"Together We Can"

June marks the half way point of my term as your Association President. My how time flies!

At the time of writing this month’s article your leadership just returned from the National Association of REALTORS^® mid-year meetings in Washington D.C. which were very informative and while there we got to see some rain.

We had the opportunity to personally meet with our elected officials and share the importance of their support on our issues affecting real estate. I have outlined the Housing Stimulus Federal Summary Issue.

Congress is making efforts to stabilize the housing market and find appropriate ways to help borrowers in trouble refinance or adjust their loans in a way that benefits the homeowner while still acknowledging the needs of the lender as well. Congress is attempting to find solutions that allow honest borrowers avenues to readjust and meet their obligations while avoiding foreclosure.

Issue Background

Among these efforts are FHA and GSE reform including an increase to the conforming loan limit and homebuyer tax credits. The House has passed a housing stimulus bill which combines all of these provisions into one bill and allows the FHA to insure up to $300 billion in troubled subprime loans in an attempt to stave off foreclosures. The measure would require lenders who want to participate in the program to reduce the amount of the original note to as little as 85 percent of the home’s appraised value. In exchange, FHA would insure a new loan at a fixed rate that the borrower could afford. More borrowers would be eligible under the bill than under current FHA standards by allowing those with higher debt levels to participate. In addition, the housing stimulus bill contains language that will increase the FHA and GSE conforming loan limits, include $15 billion so cities can purchase foreclosed bonds, and include homebuyer tax credits. The Senate has passed its own version, H.R. 3221.

We requested the following action items:

• Make permanent the temporary increase in the GSE and FHA loan limits. A permanent increase is needed in order to truly have the strongest effect on the housing market, especially in high-cost states and to give lenders the needed confidence to start offering these loans as true conforming loans instead of conforming jumbo loans.
• Ensure any final stimulus package will reform GSE oversight and create a new GSE regulator with powers that include the authority to set high-cost conforming loans by an area’s median home price.
• Ensure any final stimulus package include a housing tax credit be available to all homebuyers and should be permitted for the purchase of any principal residence.

Other items of interest include:

Most mortgages are NOT in trouble. Sub prime loans account for only about 9%.

Home sales may be down but affordability is UP. REALTORS^® should give buyers permission to move forward, it just may be their time to buy.

Real Estate is LOCAL, very, very LOCAL and every market is unique. The national median housing price outlook is about as useful a tool as the national median weather. International buyers make up 15% of transactions and are not flippers but interested in long term. They have unshakeable faith and feel that the United States is the safest place to buy!

The largest segment of Baby Boomers (51 years of age, born in 1957) are auditioning their last homes. This generation is NOT looking for a community in the middle of no where with nothing to do. They prefer mental stimulation near or in University or College towns.

Generation X & Y are looking for weekend getaways relative to where they are, regardless of the market.

BLOG-people trust their peers not the media.

In closing,

PEACE. It does not mean to be in a place where there is no noise, trouble or hard work. It means to be in the midst of those things and still be calm in your heart. (unknown)

Peace be with you,
Sue