Free Book From NAR
NAR is offering CCAR Members the book, The National Association of REALTORS® 100 Years In Celebration of the American Dream for free, all you pay is the shipping cost. This book celebrates the rich history of REALTORS®’ as community builders, home ownership advocates, and standard-bearers for the profession. A $69.95 value! Limit one per customer.
Order your copy now for FREE by using promo code AUGF.
This special product price is exclusively available to REALTORS® and only while supplies last. Easily access the hundreds of FREE and AT-COST downloadable products – just use your REALTOR.org member login. If you’ve downloaded an e-product, new versions are automatically updated in your REALTOR.org “My Account”.
If you don’t know your login, use this link or call NAR’s Information Central at 1-800-874-6500.
If you haven’t downloaded an e-product before, use this link to find out how, or call NAR’s Information Central at 1-800-874-6500.
The time is now to maximize the over 400 FREE and AT-COST products and resources available through NAR’s Right Tools, Right Now initiative. These great offers are only available through the end of the year.
Visit www.REALTOR.org/RightTools and the online store as they are constantly adding new items and offers to the initiative.
Sales Improve in April
Existing-Home Sales Continue to Improve in April
Existing-home sales rose again in April with buyers motivated by the tax credit, improving consumer confidence and favorable affordability conditions, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.
Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.10 percent in April from 4.97 percent in March; the rate was 4.91 percent in April 2009.
Total housing inventory at the end of April rose 11.5 percent to 4.04 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, up from an 8.1-month supply in March. Raw unsold inventory is 2.7 percent above a year ago, but remains 11.6 percent below the record of 4.58 million in July 2008.
“Although inventory levels remain above normal and much of the gain last month was seasonal, the housing price correction appears essentially over,” Yun said. “In fact, a majority of the markets have seen price gains recently. A return to old-fashioned responsible lending and buying will help the housing market avoid disruptive and painful bubble-bust cycles.”
The national median existing-home price for all housing types was $173,100 in April, up 4.0 percent from April 2009. Distressed homes accounted for 33 percent of sales last month, compared with 35 percent in March.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buyer traffic is mixed. “It looks like the level of home sales that close in May and June will stay elevated, but many buyers remain in the market even without the tax credit,” she said. “Some REALTORS® tell us they are very busy with clients who are entering the market now as a result of improved conditions, while others are welcoming a slowdown from frantic market conditions in recent months.
“Buyers are focused on finding the right house and taking advantage of favorable affordability conditions. For many buyers, owning a home is a lifestyle choice. They want a place of their own to raise a family, build memories, and be part of a larger community,” Golder said.
A parallel NAR practitioner survey shows first-time buyers purchased 49 percent of homes in April, up from 44 percent in March. Investors accounted for 15 percent of transactions in April, down from 19 percent in March; the remaining sales were to repeat buyers. All-cash sales stood at 26 percent in April; they were 27 percent in March.
Single-family home sales rose 7.4 percent to a seasonally adjusted annual rate of 5.05 million in April from a pace of 4.70 million in March, and are 20.5 percent above the 4.19 million level in April 2009. The median existing single-family home price was $173,400 in April, up 4.5 percent from a year ago.
Single-family median prices rose in 18 out of 20 metropolitan statistical areas reported in April from a year ago; six of the areas experienced double-digit increases. In data recently reported for the first quarter, 91 out of 152 metros saw price gains.
Existing condominium and co-op sales jumped 9.1 percent to a seasonally adjusted annual rate of 720,000 in April from 660,000 in March, and are 42.3 percent above the 506,000-unit pace in April 2009. The median existing condo price was $171,000 in April, which is 0.6 percent below a year ago.
Regionally, existing-home sales in the Northeast surged 21.1 percent to an annual level of 1.09 million in April and are 41.6 percent higher than a year ago. The median price in the Northeast was $243,000, up 2.1 percent from April 2009.
Existing-home sales in the Midwest rose 9.9 percent in April to a pace of 1.33 million and are 29.1 percent above a year ago. The median price in the Midwest was $146,400, up 5.8 percent from April 2009.
