5 things black America needs to know
Soaring home prices, which are rising at the fastest rate in 15 years, are creating new challenges for black homebuyers,
The Black home ownership rate – 42 percent – is at its lowest in the United States, In man reported. The gap between white and black homeownership is almost 30% – larger today than it was over 50 years ago, CNBC reported.
In January, home prices reflected an 11.1% year-over-year gain. That figure was up from 10.2% in December 2020, according to the S&P CoreLogic Case-Shiller price index in 20 cities. Nationally, home prices were up 11.2% year-over-year in January, the highest increase in nearly 15 years, according to the National Housing Index. S&P Corelogic Case-Shiller price, larger. Market watch reported.
Soaring home prices will create new challenges for black homebuyers.
Here are five things black America needs to know.
1. The price increase is national
Home prices rose monthly in 19 of the 20 major cities tracked by Case-Shiller. Cleveland was the only city to see prices drop. Phoenix recorded the highest rate of price appreciation with a 15.8% year-over-year gain, followed by Seattle and San Diego.
“The January data remains consistent with the view that Covid encouraged potential buyers to switch from city apartments to suburban homes,” said Craig Lazzara, managing director and global head of index investment strategy at S&P DJI , in the report.
2. Mortgage rates are rising
Mortgage rates in 2020 rose by more than half a percentage point and rose above 3% for the first time since last summer, Market Watch reported.
A rise in mortgage rates will hit black America hard. For example, in Detroit, where 78.3% of the population is black, less than a quarter of housing purchases in 2019 were financed by mortgage loans. A the majority of these mortgages went to white buyers, according to the Wall Street Journal Podcast episode, “Why It’s Hard To Buy A Home In Detroit, Especially If You’re Black.”
3. Black Homebuyers Burdened With Student Loan Debt
Black households – 43 percent – are more than twice as likely as white households – 21 percent – to take on student debt, The national association of real estate agents (NAR) reported. Black households hold a median student loan debt of $ 40,000, compared to $ 30,000 for white households.
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4. Refusal of mortgage
Black applicants for home buyers were turned down for mortgages at a rate 2.5 times that of white applicants – 10% versus 4%, respectively, reported the National Association of Realtors.
5. Simply not affordable
Houses seem financially out of reach for many black families. According to a recent report by the National Association of Realtors, only 43% of black households can afford a typical home, compared to 63% of white households. Running and Buying a Home in America Sneak Peek,