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Racial Discrimination in Real Estate
This room might seem simple to you, but to me, it marks the saddest day in my career. 
This picture was taken shortly after I had finished staging one of my client’s homes. I wanted to show the owners all I had done – admittedly looking for a pat on the back. Although I was showered with compliments for almost every other room in the home (all boho-themed to my aesthetic), I was given an off-putting request when they saw this photo.
“Can you remove the painting?”
Having fallen in love with this painting months ago, I was fairly disappointed and a bit taken back by the request. I decided to inquire about the reasoning behind the request and my client’s response broke my heart into a million little pieces.
“We are afraid we’ll get less money if people know we’re Black.”
I was speechless.
In an attempt to comfort my clients and resolve the issue I made the mistake of saying ignorant things such as “that’s not as prevalent on the west coast” and “it’s just art, it won’t tell people who you are.” Ultimately though, the panting came down and was replaced by a lovely little beach scene.
Recently I was reminded of this interaction in the most heartbreaking way. In December of 2021 residents of San Francisco, California filed a lawsuit against their appraiser whose estimated value of the home came in nearly half a million dollars less than market value. After removing their family photos from the home and having it re-appraised it was clear that this discrepancy was in no small part due to the family’s race. You can read more about the story here.
My client was right. The fight is nowhere near over.
The real estate industry has a long and troubling history when it comes to the struggles of racial divide in America. In many ways, the housing industry served and serves as a stronghold for preserving racial discrimination long past the judicial end of segregation. In Richard Rothstein’s book The Color of Law, he delves into the multitude of ways in which the real estate industry fought to preserve racial segregation using subversive tactics that appeared innocent. By discreetly elongating the effects of racial segregation within the housing industry, the inability for people of color to obtain reasonable homes helped to widen the American wealth gap further than anyone thought possible.
How could the housing industry make such a profound impact on the financial prosperity of America’s minorities? The answer to this question is LONG and although I am not a professional economist, I can give you the two biggest reasons.
Real Estate is the Best Source of Generational Wealth
It is no surprise to anyone that land is one of, if not the most, finite resource we have in this world. Sure, there are always going to be those few who talk about building an underwater civilization or creating an outpost on Mars. However, if we are to assume that we do not live in a Syfy film – what we got is what we got. This means that real estate is one of the most secure investments you can make. Without the ability to create more supply and the fact that it is a basic necessity for all humans, the value of property really has little way to go other than up. This makes it a major player when it comes to building generational wealth.
A home is a unique asset in the fact that it not only provides vital accommodations to its owners but also greatly increases in value through the years and can be passed down from generation to generation. On top of that, those who own homes can withdraw equity from those homes to re-invest and grow that wealth even further.
This asset was withheld from minorities for multiple generations through the process of redlining while being generously provided to their Caucasian counterparts. By excluding minorities (especially the Black community) from the ability to build this kind of compound wealth, the prospect of even being able to buy into the investment grew further and further away with every increase in market prices. By the time segregation and redlining “ended,” the ability for minorities to purchase a suitable home was already too far gone and it would take more than just a few generations to close the gap.
Housing Taxes are Connected to Education
One of the cleaver and subversive ways in which the housing industry was able to sustain discrimination in real estate and the wealth gap was through intertwining housing taxes with access to education. By excluding minorities from suitable housing which was projected to rise in value at a far greater rate, early real estate developers were successfully able to ensure educational discrepancies between the two communities.
In exclusively Caucasian communities where home values greatly exceed their minority counterparts, schools were well funded through the taxation of those higher valued properties. As a result, the children of those communities were granted better educational programs, higher paid and more competent teachers, as well as better recognition from potential universities. Later in life, this would result in better and higher-paying jobs for the children of those exclusively Caucasian communities.
In contrast, the home systematically set aside for minority communities did not come close to meeting the values of their Caucasian counterparts. The result of this was that children raised in these communities would have fewer educational programs, poorly paid teachers, and would often have a “black mark” on their college applications due to their school’s reputation. As adults this lack of suitable education would result in working lower-paying jobs – only greatening the wealth divide.
Unfortunately, minorities today still face discrimination through illegal real estate practices such as steering and, as we saw with the San Francisco family, discriminatory appraisals. For people like me, it can be easy to think such things as “that’s all in the past” or “minorities can’t possibly still be affected by this.” However, it is through the fear in my client’s eyes as they looked at that beautiful painting that I see the truth – this battle is so far from over.
