Now we have clear STIMULUS goals for Real Estate. Stay tuned.

By
Real Estate Agent with Coldwell Banker Realty-Schweitzer Mountain, Sandpoint, Idaho SP37235

Here are the 4 areas that the Stimulus package is supposed to address as we move forward in this economy:

  1. Lower interest rates for home mortgages;
  2. A greater ability to get financing through FHA, Fannie Mae and Freddie Mac in high-cost areas;
  3. A true tax credit incentive to buy a home NOW; and
  4. Foreclosure mitigation and short-sale standards. 

So far, I haven't really seen any changes but these things take time, I know.  Here is my assessment of the 4 issues to date:

1)  Interest rates have been unaffected.  If anything, they have risen slightly.

2)  FHA has become more difficult to work with.  The typical 1st time home buyer has a difficult time meeting the down payment requirements that FHA demands and their credit score and documentation is not helping.

3)  Tax credit is great, but it doesn't affect anyone's purchase power in the short term.

4)  Foreclosure mitigation?  I'm not sure what this means.  I know the courts will have the ability to interject their ideas to help homeowners facing bankruptcy, but I have not yet seen this in action, either.  This will be interesting.

Has anyone seen any definitive effects yet?  Let me know.  I really want to stay positive if possible.

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Rainmaker
1,051,955
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

The key is this stuff will take time. The tax credit should get some of the buyers off the fence that were waiting for home prices to drop further. Well lets hope so:)

Feb 22, 2009 07:48 AM #1
Ambassador
584,156
Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"

the other issue is that many banks don't want to sell to buyers with fha, because they don't want to deal with the repairs..

Feb 22, 2009 07:48 AM #2
Rainmaker
205,313
Kent Anderson
Coldwell Banker Realty-Schweitzer Mountain, Sandpoint, Idaho - Sandpoint, ID
from Schweitzer to the Lake

Bill - Patience is a virtue...no doubt.  (I'm still worried)

Konnie - What do you mean?  Are you saying FHA mandates that the sellers have to make the repairs to qualify the buyer for the loan or that FHA actually gets involved with the repairs?  I haven't heard about this unless I'm missing something.

 

Feb 22, 2009 09:51 AM #3
Rainmaker
416,376
Mesa, Arizona Real Estate Mesa Arizona Realtor
Homes Arizona Real Estate LLC - Mesa, AZ
AzLadyInRed

Kent, it will take time IF the stimulus actually makes any difference! I, for one, am doubtful as to its ability to "fix" anything. ;-) I DO think that WE will pull ourselves together and turn things around - the American people. ;-)

Pepper

Feb 23, 2009 02:34 PM #4
Rainmaker
1,766,826
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

Haven't seen any immediate effects yet. And I'm interested to hear what the additional details are that will be announced on March 4. Rather than an $8000 tax credit, I think $5000 up front for down-payment assistance or closing costs would have been more productive.

Feb 23, 2009 02:40 PM #5
Rainmaker
205,313
Kent Anderson
Coldwell Banker Realty-Schweitzer Mountain, Sandpoint, Idaho - Sandpoint, ID
from Schweitzer to the Lake

John - No kidding.  Down payments seem to be the big stumbling block to me.  ...and I agree, March 4 will be interesting...I'm not holding my breath, though.

Feb 24, 2009 02:51 AM #6
Rainmaker
205,313
Kent Anderson
Coldwell Banker Realty-Schweitzer Mountain, Sandpoint, Idaho - Sandpoint, ID
from Schweitzer to the Lake

Teri (Lady in Red) - You are right, not many people are holding out much hope for a "Government fix".  After all, Government means taxpayer and that means we will pay for the fix somewhere down the line.  I do have faith, however, in "American ingenuity"...our citizens outside of government.  I'm afraid it will take some time, though. 

Thanks for checking in.

Feb 24, 2009 02:56 AM #7
Rainmaker
188,355
Johnathan Mullaney
Village Land Shoppe - Flagstaff, AZ
Broker, Flagstaff Real Estate

Kent, Regarding the free buttons. I have a bunch of comments at the original posting: http://activerain.com/blogsview/892657/FREE-CUSTOM-Buttons-For-Your-Blog

Sign up more! Thanks for stopping by and entering, good luck.

Johnathan

Feb 24, 2009 07:45 AM #8
Ambassador
1,982,953
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Kent, I'm with you on point 3, if buyers don't have the money to buy or can't get the money from a lender, then the tax credit means nothing to them.

Feb 26, 2009 10:29 PM #9
Rainmaker
205,313
Kent Anderson
Coldwell Banker Realty-Schweitzer Mountain, Sandpoint, Idaho - Sandpoint, ID
from Schweitzer to the Lake
Silvia - It does seem like we're getting mixed messages from the media/government. Money is not readily available to 1st time home buyers and it there are not many ways for 1st timers to get into the world of home ownership (contrary to the impression one gets from "official" sources). I get it, however. "Creative" lending contributed to the economical mess we are in today...I am just worried that people are getting the wrong messages and that might create some serious frustration moving forward.

As realtors, we are getting pretty savvy, though, aren't we. Times will get better and we'll be ready.

Feb 27, 2009 03:18 AM #10
Rainer
334,224
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo
they are so important and to have them written down and visualize is equally important. I believe you have to have a way to measure your progress.
Jul 24, 2011 07:05 PM #11
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Rainmaker
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Kent Anderson

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