The Southern California median sales price slipped for the first time this year after holding steady for the first three months of 2009, DataQuick reported today.
The median price paid for a Southland home was $247,000, down 1.2 percent from $250,000 in March, and well below the $385,000 median seen a year earlier.
The median is now at its lowest point since February 2002, and 51.1 percent below the $505,000 peak seen in the spring and summer of 2007.
However, most of today’s home sales involve discounted foreclosures, while very few high-end homes are selling, so the median’s decline has been exaggerated.
“In many markets we’ve seen signs you’d expect to see not long before prices would normally stabilize: robust investor and first-time-buyer activity, 10-plus months of year-over-year sales gains, and less price erosion, if any,” said John Walsh, MDA DataQuick president, in a release.
“The problem is that we still face two big threats to price stability: layoffs, which can cause foreclosures across the home price spectrum, and possibly a new round of foreclosures triggered by defaults on ‘option ARM’ and ‘stated income’ loans used in mid-to high-end markets.
A total of 20,514 new and resale houses and condo were sold last month in six Southland counties, up 5.2 percent from March and 31.4 percent from a year ago.
Foreclosure sales accounted for 53.6 percent of resales, the seventh consecutive month in which post-foreclosure properties made up more than half of resale activity.
Meanwhile, builders sold the lowest number of newly constructed homes last month for an April since at least 1988.
Sales were at or near record highs for an April in hard-hit inland communities like Palmdale, Lancaster, and Victorville, while high-end coastal communities’ sales remained at or near record lows.
Last month, jumbo loan financing accounted for just 10.9 percent of sales, while FHA loans financed a near-record 39.1 percent of home purchases.
“The Underserved Mortgage Markets Coalition (UMMC) has long advocated for a rule making on the Equitable Housing Finance Plans and the undersigned coalition members are pleased to see a proposed rule to ensure the longevity of the EHFPs,” said the UMMC, which counts 29 member organizations as part of its collective. “The coalition has long expressed that for the EHFPs to be effective and to continue after this administration, it is critical that FHFA promulgate a rule that will be closely modeled on FHFA’s “Duty to Serve” (DTS) regulation and create a pattern of practice of releasing similarly robust amounts of the EHFP performance data.”
The UMMC and other groups have for months been lobbying FHFA Director Sandra Thompson to discuss formalizing the equitable housing finance plans.
Following multiple revisions, the GSEs in early April announced updates to the equitable housing finance plans, which included Freddie Mac expanding special purpose credit programs, increasing the availability of accessory dwelling units (ADUs) and manufactured homes, as well as the launch of a correspondent lending program to assist smaller financial institutions with access to Freddie Mac’s multifamily financing.
For Fannie Mae, it too is looking to expand the special credit purpose programs geared toward helping people in majority Black and Latino communities. Fannie also touted a “social index” to help translate investor interest in socially conscious investing into savings for underserved borrowers and its series of changes to valuation modernization, which it says will reduce bias, improve accuracy and reduce costs.
Industry stakeholders have 60 days to comment on the proposed rule.
The ACRE Act would provide access to low-interest home and farm loans to borrowers in nearly 390 rural Maine towns.
MAINE, USA — People across the country and here in Maine face severe difficulties affording housing due to the higher cost of living, rising interest rates, and housing shortages.
In the wake of the housing crisis, Senators Angus King (I-Maine) and Jerry Moran (R-Kan.) introduced the Access to Credit for our Rural Economy (ACRE) Act of 2023 that would give borrowers in rural towns across the U.S. access to low-interest loans when purchasing a home or farm.
Senator Angus King said, “It has simply gotten way too hard to find reasonably priced homes in our small towns.”
The legislation would make home and farm ownership more affordable for approximately 311-thousand people living in about 390 rural towns in Maine, according to 2020 Census data.
“There’s no one easy solution to our housing affordability problems, but this bipartisan effort would be an important step forward. I appreciate Senator Moran’s partnership and hope we can get this bill passed for rural communities like those in Maine and Kansas,” Senator King added.
The ACRE Act would work by giving small community banks access and flexibility to provide affordable low-interest loans and mortgages to their rural community borrowers.
“High inflation and rising interest rates are putting a strain on farmers and rural homeowners in Kansas and across the country,” said Sen. Moran.
“The ACRE Act will help Maine people and farmers in rural communities, and we’re grateful for Senator King’s support.”, said Jim Roche President of the Maine Bankers Association.
There’s more to banking than low monthly fees, high yield savings, and a large ATM network. More Americans today seek banks and credit unions that align with their values when it comes to sustainability and social responsibility.
The U.S. banking system tends to disregard lower income and rural communities, with traditional banks establishing multiple branches in the country’s largest and wealthiest cities. The most socially responsible banks, on the other hand, provide online banking, low monthly fees, and no minimum deposit requirements, making them accessible to lower income individuals and families. They may also support efforts to help lower income individuals qualify for personal loans, auto loans or mortgages at fair interest rates.
But that’s not all that comes with socially responsible banking. Socially responsible banks emphasize financial literacy for those in their local community. They might also consider their organization a green bank, committed to fighting climate change and avoiding projects that support fossil fuels.
10 Best Socially Responsible Banks and Credit Unions
The best socially responsible banking institutions combine sustainability, accessibility, transparency and ethics to help make the world a better place. Yet, you won’t sacrifice top-notch personal checking and savings or even high-quality business banking when you choose one of the financial institutions on our list. You can have the best of all worlds – and do what’s best for the world – by choosing a socially responsible bank or credit union.
1. Aspiration: Best for Online and Mobile Banking Services
Aspiration is not a bank. But it’s one of the best cash management accounts offered anywhere online, with no monthly fee and a host of money management features. The Aspiration Plus Spend Save account that offers 3% interest on savings.
Aspiration is a certified B-Corp that shows its commitment to socially responsible banking with a variety of programs. Aspiration will plant a tree each time you round up a debit card purchase to deposit the difference in your Save account. It pays 3% to 5% cash back on debit card purchases with companies that are members of the Conscience Coalition, a group of small businesses devoted to social responsibility and sustainability.
