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First-Time Buyers Face Hurdles to Homeownership This Spring

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In this May 11, 2015 photo, Brett Singley, upper right, poses for a picture in front of their condo with his wife, Angelynn, 28, Isla 5, middle, Isaiah 3, right, Ben, 2, and Aria 1 month, in Santa Clarita, Calif. Singley bought the three-bedroom home for just under $300,000 — $100,000 less than what he was prepared to pay for a house. (AP Photo/Chris Carlson)

In this May 11, 2015 photo, Brett Singley, upper right, poses for a picture in front of their condo with his wife, Angelynn, 28, Isla 5, middle, Isaiah 3, right, Ben, 2, and Aria 1 month, in Santa Clarita, Calif. Singley bought the three-bedroom home for just under $300,000 — $100,000 less than what he was prepared to pay for a house. (AP Photo/Chris Carlson)

ALEX VEIGA, AP Business Writers
JOSH BOAK, AP Business Writers

Young people aspiring to buy their first home are already facing disappointment this year.

Rising prices are putting more homes out of reach, and pickings are slim because few properties have come onto the market this spring, when sales are supposed to take off.

Millennials are also burdened by heavy school debt and depleted savings that hurt their ability to qualify for a mortgage. Until their incomes start to rise meaningfully, many will be forced to keep hunting for a home while delaying the dream of ownership. This has weighed on overall home sales and economic growth throughout the rebound in housing the past three years.

“People need to see more money in their paychecks before they’ll take the plunge into homeownership,” said Greg McBride, chief financial analyst at Bankrate.

If early signs are any indication, there won’t a noticeable jump in new homeowners during the spring.

Amy Arnold and her husband began looking at listings in Denver late last year. The 28-year-old apparel buyer quickly found that the few homes in the couple’s price range got snapped up for more than asking price, leaving her exasperated at how “crazy” the market seemed.

For now, the couple has decided to keep renting a two-bedroom, one-bath house for $1,300 a month, hoping to have more money and find a better selection of homes once they jump back into the market.

“It’s very discouraging,” said Arnold. “Hopefully next year we will be able to buy, but there’s a chance we may have to rent again.”

Home prices nationwide have risen at more than double the pace of average hourly wages, making it harder for buyers to find the extra funds to save for a down payment.

In Denver, a limited roster of homes has fueled the rising prices and given sellers the upper hand. Forty percent of homes that sold in February went for more than the asking price, according to online real estate broker Redfin. That’s up from 21 percent a year earlier. In addition, half of the homes on the market went under contract in eight days or fewer.

“Typically, January, February even March are not quite as highly competitive as when you go into the spring months,” said Ilona Botton, a Redfin agent in Denver. “That’s not how it was this year. It has been multiple offer situations every single month.”

The limited supply of homes is widespread. In March, one measure showed it would take fewer than five months to sell all the previously occupied homes in the U.S. In a market more balanced between buyers and sellers, it would take about six, according to the National Association of Realtors.

What’s more, heavy demand for low-priced homes means their prices are rising faster. Homes priced at $135,000 or less jumped 9 percent for the year ending in February, according to data from CoreLogic. Homes that priced at $226,800 or more climbed 5 percent over the same period.

Beyond offering more money, some buyers are willing to waive home inspection or give sellers several weeks to move out following a sale, said Redfin’s Botton.

In general, areas with fewer homes for sale have stronger job growth that eclipses the pace of construction. Areas with larger inventories tend to keep the availability of housing in line with job growth.

In Columbus, Ohio, aviation company executive Ryan Holtmann had plenty of options. He and his wife started shopping for their first home at the end of last year. The couple visited about 15 to 20 houses before buying a three-bedroom home for $154,900 at the end of February.

“I was really surprised at how much was out there for the time of year,” said Holtmann, 33. “There were three or four we liked and would have been more than happy to go with.”

One factor preventing more houses from hitting the market is that many homeowners still owe more on their mortgage than their home is worth. That’s known as an underwater mortgage, or being in negative equity.

While millions of homes have returned to positive equity as values come back, some 5.4 million, or 10.8 percent of all homes with a mortgage, remained underwater as of the October-December quarter, according to CoreLogic. Nevada topped the list. Nearly a quarter of its homes with a mortgage were underwater.

More construction would help buyers, but activity has recovered slowly since 2010. That’s one reason a recent report by mortgage buyer Freddie Mac forecast that the U.S. housing market will continue to see low levels of homes for sale for the next several years.

As a result, even successful buyers are settling for less.

