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OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®

Daily Real Estate News  |  September 30, 2008  |   Why NAR Supports Government Intervention
The NATIONAL ASSOCIATION OF REALTORSŪ urged members earlier this week to call on national lawmakers to pass the financial rescue bill.

NAR President Dick Gaylord also asked members to educate themselves and their customers on how the rescue bill can help the housing market and the economy, in general.

"This is a critical time for our nation, and REALTORSŪ everywhere need to call on Congress to enact a recovery plan that will end the economic crisis we are facing," NAR President Dick Gaylord said.

Despite what's been reported in some news outlets, the laws and policies that Congress is considering will directly benefit Main Street, by making financing more available and helping to stabilize home sales and prices, Gaylord said.

"Like it or not, the housing market can’t rebound until we resolve the problems in the financial markets," he said.

Fate of Economy Depends on Bill

Gaylord has received messages from some members who want to know why NAR is supporting unprecedented government investment in financial institutions and the housing market.

In response, he said that the fate of the economy depends on it. "Many buyers can no longer find financing they need to buy a home, contracts are being pulled off the table, and sellers are cancelling their listings," he said.

Without "swift and substantial intervention," real estate practitioners and consumers will be faced with a market where:
  • Getting a mortgage, small business, or short-term loan becomes extremely difficult, even for good credit consumers and businesses.
  • Consumer and business bankruptcies rise significantly, as refinancing options are shut down.
  • Lines of credit are reduced and interest rates on personal and business credit cards rise, adding to the burden on families.
  • Consumer and business spending declines, further depressing the economy.
  • Unemployment increases significantly.
  • Budget deficits increases noticeably due to declining revenue collection at all levels of government.

Cost of Plan Could Be Lower

Additionally, the cost of such a plan is likely to be below the figures that have been widely reported, Gaylord said.

As NAR Chief Economist Lawrence Yun has explained, there is a very good chance that taxpayers will reap a positive return on this investment over the long term.

"Today, I ask all of you to help us resolve this crisis," Gaylord said.

Educate Yourself: Issue Summary

NAR has created a summary of the major provisions being discussed in Congress (PDF), and said it will continue to keep members informed of developments in Washington, D.C.

"I believe we can get beyond debate over who is responsible for the current situation and move toward a solution that will benefit REALTORSŪ and all of the consumers we serve," Gaylord said.

— NAR

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