Aspiration offers two accounts: One asks members to “Pay-What-Is-Fair,” which means you can use the account for free if you choose. Aspiration Plus costs $7.99 monthly or $71.88 annually (save $24 when you pay upfront.) Save accounts in the Pay What Is Fair model earn 1% APY, while Aspiration Plus savings accounts earn 3% APY.
2. Amalgamated Bank: Best for Investment Planning
Amalgamated Bank has branch locations in the nation’s largest cities: Boston, New York, San Francisco and Washington D.C. The bank offers personal checking and savings accounts with no monthly fees.
Amalgamated Bank offers four checking account tiers, including three interest bearing accounts. Two of the accounts have no minimum opening deposit. If you choose the interest earning Give-Back Checking account, you’ll earn a high APY of 0.90% – 0.95%, with an additional contribution of one-half of your interest earnings going to the charitable organization of your choice.
In addition to its choices in checking and savings accounts, Amalgamated Bank stands out when it comes to helping new retail investors choose ESG companies to invest in and plan for their future.
3. Spring Bank: Best for New Yorkers
Hailed as New York’s first B Corp bank, Spring Bank offers personal and business banking online and at branches in Harlem and the Bronx. The Green Checking account offers no monthly fee with direct deposit, paperless statements and no overdraft fees. If you need an account to write checks, you’ll want to choose the Basic Checking account.
Spring Bank deposits are insured by the Federal Deposit Insurance Corporation, up to $250,000 per depositor, per account. But the bank works with the IntraFi Network to also insure multi-million dollar deposits across multiple reputable U.S. banks.
Spring Bank offers CDs with terms from 90 days up to five years with a minimum deposit of just $250 and interest rates ranging from1.50% APY up to 3.25% APY. The bank also has a high-yield Vacation/Club savings account for short-term savings.
Spring Bank ranks in the top 5% of all 3,000 B Corps across the world and earned awards for its Governance and Customer Service in 2022. The company strives to provide affordable financial products, enabling its customers to avoid what it calls “fringe” financial products like check-cashing services and payday loans.
The bank also supports small businesses in New York and beyond with business checking accounts, money market accounts, and business loans.
4. Beneficial State Bank: Best for West Coast Residents
With seven locations across California, Oregon, and Washington, Beneficial State Bank is the B Corp bank of choice for those on the West Coast. The bank’s majority owner is Beneficial State Foundation, a nonprofit organization serving the public interest.
Beneficial State Bank offers three checking accounts, all with a $50 minimum opening balance and a low monthly service charge. eChecking waives the monthly fee if you sign up for eStatements. Checking and Interest Checking products have low monthly service charges that are easy to waive if you meet certain criteria. The bank also has savings, money market, CD, and IRA accounts to help you meet your long-term and short-term savings goals.
With an emphasis on ethical, equitable banking, Beneficial State Bank is a green bank that does not support or lend fossil fuel companies. The bank shows where every percentage of your deposit goes and says that 75% of its lending occurs within its mission categories. The other 25% supports other categories, but never to projects or organizations that cause harm to the planet or the people on it.
Some of the bank’s top lending categories for businesses and consumers include environmental sustainability, affordable housing, auto loans with fair interest rates, and health and well-being. The bank is also a preferred lender for clean vehicle programs in the state of California.
5. City First Bank, A Subsidiary of Broadway Federal Bank: Best for Commercial and Nonprofit Banking
City First Bank is part of a family of companies devoted to socially responsible lending and personal and business banking in low to moderate income communities. City First Bank, based in Washington, D.C., is a black-led, minority depository institute (MDI), as well as a B Corp and a member of Global Alliance for Banking on Values.
City First Bank offers a variety of personal and business banking products, as well as accounts for nonprofit organizations. The personal checking account has no monthly fee if you meet any of four criteria:
One monthly direct deposit
10 debit card transactions
eStatement enrollment
Minimum monthly balance of $100
The bank also offers a personal savings account, CDs, money market accounts and savings accounts for minors.
6. Sunrise Banks: Best for Mortgages
Sunrise Banks offers a full range of personal banking products, including personal checking, savings accounts, credit cards, and a pre-paid Mastercard. But it is best known for its Pathway2Home affordable mortgage product, as well as other mortgages with down payments as low as 3%. The bank also writes VA loans with no down payment required.
By supporting affordable housing and helping Minnesota residents get into homes of their own and begin building generational wealth, Sunrise Banks shows its commitment to socially responsible banking. Like many of the socially responsible banks on this list, Sunrise Banks is a member of GBAV, a Community Development Financial Institution, and a B corporation.
7. Clean Energy Credit Union: Best for Clean Energy Loans
Most of the banks on our list support efforts to reduce climate change, do not help fund or support fossil fuel companies, and run their organization sustainably. Clean Energy Credit Union works to fund renewable energy through personal loans for electric bicycles, solar electric systems, geothermal heat pump systems, and green home improvements. Clean Energy Credit Union also offers auto loans for electric vehicles.
While the credit union specializes in funding renewable energy and other loans, it also offers options for personal checking and savings accounts. Checking accounts offer dividends from .01% APY to 3.56% APY with a minimum opening balance of just $25 and no monthly fees if you meet certain requirements, including having a Clean Energy loan.
Savings accounts include a bank account with a 0.15% APY and a minimum opening deposit of $100, certificates, and a money market account with dividends ranging from 0.95% up to 1.61% APY, with a minimum deposit of $2,500.
As part of its commitment to green living, the credit union offers bio-based, compostable debit cards that are eco-friendly. It is also one of the few banks or credit unions on our list that offers a Carbon Zero Teen Account online, which shows your teen the carbon offsets their deposits can fund.
8. National Cooperative Bank
National Cooperative Bank offers high yield CDs, and money market accounts, as well as checking and savings accounts and business products. The bank offers an interest earning checking account with a 0.90% APY and no minimum opening deposit. There is a $15 monthly fee if the balance falls below $500.
The money market account has a high 2.28% APY, with a minimum balance of $5,000 to avoid the $25 monthly fee. You will need just $100 to open the account. You can earn a 4.34% APY on with a 12-month CD with a $2,500 minimum opening deposit.