In the South, existing-home sales increased 8.6 percent to an annual level of 2.14 million in April and are 23.0 percent higher than April 2009. The median price in the South was $150,000, up 1.2 percent from a year ago.
Existing-home sales in the West fell 6.2 percent to an annual rate of 1.21 million in April but are 5.2 percent above a year ago. The median price in the West was $212,400, up 3.8 percent from April 2009.
For more information visit The National Association of REALTORS® website to view the entire press release, here.
Identity Theft Prevention
Top 10 Tips for Identity Theft Prevention
Identity theft is a serious and costly crime. People whose identities have been stolen can spend months or years cleaning up the mess thieves have made of their good name and credit record. In the meantime, victims may lose job opportunities, be refused loans, housing or cars, or even get arrested for crimes they didn’t commit.
The following tips can help you lower your risk of becoming a victim.
1. Protect your accounts against fraud.
Contact the fraud department of any of the three consumer reporting companies— Equifax®, ExperianSM and Trans Union®—to place a fraud alert on your credit report. The fraud alert automatically lets credit card companies and other creditors know they must contact you before opening any new accounts or making any changes to your existing accounts.
2. Don’t get caught by “phishing.”
Scam artists “phish” for victims’ information by posing as representatives of banks, stores or government agencies. This is done over the phone, through regular mail, and especially via e-mail. Don’t respond to a request to verify your account number or password. Don’t give out your personal information unless you made the contact. Legitimate companies will not request this kind of information in this way.
3. Keep your identity from getting trashed.
Invest in a paper shredder and shred all papers with personal information before you throw them away, including unwanted credit card applications and “convenience checks” that come in the mail, credit card receipts with your account number, outdated financial papers and papers containing your clients’ personal information.
4. Control your personal financial information.
Many states have laws requiring banks and other financial institutions to get your permission before sharing your personal financial information with outside companies. You also have the right to limit the sharing of your personal financial information with most of your companies’ affiliates. Write to your companies that you want to “opt-out” of sharing your personal financial information with their affiliates.
5. Shield your computer from viruses and spies.
Use passwords with at least eight characters, including a combination of letters, numbers, and symbols. Use firewall and virus protection software and update it regularly. Download free software only from sites you know and trust, and don’t install software without knowing what it is. Set browser security to at least “medium.” Don’t click on links in pop-up windows or in spam e-mail, and don’t download any file from an e-mail address you don’t know.
6. Click with caution
When shopping online, check out a Web site before entering your credit card number or other personal information. Enter personal information only on secure Web pages with “https” in the address bar and a closed padlock symbol at the bottom of the browser window.
7. Check your bills and bank statements.
Open your credit card bills and bank statements right away. Check for any unauthorized charges or withdrawals and report them immediately. Call if bills don’t arrive on time. It may mean that someone has changed contact information to hide fraudulent charges.
8. Stop pre-approved credit offers.
Stop most pre-approved credit card offers by calling toll-free 888 5OPTOUT (888 567 8688) to have your name removed from credit bureau marketing lists.
9. Ask questions.
Ask questions whenever you are asked for personal information that seems inappropriate. Ask how the information will be used and if it will be shared. Ask how it will be protected.
10. Check your credit reports — for free.
One of the best ways to protect yourself from identity theft is to monitor your credit history. You can get one free credit report every year from each of the three national credit bureaus. Order your free annual credit reports by phone, toll-free, at 877 322 8228, or online at www.annualcreditreport.com.
(Sources: The Federal Trade Commission, The Office of Privacy Protection in the California Department of Consumer Affairs)
Visit NAR’s REALTOR® Safety Web site at www.REALTOR.org/Safety
Email Chains Distorting Truth
NAR informs us that two e-mail chains have circulated among members and are generating a lot of confusion in the REALTOR® ranks. One claims that pending legislation in the Senate would require an energy license or retrofit for home sales. The other claims that the recently passed health care bill contains a 4 percent “transfer tax” on home sales. Both are wrong.
