A heated political battle
Because of the recession in recent years, the housing sector has been in crisis and the National Association of Realtors (NAR) is currently laying plans to march on Capitol Hill this spring to make their cause known to lawmakers on Capitol Hill. NAR has long been a powerful lobby, but the housing crisis has had a strong impact on all lobbyist’s power as lawmakers struggle to do what they believe will keep the economy afloat which some sectors pay the price for.
Citing the President’s recent budget proposal that threatens to cut mortgage interest deductions, plans to potentially privatize Fannie Mae and Freddie Mac, the possibility of the government mandating 20 percent down on all home loans, and an increase in fees lenders must now pay to have their loans guaranteed by Fannie and Freddie should go up, the NAR considers these moves an attack on homeownership.
Realtor Magazine’s Senior Editor, Robert Freedman writes, “All of these and more add up to an attack on home ownership and raise the question of whether our children and grandchildren, despite the unquestioned good home ownership does for our country, will have the same options for buying as we or our parents had.”
Freedman added, “Here in Washington, largely behind the scenes, NAR has been waging a battle on Capitol Hill and among the regulatory agencies to try to keep some balance in this debate over home ownership and dial back the reaction to the housing downturn.”
Midyear march
On the morning of May 17th, during the NAR Midyear Legislative Meetings, “The Rally to Protect the American Dream” will gather thousands of Realtors to join NAR President Moe Veissi and the NAR Leadership Team at a rally on the grounds of the U.S. Capitol.
Realtors planning on attending Midyear are encouraged to register for the rally as soon as possible.
The organization says the rally is a “high-energy way of letting Washington lawmakers and policymakers know that REALTORS® are ready to go to the mat to protect this most cherished of American institutions.” We are told that Realtors at the rally may be organized by state and show a physical presence by joining others from their state alongside State Association executives.
“Extraordinary times call for extraordinary measures,” NAR President Veissi says. NAR is currently organizing support for the rally from industry leaders, members of Congress and even home buyers.
Real estate is the nation’s bedrock
“Theirs will be a simple message: Real estate is the bedrock of the country and the country’s REALTORS® are taking a stand to keep it that way,” writes Freedman.
Seattle broker, Marlow Harris said, “If those outside the real estate industry understood the issues, I’m sure there would be 10x the number expected for the rally.”
Harris added, “Cutting the mortgage interest deduction would not only hurt homeowners, but renters too, as rents would have to go up to cover the increased costs. Other landlords would rush to dump their rentals, flooding the market with homes, condos, duplexes, triplexs and apartment buildings no one can buy because of the newly enacted “20% down” rule. Homeownership on the two coasts will drop by 1/2, as home prices that start in the $300K price range will require $60,000 or more down. A recipe for (further) disaster.”
Letter from NAR President to members:
RALLY TO PROTECT THE AMERICAN DREAM
A Message from NAR President Moe VeissiOur industry is facing a crucial moment. Never before in the history of our great nation have housing and real estate been forced to defend the benefits they provide our country. The very foundation of civilization is no stronger, nor more enduring than the integrity of the homes on which they rest.
We must have a sustainable, durable housing economy for generations to come. Congress and the President should see their job as bolstering the housing economy and strengthening our commitment to the country’s health. If the housing market continues to falter, the economy cannot fully recover. Over the next 18 months Congress will begin reshaping the role of housing in achieving the dream of owning a home. That is what we are facing. REALTORS® have something to say about this. And this is our opportunity to ensure housing remains the fiber that binds together the fabric of America.
We are going to defend the American Dream from the doubters who say home ownership and real estate have run their course. That is why we are holding the Rally to Protect the American Dream on May 17th in Washington, D.C. I am asking you to be there and stand with your fellow REALTORS® from every corner of America — from Alaska to Illinois to Texas to Guam.
We are going to show Congress that no one cares more about revitalizing real estate for future generations than REALTORS® do.
It is critical that you register to let us know you are attending the rally. We want to plan a great event and make sure wet have enough food, water, lunches, t-shirts and buses. If you would like to come, we will help you connect with transportation via your state or local association. Just complete our Rally Registration. If you request transportation, we will forward that request to your association to follow up with how they can help you get to Washington, D.C. Note that if you plan to stay longer than one day, NAR is not able to cover or reimburse for lodging expenses. However, if your room is over $300/night, NAR will reimburse $100/night up to two nights ($200) to help defray housing costs to attend. Simply bring your hotel confirmation with your room rate and NRDS ID (members only) to the NAR Registration desk at the Marriott Wardman Park hotel, and NAR will initiate a refund. For housing requests, please visit our housing resources information page.
This is our time. This is our moment. We can’t do it without you. Join us.
Moe Veissi
2012 NAR President
Bill Malkasian
March 8, 2012 at 9:11 am
This is an important rally to show the country that Housing is important to the economy.
Chris Kolmar
March 9, 2012 at 11:53 am
Everybody has to calm down a tad. Requiring 20% and removing the mortgage interest isn’t the end of the world.
I believe the market would adjust to such changes with further price declines, which is probably not the best thing at the moment. But think about it from a supply and demand perspective. Using the last example from the article, if fewer people can afford to put down 20% on a $300,000 house, then the price is going to come down.
The net affect on potential buyers would be 0. The lower prices would cancel out the higher requirements for home ownership. That $300,000 would only be worth, say, $250,000 in the new market. (Just making a point, not an actual projected change in price)
The people hit the hardest would be current home owners who would see further value declines in their properties. That, my friends, is the biggest potential problem with such legislative changes. We have seen where lower home prices has taken us over the past several years…
BillFreeze
May 31, 2012 at 6:19 am
How cool was it to have 13,000 Realtors in Washington DC…..it was an epic moment! If you were there or in case you missed this historic day….here’s what it looked like…
https://www.youtube.com/watch?v=GahYEZEENA0
Bill Freeze
Provo, Utah