Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / African-American Homebuyers Still Feeling Impact of Great Recession Data Provider Black Knight to Acquire Top of Mind 2 days ago African-American Homebuyers Still Feeling Impact of Great Recession Governmental Measures Target Expanded Access to Affordable Housing 2 days ago November 27, 2019 2,189 Views Melanie GambleAn October article from The Washington Post revealed that black homeownership has been hit hardest by rising student debt. Additionally, the homeownership gap between black and white homeowners is at its highest level in over 50 years, according to research by the Urban Institute. “African Americans are already being left out of the housing market and that’s exacerbating levels of inequality in this country,” said Lawrence Yun, Chief Economist and SVP of research at the National Association of Realtors. “There’s a kind of urgency now within the housing community to bring younger African American buyers into real estate.”However, according to Melanie Gamble, Broker/Owner of 212 Degrees Realty in Upper Marlboro, Maryland, that only tells half the story. Gamble chronicled the struggle communities of color have faced since the Great Recession in her book, Unintended Consequences. Gamble said minority homeownership is nearing record lows, even dating back before the 1960s when people of color were able to purchase homes. The U.S. Census Bureau reported that the African-American homeownership rate for Q3 2019 was 42.7%—far below the national average of 64.8%. The homeownership rate for white Americans was 73.4%, 47.8% for Hispanics, and 58.8% for Asians. “Of course the entire nation was impacted,” Gamble said of the effects of the Great Recession, “but it impacted communities of color a lot worse. And unfortunately, we have not been able to recover at the same rates as other communities.” Gamble cites many reasons for African-Americans not being able to bounce back at the same rate as others and one of those reasons is the net worth of African-Americans as a whole. “Unfortunately, a lot of people of color purchased homes with loans that were later deemed to be predatory. Homes were appreciating at a rapid rate and purchasers were being told, don’t worry, you can always refinance,” she said. “Once the recession hit and the market started to shift, you saw home values decline by as much as 50% in some communities and the possibility of refinancing vanished. Without any other real wealth, the net worth of African-Americans essentially disappeared as a lot of homeowners found themselves upside down on their mortgage.” Forbes revealed earlier this year that the average, non-retired, African-American had $13,460 in wealth in 2016—just 9.5% of reported wealth of $142,180 for white Americans. The average wealth for African-Americans in 2007 was 13.7% of the median-white wealth—$24,841.Gamble said one of the best things to happen to African-American homeowners over the past decade was President Barack Obama’s HARP program. The HARP program allowed people the opportunity to refinance who were underwater. She also said the Mortgage Forgiveness Act was beneficial in not double penalizing people who may have lost their home.“It was just really, really unfortunate that a lot of the lenders in the beginning of the crisis were not as flexible as they are today and working with people,” she said. Gamble, while noting current foreclosure rates are at historical lows, said that we’re witnessing a “super inflated, insulated market.” “It’s all kinds of smoke and mirrors,” she said. “I don’t think too much will happen next year because we’re in an election year—but I believe after the election we’ll see some changes and unfortunately I think we’ll start to see interest rates rise again and we’ll really start to see affordability coming into play.” In her book, she continues, takes a historical look at housing laws, and found that communities of color lacked financial literacy. “If all you had was the equity you were building in your home and then that disappears, there you go,” Gamble said. “One of the biggest things I found was that there is such a lack of financial education.”In her book, Gamble said her passion for real estate began nearly two decades ago when her grandmother, or as she called her, “Bigmama,” passed away and left her land in Daphne, Alabama. However, Gamble was never able to enjoy that land as her grandmother forgot to pay the property taxes on it. An investor purchased it for just $1,000 during an auction. Gamble said she was “heartbroken.” “I channeled my frustration into something positive,” she said. “By June, I was taking my first real estate course at Professional Development Institute in Silver Spring, Maryland. By September I was a licensed agent.“I knew if the loss of property could happen so easily to my family in Daphne, Alabama, it could likely happen just about anywhere to anyone.” Gamble said that it has now become her “mission” to educate people about homeownership, and that REO has allowed her to be in the community and reach people still feeling the effects of the Great Recession. “I do my best to make sure that they have a dignified transition and that they don’t feel any less than what they may already be feeling,” she said. Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Tagged with: African American Great Recession Homebuyers The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago African American Great Recession Homebuyers 2019-11-27 Mike Albanese Previous: The Challenges Facing Law Firms, Servicers in 2020 Next: Home Sale Activity Indicating Economic Shifts Demand Propels Home Prices Upward 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago About Author: Mike Albanese Share Save Sign up for DS News Daily in Daily Dose, Featured, Market Studies, News
150 Airlie Rd, Pullenvale.Mr Johnston said walls of glass flooded the home with light and a perfect orientation ensured the totally private panorama of rolling hills and specimen trees. He said mountain views could be enjoyed from every aspect.The home also has an in-ground swimming pool, and a self-contained studio across the courtyard. 150 Airlie Rd, Pullenvale.Johnston Dixon Brisbane agent, Victor Johnston, said more than 20 years ago the couple often drove to Brisbane over the hills at Pullenvale, and each time they noted a beautiful hilltop position.“It was not long before they acquired the vacant land, meticulously designed and then carefully constructed the stunning lifestyle home that exists today,” Mr Johnston said.More from newsMould, age, not enough to stop 17 bidders fighting for this home3 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor9 hours ago 150 Airlie Rd, Pullenvale.Award-winning Brisbane architect Colin Lewington and his wife are ready to downsize from their sprawling property at Pullenvale.The five-bedroom, three-bathroom home, at 150 Airlie Rd, is on 2ha with amazing views to the mountains. 150 Airlie Rd, Pullenvale.Mr Johnston said Pullenvale was considered one of Brisbane’s finest acreage precincts. “I regularly receive calls from interstate buyers specifically requesting Pullenvale property,” he said.“There are only a handful of prime near-city acreage suburbs and few are close to the city as Pullenvale.“Privacy, natural beauty, uninterrupted views, freedom, space, tranquillity and crisp clean air are just some of the advantages acreage property enjoys over other lifestyle property.” The property goes to auction on February 4 at 11am.