While the bank is committed to helping its customers earn money through high interest rates, it is equally committed to its duties as a socially responsible bank. The bank has donated $8 billion to support underserved communities nationwide, and provided loans and investments of $475 million to low and moderate income families, including mortgage loans.
9. Clearwater Credit Union: Best for Previously Unbanked Consumers
Clearwater Credit Union is a certified Community Development Financial Institution and a member GBAV. While most credit unions are devoted to serving their local communities, Clearwater takes it a step further by donating $1.6 million to 290 non-profit organizations in 2022. Employees donated more than 1,340 volunteer hours within their local communities, and the credit union awarded $20,000 in scholarships to students in the credit union’s home state of Montana.
Clearwater CU offers multiple choices in bank accounts, including a basic checking with no monthly fee, a premium checking that pays dividends, and a SmartSpend checking account with a low, $5 monthly fee for previously unbanked consumers.
The SmartSpend account can help lower income individuals and families avoid the fees that come with check cashing services or prepaid debit cards. It also gives them the opportunity to avoid overdraft fees while gaining the convenience of a deposit account, debit card, and access to mobile banking.
10. Carver Federal Savings Bank: Best for Small Business Banking
Many of the banks on our list devote time and money to sustainability, equality, and other social causes. But they don’t necessarily offer the highest interest rates available in online banking today. Carver Federal Savings Bank, however, is a Black-operated, socially responsible bank that also delivers high-yield savings of 4.00% APY.
But there is a catch. You’ll need a $5,000 minimum opening deposit. This might make the Carver savings account inaccessible to many in underserved communities seeking personal checking and savings accounts. However, for those on firm financial footing who want to support a socially responsible bank, Carver’s high yield savings is a solid choice.
Beyond the high yield savings, Carver is known for an array of checking and savings products for small business owners, including a money market account with 2.00% APY and a business interest checking account.
Start-up businesses or those with low-to-moderate balances might prefer the Carver Community Business Free Checking with no minimum balance, no monthly fee, and 200 free transactions per month. The bank focuses on Black- and Minority-owned businesses as well as women-owned businesses across New York City.
Carver is a designated CDFI and has reinvested 80% of every dollar deposited into NYC communities. It also donated $149 million in New Market Tax credit and more than $259 million in leveraged loans across the New York metro area.
How to Choose Socially Responsible or Sustainable Banks and Credit Unions
When you’re shopping around for a socially responsible bank, first consider what aspects of ethical banking are most important to you. Are you looking for a bank committed to serving low income communities, or one that puts a focus on renewable energy? Maybe sustainability is the most significant aspect to finding a socially responsible bank that aligns with your values.
Of course, you also want to think about all the other elements that you would consider for your personal banking needs. These include low fees, online banking capabilities and an intuitive mobile app, early availability of your direct deposits, and a high yield savings account.
Our list of the best socially responsible banks takes all these factors into consideration and showcases banks that back up their values with investments – in their communities and in the environment.
Organizations That Support Sustainability and Social Responsibility
The best socially responsible banks often showcase their commitment to ethical banking through certifications or membership in organizations that support and reflect their values. If a bank is a member of the Global Alliance for Banking on Values, recognized as a community development financial institution (CDFI) or a Certified B corp, you know the bank has demonstrated its commitment to ethical banking.
Global Alliance for Banking on Values (GABV)
The Global Alliance for Banking on Values (GABV) is a worldwide network of socially responsible banks committed to ESG values. GABV banks focus on three pillars:
Finance change
Do no harm
Sustainable products and services
To join the Global Alliance for Banking on Values (GABV), banks must show their commitment to sustainability, and have a balance sheet of at least $50 million. They must be a full service bank and show financial stability and stable governance. Many of the best socially responsible banks are members of the Global Alliance for Banking on Values (GABV).
Community Development Financial Institutions (CDFIs)
A Community Development Financial Institution is a bank, cash management account, or credit union that is certified by the U.S. government. It’s a bank that has shown a commitment to providing banking services in low income communities and underserved communities across the U.S.
Unlike many other financial institutions, Community Development Financial Institutions focus on areas such as economic development, affordable housing and supporting small businesses in their local community.
Certified B Corp
A Certified B Corp is any organization or socially responsible financial institution that successfully balances purpose and profit. Organizations can apply for B Corp certification if they demonstrate transparency, social responsibility, and show high social and environmental sustainability standards. Banks and credit unions must pass rigorous certification standards to become recognized as a B Corp.
FAQs
Still have questions about the best socially responsible banks? Check out some commonly asked questions below.
Which banks are eco-friendly?
Many U.S. banks meet eco-friendly requirements in a variety of ways. Some, like Clean Energy Credit Union, refuse to support fossil fuel companies. Aspiration plants a tree whenever customers round up their debit card purchases to deposit into a savings account.
To find eco-friendly banks, you can look up their ESG (Environmental, Social & Governance) ratings on their websites, in their financial statements, or on a website like Sustainalytics.
Remember, ESG ratings are derived from many factors, including a company’s diversity & inclusion practices, sustainability, charitable donations, and more. You may have to dig deeper to see which banks employ sustainable practices to reduce their carbon footprint.
How Can You Determine Which Banks Are Committed to Ethical Banking?
A search on a company website should help you find the best socially responsible banks committed to ethical banking. Check online to see if the bank helps underserved communities or the unbanked or underbanked population. Ethical banks may be recognized as a community development financial institution.
What is responsible banking?
Responsible banking or ethical banking typically focuses on three key areas:
Banking access and community development
Environmental impact and climate change
Holistic social responsibility
What is an ESG bank?
An ESG bank focuses on environmental sustainability, social responsibility and ethical governance.
While many may have familiar-sounding job titles, some have ventured off the beaten path and pursued unique careers. Despite the unconventional work, there are a plethora of lucrative job opportunities available. In this article, we’re exploring some weird, high-paying jobs worth considering.
