Press Releases

REALTORS(R) URGE QUICK IMPLEMENTATION OF STIMULUS PACKAGE

- For Immediate Release –

Cupertino, CA - With the signing of the American Recovery and Reinvestment Act by President Barack Obama, Silicon Valley REALTORS® are looking forward to swift implementation of the stimulus package.

“We are pleased Congress and the administration have taken prompt action to address the current economic crisis,” said Julia Keady, president of the Silicon Valley Association of REALTORS®. “Our lawmakers recognize the importance of the housing industry to the nation’s economic recovery.”

An economic recovery is not possible without a housing recovery, and the legislation contains two important housing provisions championed by the National Association of REALTORS®. The final stimulus bill increases the first-time home buyer tax credit to $8,000 and eliminates the repayment previously required by earlier legislation. In addition, the credit availability has been extended until December 1.

“These important provisions will help bring first-time home buyers to the market and reduce housing inventory,” said NAR president Charles McMillan. NAR estimates the home buyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from being “underwater” on their mortgage, which can often lead to foreclosure.

The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac. Keady, who is a REALTOR® with Alain Pinel Realtors in Palo Alto, said this provision will especially help home buyers in high cost areas on the Peninsula and in the South Bay, as it reinstates the $729,750 loan limits in Santa Clara and San Mateo counties. Additional increases in individual communities may also be available at the discretion of the HUD Secretary.

“The demand for housing is strong in Silicon Valley,” Keady said. “The increase in loan limits will improve liquidity in the mortgage market, raise the confidence of homebuyers, which will, in turn, increase sales and economic activity not only in Silicon Valley, but nationwide.”

REALTORS® also commended President Obama and Congress for including resource allocation for neighborhood stabilization efforts to help communities purchase and rehabilitate foreclosed and vacant properties. This funding will protect communities across the country and preserve home values from further decline. NAR’s housing policy agenda likewise includes better foreclosure mitigation efforts and lower interest rates for homeowners and buyers.

“We are very encouraged by the positive steps taken by Congress and the new administration to improve the housing market,” said Keady. “The housing industry is the cornerstone of our economy. We need to move forward and continue to address the issues facing Americans who are trying to purchase a new home, protect their current home or preserve investment opportunities in residential and commercial properties.”
 

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.

For further information, please contact Rose Meily at SILVAR Public Affairs, e-mail , or phone (408) 200-0109.

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