at the state level, are contingent on a compliant Housing Element,” Federico said. If the county submits its Housing Element in March, as planned, that review period would end in May. The plan would then return to the county Board of Supervisors for approval before being sent to HCD staff for possible certification. 78 | MARCH 2022
Frazier Group Realty Inc. 3739 Sixth Street Riverside, CA 92501
“Your Real Estate Navigator” www.fraziergrouprealty.com rubyfrazier@fraziergrouprealty.com O: (951) 686-5261 F: (714) 908-7298 Lic# 01751773
POWER LEGAL
Crypto, CRA, data sharing: Bank regulators’ ambitious priorities for 2022
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his year we might see a big overhaul in the crypto world as the federal financial regulators are geared up towards reshaping several banking rules and create some others.
We all know that our congress is deeply divided on this issue, which means oversight of this new world of digital assets remains lacking. In absence of congressional actions, the federal financial regulators are moving quickly to provide the much needed oversight. First, we see the financial watchdogs provide guidance on the digital currencies. Furthermore, they’ve also seen these bodies strictly scrutinize bank mergers and finally modernizing the Community Reinvestment Act.
But what’s the agenda here? Well, despite the heavy backlash from the industry players, regulators are seeing this as a unique opportunity to fulfill the current administration’s liberal agenda. Before long, the regulators will begin planting new democratic appointees just to ensure that and perhaps leave their mark while at it. The current Federal deposit insurance Corp chairperson Jelena McWilliams who by the way was appointed by the Trump’s Administration stepped down last month leaving full control of the Agency to Democrats. Meanwhile, it is worthwhile noting that the Consumer Financial Protection Bureau and the Comptroller of the Currency are all headed by democrats. As if that’s not enough, President Biden recently released three nominations to fill out the gaps in the Federal Reserve Board. One of the issues the Fed has been trying to explore at deeper lengths is the possibility of a central bank digital currency and whether the idea is feasible (even remotely). On the issues to do with mergers and acquisitions, some of the regulators are looking for thorough consideration of the impact this would have on the community 80 | MARCH 2022
and also a systemic risk assessment when weighing applications for larger deals. And this is not as simple as it may sound, some of these dealings have chilling effects on combinations involving large regional banks which makes sense why the financial watchdogs are interested. In addition to that, the regulators are also interested in laying the groundwork to update CRA rules especially given the rise of digital banking, possibly to give consumers more control over their personal financial data. Some of the issues the regulators will be looking at include; There has been some push and pull relationship between the bank regulators and congress about this issue. Congress is looking for a way where bank regulators could impose more stringent rules to manage the financial risks of the emerging cryptocurrencies and stablecoins. In November last year, the regulators issued a report which highlights how helpful it would be if congress was to introduce a regulatory framework for the digital assets. To that effect, congress remains utterly uninterested in coming up with crypto legislation anytime in the near
future (or at least it looks that way) which leaves the matter in the hands of the regulators. But away from the recommendations of the Regulators in the November report, it would seems that they have so far taken a more disparate approach to the future of crypto regulations. Jerome Powell, the Chair of Federal Reserve has sought to assure congress and the private sector that the Fed will not ban crypto outright and that the Fed is proactively looking for possible ramifications of an official ‘digital dollar.’ Meanwhile, at the Office of Comptroller of the Currency, the acting Comptroller Mr. Michael Hsu has on several occasions discussed the potential risks that crypto poses for the national banks. In November last year, the OCC released an interpretive letter to the banks instructing them not to engage in any crypto-related activities without a ‘written notification’ of the OCC supervisory office’s nonobjection.” In the end of it all, whether Congress flexes its muscles first or the regulators, banks hope that there will be an initial guideline and guardrails for the crypto activity. FDIC has a big influence in determining what the guidelines will look like. Jelena’s tenure was marked by a friendliness approach to innovation and actually in November she alluded that the agency is looking for ways to cover the stablecoins. But now that Democrats are poised to take on the agency, it is unclear the direction they will take.
