Spike in Hispanic Home Ownership Rate

Spike in Hispanic Home Ownership Rate

Home ownership rates in the U.S. may be on the decline, but not among Hispanic households, according to the State of Hispanic Home Ownership Report published by the Hispanic Wealth Project and the National Association of Hispanic Real Estate Professionals. Last year was the first time since 2009 that the Hispanic home ownership rate increased.

The Hispanic home ownership rate averaged 45.6 percent in 2015, just 0.2 percent higher than the year prior. But in just the 12 months ending December 2015, it soared from 44.5 percent to 46.7 percent — the largest one-year increase in more than a decade.

“The Hispanic home ownership numbers were very encouraging, and all leading indicators strongly suggest that the trend will continue,” says Joseph Nery, president of NAHREP. “Policy makers and the housing industry need to recognize that the face of home ownership in America has changed, and it is in everyone’s interest to ensure that these new consumers have access to relevant lending products, affordable housing stock, and culturally competent service providers in the coming years.”

Hispanics also led in workforce participation and household formation growth nationwide, according to the report, which notes that the real estate industry should expect Hispanics to be the primary driver of the overall home ownership rate for at least the next decade.

This report “should be required reading by everyone in housing, especially lenders and REALTORS®,” says David Stevens, president and CEO of the Mortgage Bankers Association. “The Latino community is massive, it’s ready to own, and it’s now. The significance of Hispanics to housing and the economy will only grow, creating opportunity for all who focus on this vibrant, dynamic, and impactful part of the U.S. economy.”

Source: National Association of Hispanic Real Estate Professionals

Online Marketing Mistakes to Avoid

Online Marketing Mistakes to Avoid

You know buyers are most likely to start their home search online, surveys attest to that. And, sure, you know online is where you then want to form a strong presence – you’ve heard that plenty before too. But could you be messing up your digital marketing efforts by lacking a clear strategy?

By not having a clear strategy, you could be throwing random darts all over cyberspace or just relying on the latest “tactic” or “technique” that is making all your efforts not truly gain you a stronger presence online in the end.

Neil Patel — cofounder of Crazy Egg, Hello Bar, and KISSmetrics and a contributor for Forbes.com — recently offered up some common mistakes when it comes to digital marketing.

1. You’re omitting mobile.

Have a mobile-first strategy to your digital marketing, or you could risk alienating more than half of your potential audience, Patel notes. This means ensuring all of your sites are optimized to be viewed on a mobile screen, whether that’s a smartphone or tablet.

2. You’re underestimating SEO.

Ninety-three percent of people who go online begin with a search engine, and 68 percent use Google. What’s more, the first five results in Google tend to generate 67 percent of all clicks. That’s why SEO is so important, notes Patel. “SEO remains – and will continue to remain – one of the building blocks of a technologically sound and competitive web presence,” Patel writes. “Without an understanding of SEO, your marketing presence will falter and fail.” To improve your SEO, offer up relevant content, label any images, provide relevant links and references, ensure your site’s standards are compliant with HTML, and have relevant page titles.

3. You’re simply overdoing it.

Don’t just try every social media network. After all, social media that is done right requires time and energy for each, Patel says. You can’t be everywhere. Pick the top three platforms where your audience hangs out and focus there. Patel recommends one way to prioritize your online marketing focus: First, figure out what your audience wants; then identify where they are; and next adopt a strategy to reach them.

4. You’re forgetting about content marketing.

Deliver content on home buying or selling that caters to your clients’ most pertinent questions or what they’re facing in the current market. Delivering content geared to your audience should be at the core of your digital marketing strategy, Patel writes.

Source: “12 Things Not to Do When Using Digital Marketing in 2016,” Forbes.com (March 10, 2016)

1 Million Borrowers Regained Equity Last Year

1 Million Borrowers Regained Equity Last Year

Spread the good news: The nation increased its number of financially secure households by a significant amount in 2015. By the end of the fourth quarter, about 46.3 million – or 91.5 percent – of all properties with a mortgage had equity, according to CoreLogic’s most recent analysis, released this week.

“The number of home owners with more than 20 percent equity is rising rapidly,” says Anand Nallathambi, president and CEO of CoreLogic. “Higher prices driven largely by tight supply are certainly a big reason for the rise, but continued population growth, household formation, and ultra-low interest rates are also factors. Looking ahead in 2016, we expect home equity levels to continue to build, which is a good thing for the long-term health of the U.S. economy.”

