Top news articles for financial advisors and personal finance
Week of 8/15
This week's recap focuses on the housing market (its decline, bargaining power, and appraisal discrimination), the importance of reinforcing your value as an advisor, and the financial stress alleviated during the forbearance period.
Plunging Home Sales Push Prices Down From Record Highs—Here's What Experts Predict As Housing Market Turmoil Continues (Jonathan Ponciano, Forbes)
We saw both the sale of existing homes and the median existing home price fall this week, leading some experts to worry about a housing market collapse. Read more about what we still don’t know about this situation and what to watch out for.
Why advisors shouldn't wait to reinforce their value, with guest Chris Volpe (Justin L. Mack, Financial Planning)
With many clients worried about their financial future, financial advisors can use their conversations with their clients to not only calm the clients’ worries, but to also reinforce their value as an advisor. Read more about how financial advisors can reprove their value to clients by showing clients that they are able to save them either time, money or effort.
Here's Where Student Loan Borrowers Spent Money With Payments Set To Restart (Claire Ballentine and Ella Ceron, Financial Advisor Magazine)
As Americans who were receiving forbearance prepare themselves to begin making payments on their student loans soon, this article explores the ways these individuals have benefited from the forbearance. For example, credit scores increase by an average of 30 points. Read more how individuals have ameliorated their financial situation during the forbearance period.
Homebuyers Enjoy Newfound ‘Bargaining Power’ as Sellers Agree to Repairs, Accept Lower Down Payments, and Make Other Concessions (Aarthi Swaminathan, MarketWatch)
With more buyers pulling out of contracts and the sale of homes at a record low, the bargaining power of buyers has increased significantly compared to a year ago. Now sellers are having to provide large concessions to buyers to get the deal through. Read more about how and why this power dynamic has shifted.
Home Appraised With a Black Owner: $472,000. With a White Owner: $750,000 (Debra Kamin, The New York Times)
When a black family had their home appraised to apply for a refinance, the appraisal company told them their house was worth $472k, only $22k more than they had paid for the home in 2017 despite extensive renovations. When a couple months later, they had the home reappraised making it look like a white family lived in the home, the home was appraised to be worth $750k. Read more about the discrepancy in appraisal values and appraisal discrimination.