PHOTO FROM 123RF
COMMUNITY REINVESTMENT ACT REFORMS We’ve talked about CRA before and it looks like we are not going to stop any time soon. CRA is a complicated reform that has taken year in formation and right now it’s on a bumpy ride. Under Trump’s administration, the former comptroller, Joseph Otting, was instrumental in pushing for an anti-redlining law that directs banks to provide a
certain amount of lending, investment and services in low to moderate income communities. However, even before the efforts took hold, they collapsed after community groups, lawmakers, civil rights organizations and banks objected to the changes proposed by Otting without other bank regulators on board. The CRA rulemaking process has since been restarted by Biden regulators who have committed to an interagency approach to reform. This reform push has been led by the Fed Gov. Lael Brianard who was very critical to the Otting led approaches. It is likely that the modernization effort will look like the current framework. According to a policy outline released by the Fed in September 2020, banks would be subjected to separate tests to evaluate their performance in retail lending and community development and to also rely on existing data sources like the U.S. Census Bureau data and the Home Mortgage Disclosure Act. Unsurprisingly, the challenges Biden-Era policymakers will face are the same challenges Trump’s administration faced: reshaping the law’s obligations to account for the rise of digital finance. Since the Bank’s CRA are much more concentrated in areas where the bank has branches which by the way continue to dwindle in number, regulators have sought to be more flexible about where banks can meet their obligations. Allowing banks to receive the CRA credit for the activities done outside their branch based assessment areas could open doors to historic investment in places largely without bank branches including poor, rural communities. But, regulators are afraid that too much flexibility in where the banks can receive credit could lead large swaths of the industry to pursue CRA projects where they’re most profitable, rather than being obligated to give back to their local communities. MARCH 2022 | 81
POWER MORTGAGE
Home Prices Are Expected To Moderate Over The Next 12 Months.
What Does This Mean For The Mortgage Industry?
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he Covid-19 pandemic upended the homebuying process. Historically-low mortgage rates coupled with an inventory shortage created a red hot market, with houses selling within hours of being listed, often for well over the asking price. After a year of bidding wars and record-high prices experienced by homebuyers in 2021, the home price growth will slow further in 2022 but will continue to rise. It is advised that homebuyers should expect similar trends to the past two years, such as elevated prices, low inventory, and fast turnaround.
scarcity of homes. Covid-19 supply chain issues and a labor shortage have only exacerbated the situation. Despite efforts by builders to increase output, inventory will remain scarce. According to CNBC, the number of homes actively offered for sale reached a new low at the end of November. Even though there will likely be more listings in the spring and summer, there will not be enough to meet demand. While the gap shrank in 2021 and is more likely to narrow in 2022, the housing shortage will be a defining feature of the market again in 2022.
Although it will be a sellers’ market — home values are likely to rise by double-digit percentage points — it will not be as ferocious as last year. None of us can guarantee that [finding] housing will be accessible. However, it seems legitimate to promise it will be less complicated than the previous year. The mortgage industry is likely to experience the following as home prices are expected to moderate over the next 12 years;
INTEREST RATES WILL RISE
INVENTORY WILL REMAIN SCARCE Even before the pandemic, the country had a 82 | MARCH 2022
In 2022, the Federal Reserve is predicted to hike interest rates several times, implying that mortgage rates would undoubtedly rise. A 30-year-fixed mortgage rate is expected to reach 3.60 percent by the end of 2022, according to Redfin and Realtor.com, up from 3.30 percent presently. Due to the rising mortgage rates, there would be fewer speculative buyers because there would be less money to be made. The market is going to be profitable and beneficial to the average
individual. Due to the increased interest, people are more likely to buy homes solely to live in them. COMPETITION WON’T DROP According to economists from Zillow and Realtor. com, those looking for a slowdown in competition in 2022 are out of luck. Sellers will have the upper hand because of economic trends such as limited supply, high demand, and low mortgage rates.
prepared to visit the home quickly and decide and extend an offer almost immediately. All of that said, experts say to be prepared. Do your research ahead of time so you’re ready to go when you find the correct listing. However, don’t overpay. Prices are likely to rise, but that doesn’t imply you should spend more than you can afford. Compare home prices in your neighborhood from the previous year to the listings you’re looking at now.