The “Homeowners—Listen Up” e-mail is inaccurate. The American Clean Energy & Security Act (H.R. 2454) does not require home sellers to obtain either a license or energy audit, or make energy retrofits before they sell their home. Here are two actual provisions in the bill:
• Section 202 (Building Retrofit Program) would offer matching grants for home improvements. State government would administer the program, which is voluntary and available to all property owners.
• Section 204 (Building Energy Performance Labeling Program) would apply to new construction only and prohibit time-of-sale labeling. The original energy audit and MLS listing provisions were deleted as the result of NAR insistence; existing real estate was excluded from the bill’s requirements.
The “National Real Estate Transfer Tax” e-mail, an opinion piece in the Spokane, WA “Spokesman-Review” last month reported inaccurately that the health care bill contained a provision for a 4 percent “sales tax” or “transfer tax” on the sale of a home. This e-mail, too, was circulated far and wide, and is inaccurate.
Here are the facts:
The health bill included a provision that imposes a new 3.8 percent Medicare tax for some high-income households that have “net investment income.” Any revenue collected by the tax is dedicated to the Medicare hospital insurance program.
This new tax applies only to households with Adjusted Gross Income of more than $200,000 for individuals or more than $250,000 for married couples. Since capital gains are included in the definition of net investment income, an additional tax obligation might result from the sale of real property.
There are two major factors in figuring out the tax, which is complex. Keeping in mind that the new 3.8 percent Medicare tax is assessed only when the $200K/$250K AGI limits are exceeded, the amount of net investment income subject to tax is the LESSER of 1) total net investment income OR 2) the excess of AGI over the $200K/$250K AGI limits.
However, even when the AGI limits are met, the new tax would not be applied to capital gains that result from the sale of a home, since the existing home sale capital gains exclusion rule still applies – $250,000 (individual)/$500,000 (couple). So if the gain from the sale of the primary residence is below that amount, then NO Medicare tax will have to be paid on the gain. The new Medicare tax would apply only to a home sale gain realized in excess of the $250K/$500K that pushes the filer’s AGI over the $200K/$250K income limits.
Some other quick points:
• There is no such exclusion for the sale of a second home.
• The new Medicare tax will take effect January 1, 2013.
• The legislation makes no changes to the mortgage interest deduction.
NAR has posted a detailed Q & A here on this issue and on the new health care bill. The Q & A will be updated as other provisions are developed.
R.E. & Economic Recovery
REALTORS® to Reinvigorate Efforts Toward Real Estate and Economic Recovery
The National Association of REALTORS® is bringing together legislators, public policy makers and industry leaders this week to develop strategies and solutions for addressing ongoing challenges in the real estate market as the REALTORS® Midyear Legislative Meetings & Trade Expo begins.
Three days of the meetings, May 11-13, will be devoted to a summit, REALTORS® On the Rise: Stabilizing the U.S. Mortgage Finance Delivery System.
“As leading advocates for homeownership, housing issues and private property rights, REALTORS® know that the industry must address important issues related to mortgage financing and commercial credit if the real estate markets and larger economy are to truly recover and stabilize,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “We understand how important our industry is to the health of the economy as a whole, which is why we’re devoting much of our midyear meetings this year to reshaping real estate in America.”
REALTORS® from across the country will join Federal Housing Administration Commissioner David Stevens; U.S. Treasury Assistant Secretary for Financial Institutions Michael Barr, Mark Zandi, chief economist and co-founder of Moody’s Economy.com; Diane Swonk, senior managing director and chief economist with Mesirow Financial; and political strategists Edward W. Gillespie and Terry McAuliffe in sessions throughout the week. Various government agencies, academic institutions and organizations will also participate, including representatives from the U.S. Department of Housing and Urban Development, U.S. Department of the Treasury, Federal Home Loan Bank of New York, Harvard University, and the American Securitization Forum.
More than 7,000 REALTORS® are expected to attend. During the week, they will also meet with legislators on Capitol Hill to urge action toward stabilizing the U.S. mortgage finance delivery system, strengthening housing stability, and improving liquidity for the commercial real estate market.