Brett Singley, a first-time buyer in Los Angeles and a father of four, knew the kind of house he wanted and how much he could afford. But after six months of searching, the civil engineer shifted his sights to smaller and less expensive townhomes. In March, he bought one in Santa Clarita, a northern suburb. He got a three-bedroom for just under $300,000 — $100,000 less than what he was prepared to pay for a house.

“We were originally looking for a four-bedroom house,” said Singley. “But we didn’t have a lot of options.”

___

Veiga reported from Los Angeles. Boak reported from Washington.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Business

Car Wash Workers Cope with Lingering Impacts of ICE Raids

WAVE COMMUNITY NEWSPAPERS — Hundreds of car wash workers across Southern California have been detained in federal immigration raids, leaving lingering impacts on families and communities. Mario, a 33-year U.S. resident and father of three, was arrested at a Santa Ana car wash last August and held for two months.

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LOS ANGELES — Mario relied on his job in the car wash industry to raise his three children. It was during a shift at a Santa Ana car wash last August that he was arrested by federal agents, taken to a U.S. Immigration and Customs Enforcement detention center and held for two months.

“They made me sleep on the cold floor for a week without a blanket, a toothbrush or basic medical care for the injured man next to me,” Mario, a 33-year resident of the United States, said at a news conference earlier this summer at Inglewood’s Crenshaw Imperial Car Wash, which is now closed after being raided by federal agents.

Mario, who is being identified only by his first name for safety reasons, is among hundreds of car wash workers detained across Southern California in the year since the Trump administration began an aggressive immigration crackdown in the region, according to the CLEAN Carwash Worker Center.

News of raids by masked agents has faded from the headlines, but the effects still linger for those caught in the crosshairs. Family members have been deported or left to languish in detention, and many who remain live with the fear of being hunted down by immigration officers.

At least 373 car wash workers have been detained at car washes across Southern California since the raids began last summer, according to figures compiled by CLEAN. The group’s data also shows federal agents raided or attempted to raid at least 106 car washes in communities across Los Angeles, Orange County and surrounding areas, including Inglewood, Culver City, Westchester, Bell and Whittier.

CLEAN, an advocacy group founded in 2007, has been fighting to protect car wash workers from exploitation and unsafe conditions. When the raids began last year, the group sprang into action, working around the clock to help detained workers and provide their families with legal and financial support.

“We gathered our information from workers, managers, and owners of the car washes that were being raided,” CLEAN Deputy Director Andrea Gonzalez said. “We also gathered information from rapid response teams who were on the ground responding to the raids.”

The Department of Homeland Security did not respond to a request for comment on the group’s findings.

Mario said he was one of seven workers at the Harbor Blvd Car Wash detained on the same day last August, but the only one who has been released. He said he refused to sign deportation papers and is fighting to stay in the United States, a process that has drained his family emotionally and financially.

“Being released is not the same as being free,” he said.

During Mario’s detention at the Adelanto ICE Processing Center, his wife and children struggled to cope with his sudden absence while fighting for his release, his wife Alejandra said.

“The employer gave us a video showing my husband being taken away under arrest, treated worse than a common criminal, with chains binding his legs, arms and waist,” Alejandra said. “It wasn’t right.”

The experience of a car wash worker named José was recounted at the news conference by the Rev. Andy Schwiebert of Immanuel Presbyterian Church in Los Angeles, who said agents “took him” from the La Cienega Car Wash last August.

José’s wife is a U.S. citizen, Schwiebert said, and José had a pathway to gaining citizenship before he was detained. By the time a judge ordered his release on bond, the car wash had shut down, Schwiebert said, leaving José without a job.

“These raids did not just target workers; they destabilized families, congregations, workplaces and entire communities,” Schwiebert said.

The administration’s aggressive enforcement operations have continued across the nation in the months since José’s and Mario’s detention, with ICE arrests in July surging to their highest rate so far under President Donald Trump.

Last month, ICE agents shot and killed Lorenzo Salgado Araujo, a 52-year-old father of three in Houston. Less than a week later, an immigration officer fatally shot 26-year-old Johan Sebastián Duran Guerrero in Biddeford, Maine.

Back in Inglewood, Mario said he was grateful to share his story and that, even though he was released, his experience in detention stays with him.

“I still feel frustrated and traumatized,” Mario said, “because my life is no longer the same as it used to be.”

Ernesto Ureño is a Loyola Marymount University journalism major and intern at Capital & Main, a nonprofit publication focused on inequality. It is published here with permission.

Based on reporting by Wave Community Newspapers.



