N. Y. Coldwell Banker Settles Discrimination Allegation

by Deborah Bethune

Seven people of different races and disabilities

N.Y. Coldwell Banker Settles Discrimination Allegation

By Robert Abruzzese

A Newsday report on Long Island, N.Y., housing discrimination led the state’s attorney general to investigate. This week she announced a settlement with Coldwell Banker.

NEW YORK – Attorney General Letitia James announced on Wednesday a settlement with Coldwell Banker, putting an end to the real estate brokerage’s alleged discriminatory practices against Black, Hispanic, and other homebuyers of color on Long Island, which is considered by some to be the most segregated part of the United States.

“There is zero tolerance for discrimination of any kind in New York state,” said Attorney General James. “My office’s investigation into Coldwell Banker uncovered a persistent pattern of prospective homebuyers receiving different treatment because of their race. Discriminating against people because of race is not just shameful – it is illegal. Housing is and always will be a human right, and my office will continue to address these pervasive and discriminatory practices statewide.”

The settlement comes after the Office of the Attorney General (OAG) launched an investigation into Coldwell Banker and other brokerages following Newsday’s investigative report on housing discrimination.

The OAG found evidence that Coldwell Banker agents may have subjected prospective homebuyers of color to different requirements, steered them towards predominantly non-white neighborhoods, and engaged in other biased behavior. As part of the settlement, Coldwell Banker will pay $20,000 in penalties, $10,000 to Suffolk County to support fair housing law enforcement and compliance, provide fair housing training to its agents, and make a discrimination complaint form available on its website.

The investigation was initiated in 2019 after Newsday exposed several brokerage firms’ discriminatory practices, involving five paired tests conducted on Coldwell Banker agents in Great Neck, East Setauket, Bellmore, and Massapequa Park.

Agents were found to have warned white homebuyers about diverse neighborhoods but withheld such information from Black and Hispanic homebuyers. In one case, an agent showed a white homebuyer property in 83% white neighborhoods while showing a Black homebuyer property in a more diverse neighborhood of Freeport.

This news is a reminder that “redlining” has not been eliminated and still plays a role in where people live throughout the state.

Redlining is a discriminatory practice that began in the United States in the 1930s when the Home Owners’ Loan Corporation created color-coded maps to assess the creditworthiness of neighborhoods. The term “redlining” originates from these maps, where the riskiest areas – usually those inhabited by African Americans and other minority groups – were marked in red. This practice led to racial segregation, disinvestment, and long-lasting disparities in wealth and opportunities in many American cities, including New York.

In New York, redlining affected various neighborhoods, especially those with predominantly Black or immigrant populations. Areas like Harlem, Bedford-Stuyvesant, and the South Bronx experienced severe disinvestment as a result of redlining. Banks and other financial institutions were less likely to grant loans or provide mortgages to residents in these neighborhoods, leading to reduced investment in housing, businesses, and public services.

Redlining was reinforced by racially restrictive covenants in housing deeds, which explicitly prohibited the sale or rental of properties to certain racial or ethnic groups. These practices were eventually declared illegal by the Fair Housing Act of 1968, which aimed to prevent discrimination in housing based on race, color, religion, or national origin.

Long Island has been described as one of the most racially segregated regions in the United States. This segregation is a result of several historical and ongoing factors, including discriminatory housing practices, exclusionary zoning, and economic disparities. The phenomenon of “white flight,” in which white families moved to suburban areas to escape racial integration in urban centers, also contributed to Long Island’s segregation.

Articles • Finance • February 17, 2023

Stubbornly High Inflation Pushes Mortgage Rates Up

by Deborah Bethune

Borrowing costs may see temporary increases in the coming weeks but are expected to stabilize.

Mortgage rates jumped this week, driven up by a record number of jobs and higher-than-expected inflation, says Nadia Evangelou, senior economist and director of real estate research for the National Association of REALTORS®. The 30-year fixed-rate mortgage averaged 6.32%, up from 6.12% last week, according to Freddie Mac.

