Study finds racial disparities in roadblocks to homeownership
Source: C.A.R
Prospective home buyers face numerous challenges when it comes to achieving the American Dream, and
homeownership obstacles vary among ethnic groups, according to a poll conducted by leading think tank
the Futures Company in partnership with the CALIFORNIA ASSOCIATION OF REALTORS®’
(C.A.R.) Center for California Real Estate.
Making sense of the story

For all respondents, saving enough for a down payment is the biggest barrier to becoming a
homeowner, cited by nearly one in three (29 percent) prospective home buyers, followed by
housing supply constraints (27 percent), access to credit and financing (22 percent), and personal
debt (19 percent).

These hurdles diverged across race and ethnicity. Thirty-one percent of non-Hispanic whites said
constrained housing supply was the most likely deterrent to becoming a homeowner.

A third of Hispanics cited access to credit and financing as their primary challenge in buying a
home.

African-Americans (33 percent) and Asians (32 percent) both cited a lack of down payment or
savings as the main prohibitive factor in purchasing a home.

C.A.R. President Pat “Ziggy” Zicarelli commented, “With record high rents and only about a
third of the state’s households able to afford to buy a median-priced home, the dream of owning a
home in California is evaporating. It’s even more discouraging for prospective ethnic home
buyers who must face greater obstacles to scrape together a down payment or obtain credit and
financing.”

The poll also found that the vast majority (84 percent) of respondents agree that owning their own
home gives them a greater sense of well-being and control over their environment. Across all
incomes, races/ethnicities, and generations, respondents overwhelmingly agreed on the positive
impact of homeownership.

In connecting housing to opportunity, nearly three in four (72 percent) agree that owning a home
is part of their retirement strategy, believing that homeownership is a tool for long-term financial
security.
Read the full story
http://www.car.org/newsstand/newsreleases/2016releases/futuresaffordabilitypoll?view=Standard
In other news …
10 ways home buyers can improve credit scores
Source: Inman
Potential home buyers looking to acquire a home loan and make their dream of homeownership a reality
can do a lot to ensure their credit scores are in good shape, as buyers will find it easier to get a loan with a
few key tips. For example, it is advised that you keep your credit card balances within half of the allowed
limit. If you have $10,000 as your limit, then it is wise to restrict your statement amount to $5,000.
Paying in full and on time are obvious steps to improving credit as well, as is paying high-interest and
small loans first. Another step is if you know you will be unable to pay on time, negotiate with your bank.
Banks often will be willing to extend your loan period and reduce the equated monthly installment (EMI)
if they see a genuine customer.
Read the full story
http://www.inman.com/2016/07/13/10-ways-homebuyers-can-improve-creditscores/?utm_source=emailsubscribers&utm_medium=email&utm_campaign=inmanbest&utm_content=1
U.S. Housing Market Set New Records for Speed and Competition in
June
Source: Redfin
June 2016 marked the fastest, most competitive housing market since 2009, according to Redfin. The
typical home went under contract in 41 days, the shortest time seen since Redfin began tracking the
market in 2009, and four fewer days than last June. And 25.9 percent of homes went off the market in just
two weeks, up from 22.6 percent last year. Several housing markets are reaching new competitive
milestones of their own. The Bay Area continues to court the most aggressive buyers with 68.2 percent of
homes in San Jose sold above list price, followed by 68 percent in Oakland and 64.4 percent in San
Francisco.
Read the full story
https://www.redfin.com/blog/2016/07/june-housing-market-was-the-fastest-and-most-competitive-onrecord.html
By This Measure, Homeownership in the U.S. Has Never Been More
Valuable
Source: Yahoo! Finance
Homeowners who escaped foreclosure during the financial crisis have made out well financially in the
years that followed, while renters have faced a difficult road. The value of owning a home in the U.S. has
never been greater, at least according to one figure buried in a monthly Commerce Department report.
The share of Americans' total personal income coming from rental profit rose to a record 4.4 percent in
the first quarter of 2016, data released in June show. This is an all-time high in figures dating back to
1947. Ralph McLaughlin, chief economist at real estate search engine Trulia, commented, “The share of
Americans renting their home is now nearing 50-year highs, and this rapid shift has occurred at a time
when the rental housing stock has not had ample time to catch up.” The cost for renting a home grew by
3.5 percent in the year through June, a post-recession high.
Read the full story
http://finance.yahoo.com/news/measure-homeownership-u-never-more-110025511.html
How 'Pokemon Go' could help you sell your house
Source: CNBC
The swift popularity of Pokemon Go, an app and game that has everyone talking, has become an
opportunity for sellers to drive foot traffic to real estate. But some warn it could be short-lived and not
worth any real investment, at least from the sell side of real estate. For now, many agents are putting the
app’s appeal to use. The ads are popping up on real estate listings as fast as Pikachu's are on teenagers'
screens. It seems real estate agents are starting to play the game of using the game. For example, an
advertisement on Zillow for a home in Redmond, Washington, details a long list of upgrades, including a
new roof, new hardwood floors, a tankless water heater and, at the bottom of the list, a "Pokemon Go"
gym less than five minutes away.
Read the full story
http://www.cnbc.com/2016/07/14/how-pokemon-go-could-help-you-sell-your-house.html
Housing Matters Podcast: New Episode
Source: C.A.R. and CCRE
Keeping up-to-date with market analysis, real estate research, economic trends, and housing news is hard
to do. But with the recently launched Housing Matters Podcast from C.A.R.’s Center for California Real
Estate, you have a brand new housing hub that keeps you in the know. This week’s episode covers June's
Sales & Price Report, as well as analysis of different market segments (high vs. low end). Be sure to
subscribe on iTunes to hear the latest episode to learn what you need to know about the market from
C.A.R. experts who will provide their take on the week’s top real estate stories. The goal of the Housing
Matters Podcast, and by extension CCRE, is to provide C.A.R.’s members with ideas that help you
become more knowledgeable, professional, and insightful in your work as practitioners and stakeholders
in the future of real estate. Join the conversation and tune into the Housing Matters Podcast.
Listen here
https://soundcloud.com/housingmatterspodcast/housing-matters-podcast-episode-7
What you should know …

Housing starts posted a healthy 4.8 percent gain last month to a seasonally adjusted annual rate of
1.19 million units as the housing market gains steam this year, the Commerce Department
reported.

Permits for building, a forward looking indicator, also increased and were up 1.5 percent to a
seasonally adjusted annual rate of 1.15 million, another positive sign for the housing sector.

Single-family housing starts rose 4.4 percent to a seasonally adjusted annual rate of 778,000 units
in June, while multifamily production ticked up 5.4 percent to 411,000 units.