ILLUSTRATION FROM 123RF
The increasing number of first-time homebuyers who may require financial assistance from family and friends to finance a down payment is Many homes will be the subject of bidding wars, especially in the spring and summer. While no one increasing, and it will restrict who can purchase a home. For a long time, housing affordability in can anticipate what will happen in the future, the the United States has been a problem for buyers, tendencies described above indicate that prices particularly young ones. However, since the may continue to rise. According to Zillow, home values are expected to rise by 11% in 2022, which pandemic outbreak, the problem has only gotten worse and will continue to do so. is less than in 2021 but still significant. BUYERS SHOULD BE PREPARED Buyers need to be prepared and ensure that they have done their research ahead of time so you’ll be ready to go when you find the correct listing. When buying a home in the next year or longer, it will be critical to keep an eye on new listings, including ‘coming soon listings,’ and be very
WHAT IF YOU ARE BUYING A HOME FOR THE FIRST TIME? The Power is Now Media has got you. Chat with Eric Lawrence Frazier, a real estate professional and mortgage advisor. He will inform you what you need to know about the housing market and how to become a homeowner.
POWER HEALTH
SCHOOLS PLAY A VITAL ROLE in Ensuring Equitable Recovery From the Pandemic for Our Kids
The COVID-19 pandemic has caused profound changes in people all across the world. Education system disruptions during the last year have already resulted in significant losses and inequities in learning. While all efforts to deliver remote training are commendable, they have proven to be a poor substitute for face-to-face learning. The affected children’s future wages, school closures, and the ensuing disruptions to school participation and learning are expected to cost $10 trillion. However, schools have a vital role to play in ensuring equitable recovery for our kids.
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he insights that schools have into their communities’ most pressing needs should serve as the foundation for long-term investment that produces the best learning conditions for children. Recovery funding should be responsive to local needs and long-term in nature. Students’ physical, social, and mental health needs should be addressed. As the virus spreads, kids and families will want assistance in meeting basic necessities and dealing with issues ranging from worry to trauma caused by major life disruptions. Students are unable to achieve their academic potential without socioemotional and mental health care, according to research. States and districts should increase access to mental health services in schools, including school nurses and counseling programs. They can also work with community organizations to help families who are underprivileged.
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ROLES OF SCHOOLS IN RECOVERY Schools also play an important role in assuring the supply of basic health services, as well as protection and psychosocial support, all over the world. As a result, school closures have harmed children’s general well-being and development, not simply their academic performance. Students will require individualized and ongoing support to help them adjust and catch up following the pandemic. All children and youth have returned to school and are receiving the individualized services they require to satisfy their educational, health,
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psychological, and other requirements. School closures have posed a threat to children’s learning, nutrition, mental health, and general development. Closed schools also make child protection screening and delivery more challenging. Some students, particularly girls, are on the verge of dropping out. Schools will support the design and implementation of large-scale remedial learning at various levels of education, launch an openaccess, adaptable learning assessment tool that measures learning losses and identifies learners’ needs, and support the design and implementation of digital transformation plans that include infrastructure and ways to use digital technology to accelerate the development of foundational literacy and numeracy skills. Using digital tools to teach core abilities could supplement instructors’ efforts in the classroom and better prepare students for future digital learning. Schools will play a significant role in creating
a well-planned, inclusive, gender-responsive, monitored, accountable education action plan that will prioritize student experience while creating safe and inclusive learning settings. Education initiatives can help with public health prevention and recovery while also minimizing the impact on students and learning. All of this must be taken into account when planning, especially throughout the coping and recovery period of our kids. It’s also worth emphasizing that schools has the ability to help protect children and teens by assisting them in coping with or maintaining some sense of normalcy during a crisis and recovering more quickly, hopefully with some useful new abilities which include; acquiring distance learning skills and deeper digital mastery where applicable. Schools are significant to the development of our kids, especially in promoting equitable recovery for kids regardless of their gender, color, or financial status. Governments and families need to support schools in aiding a more equitable recovery for all kids in the States and the world at large. MARCH 2022 | 85
POWER HISTORY
Many construction companies have come and died a natural death never to return! It’s an industry that demands caution and vigilance due to its cutthroat competition that makes it hard for companies to stay atop. Nonetheless, one construction and design firm has made its imprint on this industry permanent.
