Multi-ethnic families were beginning to move into a neighborhood that had previously been all one ethnicity. A local broker passed out flyers to…

This action is a clear example of blockbusting, also known as panic peddling. The broker is attempting to induce homeowners to sell by making representations about the changing ethnic composition of the neighborhood. The phrase "Sell now before it's too late!" is a fear-based tactic implying that the arrival of multi-ethnic families will negatively impact property values or the quality of life. This practice is illegal under both the federal Fair Housing Act of 1968 and Massachusetts General Law Chapter 151B, as it exploits racial and ethnic prejudice for commercial gain.

A. good marketing. This is illegal and unethical conduct that violates fair housing laws; it is the opposite of good marketing.

C. redlining. Redlining is the discriminatory practice by lenders of refusing to provide loans in certain neighborhoods, not an agent's act of soliciting listings.

D. steering. Steering is the illegal practice of guiding prospective buyers to or away from certain areas based on protected characteristics, not inducing sellers.

1. Massachusetts General Laws, Chapter 151B, Section 4, Subsection 13. This statute explicitly makes it an unlawful practice for any person "to induce or attempt to induce any person to sell or rent any dwelling by representations regarding the entry or prospective entry into the neighborhood of a person or persons of a particular race, color, religion, national origin, sex, gender identity, sexual orientation, age, ancestry, or marital status..." The broker's flyer is a direct representation intended to induce sales based on the entry of new ethnic groups.

2. Galster, G. C. (1990). Racial steering by real estate agents: Mechanisms and motives. The Review of Black Political Economy, 19(1), 39-63. DOI: https://doi.org/10.1007/BF02717837. This article, while focused on steering, defines and distinguishes the different forms of housing discrimination. It clarifies that blockbusting (panic peddling) involves inducing "white flight" through fear-mongering about neighborhood integration, which directly matches the scenario described in the question (p. 41).

3. University of Massachusetts Boston, McCormack Graduate School of Policy and Global Studies. Course materials for "Housing Policy and Law" frequently cover the Fair Housing Act. These materials define blockbusting as the act of persuading owners to sell property cheaply by creating fear that another racial or ethnic group is moving into the neighborhood, and then profiting by reselling at a higher price. The flyer's language is a textbook example of this prohibited practice.