1. Bereavement Coordinator
A bereavement coordinator is tasked with assisting families who have terminally ill or recently passed loved ones. Their responsibilities include overseeing administrative tasks, scheduling appointments, managing funeral arrangements, and supervising staff and volunteers to alleviate the burden on grieving families.
Offering Words of Wisdom
Additionally, a bereavement coordinator may also arrange counsel for those who are struggling with grief. This role often involves working in hospitals, nursing homes, or hospice settings and can be considered a type of counseling service.National Average Salary is $47,660
2. Online Dating Ghostwriter
An online dating ghostwriter is a professional who writes online dating profiles on behalf of clients. This individual is responsible for creating an engaging and attractive online dating profile that accurately reflects their client’s personality and interests. The ghostwriter must have strong writing skills and be able to craft a compelling narrative that highlights the client’s best qualities.
Matchmaker, Matchmaker
They may also assist with messaging and communication with potential matches. The goal of an online dating ghostwriter is to help their clients stand out in a crowded online dating market and increase their chances of finding a compatible match. The national average salary is $54,204 per annum.
3. Art Therapists
Art therapy is a unique profession that blends the principles of therapy with the creative process of art. Art therapists utilize various forms of artistic expression to aid patients in their healing journey. By reducing stress levels and enhancing self-esteem, art therapy can help improve overall mental health. This therapy is particularly useful when individuals have difficulty expressing themselves verbally.
Wisdom and Creativity
Becoming an art therapist requires a background in psychology or counseling and specialized training in art. Art therapists have the flexibility to work in a variety of settings, including schools, communities, and private practices. Companies can even hire them to help employees manage stress and improve their mental well-being. The National average salary is $58,139.
4. Flavorist
As a Flavorist, your primary responsibility would involve developing both natural and artificial flavors. To accomplish this task, you must possess a wealth of knowledge regarding essential oils, botanical extracts, flavor aromas, and essences in order to replicate natural flavors accurately.
Education… and Good Taste
Additionally, you would be tasked with inventing new and captivating flavors that appeal to consumers. This highly specialized profession necessitates a Ph.D. in chemistry or biochemistry, along with extensive apprenticeship experience with flavor companies. The National average salary is $60,640.
5. Color Designer
The role of a color expert involves utilizing color psychology, trends, statistics, and theory to recommend optimal color schemes for various settings, including homes, company buildings, brand logos, and more. As a color expert, you would be responsible for creating layouts and designs for a variety of purposes, such as branding, interior design, and architecture.
Think Outside the Box
A college degree is not typically required for this position, although specialized training is necessary. Additionally, possessing a creative and innovative mindset can be beneficial when pursuing a career as a color expert. The National average salary is $61,554 per annum.
6. Veterinary Acupuncturist
Veterinary acupuncture is a form of alternative medicine that involves using techniques similar to those used in human acupuncture to treat animals. As a veterinary acupuncturist, your primary objective would be to provide non-surgical and non-pharmaceutical treatments to animals using methods such as needle insertion, massages, blood-moving approaches, frequency approaches, and polarity devices.
A Big Heart
In order to pursue a career in this field, you would need to acquire the necessary training and certification in acupuncture. Furthermore, genuine love and compassion for animals would be crucial to succeed in this role. The National average salary is $69,167 per annum.
7. Equine-Assisted Therapy
An equine therapist is a profession that merges horseback riding with therapy to help both children and adults. This therapy involves using horses to provide patients with physical and emotional benefits. To pursue this career, you would need to be a certified therapist with extensive knowledge of various disabilities, as well as experience working with horses.
Ready to Ride
Hippotherapy has proven to be an effective method to improve recreational activities, socialization, and interactions with other patients. As a hippotherapist, you would be a valuable member of a team of experts responsible for designing customized plans and objectives for each patient. National average salary is $74,434 per year.
8. Toy Designer
A toy designer is a professional who creates toys that are not only fun but also safe for children to play with. This role may also be referred to as a product designer or toymaker, and it requires a keen artistic and imaginative sense. Toy designers must have a good understanding of materials to create toys that do not pose any safety risks to children. They should also have the ability to design toys that are sturdy and easy to maintain.
Are You a Tinkerer?
In addition, a love for gadgets and proficiency in mechanical skills are highly desirable traits. To pursue a career as a toy designer, you would need to earn a degree in the arts, such as a design degree. Furthermore, proficiency in CAD and engineering skills would be necessary to succeed in this field. The national average salary is $74,913 per year.
9. Podiatrist
A podiatrist is a healthcare provider who specializes in the examination, diagnosis, and treatment of conditions affecting the feet, ankles, and lower legs. They are also qualified to perform surgeries on these body parts.
Take Good Care of Feet
Podiatrists possess the expertise to detect and manage abnormalities in the feet, prevent and correct deformities, and alleviate foot pain and infections. To pursue a career as a podiatrist, you would need to obtain a degree from an accredited podiatric medical college. The National average salary is $90,795 per year.
The job market is full of unique, unconventional job opportunities that can offer excellent salaries. Pursuing a career in one of these jobs may lead to a rewarding career path with significant income potential. So, if you’re looking for an exciting and well-paying job, don’t be afraid to explore some of these unique professions!
Who is one actress you can never stand watching, no matter their role? After polling the internet, these were the top-voted actresses that people couldn’t stand watching.
10 Actresses People Despise Watching Regardless of Their Role
These 7 Celebrities are Genuinely Good People
We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble?
These 7 Celebrities are Genuinely Good People
Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.
These 10 Activities Are an Immediate Red Flag
Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.
10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth
We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.
These 10 Terrible Movies Are Still People’s Favorites
Millions of homeowners across the country lost their homes in the foreclosure crisis, missing out on the opportunity to regain and grow their net wealth as the housing market recovered. But in black and Hispanic communities, the foreclosure crisis hit especially hard, and homes in those areas have yet to fully recover, according to a new Zillow analysis.
When the housing market crashed, many homes lost a significant share of their value, especially among homes that were ultimately foreclosed. In Hispanic and black communities, foreclosed home values fell by more than 50 percent.
