REALTORS® in Silicon Valley are joining their counterparts across the country to ask members of Congress and the White House to take quick action and work together to enact a new housing stimulus package to boost the economy. The National Association of REALTORS® has submitted a four-point plan to lawmakers in Washington, D.C., that includes consumer-driven provisions that go beyond the economic stimulus law enacted earlier in the year.
The plan proposed by the REALTORS® would eliminate repayment of the$7,500 temporary first-time home buyer tax credit lawmakers established this year and expand the credit to all home buyers; make the increased FHA and conventional mortgage loan limits that will expire at the end of 2008 permanent (the current temporary conforming loan limit of $729,750 will expire on Dec. 31, 2008 and beginning January 2009, loan limits for high-cost areas will be capped at $625,500); focus the economic stabilization efforts supporting the housing and mortgage markets instead of providing capital to banks with no strings attached; and permanently prohibit large banks from entering real estate brokerage and management.
"Our association fully supports this plan because it will help home buyers and sellers here in Silicon Valley and contribute to a nationwide economic recovery," according to Leannah Hunt, president of the Silicon Valley Association of REALTORS®.
Hunt said NAR research indicates reducing mortgage interest rates, combined with removing the home buyer tax credit repayment, would reduce national housing inventory by 10 percent and would produce modest home price gains of two to four percent. Such price gains would add $760 billion in housing equity for the nation's 75 million homeowners.
"Certainly, there would be meaningful benefits in our own market," Hunt said. "There is no question – there cannot be an economic recovery without a stabilized housing market. Congress and the new administration need to act immediately to help families protect their homes, savings and futures."
The U.S. Treasury and Congress need to work together to ensure that the American people benefit from the economic recovery plan. Hunt said the Treasury Department has gotten off track by focusing too much attention and stimulus money on Wall Street and banks that are in turn using the money for mergers and acquisitions. "The administration needs to get back to the original intent of the plan – stabilizing the mortgage and housing markets – to help families avoid foreclosure," Hunt said.
NAR recently initiated a member-wide "Call for Action" and asked members to urge Congress to act promptly and support the association's four-point plan. NAR has also sent letters to Congress and the Treasury Department calling for the administration to refocus the Federal Housing Finance Agency's efforts on restoring strength to the mortgage-backed securities market, which would help lower mortgage rates for all home buyers and for owners who need to refinance.
"It is clear there can be no economic recovery without a stabilized housing market. As REALTORS®, we see firsthand the impact that an unstable housing market is having on communities like ours. There is no time to waste," Hunt said.
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.