The History of the Oldest Minority Owned and Female Owned Construction Management Firm in America
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heryl Mckissack Daniel heads the oldest African American-owned and female-run construction company in the country. It is a firm that her family built from the ground up and note, the construction industry is a maledominated industry and McKissack feels right at home!
him in 1890 to assist with architectural designs, drawings, and construction work. On the other hand, Calvin was educated at barrows School in Springfield, Massachusetts, and attended Fisk University in Nashville. Both brothers obtained architectural degrees through a correspondence course.
McKissack & Mckissack is a firm that specializes in architecture, engineering, program management, and construction and is based in Washington D.C. it is one of the oldest minority-owned companies in the united states.
NOTABLE PROJECTS BY THE COMPANY Between years 1895 and 1905, Moses was more involved in the construction of houses in Decatur, Alabama and Mount Pleasant, and Columbia, Tennessee. In the year 1905, his fame and recognition had grown well enough that he received a commission to build a new house for the dean of architecture and engineering at Vanderbilt University in Nashville. Soon after, he opened his first architectural office in Nashville which was followed by more jobs in design and building in the West End.
We can trace its root in Nashville Tennessee where it was founded in 1905 by Moses McKissack, the grandson of a slave brought to the united states from west Africa. Moses became known as a skilled carpenter during his time and teamed up with his brother Calvin McKissack to start the company. Moses entered the architectural field by working as an apprentice to a builder in Pulaski who hired 86 | MARCH 2022
Some of the notable projects by the firm
Deryl McKissack, Rev. Al Sharpton, Cheryl McKissack Daniel, and Rev. Jesse Jackson attend the National CARES Mentoring Movement 4th Annual For The Love Of Our Children Gala at The Ziegfeld Ballroom on February 11, 2019 in New York City/Zimbio
include; zz The design of Carnegie Library on the Fisk University campus. zz The Nationals Park baseball stadium. zz The National Museum of African American History and Culture. zz The Martin Luther King, Jr. Memorial, zz The Obama Presidential Center in Chicago zz And a helicopter landing pad at the George H.W. Bush Presidential Library in College Station, TX. zz They have also participated in airport renovation and modernization projects at John F. Kennedy International and LaGuardia airports in New York. zz O’Hare International and Midway International in Chicago zz And Ronald Reagan Washington National and Dulles International airports in Washington. By the year 1920, Moses had acquired clients throughout Nashville. Between years 1918 and 1922, he had designed more than a dozen residences in Nashville and Belle Meade.