I am grateful, however, to work with Windermere Real Estate in fighting this injustice within our industry. In 2020 Windermere heard the call for equality and chose to answer. Windermere is one of the few Real Estate companies in the nation that have chosen to hire a consulting agency to help them promote Diversity, Equity, and Inclusion within our industry. Step-by-step they are helping their brokerages learn what it truly means to be inclusive and how we can all help to close the gap.
You can help too! Windermere Real Estate is partnering with HomeSight to increase Black homeownership in Washington state through what they are calling the “Hi Neighbor” fund. Through this fund, HomeSight is bridging the affordability gap for Black homebuyers so that they can increase their purchasing power. Starting in 2022 I will do my part by giving a portion of every commission I make to the fund. To learn more about this fund and to donate, click here!
This beautifully written article was submitted by our very own, Victoria Paris to discover more articles written by our agents click here.
Penn Cove Mussels
Every city or county has that one thing they are famous for. Their claim to fame that puts them on the world map. For some it is a world-famous sports team, others it is a historical location, still some gain fame from the presence of rare exotic animals.
For Island County, it is our mussels.
No, not the Emerald Cup kind of muscles we didn’t make a typo, we mean our Penn Cove mussels.
The History of Penn Cove Mussels
You may not know this, but Island county is home to the oldest and largest mussel farm in the United States (and maybe the world). Penn Cove Mussels, Inc. began culturing mussels in 1975 with the desire to harness the cove’s naturally nutrient-rich water to harvest bigger and better mussels than the ones currently available. The results were incredible! Penn Cove mussels grow at a remarkable rate, enabling the mussels to reach harvest size within one year. This rapid growth rate causes Penn Cove mussels to have a firmer texture, sweeter flavor, and a thinner shell with more meat. As you can imagine, it makes them quite a crowd-pleaser.
Whidbey Island’s proximity to Seattle and the Sea-Tac Airport mean these wonderful shellfish don’t have to be a local secret. Instead, these mussels are quickly air-shipped all over the world for others to experience and enjoy. Mussels harvested in the morning are on the lunch plates of Seattle seafood lovers by that afternoon and dinner entrees in Houston by the evening.
Celebrated with a Festival
35 years our Penn Cove Mussels have been celebrated with a festival. The original celebrations consisted of a community chowder contest that has morphed over the years into 3 days’ worth of activities and fun. The most recent events have attracted more than 6,000 mussels enthusiasts from far and wide. This event alone significantly helps the local merchants recover from the slow winter months.
Musselfest festivities typically kick off on a Friday with the “Mussel Mingle.” This is a time where people gather at the Coupeville Recreational Hall to enjoy food, drink, and music. The next two days are packed full of mussel cooking demonstrations from incredible Seattle chefs, the massive mussel chowder competition involving 16 different local restaurants, the mussel eating competition, tours of Penn Cove Shellfish, Inc., a mountain bike event (“Mussels in the Kettles”) and more!
Musselfest is a massive community affair that requires all hands on deck to pull off. Dozens of volunteers from all over Coupeville donate their time, finances, and resources to make this festival work. For the past few years, Windermere Whidbey agents have volunteered their time at the Waterfront Beer Garden where they serve up some great local ale while listening to amazing local musicians.
Unfortunately, like most events, the Penn Cove Musselfest was canceled due to Covid this past year, but the long-standing love for the festival carried on with the traditional T-Shirt and posters for all of the collectors. Past posters can be purchased here while supplies last.
The 2022 Musselfest is anticipated to take place March 4th, 5th, and 6th pending the state of Covid and guidance from the state and county. Click here to check the status.
7 Tips for New Horse Owners
Horses have been a prominent animal throughout history, dedicated to their human’s side. Many would go as far as to suggest that horses, just as dogs, cats, and other pets can be man’s best friend. Like other pets, horses can contribute to the health, wellbeing, and happiness of their humans so much so that there have been people that contribute overcoming their mental illnesses to using a technique called Equine Horse Therapy. Likewise, many children have found companionship in their horses and have grown to learn valuable life lessons from them.
While we as humans receive so much from these amazing animals, it is equally important that we pay attention to their health, wellbeing, and happiness as well.
If you are new to the equestrian lifestyle here are a couple of tips to keeping them happy:
1) Consistent Exercise:
Horses, just like us need daily exercise to stay healthy and fit. A daily workout helps to reduce your horse’s stress and allows them to release pent-up energy. While it might not look like the typical gym workout, working out with your horse by training can be beneficial for both you and your horse.
2) Keep Vaccinations Current:
Like humans, horses also need vaccinations and it is important that they stay current, or like humans, they can get sick. Having the proper vaccination in a timely manner helps you keep your horse healthy, fit, and happy.
