| According to all the major indexes, real estate is still | | | | ethnicity's. This further disturbs the balance when |
| losing value. Most projections say that the national real | | | | African Americans and Hispanics that cannot qualify |
| estate market is still headed down around another | | | | for home ownership based on income levels |
| 20% over the coming year. Even though prices have | | | | compared to home prices, are granted a home loan |
| had triple year losses for most of the nation, the price | | | | due to their ethnicity or race alone, to meet the |
| of real estate is still slated to be above the national | | | | government establish goal of correcting the initial |
| norm average by 20%. This is to say if you averaged | | | | imbalance. This really sets African Americans and |
| the home appreciation on record, the current prices | | | | Hispanics up for failure in the long run, sabotaging their |
| are still about 20% higher than what they should be. | | | | success instead of ensuring it. |
| Many say we are headed to a price point that lines up | | | | The housing crisis was much broader than the |
| with this appreciation norm. | | | | problems the government created for the African |
| Real estate is best when viewed in the light of it being | | | | American and Hispanic homeowner too. The |
| an investment. Recent loan practices dictated by the | | | | socio-economic justice efforts reached into the back |
| government attempted to make the American Dream | | | | pockets of people with a lower credit score than what |
| into the American Norm, leading to the current housing | | | | would typically qualify as well, regardless of race. The |
| crisis we face. Now, I am not blaming it all on the feds | | | | government seems determined that EVERYONE |
| as there is ample blame to go around. From | | | | should own a home, regardless of their income or any |
| homeowners, speculators and mortgage brokers to | | | | other factor that limits it. This was never so apparent |
| greedy Realtors, developers and builders. All share in | | | | as when the "sub-prime" mortgage mess hit our |
| the result and origination of the mess. | | | | economy. The sub-prime mortgage market was |
| However, the vehicle which allowed homeowners who | | | | designed to essentially collect a higher level of interest |
| should have never qualified for home ownership, is the | | | | from people with reduced credit, to justify the risk. |
| government backed loan programs which assisted so | | | | While it created many grateful homeowners who |
| many in acquiring these homes. Well intended program | | | | would normally not have qualified, it also gave many |
| designed to create socio-economic parity, as well as | | | | speculators a vehicle to expand beyond common |
| settle up racial/ethic disparity, set an imbalance into the | | | | sense. Speculators who really couldn't afford to |
| home market which will take time to work out. For | | | | purchase a single home under the conventional home |
| instance, FHA came out with a race/ethnicity based | | | | ownership model, now could qualify for not only one |
| guideline which found that white Americans owned | | | | house, but several. This created an artificial demand in |
| their homes at a rate of 75%, whereas black | | | | the market and increased appreciation. The fact that |
| American and Hispanics owned their homes at 49%. | | | | many speculators were able to purchase up to 4 |
| Seeing an imbalance based on ethnicity or race, good | | | | homes, creating the demand of four times the actual |
| old Uncle Same decided to "correct" this injustice by a | | | | number of buyers, jack prices up fast. The more the |
| mandatory increase in the number of loans to | | | | market appreciates the more speculators come into |
| Hispanics and African Americans. A factor that they | | | | the market and so on, and so on. It seems that the |
| were too short sighted to take into account is that the | | | | more the government tries to make the American |
| majority of African Americans and Hispanics live in | | | | Dream a dream for everyone, the less likely it is that |
| large urban areas, which have a higher real estate | | | | anyone will be able to afford it. |
| cost, leading to lower ownership of ALL races and | | | | |