While mortgage rates may see temporary increases in the coming weeks, they’re largely predicted to stabilize and remain below their most recent peak of 7.08%, which was set in mid-November 2022. “Mortgage rates could linger at around 6.5% for a few more months before heading below 6% by summer—and maybe even 5.5% by the end of the year,” says NAR Chief Economist Lawrence Yun.

Once mortgage rates dip further, expect more home buyers to return to the housing market, Yun predicts. But he warns that with inventory levels still stubbornly low, an influx of buyers looking to take advantage of falling rates could set off “another revival of multiple bidding.”

Housing makes up one of the largest components of the Consumer Price Index and accounts for about 40% of the inflation index. Inflation is staying elevated because of rising rents, Yun says. In January, renters paid 8.6% more in rent than a year earlier. “That was a big contributor to the overall consumer price inflation running at 6.4% and well above the comfort level of 2%,” Yun says. “But rent relief is on the way.”

Yun notes that apartment construction is at a 40-year high. “As these new empty units steadily reach the market, rent growth will tame,” he says. “That will also pull back the overall consumer price inflation.” The CPI likely will ease in the second quarter of this year, Evangelou notes.

Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 16:

30-year fixed-rate mortgages: averaged 6.32%, increasing from last week’s 6.12% average. A year ago, 30-year rates averaged 3.92%.
15-year fixed-rate mortgages: averaged 5.51%, up from last week’s 5.25% average. A year ago at this time, 15-year rates averaged 3.15%.

Source: National Association of Realtors | Melissa Dittmann Tracey

Buyers Sellers Investors • Uncategorized • February 8, 2023

Homestead Exemption

by Deborah Bethune

Investing • February 7, 2023

7 Tips for Listing Your Home on Airbnb

by Deborah Bethune

7 Tips for Listing Your Home on Airbnb

If you’re a homeowner who loves to meet new people from around the world and likes to earn extra income, then become a host by listing your property for rent on Airbnb. The San Francisco-based company connects leisure and business travelers to short-term apartment, house, and room rentals in more than 190 countries. Here are seven tips for becoming a winning host.

First Impressions Count

Get some great shots of your place to make your property stand out. Not experienced in photography? Airbnb will connect you with professional photographers in your area and even help with uploading the photos to your listing. When guests arrive, have a binder available with info on the house rules, Wi-Fi password, local restaurants, and attractions. Provide extra linens, toilet paper, and trash bags for a comfortable stay, and include items such as a hair dryer, iron, coffee maker, microwave, dishes, utensils, pots, and pans.

Set an Appropriate Price

Airbnb provides a suggested price based on the details of your listing and local rental pricing. For first-timers, Airbnb recommends starting below the suggested rate so you can attract guests and build up positive reviews.

Clean Sweep Reviews

Unless you’re ready to give your home the white-glove test on a regular basis, hire a professional cleaning service to stay on top of this task. Keeping your home spotless and linens freshly laundered will help you get rave reviews and outshine the competition – anything less may derail your Airbnb biz.

Play It Safe

Go keyless with digital locks, allowing you to create a personalized code for each guest. This also translates to a faster check-in/checkout process, no lost keys, plus remote host access and rental options. And secure the proper home insurance, or check out Airbnb’s Host Protection Insurance program.

Screen Guests

Get to know your guests by reading reviews of them on the Airbnb site and messaging them via the platform. Although there have been stories about renters damaging apartments or homes, most are respectful houseguests.

Always Be Prepared

You never know when foul weather or emergencies will make an unexpected appearance, so take precautions and place a fire extinguisher in an easy-to-find spot, install fire alarms and carbon monoxide detectors on every floor, and include a first-aid kit in the bathroom. If you’re located in a cold-weather region, have shovels and ice melt ready. Keep a flashlight, weather radio, and nonperishable food in stock. Then rest easy.

