Despite rising interest rates and tight inventory, Hispanics purchased homes in droves during the first quarter of 2018 according to the U.S. Census Bureau. The Hispanic homeownership rate increased from 46.2 percent in Q4 of 2017 to 48.4 percent in Q1 of this year. The increase corresponded with a net gain of more than 250,000 new homeowners, nationwide. While one quarter does not make a trend, the news helps validate the predictions made by Harvard, The Urban Institute, and NAHREP, that Hispanics will be the driving force in homeownership gains in the coming years. As mortgage companies are finally seeing the refinance boom come to an end, the purchase market will drive the industry and Hispanics are the key to growth. Will the housing industry make bigger investments to reach and serve Hispanic customers? My guess is ‘yes’, although I also expect some new players to emerge that recognize the opportunity and create new innovative models to reach this exploding market.
It has been long understood that a nation of stakeholders makes for a strong union, and for that reason, closing the minority homeownership gap has been a goal and a topic of discussion for decades.
Between 2008 and 2012, more than six million people lost their homes to foreclosure, property values lost almost 40%, and non-distressed home sales fell to all-time lows. It was, without question, the worst real estate market since the great depression. Not surprisingly, the historic dip in the market was followed by a decade-long bull market, the likes of which we have never seen before. Residential real estate is a cyclical market. The...
There is a saying that goes “when the tide rolls back, you can see who is swimming naked”. When the market is strong, it covers a lot of weaknesses. With interest rates moving up, inflation on the rise, and the economy heading towards a possible recession, we’ll find out soon how solid the foundation of the real estate market has been, and more importantly, which companies and agents have built a strong, recession-proof business.