If your horse gets sick, it will take a lot of energy for it to fully recover. Keeping your horse on a vaccinations routine not only will help prevent your horse from getting sick but will also help your horse to recover against the more serious diseases more easily.
To ensure you are providing your horse the best care and keeping regular on its vaccinations, you can ask your vet for a list of vaccines he/she suggests you give to your horse and which ones are most important for your horse to have. If you don’t currently have a vet, click here for a list of ones in our area.
3) Your Horse Needs a Safe and Comfortable Environment:
Here’s one that lies near and dear to our hearts. As real estate agents, we know just how much we as humans want our homes to keep us safe and comfortable. Similarly, your horse not only deserves but needs housing that not only keeps him safe from things like storms and prey but also makes him comfortable. If your horse lives in a barn, provide them a stall and protection. If they live outdoors, they need some way to get out of the sun. Often a run-in shed, or shady trees can give them protection from the elements they need. Additionally, you will need to provide them with a dry walking area, grass, rubber mats, and hoof care.
Not all properties are created equally. When looking at properties, it is important to make sure it is sufficient for your horse and easy for them to maneuver and permitted for horse use. If you need help determining whether or not a property is viable for your equestrian needs reach out to our equestrian advisors here.
4) Good Nutrition:
We know that when we eat junk food, we feel, well like junk. Similarly, your horse requires a diet that can fuel the energy they need to stay fit and healthy. The digestive system of your horse is designed to process large amounts of fibrous foods regularly.
To keep the horse’s digestive health and increase their energy level, you should include grass, hay, and grains in their regular diet along with a lot of fresh CLEAN water. Including traditional mineral blocks into their routine will help your horse maintain an optimal diet. Check out these great places on Whidbey to purchase food for your horse.
5) Your Horse Needs a Dentist Too!
Have you ever been petting your horse when he decides to give you a big lick across your face?! We have too. That’s how we know it is of the utmost importance for your horse to have a dentist too. You should anticipate a checkup about once a year. Like humans, horse teeth grow. However, unlike humans, horse teeth continue to grow and could potentially become damaged by opposing teeth if not properly taken care of. Because their teeth continue to grow it is important for them to be filed regularly to ensure the horse is comfortable when he eats. Could you imagine trying to eat if your teeth hurt you?
Without regular dental check-ups, your horse could develop problems that could lead to more serious problems like colic and choke.
6) Their Hooves:
It is important to take care of your horse’s hooves, by cleaning them and trimming them regularly. Like humans, every horse is different. The growth at which your horses’ hooves grow may be vastly different from that of another’s. However, it is often common for hooves to grow in between 4 to 8 weeks. You can begin trimming them after that.
7) Visit Your Horse Regularly:
The bond between you and your horse should be very strong like the friendship between you and a best friend. You will develop this bond over time by spending adequate time with them. You should expect to visit your horse daily if possible.
But also, like humans, your horse needs equestrian friends too. So get out and make friends with similar interests as both you and your horse.
At the end of the day…
… if you have been considering buying property for you and your horses – let’s connect to determine what is best for all of you. Email us or call us today!
Thinking the Housing Market is Going to Slow down this Winter? Think Again!
Last week’s article, Why You Should NOT Wait to List Your House Right Now couldn’t have been more TRUE! Americans have more motivation than ever to buy a home. Whether buyers are taking advantage of today’s low mortgage rates or they feel the increased need for flexibility of working from home, we have seen an influx of buyers that just doesn’t seem to be slowing down any time soon. Experts reveal that buyers are making their moves right now, generating an unseasonably robust housing market compared to the historical past for this time of year.
As the fall season comes to an end we typically experience a decrease in demand…
…however, today as we move into the winter months we are witnessing quite the opposite. Industry leaders are boasting the strong market saying things like, “The demand for housing in the United States has reached a fever pitch, a trend that opposes the norm of this time of the year when the market cools as the winter months set in.” says the M Report, and Mark Fleming, the Chief Economist for First American who says, “Strong demographic demand will continue to act as the wind in the housing market’s sails.” But it doesn’t stop there, the highly esteemed Chief Economist for the National Association of Realtors (NAR) Lawrence Yun explains, “This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low. The notable gain in October assures that total existing-home sale in 2021 will exceed 6 million, which will shape up to the best performance in 15 years.” Some might ask, What about November? First American Deputy Chief Economist Odeta Kushi stated, “So far in November, purchase applications point to another strong month in sales. Still, low rates and demographic demand supports this strength, even as affordability and inventory headwinds remain.”
How does this impact the housing market for Winter?