Guest Extras

Anticipate your guests’ needs. If you live near the beach, provide beach chairs, boogie boards, and a cooler. For a lakeside home, offer outdoor seating, lighting, and a fire pit. Leave a welcoming touch, whether that’s a bottle of wine or a basket of crackers, cheese, and chocolates – a thoughtful gift will be appreciated.

If Airbnb is in your plans, follow these steps to be better prepared and become a five-star host right from the start.

Source: Coldwell Banker | Blue Matter | Jennifer McGuire

Coldwell Banker • February 1, 2023

Why You Should Use a Real Estate Agent to Sell Your Home

by Deborah Bethune

With so much at stake in the selling of a home, here’s our case for why you should work with a professional agent to stage, list, and sell your home.

For many people, owning a home is one of the largest financial transactions they’ll make, which is why 87% of sellers rely on an agent to be their guide¹. It’s estimated that real estate agents play more than 150 roles during an average home transaction, so it’s best to leave it to the pros.

Real estate agents know how to sell your home quickly and for the best price. Successful sales balance four components: the market, price, condition of the house, and exposure. Because agents know about market trends and the other houses in your neighborhood, they’re well equipped to play up your home’s advantages and downplay disadvantages.

In addition, a skilled agent will:

Help determine an asking price that will make your home competitive
Offer recommendations on how to prepare your home to attract attention, from staging and curb appeal to small home repairs that can make a big difference
Market your home to people who are most likely to buy your home
List your property on the Multiple Listing Service, so buyers can easily find it online
Represent your needs and negotiate the best deal possible
Help you navigate the many services you may need during the process, such as appraisals, inspections, home repairs, title, mortgage, home warranty, and insurance
Be readily available to take your calls and answer any questions

There is also a financial advantage to using an agent:

Homes that are offered for sale by the owner (FSBO) typically sell for less than the selling price of other homes. FSBO homes sold at a median of $225,000 in 2021, which is significantly lower than the median of agent-assisted homes at $345,000².
The average Coldwell Banker® listed property sells for 20.7% higher than the National Association of REALTORS® average price³.

If you are selling your property and plan to purchase another home, your real estate agent will be a valuable partner to help ensure everything goes smoothly. In fact, 53% of sellers nationwide use the same agent to purchase their next home³.

Contact your Coldwell Banker affiliated agent today to discuss listing your property for the spring selling season.

2022 National Association of REALTORS® Home Buyer and Seller Generational Trends. 2. 2022 National Association of REALTORS® Profile of Home Buyers and Sellers Report. 3. National Association of REALTORS® 2021 Average Sales Price: $368,400.

Coldwell Banker | Gustavo Gonzalez

Florida Realtors • January 31, 2023

2022: Market Feels Effects of Inflation, Rate Hikes

by Deborah Bethune

As 2022 ended, Florida’s housing market looked similar to the more traditional pre-pandemic market years in terms of total closed sales, though it fell short in the year-to-year compared to the unusually strong 2021 sales.

Articles • January 25, 2023

NAR: Existing Sales Dropped 1.5% in Dec.

by Deborah Bethune

Image: Coldwell Banker Brandsrv

Sales rose in Jan. 2022 and then fell for the next 11 months. Based mainly on rising mortgage rates, 2022 U.S. home sales were down 17.8% year-to-year.

WASHINGTON – Existing home sales retreated for the eleventh consecutive month in December, according to the National Association of Realtors® (NAR). Three of the four major U.S. regions tracked by NAR recorded month-over-month drops, while sales in the West were unchanged. All regions experienced year-over-year declines.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums, and co-ops – decreased 1.5% from November to a seasonally adjusted annual rate of 4.02 million in December.

Year-over-year, sales sagged 34.0% (down from 6.09 million in December 2021).

“December was another difficult month for buyers who continue to face limited inventory and high mortgage rates,” says NAR Chief Economist Lawrence Yun. “However, expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”

Total housing inventory registered at the end of December was 970,000 units, down 13.4% from November but up 10.2% year-to-year (880,000). Unsold inventory sits at a 2.9-month supply at the current sales pace, down from 3.3 months in November but up from 1.7 months in December 2021.

