PRLog (Press Release) – Jan 30, 2009 – As our country and real estate market faces mounting economic crisis, The United States House of Representatives has taken a step in the direction of economic recovery by passing The American Recovery and Reinvestment Act of 2009.  The act is intended to aid in creating market stability.

Last year the National Association of Realtors presented to Congress its core principles for stabilizing the housing market and launching an economic recovery plan.  NAR strongly supports the provisions to reinstate the 2008 FHA, Fannie Mae and Freddie Mac loan limit increases through 2009, as well as eliminating the repayment requirement of the first-time homebuyer tax credit.  The enormous housing inventory must be shrunk, and in order to achieve this, the real estate market must be stimulated.  Everyone in South Florida has seen the for sale signs increasing rapidly, and it is time to do something about it.

There are other provisions and enhancements that need to be implemented to ensure that the real estate market will stabilize more rapidly and effectively.  NAR sent a letter to Congress this week to encourage them to make the loan limit increases permanent to make secure, affordable and safe financing available for people no matter where they reside.

NAR is pressing to extend the tax credit to all homebuyers, and would like to see the expiration date extended to December 31, 2009.  Real estate agents are very concerned that regardless of low property price tags, lenders are making it increasingly difficult for buyers to purchase a home.  A large percentage of these potential buyers would have been considered ideal candidates prior to several new roadblocks put in place by banks and lenders.  These roadblocks and refusals to lend do nothing to stimulate the real estate market.

Communities across the country will benefit from provisions in the act, such as expansion of the tax-exempt housing bonds, additional funding for neighborhood stabilization activities, increased funding for rural housing loan programs, energy efficient incentives for housing, and increased grants for low-income housing development and rehabilitation.  There is a need for a buy down mortgage interest rate and improved foreclosure prevention methods and mitigation strategies that are in the best interest of the investor.  

Also highlighted to Congress by NAR was the need to focus on strengthening the commercial real estate market, to defend the economy of our nation.  Real estate has often pulled this nation through difficult economic downturns, and it will continue to be needed to build security and wealth.  It is vital to nurse the market back to health, and The American Recovery and Reinvestment Act of 2009 will continue to be enhanced until it accomplishes this task