For more information about the REALTORS® Midyear Legislative Meetings & Trade Expo, click here.
The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
Incorporating SWOT
Incorporating SWOT Into Your Business
The SWOT (strengths, weaknesses, opportunities, and threats) technique can help you determine the best way to move toward your goals.
As the old saying goes, insanity is doing the same thing over and over but expecting different results. Unfortunately, this statement applies to many real estate pros.
Each day, week, and month seem to bring the same tasks and responsibilities for a lot of people, yet many hope for increased sales, greater productivity, and other positive outcomes — just from continuing to do the same thing. But the truth is that business will not improve if nothing changes.
Think about it for a moment, If you aren’t doing anything new, how can you expect significantly different results? Sure, you might have a good month here and there, and see a boost in your sales for a short time due to certain circumstances and situations that aren’t really in your control. But the prospects for lasting improvement when you’re doing the same thing over and over again are slim.
How can you make the adjustments needed to see your goals fulfilled in the coming months? It’s as easy as remembering four letters: S-W-O-T!
SWOT is an acronym that stands for:
Strengths: attributes that can help you achieve your goals.
Weaknesses: characteristics that can impede your aims.
Opportunities: external factors that aid you.
Threats: external factors that impede you.
The idea behind SWOT is to evaluate these four areas as they apply to your life, and then make the necessary adjustments based on your honest appraisal. The key is honesty! Without it, this is an exercise in delusion.
You must evaluate each area as truely as possible about how you believe your current business practices align with each description. Let’s take a closer look at what you should do by taking a blank sheet of paper and labeling along the left side each of the words that make up the SWOT acronym. Leave some space next to each word to complete your answers.
Strengths
Take a moment and list any and all strengths you believe you possess as a real estate professional. What is it that you do exceptionally well, meaning better than most of the competition? Where do you excel? For example, technical prowess is a strength for some practitioners, while others might add their presentation or negotiation proficiency. It’s important for you to note those areas of your daily business lives that are easy for you to implement and what you believe are good points about yourself.
Weaknesses
Repeat the same process above, but instead record your weaknesses — the things that you don’t do as well as many or most other real estate pros. This is where the importance of being honest really comes into play. Remember, it’s fine to admit your shortcomings in this exercise. By taking a moment and understanding where the weak links are in your business, you can then understand where your focus needs to shift to achieve your goals, or even formulate entirely new objectives.
Making Adjustments
Now that you’ve completed a thorough list of your strengths and weaknesses, what adjustments should you make? There are two schools of thoughts about what you should do at this stage. The first says that you should focus on fixing your weak points. The second says that you should focus on your strengths, those areas of your business that you excel at, and find help to assist you with your weak links in your business.
I suggest that individuals must make the adjustments according to their level of comfort and ability. To use my own SWOT analysis as an example, technology and presentation skills are my strong points. I’m good at giving seminars, negotiating transactions, and closing deals. However, my weaknesses are in organization, paperwork, and day-to-day tasks that can ultimately make or break me as a real estate professional.
To improve my business, I had to acquire help for my business’s weak areas. That required adding a person to be a part of my team, which in turn freed me to concentrate on the things I’m good at and I love to do. There is no right or wrong way to approach your strengths and weaknesses, but the ultimate goal is to do what it takes to achieve your goals.
Opportunities and Threats
Your next two tasks are to list the opportunities you see along with potential threats based on your specific, current objectives. For instance, unemployment and foreclosure levels are problems for many real estate professionals. but some of them turned those threats into opportunities by learning how to help defaulting borrowers save their homes through loan modifications, working with lenders and borrowers in short-sale transactions, and furthering their education by becoming distressed property specialists.
This is not about taking advantages of others’ misfortunes. It’s a reminder that when we find a threat is in our midst, there is usually an opportunity associated with the obstacle. As real estate professionals, we have a wonderful opportunity to encourage and assist people who are struggling by providing solutions to help them deal with challenges.
