The Hispanic community was hit hardest by the housing crash. Now that the market is recovering, many of these families have the opportunity to either buy a home again, or those that lost home value during those years, are seeing equity return allowing them to sell and move to the home that they always wanted.
These buyers are ready, but according to a recent survey done by NAHREP (the National Association of Hispanic Real Estate Professionals) there are barriers that do not allow these buyers to enter the market right now. As real estate professionals is our duty to remove some of these barriers, if possible, and help as many families as we can become homeowners if they are willing ready and able to.
The Hispanic community is becoming a very important part of today’s real estate market, “The number of Hispanic households has grown to 14.7 million in 2013 and today a Hispanic youth turns 18 every minute of every day,” according to the 2013 State of Hispanic Homeownership Report.
4 out of 10 new households in the United States are expected to be Hispanic in 2014, this is a major opportunity for real estate professionals.
This month the National Association of Hispanic Real Estate Professionals (NAHREP) released their annual State of Hispanic Homeownership Report for 2013. A 35 page report designed to highlight “the homeownership growth and household formation rates of Hispanics as well as their educational achievements, entrepreneurial endeavors, labor force profile, and purchasing power in the United States”.
This report is full of great information and you should download it and read all 35 pages. In this blog post, I will mention a few facts that, in my opinion, are relevant to all of us:
- Since 2010, Hispanics have accounted for a net increase of 559,000 owner households, representing 56 percent of the total net growth of owner households in the U.S.
- The number of Hispanic households has grown from 9.2 million in 2000 to 14.7 million in 2013, an increase of 5.5 million, representing a growth rate of 60 percent.
- Four out of 10 new households between 2010 and 2020 are expected to be Hispanic.
- By the end of the decade, Hispanics alone will account for approximately five million net new households, out of an estimated 12 to 14 million net new households in the country.
- The median age of the Hispanic population is 27 years old, which is ten years younger than the median age of the overall U.S. population.
- Hispanics are heavily represented in the 26 to 46 year age range.
- A Hispanic youth turns 18 every minute of every day.
- Hispanics with incomes between $50,000 and $100,000 represent 29 percent of all Hispanic households and comprise nearly 40 percent of Hispanic purchasing power.
- Three out of every four prosperous Hispanics are under the age of 45 and own a home.
- Twenty-two percent of all Hispanic households earn more than $75,000 annually.
- The number of Hispanic-owned businesses in the U.S. nearly doubled from more than a decade ago, growing from 1.7 million in 2002 to an estimated 3.2 million in 2013.
- Latina entrepreneurs are launching businesses at a rate SIX TIMES the national average.
- Hispanic businesses contribute in excess of $465 billion to the nation’s economy annually and employ more than two million workers.
- Latinos now own one out of every 20 businesses in the U.S., while Latinas own 10 percent of all women-owned businesses.
The Hispanic community is becoming a major player in the housing market.
Just like May flowers, every spring the housing market blossoms as buyers come out ready to purchase their dream house. This spring, we believe we are going to see the strongest purchasing market we have seen in a decade.
Why are we so bullish on the housing market this spring?
Here are a few reasons:
Contrary to many reports, this age demographic is READY, WILLING and ABLE to become homeowners. As a matter of fact, the latest National Association of Realtors’ gender study revealed that the Millennial generation has recently accounted for a greater percentage of all buyers than any other generation.
As prices have risen, so has the equity in many homes across American. Homeowners, having been shackled to their house because of low or negative equity for the last several years, are again free to make a move without worrying about bringing cash to a closing table in order to sell. We believe this new-found freedom will release a pent-up demand of sellers who want to move-up to the home they’ve always dreamed of or want to downsize their primary residence and also purchase a second home they can use for vacation, retirement or both.
BOTH PRICES and MORTGAGE RATES are on the RISE
As the economy improves, more and more Americans are regaining faith that their own personal finances are headed in a positive direction. With this new confidence, they want to take advantage of the opportunity that presents itself with real estate still undervalued in most parts of the country and mortgage rates being well below historic numbers.
If you are a professional in the industry and want to learn how to leverage this opportunity and optimize your business during this spring’s real estate market, you can watch a FREE replay of our most recent webinar, Spring Ahead in 2014: KCM’s Action Plan for Dominating this Buyers’ Season.