Buyers are active in the market and are competing for homes to purchase. With the momentum that is coming out of the fall, there is every indication that leads experts to believe that the winter housing market is picking up steam, making for a much busier season than the typical year. As we have seen in a plethora of ways, 2020 and 2021 were anything but typical for real estate, and from the looks of it, 2022 will quickly be added to that list.
At the end of the day…
… if you have been considering selling there’s no time like the present. Whether you are thinking about buying a home or selling your house, maybe even both – let’s connect to determine if this winter is your best time to make your move. Email us or call us today!
Why you should NOT wait to list your house right now
As the year comes to an end, we recognize a trend where homeowners are motivated to make the move and finally get into a home that complements their changing lifestyles. It is clear that homeowners have begun to understand the benefits of today’s sellers’ market. With record-breaking home price appreciation, growing equity, low inventory, and competitive mortgage rates it makes perfect sense as to why.
To support this, take a peek at recent data from realtor.com that demonstrates a significant share of homeowners that intend to list their homes this winter.
What That Means for Homeowners:
That means more homes are about to hit the market increasing supply to be more in line with demand than we have recently seen. This means there will be more options for buyers to choose from when looking for their homes.
According to George Ratiu, Manager of Economic Research at realtor.com:
“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter.”
If you are thinking about waiting till the spring to sell your house, keep in mind that your neighbors might be one step ahead of you and sell this winter. If you want to stand out from the crowd, this holiday season is the best time to make sure your house is available for buyers. Here’s why.
Sellers Are Still Firmly in the Driver’s Seat:
Historically, a 6-month supply of homes for sale is needed for a normal or neutral market. That level ensures there are enough homes available for active buyers (see graph below):
The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows the inventory of houses for sale sits at a 2.4-month supply. This is well below the 6-7 months supply needed for a neutral market.
What Does That Mean for You?
When the supply of homes for sale is as low as it is today, it is more difficult for buyers to find homes to purchase. This drives up competition among buyers, who then submit increasingly competitive offers to win out against others in the home search process. As this happens, prices rise and your leverage as a seller rises too, putting you in the best position to negotiate a contract that meets your ideal terms.
The low housing supply we are currently facing will not be solved overnight. Sellers this season should act quickly to maximize their potential. The data demonstrates that, with more prospective sellers planning to list their homes this winter, selling sooner rather than later helps your house rise to the top of a holiday buyer’s wish list so you can close the best possible deal.
Bottom Line:
Listing your home over the next few weeks gives you the best chance to be in front of buyers competing for homes this holiday season. Let’s connect today to discuss how you can benefit from today’s sellers’ market. Email us here.
Fort Casey Forts
Standing tall along the western coast of Whidbey Island, these 10” barrel guns tell the story of a relationship to the United States Department of Defense that began long before any plane took flight. At the time of its construction in the late 1800s, Fort Casey was a military marvel. Part of the “Triangle of Fire,” this military outpost was one of many strategically placed along the Puget Sound as the first line of defense against aquatic attack. Unfortunately, this magnificent fort’s usefulness was short-lived. By the 1920s Fort Casey’s impressive disappearing guns had already become obsolete and in 1956 the property was purchased by Washington State Parks and Recreation. Today, this fort is one of the most frequented state parks in Washington and a deeply embedded part of Whidbey Island culture.
Check out the rest of Whidbey’s beautiful destinations from this series here.
Langley Village
Langley is known for its unique specialty shops and galleries, showcasing amazing local artisan talent. From the lovely greenery of Bayview Farm & Garden to seaside-inspired jewelry and home décor at Foamy Wader, Langley has something for everyone! Want to try your own hand at some specialty art? Visit Callahan’s Firehouse for a cup of espresso and an amazing glass blowing experience catered to all groups and ages. At the end of the meandering plaza of shops pictured in the postcard is Whidbey’s popular ramen restaurant, “Ultra House.” It’s tucked away from the main drag, makes you feel like you landed in Japan, and is one of the most addictive taste sensations on the whole island!
Check out the rest of Whidbey’s beautiful destinations from this series here.
How Long Does it Take to Save For a Down Payment?
Saving enough money for a down payment on your first home can be one of the biggest obstacles to homeownership. Depending on your circumstance you might need anywhere from 3% – 20%. Speaking with a reputable local lender will help you find out exactly what your percentage will be.
But how long should it take, you ask!?
Follow along as we estimate the amount of time it takes a person earning a median income and paying a median rent to save up for a down payment on a median-priced home.