The median existing-home price for all housing types in December was $366,900, a 2.3% increase from December 2021 ($358,800), with prices higher in all four regions. It’s now 130 consecutive months of year-over-year increases, the longest-running streak on record.

“Home prices nationwide are still positive, though mildly,” Yun says. “Markets in roughly half of the country are likely to offer potential buyers discounted prices compared to last year.”

Properties typically remained on the market for 26 days in December, up from 24 days in November and 19 days in December 2021. Of the homes sold in December 2022, 57% were on the market for less than a month.

One out of three December sales went to first-time buyers (31%), up from 28% in November and 30% one year earlier.

All-cash sales accounted for 28% of December’s transactions, up from 26% in November and 23% in December 2021.

“Cash buyers are unaffected by fluctuations in mortgage rates and were able to take advantage of lower prices in some areas,” Yun says.

Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in December, up from 14% in November but down from 17% in December 2021.

Distressed sales – foreclosures and short sales – represented 1% of sales in December, virtually unchanged from last month and one year ago.

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.15% as of January 19. That’s down from 6.33% last week but up from 3.56% one year ago.

Single-family and condo/co-op sales: Single-family home sales declined to a seasonally adjusted annual rate of 3.60 million in December, down 1.1% from 3.64 million in November and 33.5% from the previous year. The median existing single-family home price was $372,700 in December, up 2.0% from December 2021.

Existing condominium and co-op sales were at a seasonally adjusted annual rate of 420,000 units in December, down 4.5% from November and 38.2% from one year ago. The median existing condo price was $317,200 in December, an annual increase of 3.3%.

NAR President Kenny Parcell says Realtors helped millions of Americans amid a market “that experienced some tough headwinds last year. In 2023, we’ll continue to work with legislators and real estate leaders at all levels to address inventory shortages and increase access to homeownership.”

Regional breakdown: Existing-home sales in the Northeast slid 1.9% from November to an annual rate of 520,000 in December, down 28.8% year-to-year. The median price in the Northeast was $391,400, a 1.6% increase from the prior year.

Existing-home sales in the Midwest fell 1.0% from the previous month to an annual rate of 1.01 million in December and down 30.3% from one year ago. The median price in the Midwest was $262,000, up 2.9% year-to-year.

In the South, existing-home sales slipped 2.2% in December month-to-month to an annual rate of 1.80 million, a 33.1% decrease from the previous year. The median price in the South was $337,900, an increase of 3.5% year-to-year.

At an annual rate of 690,000, existing-home sales in the West were unchanged from November but down 43.4% year-to-year. The median price in the West was $557,900, an increase of $200, or less than a tenth of a percent compared to December 2021.

Articles • January 22, 2023

Florida Still No. 1 for International Buyers

by Deborah Bethune

About one in four (24%) international buyers opt for a home in Fla., finds Coldwell Banker study, compared to No. 2 Calif. (11%) and No. 3 Texas (8%).

MIAMI – Florida is still the No. 1 choice for international home buyers, according to the Coldwell Banker International Buyers Guide. About one in four 24% of international buyers purchase a home in Florida.

Percent of international buyers by state

Florida: 24%
California: 11%
Texas 8%
Arizona: 7%
New York: 4%

In 2022, the highest dollar volume among international buyers in the United States came from China, followed by Canada, India, Mexico, Brazil, and Colombia.

“Florida and Arizona tend to attract buyers from Latin America, Europe, and Canada, who are looking to purchase properties in warm climates for vacation purposes,” according to the guide. “Affordability and diversity of housing in these states are considerations for many international buyers.”

Although international-buyer purchases slowed during the pandemic, buyers have returned to the market.

“According to the National Association of Realtors®, the sales volume generated by international homebuyers in 2021 hit its lowest level since 2011,” the guide says. “International buyer purchases accounted for just 1.6% of existing home sales, down from a peak of 5.2% in 2017. While transactions further decreased in the most recent period, the dollar volume of foreign buyer purchases rose 8.5% to $59 billion in the period ending March 2022.”

