California's population is becoming more diverse and this development is illustrated most in the state's housing market. According to the National Association of Realtors® (NAR), while married couples still account for 61 percent of all homes bought, single women now purchase 22 percent of all homes, and minority homeownership is on the rise.
A generous assortment of mortgage loans has helped change the landscape of homeownership. Minority homeowners now account for 30 percent of all homes bought nationwide. Many have benefited from many of the nontraditional mortgage choices offered today, including small cash-down loans that enable those who may not have a big nest egg to purchase homes sooner.
In the last decade through 2005, homeownership among African Americans grew from 44 percent to 48 percent. Among Hispanics homeownership grew from 43 percent to 49 percent, and among Asians from 51 percent to 60 percent.
Today, more than ever, it is especially important to understand the Asian American market, according to Pablo Wong, senior vice president of Fidelity National Financial and Jenevene Gular, Bay Area Region Multicultural Marketing Manager, both with Fidelity National Financial. They indicated there are 4.7 million Asian Americans in California, and like the Hispanic population in the U.S., the Asian American population is growing in double digits. Many Asian Americans have chosen to settle in the Bay Area, particularly in the counties of San Francisco, Santa Clara, San Mateo and Alameda, Wong said.
Wong and Gular have taken on the task of providing an overview of demographics, explaining business opportunities offered by the Asian market segment in the Bay Area and discussing the role culture plays for Asian American customers.
Wong indicated the homeownership rate among the Asian American population in California is about 59 percent; Hispanics, 38 percent; and Caucasians, 74 percent. Asian American homebuyers have the highest income per capita and the highest median home values among the minority groups. They are also among the most educated among all homebuyers.
But Wong and Gular said there is still a gap and they hope a better understanding of cultures and execution of multicultural strategies in the real estate industry can make homeownership even more achievable for Asian Americans and other minority populations.
"Learning about the nuisances of different cultures sharpens and shortens the transaction time," said Gular.
In a recent presentation to Bay Area Realtors, Wong and Gular gave Realtors a view of values that are especially important to the Asian American population. Asian Americans value:
• courtesy and hospitality. If you get invited to their home, expect to be offered food and drink. When Asians visit a home, they, in turn, bring food, like sweets.
• humility. Asians are humble and often talk themselves down. When this happens, you should return their admonitions with praise.
• social relationships, and develop them before business relationships. They need to get to know you better before they can trust you.
• value. They are value conscious. They may seek to negotiate price, but are willing to pay top dollar for top service. You need to let them know why you are worth it.
• face. They are non-confrontational and won't openly disagree with you. You need to read their body language because a "yes" may not really mean "yes." And if you sense a problem, resolve the issue as soon as possible because they can be unforgiving and will never return to you.
• family. They have strong family relationships and it is common for parents to financially contribute towards the purchase of a home for their children.
• education. It's the reason why many Asian families settle in communities with very good school districts.
• faith and belief systems. Respect their eating habits and foods, their belief in lucky numbers, colors and Feng Shui. Many of their philosophies, beliefs and superstitions are influential components in their purchase of a home.
Wong and Gular offer the following tips when relating to Asian Americans in a business or social setting:
DO:
• be humble.
• value social relationships.
• talk about family and compliment your clients.
• be sensitive to modes of communication.
• hand your business card with both hands while facing them, especially if your client is middle-aged or elderly, and NEVER write on their business card.
Do NOT:
• assume that their English is not proficient.
• be overly aggressive.
• assume they don't understand you.
• embarrass or put them on the spot.
• point with your finger.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.