Applying SWOT on a regular basis can help you take your real estate career to a new level. By closely examining these areas on a consistent and regular basis, you can ensure that that definition of insanity does not apply to your life.
For more information, click here.
Home Sales Rise
Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions
Washington, April 22, 2010
Buyers responding to the homebuyer tax credit and favorable affordability conditions boosted existing-home sales in March, marking the beginning of an expected spring surge, according to the National Association of Realtors®. Click for the full story!
NAR Call-for-Action
On Wednesday, March 31, NAR sent an all member Call-for-Action on two critical issues: the expiration of the National Flood Insurance Program and the 502 Rural Housing Program.
Here are the results from that Call-for-Action:
Flood Insurance:
On April 15, 2010 Congress passed, and President Obama signed, legislation to renew the National Flood Insurance Program (NFIP) through May 31, 2010. Congress allowed the NFIP to expire on March 28, 2010. By law, flood insurance is required for the purchase of real estate in a 100-year floodplain. The lapse in flood insurance resulted in many delayed, and even cancelled, transactions. During the lapse period NAR worked with Federal agencies, GSEs and bank regulators to clarify what lenders and insurers may and may not do to help work through the program’s expiration. NAR will work closely with our congressional allies to help ensure a lasting reauthorization and extension prior to the May 31 deadline.
Rural Housing:
Legislation has been introduced in the House by Reps. Kanjorski (D-PA) and Capito (R-WV) to restore the rural housing 502 single family mortgage insurance program. The legislation will increase the upfront guarantee for the program, which will allow the loan program to be self-sustaining. Borrowers will continue to be able to finance the upfront fee. This change should prevent future disruptions to the program of the type just experienced. We expect the House to mark-up this legislation next week, with House passage shortly thereafter. The Senate is now working on a similar bill.
REALTOR® S.W.A.T.
The NEW California Residential Purchase Agreement and Joint Escrow Instructions Form (RPA-CA) will be released on April 28, 2010! Are you prepared to represent your clients with this new form? Prepare yourself early and learn about the NEW CHANGES to the RPA-CA form to better serve and protect yourself and YOUR CLIENTS at REALTOR® S.W.A.T. (Special Weapons and Tactics) Program coming next week to Sacramento. Learn more here.
The REALTOR® S.W.A.T. Program is a one day program packed with the tools you need to succeed in today’s short sale market. Also, this will be your first opportunity to understand every update made to the NEW 2010 RPA-CA.
Additional program content includes:
- A local market & stimulus update by a C.A.R. Economist.
- Tips from C.A.R. Legal to help you navigate the changing laws.
- Information on getting that FHA Loan accepted and closed.
- Instruction on how to streamline the short sale process with the Treasury Department’s Home Affordable Foreclosure Alternatives (HAFA) Program.
- Four hours of Department of Real Estate (DRE) of Continuing Education (CE) credit in Consumer Protection on the NEW RPA-CA course.
Don’t miss this exciting event, all for one low registration price! Continental breakfast and lunch will be served.
C.A.R. Members Registration $89
Non-Members Registration $159
Tuesday, April 6, 2010
8am to 5pm
Hyatt Regency
1209 L Street
Sacramento, CA 95814
Click here to register.
Freddie Mac, Fannie Mae
Freddie Mac, Fannie Mae Update HVCC FAQs
NAR has called on both GSEs to coordinate their FAQs and codify them into existing appraisal policy. In 2009, then NAR President Charles McMillan attended a series of appraisal summits sponsored by the National Association of Home Builders where he asked both GSEs to work together to ensure the FAQs are coordinated and do not result in greater confusion for stakeholders in the real estate industry.
The Freddie Mac FAQs can be found here and the Fannie Mae FAQs can be found here.
Nationwide Open House
REALTOR® Nationwide Open House Weekend: April 10-11
The NATIONAL ASSOCIATION OF REALTORS® (NAR) has designated the weekend of April 10-11 as REALTOR® Nationwide Open House Weekend. REALTORS® and brokers across the nation are encouraged to participate in this campaign focused on increasing consumer awareness of the benefits of homeownership.
