NAR: Implement Stimulus Package Quickly!

WASHINGTON – Feb. 16, 2009 –

Now that the American Recovery and Reinvestment Act has been sent to President Obama for his signature, the National Association of Realtors® (NAR) looks forward to swift implementation.

“We are pleased that Congress and the administration have taken prompt action to address the current economic crisis,” says NAR President Charles McMillan. “Job creation and tax cuts are going to help families recover and prosper, and these initiatives will help more people keep their homes and help others become homeowners.”

The legislation contains two important housing provisions advocated by NAR. The final stimulus bill increases the first-time homebuyer tax credit to $8,000 and eliminates the repayment requirement of earlier legislation. In addition, the credit availability has been extended until Dec. 1, 2009.

“These important provisions will help bring first-time homebuyers to the market and reduce housing inventory,” says McMillan. NAR estimates that the homebuyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from being “underwater” on their mortgage, which can often lead to foreclosure.

The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac. “These … make mortgages affordable regardless of where you live,” McMillan says. “ This will also help reduce inventory and improve liquidity in the overall mortgage market.”

NAR commended President Obama and Congress for including neighborhood stabilization efforts to help communities purchase and rehabilitate foreclosed and vacant properties. Realtors also praised the provision to help America’s wounded soldiers who need to move or relocate.

In addition to federal bailout measures, NAR’s also advocates better foreclosure mitigation efforts and lower interest rates for homeowners and buyers. NAR expects these components to be addressed in the coming days.

© 2009 FLORIDA ASSOCIATION OF REALTORS®