Consumers are just starting to see the first glimmers of a bright future for the housing market and the overall economy. It’s up to Congress to make that glimmer a reality by building on the momentum created by the $8,000 home buyer tax credit.
One of the key ways to do that is for Congress to extend the homebuyer tax credit, said
National Association of Realtors® First Vice President Ron Phipps to the Senate Banking, Housing and Urban Affairs Committee during a hearing on “The State of the Nation’s Housing Market” earlier this month.
“The data on the present home buyer tax credit show that the credit has had its intended impact—sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably,” Phipps said. He also pointed out that each home sale generates approximately $63,000 in additional economic activity, providing a tremendous economic boost to the national economy.
“But it is a fragile recovery, and now is the time to build on home sales momentum by extending the tax credit throughout 2010 and expanding it to all homebuyers,” he said. The present credit, due to expire on November 30, cannot help new purchasers now who write a contract today—they won’t be able to close before the deadline, and will lose out on the credit, said Phipps. “Without congressional action now, the market and our national economy may freeze again—possibly as soon as this month.”
Phipps called upon Congress to take action on a number of additional fronts to strengthen the recovery. First, make the FHA and Fannie Mae/Freddie Mac loan limits permanent; these are set to expire on December 31. “Maintaining current loan limits would ensure that families have access to low-cost financing to purchase homes and can refinance problematic loans into safer, more affordable mortgages,” Phipps said.
In addition, Congress should continue federal government involvement in the secondary mortgage market. “Without the government’s involvement in the secondary mortgage market, market participants will have no incentive to reach out to lower income, creditworthy consumers. We must ensure that the housing market works in all markets and at all times, and that mortgage capital is provided to all potential and qualified purchasers in a way that promotes sustainable homeownership,” said Phipps.
The buzz generated by REALTORS® contacting their legislator increased measurably. REALTORS® have generated almost 500,000 letters to congressional offices via the
REALTOR® Action Center. NAR's Call for Action to NAR members has achieved a higher response rate than any other previous Call for Action, underscoring the importance of the credit to REALTORS® and consumers alike. Several House members have introduced bills extending the credit in direct response to the communications from REALTORS®.
In addition to the unfortunate vandalizing and damage that often occurs to a home after foreclosure, there have been reports of other activities that can cause damage to the property. Home Inspectors have been discovering irregularities at locations where tampering has occurred with furnaces, hot water heaters, and other sensitive appliances. Because such tampering with these appliances can lead to several hazards, ranging from minor damage to a fire, please exercise caution when dealing with bank-owned properties or other vacant properties. It is important to recognize the potential liability in taking it upon yourself to ascertain whether a problem exists. Do not inspect the appliances yourself. However, if the properties are not being regularly maintained or secured, it is a good idea to recommend the regular inspection of the property to ensure safety during the marketing of the home.
Mark your calendar for the upcoming “must attend” events!
2010 Achieve
January 21-22, 2010
Westin Book Cadillac, Detroit
Being held at the beautiful and newly renovated Westin Book Cadillac, in downtown Detroit, Achieve is the premier event for leaders in the real estate industry, and those that strive to reach leadership positions. The conference is designed to assist REALTORS® in cultivating their skills, and translating them into winning business strategies.
2010 Broker Summit
April 26-27, 2010
The Inn at St. Johns, Plymouth
The Broker Summit, an event full of non-stop training and information, specifically designed for brokers, managers, and local leaders, that will provide real solutions for real challenges! It’s the largest Broker Summit in the state of Michigan and you won’t want to miss it. You’ll learn from top-notch real estate professionals.
Become a Fan of MAR Events on
Facebook to get the latest updates on upcoming speakers, education events, and continuing education opportunities.
Become a Fan of MAR Events Now!
Are your home and/or business ready if a disaster strikes? Planning what to do in case of a disaster is an important part of being prepared. Some simple steps can help individuals and businesses protect financial and tax records in case of disasters. One step you can take to prepare for disaster is to photograph or videotape the contents of your home, especially items of higher value. The IRS has a disaster loss workbook,
Publication 584, which can helpyou compile a room-by-room list of belongings. Get more information and suggestions on paperless recordkeeping, documenting assets and valuables, and emergency planning on the
IRS website.
With the help of McClelland & Anderson, we are taking the most commonly asked questions from our legal hotline and putting them in E-news. We will be featuring a different question each issue.
QUESTION: I currently represent buyer who is looking to buy a condominium unit as an investment/rental property. The condominium documents provide that the units must be owner-occupied. Can a condominium association prohibit an owner from renting his units?
ANSWER: YES. A condominium restriction prohibiting the rental of units is enforceable.
Aflac offers a distinct type of protection. Unlike traditional health insurance, Aflac pays you (unless otherwise assigned) not the doctor or hospital. You control the cash benefits and spend them as you like to help with financial challenges an accident or illness could haveon your standard of living.
Over 40 million people worldwide have chosen Aflac because of the commitment to providing customers with the confidence that comes from knowing they have assistance in being prepared for whatever life may bring.
These Aflac insurance policies are offered to members of Michigan Association of REALTORS®.
Click here to learn more about policies for association members. If you have any questions contact your Aflac agent Kenneth Bordua at 616.935.3560.
As you may recall, as of July 1st, 2009, Construction Arbitration Services is no longer the preferred arbitration service provider of the Michigan Association of REALTORS®. The MAR now endorses the National Center for Dispute Settlement (NCDS) for arbitration services. Please be aware that the Buy/Sell purchase agreement form has been updated to reflect the recent change in the MAR’s endorsed arbitration service provider. Certain Buy/Sell purchase agreement forms are still in use that list AAA as the endorsed provider. This is no longer the case. The appropriate Buy/Sell purchase agreement forms can be purchased by calling MAR at (517) 372-8890 or online at
http://www.zipform.com/. The contact information for NCDS is (586) 741-0870.