As the market recovered and home values rebounded, foreclosed homes saw strong appreciation –equity growth that the former owners couldn’t access. Foreclosed homes in black and Hispanic communities have more than doubled in value since reaching their lowest point, though they remain 4.7 percent and 9.5 percent below their peaks.
Not only did the foreclosure crisis have a sharper impact on people’s ability to gain wealth in black and Hispanic communities, it also had a broader reach into those areas. Nationally, 19.4 percent of all foreclosures between 2007 and 2015 were in Hispanic communities – but only 9.6 percent of homes are in those same areas. Similarly, 12.7 percent of foreclosures occurred in black communities, while 7.7 percent of all homes are in black communities.
In Atlanta, 30.5 percent of all homes are in black communities, but more than half of all foreclosed homes are in those communities. Just 44.2 percent of foreclosed Atlanta homes are in white communities, compared with the overall 65.1 percent of homes in white communities.
Losing a home to foreclosure is especially impactful for Hispanic and black homeowners, who historically have held the majority of their net worth in their homes. Near the height of the housing bubble in 2007, Hispanic and black homeowners had 73.1 percent and 61.8 percent of their net worth tied up in their homes. For white homeowners, that number was only 46.5 percent.
“The housing bust and foreclosure crisis that followed resulted in a disproportionate number of people of color losing not only the roof over their heads, but the wealth—and the opportunity to potentially build more—that came with it,” said Zillow Senior Economist Sarah Mikhitarian. “Black and Hispanic homeowners were more exposed to the foreclosure crisis because homes accounted for such a large share of their wealth. With fewer assets to draw on, it was harder for them to hold onto their homes if they fell underwater on their mortgages, owing more than their home was worth. For people who ultimately succumbed to foreclosure, they missed out on the opportunity to see their home’s equity—and therefore their wealth—climb back up.”
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
The decline of Fort Morgan didn’t happen suddenly. There wasn’t a giant factory that closed or a natural disaster that devastated the small, farming town on the plains in the northeastern corridor of Colorado.
Instead, Fort Morgan’s story is a familiar one playing out across rural America: children moving away to find better jobs in the cities and big-box stores and online shopping leading to empty storefronts on Main Street. But this isn’t how the story ends for Fort Morgan, about an hour and 15 minutes northeast of Denver.
HGTV is turning its star power on Fort Morgan with the Season 2 premiere of “Home Town Takeover.” The show will feature its biggest name stars, including Ben and Erin Napier of “Home Town” and Dave and Jenny Marrs of “Fixer to Fabulous,” as they take on revitalization projects around town. The six-episode series is to premiere on Sunday.
The popular network has a strong track record of transforming struggling, down-on-their-luck, small towns and cities into popular tourist and real estate destinations. Several of these communities have credited the shows built around them for their turnarounds. Can HGTV and its talent re-create the magic in Fort Morgan—and perhaps inspire other struggling towns to invest in their own revitalizations?
“At the end of the day, millions of people are going to see this show,” Jenny Marrs tells Realtor.com®. “They’re going to be inspired either to go and visit Fort Morgan, which would be amazing and help the town as far as tourism, but also just be inspired to maybe do the same thing in their own town.”
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Watch: Exclusive: Is HGTV’s ‘Renovation 911’ the Most Dramatic Home Improvement Show Yet?
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Over the four months of filming for the show, the teams completed 18 projects. They included fixing up homes of local heroes, businesses such as the town’s bowling alley, and community spaces such as the downtown business district and a local park.
“Our town could use a jump-start,” says local artist Ann Iungerich. “The last 10 to 15 years, it’s gone through a slump. We could use a boost to get us back on track.”
Helping out on the projects were guest stars Jonathan Knight, star of HGTV’s “Farmhouse Fixer” and former vocalist for New Kids on the Block; rapper Lil Jon, who also has a show, “Lil Jon Wants To Do What?”; and Ty Pennington of “Rock the Block,” among others.
“These towns each have a special story,” says Jenny Marrs. She was most impressed by the people she met in Fort Morgan and how they rallied together to improve their community. “People stop, they say hello, they wave at you when you drive by, they know your name at the grocery stores. These sort of simple things can be really powerful.
“Families have lived in these small towns for generations. This is their family legacy and history,” she continues. “They shouldn’t have to move if we can help make the town viable again.”
The HGTV effect on real estate markets
The Texas city of Waco is perhaps the best example of the power of HGTV and its charismatic stars.
“Fixer Upper” premiered in 2013 and launched Chip and Joanna Gaines into the stratosphere. The couple built an empire off of that show, with a furniture line at Target, eight bestselling books between them, and even their own network, called Magnolia. But their greatest accomplishment might have been transforming the public image of Waco.
Before the popularity brought by the Gaineses, the city had been best known for a deadly standoff in 1993 between federal agents and a religious cult run by David Koresh. Now, tourists flock to the city to shop at the Gaineses’ stores and eat at their restaurant, Magnolia Table.
Average home prices in McLennan County, which includes Waco, surged almost 52.1% from 2015 to 2019, according to data previously provided by local real estate broker Camille Johnson. (“Fixer Upper” ran from 2013 to 2018 on HGTV. It was rebooted as “Fixer Upper: Welcome Home” on the Magnolia network in 2021.)
Before “Home Town” began filming in Laurel, MS, Mayor Johnny Magee flew out to Waco. He wanted to see the impact that “Fixer Upper” had on the struggling city.
“What we saw were tourists everywhere, and people were claiming that the same could happen in Laurel. We were doubtful,” says Magee. He didn’t realize how popular the show starring the Napiers would be when it premiered in January 2016.
Today, Laurel is booming. Its hotels and restaurants are full, home sales have risen as more people have moved here, and the town’s tax base has increased.
Home list prices surged in Laurel, shooting up 84.1% from July 2016 through July 2022, according to Realtor.com data. That’s compared with a 71.9% increase nationally and 60.8% in Mississippi over the same period.
“I am a native Laurelite who is amazed about what has happened since Ben and Erin Napier have begun the ‘Home Town’ show in Laurel. When the show began, downtown was like a ghost town,” says Magee. “What we have experienced has blown the minds of everyone who knew Laurel pre-‘Home Town.’”