In the early 1900s, the brothers had not yet partnered. Calvin initially worked with Moses in Nashville but had relocated to Texas where he had an independent practice in 1912 specializing in the design and construction of dormitories and churches. However, in 1915, Calvin returned to Tennessee to become the superintendent of industries and a teacher of architectural drawing at the Tennessee Agricultural and Industrial State Normal School. Three years later, Calvin joined the faculty of Pearl High School as the director of the industrial arts department and later on rose the ranks to become the first executive secretary of the Tennessee State Association of Teachers in Colored Schools. In 1921, something interesting happened, Tennessee instituted the registration of law for architects and the McKissack brothers were among the first recipients of the certificate of registration as architects in the state. PARTNERSHIP BETWEEN THE BROTHERS In 1922, Calvin resigned his job with the teacher’s organization and joined his older brother to establish the McKissack & McKissack. Two years later, the firm was hired to design the MARCH 2022 | 87
POWER HISTORY Morris Memorial Building meant to house the Nashville offices of the denomination’s Sunday School Publishing Board. After the completion of the building in 1925, the McKissack & McKissack moved its offices into the same building where they remained for many years. In 1930, the firm received Works Progress Administration contracts for the development of several public school buildings in the city, including Washington Junior High School on Nineteenth Avenue North (demolished), Pearl High School, and Ford Green School. By the 1940s, the firm had already started expanding beyond the borders of Tennessee to others states. But in a century marked by discrimination, states were skeptical of the qualifications of black architects, but Tennessee authorities responded to their concerns in writing that stated that the firm “...somewhat unique in the fact that it is one of the few Negro architectural firms in the country” and had “done some creditable work in Nashville, including several large school buildings running into a total Moses died in 1952 and the McKissack Middle School is named in his honor. Calvin remained at the helm of the company leadership until his death in 1968. The youngest son of Moses, William DeBerry McKissack succeeded his uncle as the president of the firm. After suffering from a stroke, his wife Leatrice Buchanan McKissack became the CEO and under her leadership, the company won major contracts new buildings and renovations at the Fisk University, Tennessee State University, and Meharry Medical College campuses in Nashville, as well as a $50 million renovation project for 88 | MARCH 2022
cost of several hundred thousand dollars”.
McKissack & McKissack received
licenses to operate from Alabama in 1941 and from Georgia, South Carolina, Florida, and Mississippi in 1943. The firm won a $5.7 million U.S. Federal Government contract to design and build Tuskegee Army Airfield home to the Tuskegee Airmen’s 99th Pursuit Squadron, in Tuskegee, Alabama. This was the first and the largest contract by the federal government to be awarded to a black-owned company. The successful completion of the project brought more attention to the firm to a point where one writer noted that there were no racial conflicts between the 1,600 workers. The 1940s also saw the firm participate in several public housing projects around the country and Moses McKissack was appointed to President Franklin Roosevelt’s White House Conference on Housing Problems. Two years later, the brothers were awarded the Spaulding Medal, recognizing their performance as a Negro business firm in the U.S.
Howard University in Washington, D.C., and design of the National Civil Rights Museum in Memphis. In 1990, McKissack & McKissack opened new offices in Washington D.C headed by Deryl McKissack one of the three daughters of William and Leatrice McKissack. Later in 2002 and 2008, two new offices were opened in Chicago and Los Angeles respectively. Unfortunately, the firm’s operations in Nashville were terminated in 2002 with the spin-off companies headed by William’s daughters in other cities. As of 2013, the successor companies were reported to have more than 150 staff and over $15 billion in projects. The corporate headquarters of McKissack &
McKissack Corporate are in New York City; other offices are in Birmingham, Alabama; Bridgeport, Connecticut; Memphis, and Philadelphia. ON TRACK TO MAKE $30 MILLION IN SIX YEARS As a woman-owned and Minorityowned business, the McKissack & McKissack firm is working on more than 55 projects in New York and Pennsylvania. The company is also partnering with notable firms like Magic Johnson Enterprises and Loop Capital to engage in infrastructure work on the project that is expected to be completed by 2025. McKissack Daniel believes that her firm will be conservatively about $30 million over the next 6 years.
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Home Ownership by Eric Lawrence Frazier MBA Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own. Real Estate you own is not like cars that decay over time and you have to replace them. Real Estate you own is not like clothes that go out of style and you have to buy new ones. Real Estate you own is not like expensive vacations or experiences that only last a moment in time. Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable. Real Estate you own is not like staying at your parents house where you know can’t stay forever.
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Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family. Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned. Home ownership is the place you build memories that can never be taken from you. Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand. Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life.
It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen. It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections
Home ownership It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire. It’s more than money saved, gifts recieved and grants obtained It’s more than the debt you incur to buy it. It’s more than the payments you make to own it. It’s more than the appreciation that comes with keeping it over time. It’s memories, it’s family, and it’s life that can happen in one place Until you say it’s time to move.