Immigration Creates Real Estate Opportunities

July 1, 1998

NEW YORK—Immigrants and their children will account for two-thirds of U.S. population growth from 1995 to 2050, says a new study from the business consultant Ernst & Young.

This population trend will provide unprecedented opportunities for the real estate industry, says Stan Ross, E&Y vice chairman and managing partner of E&Y Kenneth Leventhal, the real estate arm of Ernst & Young.

“Those who learn how to capitalize on the surge in immigration will have tremendous competitive edge and capture important new market share,” says Ross.

“By contrast, companies and businesses in the real estate industry that ignore recent immigration trends—and ignore their responsibility to offer education opportunities to new Americans—will be making a strategic mistake.”

The complete study is available on the Internet at gallen.com/eykl/eykl.html.

Existing-Home Prices Rise 5.4 Percent in 1QR

WASHINGTON, D.C.—The median price for existing homes had double-digit increases in 21 metropolitan areas during the first quarter of this year, NAR reports.

The increase makes it easier for practitioners to market houses by highlighting their enhanced investment values.

Nationally, the first-quarter median price for existing homes was $125,900. This was a 5.4 percent increase in the $119,400 median price recorded during the same quarter in 1997. The median price is the midpoint in the range of prices.

Of the 135 metropolitan statistical areas reporting for the first quarter of this year, the most substantial price increase was in Champaign, Ill., where the median price of an existing home jumped 18.4 percent to $90,600 from the first-quarter 1997 median price of $76,500.

Synthetic Stucco Settlement May Affect Houses for Sale

RALEIGH, N.C.—Owners of residential properties clad with synthetic stucco (Exterior and Finish System components, or EIFS) sold by Senergy Inc., a subsidiary of Harris Specialty Chemicals Inc., may be eligible to receive repairs or cash payments.

The recently negotiated partial national class action settlement may impact homes that were sold in the past or are currently listed.

The settlement has received preliminary approval from a North Carolina Superior Court. Senergy has agreed to contribute up to $20 million to help repair homes that have sustained damage as a result of moisture intrusion through and around windows, doors, and other openings and are known to be clad with products sold under the Senergy and ThoroWall brands.

The full text of the notice and other information can be viewed on the World Wide Web at kinsella.com.

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