Bentonville, AR, where “Fixer to Fabulous” is filmed, is a bit of an exception as it’s a city of more than 55,000 residents. It’s also the birthplace and headquarters of Walmart.
However, the Marrses have seen tourism tick up as a result of their show. There are now golf cart tours of the homes that have appeared on “Fixer to Fabulous.”
“It’s a powerful thing,” Dave Marrs says of the HGTV effect on Bentonville.
But there are a few downsides.
Home prices can rise as a result of being in the spotlight, say the Marrses. The number of properties for rent and sale is likely to drop even further as out-of-towners move in. That’s likely to make it harder for locals to find places. And those who grew up in the community might find themselves competing with deep-pocketed investors and retirees.
When home prices increase, property taxes can also rise. That was a substantial problem that homeowners in Waco experienced.
Fort Morgan’s already benefiting from ‘Home Town Takeover’
Since the news broke in July that the new season of “Home Town Takeover” would be filmed in Fort Morgan, commercial properties downtown have been selling quicker, says Brian Urdiales, a Fort Morgan councilman and Compass real estate broker.
“It isn’t typical to see three commercial properties on Main Street go onto the market and then close in a short time,” he says. “It would be great to see all the foot traffic and people on Main Street like when I grew up.”
Tourists have also begun to trickle in, says artist Iungerich, 61, a lifelong resident of the town. She submitted the town’s original application to be on the show when it launched just before the COVID-19 pandemic hit in early 2020. And she created an art installation that will be featured on the show: a 5-foot-tall bowling ball, a 9.5-foot-tall pin, and a crown, all placed in front of the local bowling alley.
The recent trickle of tourists is certainly something new for Fort Morgan, founded after an eponymously named military post opened in the mid-19th century along the South Platte River.
Today, the fort no longer remains and Fort Morgan is primarily a farming and ranching community of about 11,500 residents. There is a large Cargill beef processing plant, a mozzarella cheese processing facility, and a historic sugar factory.
The old railroad depot is boarded up, but folks can still catch an Amtrak train to Denver or into Nebraska. There are some restaurants, and the movie theater has recently been remodeled.
Fort Morgan has “the blue-collar jobs. They have the farming. They just didn’t have the draw to keep people there,” Dave Marrs tells Realtor.com. “So a lot of our focus was ‘Hey, you’re working here, stay here. Spend time here, spend money here so the town can develop even more.’”
Despite the town’s struggles, Fort Morgan’s real estate market has remained appealing to buyers priced out of more expensive parts of the state. During the pandemic, many Denver-area buyers came to Fort Morgan seeking more affordable properties, more space, and a more rural lifestyle. Homes sold briskly in a single weekend, often for over the asking price.
The real estate market has since come back down as higher mortgage interest rates are forcing many would-be buyers to the sidelines. Home list prices are mostly back to pre-pandemic levels, at a median of $330,550 in March, according to Realtor.com data.
Homes in Fort Morgan are still attracting buyers, especially as prices are about half of Denver’s median price tag of $663,000 and roughly $100,000 less than the national median of $424,500 in March.
“Our market’s always been pretty strong,” says Urdiales. He’s still seeing bidding wars, investors making all-cash offers, and first-time buyers jumping into the fray. “People are still buying.”
And the international exposure the town is about to receive is expected to be positive for the real estate market, especially as many viewers are working remotely and can live just about anywhere.
“It brings this aura of glamour to the small-town lifestyle,” says Jeff Engelstad, a real estate professor at the University of Denver. “You get on a million people’s radar, and you’re going to land a few of them.”
Home prices surge in Wetumpka after ‘Home Town Takeover’
Perhaps the best blueprint of what’s in store for Fort Morgan might be what happened in Wetumpka, AL. The small town was featured in the first season of “Home Town Takeover,” which premiered in May 2021.
As HGTV broadcast this small town into living rooms all over the world, the real estate market caught fire. Prices rose and homes flew off the market. Homes for rent or sale were scarce.
Home list prices in Wetumpka grew 42.3% from January 2021 through January 2023, according to Realtor.com data.
While some of that is due to the hot housing market during the pandemic, Wetumpka saw much larger run-ups in prices than the state or rest of the country. Over the same period, prices rose 26% in Alabama and 23.9% nationally.
The market has since slowed along with the rest of the nation, but some homes are still receiving multiple offers, says Wetumpka real estate broker Beverly Wright, of Re/Max Cornerstone Realty.
“It’s pretty crazy,” says Shellie Whitfield, executive director of the Wetumpka Area Chamber of Commerce. “We’re still building housing, and once the shovel’s in the ground, they’re sold.”
When she moved to Wetumpka in summer 2017, about 40% of the stores downtown were boarded up. Now, only two storefronts are empty and busloads of tourists visit the town’s new bookstore, ice cream parlor, pet store, and even a high-end olive oil and vinegar store.
“They sped us up about 15 years. It’s been really great,” says Whitfield. “They just catapulted us just far beyond anything anyone could have imagined.”
Whitfield is confident the show will have a similar effect on Fort Morgan.
“They definitely will see some impact because there is such a strong following for the show,” says Whitfield.
The Marrses want viewers to be inspired to take action to turn their own towns around.
“I hope that people watch this show and say we can do that,” Jenny Marrs says. “It’s a spark that gets the fire started.”
The American dream of homeownership is getting further out of reach for many Hoosiers.
As pandemic-era supply shortages began to return to normal, home prices fell, giving prospective homebuyers hope they could find something affordable. But those hopes were dashed for some who found they could not pay the high mortgage rates, which are currently more than double pandemic lows.
According to Paul Schwinghammer, former president of the Indiana Builders Association, markets will bounce back eventually. But when prices return to “normal,” many will still be unable to afford the investment that sustained previous generations.
“The days of a brand new home at $200,000 are probably very much in our rearview mirror,” Schwinghammer said.
As potential homeowners are pushed into becoming renters due to high mortgage rates, Schwinghammer said the thriving rental market is not the silver bullet to the housing market some think it is.
“That’s not the American dream,” he said.