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Black History

George Cook: The Inventor Who Made Fishing Smarter

George Cook was a Black American inventor from Louisville, Kentucky. He was born in 1863, during a time when Black Americans faced unfair laws, limited opportunities, and many barriers to education, jobs, and recognition. Even with these challenges, he became known for his intell

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A copy of the patent for George Cook’s Automatic Fishing Device. Public domain.

George Cook was a Black American inventor from Louisville, Kentucky. He was born in 1863, during a time when Black Americans faced unfair laws, limited opportunities, and many barriers to education, jobs, and recognition. Even with these challenges, he became known for his intelligence, honesty, and ability to think in practical ways. Some records say he worked as a cook for Buffalo Bill Cody and later as a chef on a private dining car for the Louisville and Nashville Railroad. He was even known by the nickname “Honest Mister Cook.”

As with many Black American inventors and scientists of that era, there is little biographical information about Mr. Cook.

Cook’s most famous invention was the Automatic Fishing Device. He received U.S. Patent No. 625,829 for it on May 30, 1899. His patent shows that he was not just someone with an idea, but someone who made it happen.

So, what did the Automatic Fishing Device do? Imagine fishing with a line in the water. Usually, you have to watch carefully and pull the line at just the right moment when a fish bites. Cook wanted to make that process easier. His device was designed to react when a fish pulled on the line. The tension from the fish would trigger a lever. That lever would release a spring-loaded part of the device, causing it to move quickly and help pull in the line. The device also had an alarm gong that would ring to let the fisher know something was happening.

This invention was important because it used simple mechanical ideas in a clever way. Springs, levers, rails, and alarms were not new by themselves, but Cook combined them to solve a real problem. His device showed how inventors often take familiar parts and arrange them in a new way to make life easier. 

Cook looked at fishing and asked, “How can this be improved?” Then, he created a device that could respond automatically when a fish tugged on the line. His invention let fishermen relax instead of watching the line for hours, trusting the alarm to alert them.

Cook may not be as famous as some inventors, but his Automatic Fishing Device shows that creativity and innovation can be applied anywhere. His legacy lives on as part of the larger story of Black innovation in America.

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Business

Gov. Newsom Announces $109.6 Million in Funding for 278 Supportive Homes in Bakersfield, Contra Costa, Sacramento and Fresno

POST NEWS GROUP — “Every Californian deserves a safe place to call home, particularly the veterans who bravely served our country,” said Newsom in a statement on July 23. “California voters approved Proposition 1 because they know we must do more to address homelessness and behavioral health challenges.”

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Last week, Gov. Gavin Newsom announced $109.6 million in Proposition 1 funding to create 278 permanent supportive homes in Bakersfield, Contra Costa County, Sacramento and Fresno, including 103 homes reserved for veterans experiencing or at risk of homelessness.

The funding, awarded through California’s Homekey+ program, is intended to expand permanent supportive housing and behavioral health services for veterans and other Californians experiencing or at risk of homelessness. State officials said the investment advances Proposition 1, the voter-approved measure aimed at increasing housing, treatment and support services for people with behavioral health needs.

“Every Californian deserves a safe place to call home, particularly the veterans who bravely served our country,” said Newsom in a statement on July 23. “California voters approved Proposition 1 because they know we must do more to address homelessness and behavioral health challenges.”

The largest award, nearly $32.6 million, will help the City of Fresno and Parkway Prime LLC convert an interim housing project into 84 permanent supportive homes at Parkway Terrace, including nine units reserved for veterans. The City of Sacramento and Urban Capital LLC will receive nearly $31.9 million to develop the Rio Linda Senior Housing Project, which will include 100 homes, 49 of them reserved for veterans.

Contra Costa County and Satellite Affordable Housing Associates will receive $28.8 million to develop an 82-unit senior housing community, with 62 units designated for people experiencing or at risk of homelessness who have behavioral health challenges, including 30 units for veterans. In Bakersfield, Community Action Partnership of Kern will receive nearly $14.1 million to convert a 38-room motel into 30 permanent supportive homes, with 15 units reserved for veterans.

State officials also announced an additional $2.3 million for three previously awarded Homekey+ projects in Olivehurst, Sanger and Stockton, primarily to support operating costs and increase veteran housing.

Since its launch, Homekey+ has awarded $968.4 million to 54 permanent supportive housing projects expected to create 2,749 affordable homes statewide, including 723 homes reserved for veterans. Officials said Proposition 1 is expected to expand California’s behavioral health system by funding additional supportive housing, treatment facilities and services for people experiencing homelessness and behavioral health challenges.

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