Housing Stimulus Plan needed says NAR

December 11, 2008

images-22On Tuesday of this week the National Association of Realtors® told Members of Congress that the NAR advocates prompt action by Congress and the current administration to pass a housing stimulus package to help stabilize the housing market, setting the stage for the U.S. economy to begin recovery.

“As home values continue to decrease in many markets and job losses escalate, homeowners needing to refinance their mortgage or sell their home are left with few options and are sometimes forced to walk away from their mortgage responsibilities,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “This increased inventory further fuels decreases in home values exacerbating the housing and economic crisis, not to mention the crisis to many families and communities.”

The NAR noted that to stop the downward slide that Congress should use assets in the Treasury Department’s Troubled Asset Relief Program. “The buy-down program would complement the loss mitigation elements of TARP and provide an incentive to buy homes, which will reduce the housing inventory. This in turn will stabilize home values, lessen foreclosure pressure, boost home sales activity and breathe new life into our nation’s economy,” said McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth.

“Housing has always led our economy out of downturns, and lower interest rates coupled with foreclosure mitigation are key ingredients to stabilizing the housing markets and preserving homes and communities,” McMillan said.

NAR urged the government to do the following;

*higher loan limits passed in the economic stimulus bill earlier this year be made permanent

*ensure there is sufficient capital to support mortgage lending

*the $7,500 tax credit for first time homebuyers be extended to all homebuyers and that the repay feature be eliminated

According to NAR estimates, “lowering the interest rate by 1 to 2 percentage points can result in as many as 700,000 additional home sales. Stabilizing the housing market will lead to a greater economic recovery,” said Lawrence Yun, NAR chief economist.

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What’s Your Market’s DNA?

December 11, 2008

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You’ve heard it before – all real estate is local. But why do some markets perform better than others? How do areas that were
once in demand become less so, and what factors contribute to a rising real estate market? To determine the future potential
of any given market, NAR’s Chief Economist David Lereah recently proposed examining its DNA. Just like our genetic
material, a community’s DNA makes it unique, but unlike that of humans, market DNA can change over time.

For example, before modern advances in transportation and technology, cities with ports and the economies they supported
attracted more people than those further inland. Today, transportation and commerce are more diverse, allowing for more variety in 
lifestyle and choices in living environments. market’s DNA can influence the type of inhabitants it attracts.


For example, younger households need access to a diversified economy with plentiful job opportunities. Older retirees may place a priority on access to and availability of leisure activities and health care. What characteristics – climate, topography, economy, transportation systems, etc. – affect your community’s DNA? The biggest impact to the Greater Athens area has to be the University of Georgia.  For example, the addition of a medical school in conjunction with the Medical College of Georgia is going to reap benefits locally.  

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