The majority of residential properties with positive equity tend to be at the higher end of the housing market, according to CoreLogic. Ninety-five percent of homes valued at $200,000 or higher have equity, compared to 87 percent of homes below the $200,000 mark.

Despite recent gains, many home owners are still “under-equitied,” according to CoreLogic’s report. More than 50 million residential properties with a mortgage – or 18.9 percent – have less than 20 percent equity in their properties, and 1.2 million home owners – or 2.3 percent – have less than 5 percent equity.

Some home owners still don’t have any equity. About 4.3 million home owners with a mortgage, around 8.5 percent, owe more on their home than it is currently worth as of the fourth quarter of 2015. That marks a slight increase from 8.3 percent in the prior quarter, but a 19 percent year-over-year decrease from 2014.

Source: CoreLogic

Buyer Compromises May Be Worth It

Buyer Compromises May Be Worth It

Your home shoppers may have a long wish list, but when it comes to finding a home – particularly under the tight inventories prevalent in so many markets right now – the word “compromise” may need to enter the conversation.

Dana Gonzalez, a real estate professional in Denville, N.J., told realtor.com® that buyers need to expect to compromise on their wish list, especially in at least one of three categories: price, location, and size/style/upgrades. “If you get 80 percent of what you want, you’re lucky,” Gonzalez says.

The following are a few compromises that home buyers may find are worth making too:

Location

“While they might want to find a home that is within walking distance to the downtown area with shops, restaurants, and public transportation, buyers do not want to compromise on their living space,” Suzy Minken, a real estate professional in Short Hills, N.J., told realtor.com®. “After all, they live in the home. Sometimes these homes are too small to fit their lifestyle needs, or the larger in-town homes are simply above their price range. So the dream of a walk-to-town location very often will get removed from a buyer’s must-have list.”

Yard size

Those visions of a sweeping landscape or the outdoor pool with the hot tub may have to go once buyers see what’s available and the price. “When it comes to describing their dream home, buyers frequently say they want a large backyard,” Minken says. “When I ask my home buyers to qualify what they mean by a ‘large’ backyard, the answer is almost universally the same: ‘large enough to fit a swingset.’ … So that means they have more homes to choose from, especially when inventory is low.”

Architecture

Home buyers may say they want a Craftsman bungalow but the asking price may be unrealistic for their budget. “Whether it be the architectural style of the house or type of kitchen counters, those things are one of the first things mentioned when clients tell me what they want,” says Amber Dolle, a real estate professional Sherman Oaks, Calif. “But when compromises have to be made and they’ve had time to look at homes for a bit and consider their budget, the home’s aesthetics usually are the thing they choose to overlook.”

Source: “5 Compromises Worth Making When Buying a Home,” realtor.com® (March 3, 2016)

5 Inspection Problems Sellers Can Avoid

Inspection Problems Sellers Can Avoid

The home inspection is perhaps the rockiest phase of a home purchase because the issues that arise could scare buyers off. But there are typical problems that sellers can be proactive about repairing in order to save the deal. Realtor.com® recently highlighted five of these problems and what sellers can do about them:

1. Dank basement: Seepage into the basement could lead to flooding. Small cracks or a foundation wall could cause groundwater to enter in. A basement waterproofing contractor can provide a quote on how to quickly repair any minor problems.

2. Faulty wiring: Home inspector Reggie Marston told realtor.com® that he will often find “ungrounded fixtures, spliced wires not terminated in a proper electric box, receptacles wired backward, and improper breakers in the electric service panel.” An electrician can help sort out and resolve any potential electrical issues.

3. Leaky roofs: A leaky roof can eventually cause mold to form. Even small leaks can become more troublesome if they’re not repaired.

4. Amateur workmanship: DIY jobs by the home owner can cause lots of problems, too. “With plumbing, the owners will install the toilet but don’t tighten it securely to the floor,” says Marston. “I’ll find a toilet’s so loose that I counsel my client it should have a seat belt installed so nobody falls off!” For home owners who have tackled DIY projects, they may want to hire a professional to double-check their work prior to putting the home on the market.

5. Poor maintenance: Home owners who didn’t do proper upkeep of the home may find that several issues surface during a home inspection. “All components in a residence require some type of maintenance,” Marston told realtor.com®. “Water heaters as well as heating and air-conditioning systems should be serviced yearly. Caulk tubs and showers to prevent water leakage. Frequently remove and clean stove exhaust fan filters.”

Source: “How to Conquer the Huge Problems Found During Home Inspections,” realtor.com® (March 8, 2016)