Homeownership is increasingly expensive
Housing has become more expensive overall in the past several decades.
In 1950, Hoosiers made less — the median household income was $2,827, or about $30,000 in today’s dollars — now the median household income is $61,944. But housing prices have zoomed past that growth.
In 1950, the inflation-adjusted cost of the median home value was around $70,000. Today, the median listing price is $218,000, according to the state housing dashboard. In other words, the cost of housing has tripled, clearly outpacing wage growth in Indiana.
The cause of this gap is hotly debated. Some argue it is due to a decreased supply of housing — in Indiana, 16.8% of existing housing was built prior to 1940, and the percentage of homes built in the 2010s makes up the smallest slice of the housing pie at just 5.3%.
Experts point to the 2008 housing crash as a major factor in the building slowdown. After the crash, the membership of the Indiana Builders Association fell from 7,200 to 3,000, and the industry has been cautious ever since.
While building picked up pace in response to pandemic-driven demand, Indiana still has a 1.04% shortage of housing stock according to FreddieMac — the largest of all surrounding states.
Density, zoning and community opposition
At the most basic level, a housing unit cannot be cheaper than the raw cost to build it. During the pandemic, supply and demand saw timber, copper and other building materials spike in price, which was exacerbated by high labor costs. Schwinghammer argues this raw cost can be further increased by municipal regulations surrounding lot size, materials and aesthetics.
“That’s all well and good, except you’re ruling out homebuyers,” Schwinghammer said.
For affordability advocates, a relatively simple solution is increasing the amount of homes that can be built in an area by reducing lot size. This allows more homes to be built, increasing supply, all at a lower cost to builders, which are hopefully passed onto consumers.
But in practice, housing density is fiercely contested. Examples of density can range from apartment complexes to duplexes, which can be impossible if an area is zoned for single-family use. Other times, things like parking space requirements can thwart density attempts.
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But overwhelmingly, the biggest opposition to denser housing can come from neighbors and community members, whether it’s an apartment complex in Broad Ripple or a controversial zoning change to allow for multifamily housing in certain Bloomington neighborhoods. In fact, a survey of New York developers found that the majority of opposition to developments came from residents.
Ultimately, Indiana joins most of the country in having high rates of single-family detached housing, with the housing type making up 73.1% of all housing in Indiana, according to the state housing dashboard.
A shortage of affordable housing
While housing supply remains low in general, low-income Hoosiers are facing an even bigger gap when it comes to affordable housing supply. According to a Prosperity Indiana report, the state is 120,796 homes short of affordable and available rental homes, which means there are only 39 affordable units available for every 100 low-income renter households. The numbers show Indiana is performing worse than the regional average.
“Indiana is increasingly out of step with its Midwest peers when it comes to affordability and stability,” Andrew Bradley, policy director at Prosperity Indiana, said.
One method of helping low-income renters is Section 8 housing, a federal program that allows income-qualifying individuals to pay subsidized rents. But the program often fails to meet the demand — in Indiana, people are often on waitlists for three to five years before they can get housing, and sometimes the waitlists themselves are closed. There are currently seven waitlists open on the Indiana Housing and Community Development Authority website, spanning only about a third of counties.
With state and federal assistance so hard to find, some municipalities have attempted to fill the gap in affordable housing through local regulations.
In Bloomington, where housing is the most expensive in the state, local officials attempted to implement inclusionary zoning in 2017. Inclusionary zoning is a type of policy that requires developers to include a certain percentage of affordable units in their projects instead of trying to individually negotiate more affordable units through incentives.
That same year, the Indiana General Assembly banned municipalities from doing so, putting a direct halt to the city’s plans. Today, Indiana preempts municipalities from enacting four different types of equitable housing policies. In addition to inclusionary zoning, these include short term rentals, source of income nondiscrimination policies and rent regulation. Indiana is the only state in the country to prohibit all four policies.
Bradley said Indiana’s Housing Task Force is focusing too much on building new homes instead of sharing a focus on strengthening protections for tenants and improving current housing stock. He said this is partly due to a lack of representation of everyday Hoosiers on the task force.
He referenced Senate Bill 202, bipartisan legislation focused on tenant protections that was later stripped down to a study bill, as an example of the priorities of the legislature. The bill did not end up passing the House, and was not selected as a summer study topic.
“Suppliers of new housing have dominated the conversation at the Statehouse,” Bradley said.
Homebuyers suffer from high rates
Although commodity prices have decreased 10% across the board, Schwinghammer said, homebuyers are not seeing true relief due to high mortgage rates, which currently hover around 7%. Although mortgage rates have spiked as high as 16% in previous decades, the current rate is higher than pre-pandemic rates of around 4% and pandemic lows of 3%.
Part of this is due to the Federal Reserve’s sharp hikes in interest rates in order to combat inflation.
Ultimately, Schwinghammer said it would take 33% of the average person’s wage to begin homeownership — resulting in the highest debt to income ratio since 2007. Housing is effectively the least affordable it’s been in nearly two decades, he said.
As potential homebuyers are shut out of the market, builders have turned to the build-for-rent phenomenon sweeping the country in order to keep busy. BFR involves communities of single family rental homes that people can live in without making a purchase, allowing people to avoid interest rates.
Schwinghammer said BFR, which once took up 3% of the market, is now 15%.
As people struggle to afford new homes, pre-existing — and often cheaper — homes are selling less because homeowners don’t want to trade in their lower rates for the current 7% interest rate.
But the market is cyclical by nature, Schwinghammer said, and interest rates will likely be declining in a year.
“The natural ebbs and flows of the market will allow that to happen,” he said.
The Laborers’ International Union of North America (LIUNA) has suggested that a new assembly bill be introduced in California to bar homebuilders from involvement in the mortgage business.
In their new report, they argue that corporate homebuilders in California systematically pressured homebuyers to finance their new home purchases via directly-owned or affiliated mortgage lenders that pushed exotic, high-risk loan programs.
“Corporate homebuilders profited from the loans and from the artificial inflation of the housing market bubble. Their practices contributed to the current housing and economic crisis and families and communities were devastated when the bubble burst,” the release said.