Nationwide Open House Weekend will enable sellers to showcase their homes for sale and potential home buyers to shop for a home while interest rates are low; home prices are affordable; there is a wide variety of homes available; and the federal tax credit is in place.
Existing-Home Sales Down, Prices Steady
Existing-home sales fell in January but are above year-ago levels, according to the National Association of REALTORS®.
Existing-home sales — including single-family, townhomes, condominiums, and co-ops — dropped 7.2 percent to a seasonally adjusted annual rate of 5.05 million units in January from a revised 5.44 million in December, but remain 11.5 percent above the 4.53 million-unit level in January 2009.
Lawrence Yun, NAR chief economist, said there is still some delay between shopping and closing that affected current sales. “Most of the completed deals in January were based on contracts in November and December. People who got into the market after the home buyer tax credit was extended in November have only recently started to offer contracts, so it will take a couple months to close those sales,” Read More….
NAR Update: Help for Haiti
Dear Fellow REALTOR®,
By now, we all know about the severe devastation caused by the earthquakes in Haiti. NAR is helping answer the calls for help in two key ways.
First, we are contributing $550,000 to charities that will help bring much-needed supplies and care to the people of Haiti. Included in that sum is $100,000 donated by our REALTOR Benefits® Program partner, Lowe’s®, which we have matched at $100,000. From that we will donate $50,000 to The Harvest of Haiti, founded by REALTOR® Patrick Moore, a 2007 Good Neighbor Award winner. Patrick has done great work for several years in Haiti supporting orphans, delivering clean water and providing medical care for more than 3,500 people a year.
http://www.realtor.org/press_room/news_releases/2010/01/donate_haiti
We are also contributing $500,000 to the Clinton Bush Haiti Fund, which is supporting earthquake recovery efforts with immediate relief and long-term support to earthquake survivors. For up-to-the-minute information about these efforts, visit NAR’s Haiti relief page on REALTOR.org.
Second, I have asked NAR to accept donations from REALTORS® through the REALTORS® Relief Foundation. Please consider giving today. To make a donation, go to www. realtor.org/relief, and complete the contribution form.
Dr. Martin Luther King, Jr. once said: “An individual has not started living until he can rise above the narrow confines of his individualistic concerns to the broader concerns of all humanity.”
REALTORS® have earned a reputation for our compassionate work on behalf of others – both here in the United State and around the world. I hope you will join our latest efforts and bring that same compassion and hope to people who desperately need it.
Sincerely,
Vicki Cox Golder, CRB
2010 NAR President
CA Tax Credit Scenario
In California, the home buyer tax credit has brought in approximately 33,000 buyers into the market and 227,600 first‐time buyers will be able to take advantage of the tax credit. Detailed, state‐by‐state information is not available on first‐time buyers, but using national information from the 2009 Home Buyer and Seller Survey available in preliminary format, we can estimate the impact in a state. According to NAR, California existing home sales in the second half of 2008 were 530,800 at a seasonallyadjusted annual rate. In the first half of 2009 they were 492,400. If sales continue this trajectory—as they are expected to do nationally—they could reach 523,800 for the year in California in 2009. If the share of first time home buyers in the market is similar to the national share, first time buyers will have purchased 212,320 homes at a seasonally adjusted annual rate in the second half of 2008 and will purchase 231,428 for the year 2009. Because the tax credit is only in effect for 11 months out of the year, the estimated impact of the credit is an increase of 33,000 first‐time buyers. 227,600 first‐time buyers in the state of California are expected to be able to take advantage of the credit. Source: National Association of REALTORS®
Tax Credit Update!
According to John DiBiase, NAR Government Affairs Communications Director, the U.S. Senate just voted 98-0 to pass the Tax Credit [within the Unemployment Bill]. It now goes to the House of Representatives. It is expected that Democratic leadership will place the bill on a fast track for passage on Thursday. It could get to the President on Friday. - November 4, 2009
Mortgage Limits Extended
NAR Commends Congressional Action to Extend Higher Mortgage Loan Limits
WASHINGTON (October 30, 2009) – The National Association of Realtors® thanked Congress for speedy action in passing a congressional resolution yesterday that would extend the current higher Fannie Mae, Freddie Mac and FHA loan limits through 2010. The present loan limits would expire at the end of 2009 and revert to previous lower limits.