Resources • January 2, 2023

INVENTORY RISES DURING THE HOLIDAYS

by Deborah Bethune

Inventory Rises During the Holidays in Palm Beach County

November 2022 reports have been released from Florida Realtors® detailing recent real estate activity in Palm Beach County. The reports compare year-over-year data. The median home price also rose again, with an increase of 10.8 percent to $565,000.

Monthly Market Data Detail – November 2022 | Single-Family Homes | Palm Beach County

Contact me to request market stats on other south Florida markets and types of properties.

The number of sales transactions that closed during the month.

Source:

RWorld

Florida Realtors

Insurance • December 7, 2022

Forego Insurance? Owners with Loans Can’t Opt Out

by Deborah Bethune

Wood replica of a house inside a shopping cart with a "no" symbol beside it on an easel

Andrill Yalanskyl, Getty Images

“It’s too expensive,” isn’t a good excuse. Lenders can “force-place” insurance that owners must pay – and that coverage protects the lender more than the owner.

FORT LAUDERDALE, Fla. – Question: Our mortgage was set up so that we directly pay the property taxes and insurance. Our insurance renewal bill went way up, and we did not have the funds to pay it, so it lapsed.

Our lender must have found out because they bought an even more expensive policy and are tacking the cost onto our monthly mortgage bill. Can they do this? – Cathy

Answer: Yes, the terms of your mortgage allow this practice.

When you took out your loan, you agreed to maintain insurance on your property. You also agreed to let your lender purchase a policy if you do not and have you pay for it. This type of homeowner’s insurance policy is called “force-placed” insurance.

Your mortgage lender is not overly concerned with the cost and may even have a business relationship with the insurer, so force-placed policies can be much more expensive than a policy for which the homeowners would shop around.

Worse yet, the coverage under this policy favors the lender but provides less coverage for the homeowner. Too many homeowners only find out about this lack of coverage after something happens to their home and try to make a claim.

Because it is more expensive and protects you less, you should start shopping for a better policy.

Fortunately, you have the right to replace the force-placed insurance with a policy you find, which will lower your monthly bill and protect you better.

When you set up your loan, your lender was notified of the coverage and would have been told when you let it lapse. This can happen to people who already pay a monthly portion into escrow with their lender as part of their monthly payments. If a lender does not get a proper notice each year from the insurance carrier or misplaces it, they will notify you of the problem by mail.

In my practice, I have learned that many people do not open their mail, especially in trying times, and even when they do, they often do not recognize its importance. This is understandable with the amount of junk mail, ads, privacy policy updates, and the like that come in the post.

Always open and carefully review everything you get from your lender and other companies you deal with.

“It’s too expensive,” isn’t a good excuse. Lenders can “force-place” insurance that owners must pay – and that coverage protects the lender more than the owner.

Our lender must have found out because they bought an even more expensive policy and are tacking the cost onto our monthly mortgage bill. Can they do this? – Cathy

Answer: Yes, the terms of your mortgage allow this practice.

Because it is more expensive and protects you less, you should start shopping for a better policy.

Fortunately, you have the right to replace the force-placed insurance with a policy you find, which will lower your monthly bill and protect you better.

Always open and carefully review everything you get from your lender and other companies you deal with.

N. Y. Coldwell Banker Settles Discrimination Allegation

N.Y. Coldwell Banker Settles Discrimination Allegation

Stubbornly High Inflation Pushes Mortgage Rates Up

Homestead Exemption

7 Tips for Listing Your Home on Airbnb

Why You Should Use a Real Estate Agent to Sell Your Home

2022: Market Feels Effects of Inflation, Rate Hikes

NAR: Existing Sales Dropped 1.5% in Dec.

Florida Still No. 1 for International Buyers

Percent of international buyers by state

INVENTORY RISES DURING THE HOLIDAYS

Forego Insurance? Owners with Loans Can’t Opt Out

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