The Auto Club

The following is a statement by National Association of Realtors® President Charles McMillan:

“NAR would like to congratulate and thank Department of Housing and Urban Development Secretary Shaun Donovan and Federal Housing Administration Commissioner Dave Stevens for implementing the FHA–Making Home Affordable Loan Modification Program. This newly enhanced program will help struggling homeowners who qualify to significantly reduce their monthly mortgage payments and keep the home they worked so hard to obtain.

“As Secretary Donovan noted, this is another tool the federal government is providing to help homeowners avoid foreclosures by making mortgage payments more affordable. These changes expand the Obama administration’s Making Home Affordable Loan Modification Program to include FHA borrowers, and Realtors® are optimistic that this will have positive implications for thousands of homeowners.

“Until foreclosures have been significantly reduced and housing inventory reaches a more normal level, there can be no true housing recovery. The FHA–HAMP program will go a long way in achieving these important goals by helping FHA servicers bring mortgages current, buy down loans by up to 30 percent of the unpaid principal balance, and defer these amounts until the first mortgage is paid off. CONTINUED »

National Association of Realtors

The National Association of Realtors® office building on Capitol Hill was the first newly constructed, green certified building in the District of Columbia, demonstrating NAR’s commitment to environmentally sustainable real estate development.

In testifying today before a House Transportation and Infrastructure Subcommittee, NAR reiterated the significance of its green building and reinforced its support for energy efficiency tax credits, block grants and weatherization assistance investment.

“NAR has taken a number of important steps to raise public awareness about green buildings and their benefits in the marketplace,” said Jim Helsel, NAR treasurer and a Realtor® from Pennsylvania specializing in commercial real estate. Helsel served as chairman of NAR’s Real Property Operations Committee in 2002-03 that oversaw creation and development of the Realtor® building that was certified for Leadership in Energy and Environmental Design and was awarded the Silver LEED rating by the U.S. Green Building Council in 2004 when the building opened. CONTINUED »

National Association of Realtors

Having a sound and well-functioning real estate sector is critical to our country’s economic growth and development, as well as the growth and sustainability of many small businesses, according to the National Association of Realtors®.

In testimony on Capitol Hill before the House Committee on Small Business, NAR President Charles McMillan noted that the real estate industry supports millions of jobs and services. “By enacting provisions that stabilize America’s real estate markets, you are helping small businesses and America’s communities thrive and prosper,” said McMillan, a Realtor® and broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth.

NAR shared its belief that the 2009 stimulus legislation has proven helpful to small business owners - which includes many Realtors® - most notably by beginning to stabilize the housing market and stimulate the economy. “Along with other tax bills passed in 2007 and 2008, the 2009 stimulus legislation included a number of provisions that are helping the nation recover,” McMillan said. CONTINUED »

Most Americans still consider having enough money for downpayment and closing costs to be the biggest obstacles to buying a home. That’s according to the 2009 National Housing Pulse Survey, an annual survey released today by the National Association of Realtors®.

The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in seven years of sampling. Two-thirds of Americans think job layoffs and unemployment are a big problem; eight in 10 cite these issues as a barrier to homeownership.

“Homeownership is an investment in your future; however, saving for a downpayment and closing costs is still too great of an obstacle for 82 percent of house hunters looking to take advantage of the current market,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Monetizing the $8,000 first-time buyer tax credit for downpayment or closing costs on FHA-insured mortgages is a positive first step. Our hope is that the tax credit will be extended and expanded to all home buyers and will help bring stability to the housing market and enable more Americans to achieve the dream of homeownership." CONTINUED »

National Association of Realtors

The National Association of Realtors® has awarded more than $682,000 to 25 local and state Realtor® associations through its Foreclosure Prevention and Response grant program. The grants help Realtor® boards develop and fund local foreclosure prevention programs.

More than $3 million is available to Realtor® associations through the program to help Realtors®, their clients, and the communities nationwide resolve the growing foreclosure problem. Funds can be used to give consumers foreclosure prevention information and financial counseling; educate and train Realtors® about foreclosure prevention, short sales and auctions; or help Realtors® and their associations form partnerships and get more involved in their communities to address foreclosures and support local neighborhood stabilization efforts.

“Realtors® build communities and as the leading advocate for homeownership and housing issues, we believe that any family that loses its home to foreclosure is one family too many,” NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures affect each community differently, which is why NAR is providing the Foreclosure Prevention and Response grants directly to local and state Realtor® associations – so that they can develop unique, coordinated action plans to prevent foreclosures and minimize their adverse effects on the community.” CONTINUED »

Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of Realtors®.

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.

Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said. “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.” CONTINUED »

National Association of Realtors

Sales of existing homes showed another gain in May, benefiting from favorable affordability conditions and a first-time buyer tax credit, according to the National Association of Realtors®. May’s increase was the first back-to-back monthly gain since September 2005.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.4 percent to a seasonally adjusted annual rate1 of 4.77 million units in May from a downwardly revised level of 4.66 million units in April, but remained 3.6 percent below the 4.95 million-unit pace in May 2008.

Lawrence Yun, NAR chief economist, expected an improvement. “Historically low mortgage interest rates clearly drew buyers into the market, and housing remains very affordable even with a recent uptick in rates,” he said. “First-time buyers also are being drawn off the sidelines by the $8,000 tax credit, which is helping to absorb inventory. However, the increase in sales is less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan.” CONTINUED »