“NAR commends both houses of Congress for their quick action in continuing these higher limits during a time for recovery in the housing market and national economy. The higher limits, along with the home buyer tax credit extension, are necessary to keep the markets moving at this critical time,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth.
“Home sales have shown significant movement upwards in the past six months and reduced inventory in some segments of the housing market, but not in all. Home purchases in the middle-income and higher brackets have not moved much, and those markets must improve before we can experience a fully sustained housing recovery. These higher loan limits will help motivate qualified home buyers to purchase in those markets,” McMillan said.
The resolution would extend the present conventional loan limits for Fannie and Freddie through the 2010 calendar year at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost areas. The floor for FHA is $271,050; the floor for Fannie Mae and Freddie Mac conforming loan limits is $417,000.
The resolution now goes to President Obama, and he is expected to sign it today or Saturday to avoid a government shutdown.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
Extend Homebuyer Credit
The tax credit is working, homebuyers are using it, sales have increased and it’s helping to move both housing and the economy forward.
But time is running out. Homebuyers have only a few weeks left to put in a contract on a house and benefit from the tax credit—it expires on December 1. Congress should extend the tax credit until December 31, 2010 to allow more homebuyers to take advantage of this incentive and help America’s economy continue to recover.
The first-time homebuyer tax credit is working:
• Home sales to first-time homebuyers increased by 25% in 2009 and now account for 50% of all sales.
• The tax credit is reducing the inventory of foreclosures that are sitting on the market, helping our neighborhoods and communities recover.
Extend the Homebuyer Tax Credit to Assure America’s Economic Recovery! Click for a pdf version of this information.
Tax Credit Deadline 11/30
First-time homebuyers-those who have not owned a home for at least three years-may be eligible for the $8,000 federal tax credit, but the window of opportunity is closing rapidly. To qualify for the credit, the buyer must close escrow by midnight on Nov. 30, when the tax credit expires. Buyers hoping to take advantage of this benefit are advised to start house-hunting early, as the buying and lending processes takes time.
NAR Designations
C.A.R. Education announces some exciting news to benefit your members! NAR Designations help REALTORS® distinguish and brand themselves through specialized niches, with the potential to nearly double their earnings. You can now host more classes by offering designation core courses through our traditional Live Lecture or our newest video interactive conferencing, Face2FaceT.
Book your courses before August 15th and, for the first five members who sign up for the Accredited Buyer Representative core training, C.A.R. will reimburse them for an ABR elective course for the ABR training. (Limited quantity – on a first-come, first-served AOR basis.) Use these reimbursements (valued at $60-$115) for the live Short Sales and Foreclosure or online Intro to R.E. Auction to encourage members to sign-up.
To further their careers, your members need affordable courses. We are offering these designations/certifications in 2009 – at prices reduced $50-$100!
Featured NAR Designations/Certifications:
* Accredited Buyer Representative (ABR):
http://www.car.org/education/designations/abr
Members learn how to market to and successfully represent buyers. Training ranges from Offers and Negotiations to Fiduciary responsibilities.
* Senior Real Estate Specialists (SRES®): http://www.car.org/education/sresdesignation/
REALTORS® are trained how to counsel mature clients through major financial and lifestyle transitions such as relocating, refinancing or selling the family home.
* Green Designation: http://www.car.org/education/designations/greendesignation/
Members learn the green principles and practices, plus the financial advantages of eco -friendly energy-efficient properties, as well as market to the green consumer.
* Resort & Second-home Property Specialist Certification (RSPS): http://www.car.org/education/designations/rsps/
REALTORS® gain the knowledge to represent the resort and second-home clients in this potentially lucrative market segment.
There has never been a better time to provide these trainings for your members!
