Effects Of Redlining Are Still Visible In Today’s Market

Today’s News Synopsis:

Homes in formerly redlined areas still trailing in value.  HUD Secretary Ben Carson proposed changes to be made to current rent policies that would make them predictable and easier to understand.  Home prices may see another increase as building materials are becoming more expensive.

In The News:

Zillow“Homes in Formerly Redlined Areas Trailing in Value” (4-25-2018)

“The effects of redlining are still visible in today’s housing market, 50 years after the practice was outlawed.  Homes in areas that were “redlined” – or deemed “hazardous” for mortgage lending by the federal Home Owners’ Loan Corp. – remain undervalued when compared with other nearby homes, according to a new Zillow® analysis of Mapping Inequality.”

Mortgage Bankers Association – “Mortgage Applications Slightly Decrease in Latest MBA Weekly Survey” (4-25-2018)

“Mortgage applications decreased 0.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 20, 2018.”

Bloomberg – “Why High-Flying U.S. Home Prices Are About to Get Another Jolt” (4-25-2018)

“The U.S. housing market’s storyline for the last several years has been one of steady demand and limited supply, pushing prices ever higher.”

Entrepreneur – “Rapid Startup Growth in These 4 Cities Has Led to Big Changes in Commercial Real Estate” (4-25-2018)

“According to PwC’s “2018 Emerging Trends in Real Estate — U.S. and Canada,” Seattle is set to become the strongest real estate market in the country this year.”

HousingWire “CFPB considers ending public access to bank complaints” (4-25-2018)

“A new report from the Wall Street Journal says the Consumer Financial Protection Bureau is likely to end the public’s access to a web portal used by consumers to file complaints against financial companies.”

National Mortgage Professional“New Reports Detail Housing’s Price-Demand Seesaw” (4-25-2018)

“Two new data studies have reaffirmed the ongoing lopsided balance between rising home prices and a falling inventory.  First American Financial Corp. is reporting real house prices increased 2.9 percent between January and February, and they were also up 5.1 percent year-over-year in February.”

TheStreet – “Pros and Cons of Buying a Home With a Pool” (4-25-2018)

“At first blush, who wouldn’t want to buy a home with a swimming pool?  But a closer look reveals the reality (and risks) of taking on pool ownership, good and bad, and all should be factored in before diving in head first for potential homeowners.”

HUD – “Secretary Carson Proposes Rent Reform” (4-25-2018)

“U.S. Housing and Urban Development (HUD) Secretary Ben Carson today unveiled a package of reforms designed to offer Public Housing Authorities (PHAs), property owners and HUD-assisted families a simpler, less invasive and more transparent set of rent structures, and places HUD’s rental assistance programs on a more fiscally sustainable path.”

 

 

Bruce Norris will be presenting Stay Put or Cash Out with the OCRE Forum on Wednesday, May 9.

Bruce Norris will be speaking at the 2018 AOA Million Dollar Trade Show and LandLording Conference on Tuesday, May 15.

Bruce Norris will be presenting Stay Put or Cash Out with HomeVestors on Wednesday, May 23.

Bruce Norris will be speaking at the NSDREI 14th Anniversary Dinner Party on Tuesday, June 19.

 

Looking Back:

The Commerce Department reported an increase in new home sales to their highest in 8 months, having increased 5.8% to 621,000.  At the same time, pending home sales did not show much change for the third month in a row.  Redfin’s latest Housing Demand Index also showed a decrease by 13.9% from February.

 

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