To accomplish this task we use the concept that homeowners should pay no more than 28% of their total monthly income on housing expenses. We use this information in combination with data from the U.S. Department of Housing, Urban Development (HUD), and Apartment List to determine our estimation.
According to the data pulled, the national average for the time it would take to save for a 10% down payment is roughly two and a half years (2.53). Looking at the diagram below you can also see that those living in Iowa can save for a down payment in as little as 1.31 years while those in California could take 17.56 years. The map below can help you determine the amount of time (in years) it can take for you to save in your state:
What if you only need to have a 3% down payment?
It is a common misconception that you need to have a 20% down payment to buy a home.
The reality is there are reasonable alternative options out there. First-time home buyers have an advantage with a plethora of down payment assistance programs available to them. You just have to find the right lender and ask. Need help finding a lender? Ask us to connect you with one here.
What if you qualify to take advantage of one of the 3% down payment programs?
If you qualify for a 3% down payment program, then you only have to come up with 3% of the total cost of the home at closing instead of ten or the typical 20% we have seen required in the past. Saving for a 3% down payment might not take you very long. In fact, it could take less than a year in most states, as shown in this map here:
At the end of the day
Wherever you are in the process of saving for a down payment, you may be closer to your dream home than you think. Connect with us to explore the options available to you in our area and how they support your plans for buying a home.
4 Online Resources That will Blow Your Mind!
…and help when buying vacant land on Whidbey Island.
ICGeo
This is a sophisticated GIS mapping tool for Island County that can show layers and layers of geographically specific data overlaid on a map. Just turn on the layers of data you are interested in and search till your heart is content!
Island County Public Portal
Use this tool to look up a parcel number or a street address to determine if there are any site registrations, septic permits, or septic as-builts done for the parcel. It will also disclose any permits a property has recently applied for and its status.
Groundwater Spatial Analysis Report
This tool analyzes the potential groundwater quality at any given spot on the island by grabbing the data on wells within 1/8 mile of the point you choose on the map (or the nearest 40 wells). It automatically generates a phenomenal report. Just submit the application and the report is emailed to you almost immediately. This document will offer you more detailed information on what you get in the report
Washington Coastal Atlas Map
With the Shoreline Photo Viewer, you can compare what has happened to any stretch of shoreline over the last 50 years through photography! This tool uses 5 photo sessions capturing images of our shoreline all the way back to 1970. Even if you are not currently buying waterfront land this is a fun tool to compare what has happened to any section of our shoreline. There are even aerial photos from the 1940s. Check out the image below taken before Rolling Hills or Penn Cove Park were developed.
To find more amazing tools at your disposal or to get help using these tools to find specific information you can call us, and we will connect you with one of our knowledgeable Windermere brokers. You don’t have to be actively selling or buying a home! We just love to help! Contact us here.
Is the Oak Harbor Housing Market Getting Squishy?
Written by: Kristen Stavros
16 September 2021
There is a general feeling amongst brokers that the Oak Harbor market has softened up just a bit. As Branch Manager and Co-owner of Windermere Whidbey Island I pay close attention to what my brokers are seeing and feeling out there in the market. When I begin to sense a theme I go to the numbers to see if they are telling the same story.
I’ll be really curious to see how these numbers change when we can add September data to them but I’m seeing the teensiest sign that there may be some easing.
For the first time all year, we’ve seen a dip in closed sales in August.
At the same time, new listings continue to rise every month.
Average days on market has plateaued.
Does this mean buyers can start getting homes for less $$$?
The answer is emphatically, NO. As you can see from the graphs below prices continue to climb, inventory is still at a record low, and homes are still moving off the market incredibly fast. This just means that instead of being up against 10 other buyers you now may be up against just 2-3 other qualified buyers. Instead of great homes going for up to 10-20% over list price, the good ones may just end up 5-8% over list. The pressure on buyers is still decidedly strong but the dial has been turned down ever so slightly.
Average Price Per Square Foot.
Months’ Supply of Homes (based on closed sales).
Average Days on Market.
Sellers still have a fantastic advantage in this market but things are changing weekly so we are encouraging sellers to not get too greedy or assured because doing so may mean you overprice the market, lose the opportunity to garner multiple offers out of the gate, and ultimately make less profit on your home.
Working with a smart and sophisticated listing agent has never been more important in the previous 3 years than it is RIGHT NOW. You need someone who is really going to take their time analyzing the market against your specific home before giving you pricing advice. Call us today to be connected with a market pricing expert!
This analysis focuses just on the Oak Harbor market but we have the same analysis going on for all of Whidbey Island! If you are interested in knowing more about any aspect of Whidbey Island real estate let us know and we are happy to share.