One example cited in the report found that the mortgage subsidiary of homebuilder DR Horton increased its use of subprime lending in Riverside and San Bernardino Counties from six percent in 2004 to 36 percent by 2006.
Once subprime lending phased out, builders turned to FHA loans for financing; 5.5 percent of the government-backed loans originated by Lennar’s mortgage subsidiary Universal American in 2007-2008 have already defaulted.
That compares to a 2.8 percent default rate seen within the first two years on the FHA loans the company originated in 2005 and 2006.
LIUNA is pushing Assembly Bill 1534, which would prohibit homebuilders from writing mortgages on the homes they build, protect buyers from “pressure tactics,” and provide buyers with more options and the ability to make more responsible choices.
So just to review, the homebuilders created the tremendous oversupply of housing and provided toxic funding to get the overpriced properties off their hands, and pushed for low mortgage rates to shed inventory without reducing prices.
In August 2020, Taylor Lopez and her husband Joseph bought their home for $180,000 in the fast-growing city of Anna.
They bought the three-bedroom house built in 1966 with a loan carrying a 3.8% mortgage rate. “From an investment standpoint, it felt like a good choice,” said Lopez, 36, a real estate manager for restaurant chain Wingstop.
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Dallas-Fort Worth home sales, prices only take slight hit from higher mortgage rates
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After more than two years in the home, they’ve been thinking about selling. Joseph works in Lewisville and Taylor works in Addison, so they would like to find a place offering a shorter commute.
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But, like many other would-be upsizers in Dallas-Fort Worth, the couple feels locked into their current home.
Although they could get a good return on a sale, they would have to shop in a dramatically more expensive housing market than when they first purchased and sacrifice their current loan for a new one at a much higher rate.
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After a wave of low-rate homebuying and refinancing from 2020 to 2022, more than half of outstanding Texas mortgages have rates of less than 4%, according to Federal Housing Finance Agency data.
Since last fall, the average rate for a 30-year, fixed-rate mortgage has been hovering between 6% and 7%.
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“There are people that want to sell, but that is what is keeping them there at their house,” said Misty Michael, a real estate agent in the Sachse and Plano area.
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The Lopez family said any home they would want to buy, in school districts they want to be in and that wouldn’t require a lot of work, would start in the $400,000 range.
“It doesn’t make sense when you weigh out all the pros and cons, so we’re continuing to drive about an hour each way to work,” Lopez said. “We could always purchase a home at a higher interest rate, then refinance it if the interest rates go down, but that’s an if and when situation.
“When you’re playing with that much money, it doesn’t seem like a risk I’m willing to take right now.”
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Changing math
Since the start of 2020, the median price of a single-family home in Dallas-Fort Worth has risen more than 50%, according to North Texas Real Estate Information Systems and the Texas Real Estate Research Center at Texas A&M University.
On top of that, the Federal Reserve has aggressively increased its federal funds rate for more than a year, indirectly driving up mortgage rates. Freddie Mac recorded an average 30-year mortgage rate of 6.96% on July 13.
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The result: The monthly principal and interest payment for a median-priced Dallas-Fort Worth home at the average rate with a 20% down payment, before insurance or property taxes, was about $980 in January 2020. In June, it was more than $2,100.
For buyers who purchased a $300,000 home at the record low of 2.65% in January 2021, just buying a house at the same price again at today’s average rate would add almost $900 to their monthly payments before taxes and insurance.
Purchasing a bigger or nicer home would add significantly more to that already-elevated payment, so people with job promotions or babies on the way looking to upgrade to bigger homes may not find a good enough deal to justify it financially.
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“It now is significantly more expensive to make these marginal changes that you might have been planning,” said Texas A&M economist Adam Perdue. He and his wife are expecting a baby soon and have considered getting a bigger home, but they too have a low rate on their home in Brazos County and don’t want to take on higher monthly payments.
While prices are declining slightly year to year, Texas A&M economists don’t expect them to return to where they were at the beginning of 2020. Rates are also expected to decline, but not back down to the record lows. Mortgage Bankers Association forecasts rates in the 5% range by 2024.
Still buying and selling
As mortgage rates rose and sellers held back, new single-family home listings in Dallas-Fort Worth dropped 22% between June 2022 to June 2023, limiting options for people looking to buy.
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Buyers with an immediate need to move are still purchasing homes, and people continue to move to Texas from other parts of the country. Local home sales recorded in June were down only slightly from a year before.
“We have a ton of buyers that are wanting to buy a home,” Michael said, adding that buyers may choose to refinance later. “You have people getting married, having babies, kids going to college.”
More casual buyers without an immediate need to move may no longer be shopping, said Drew Kayes, who heads up homebuying company Opendoor’s operations in Dallas-Fort Worth and Houston.
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“A lot of those folks right now are not in the market because they’re locked into a sub-4% rate, and that’s more of a luxury move than a necessity move,” Kayes said.
Jason Dickson, co-owner of North Texas-based Nuwave Lending, said while it may be hard for homeowners to leave their current home, it may be worth it for them to tap into equity they’ve built up during the pandemic to pay off credit card debt or auto loans.
“They’ll gladly sign up for the higher interest rate in the new house if they have the benefit of taking that equity and improving their overall financial position,” he said.
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A silver lining
Nipun Gadhok, 31, doesn’t want to lose his 3% rate but hopes to purchase a new home for him and his girlfriend next year.
Gadhok, a development manager for the Nehemiah Co., a local firm behind residential communities throughout Dallas-Fort Worth, purchased his five-bedroom home in Fort Worth’s Augusta Meadows neighborhood in 2021.
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He’s looking to buy a home along the outskirts of the metro area, potentially in one of his company’s developments on the east end of Mesquite. Knowing he has a rate he may never get again, he’s not planning to sell his Fort Worth house.
He intends to keep it as a rental property and is already renting out rooms to four other tenants. With mortgage rates causing many people to rent, that’s turning out to be a good side hustle.
“People are choosing to rent, they are not as much inclined to buy,” Gadhok said. “The rates really helped me out in the way that I’m not having problems with finding tenants.”
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