NAR Public Awareness Campaign: Home Values

Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from NAR’s existing home-sales series.  Thanks to the power of leverage, a homeowner’s return on investment is even more impressive over time.

The California Reinvestment Coalition has secured $5.1 million through its California Home Ownership Preservation Initiative.  The funds will be used to pay for staff increases for many of the state’s mortgage counseling agencies who are struggling to meet demand created by the growing number of homeowners facing foreclosure. 

Remodeling activity is expected to decline further in 2008 because of tighter lending practices coupled with sinking consumer confidence, according to Harvard’s Joint Center for Housing Studies.

Adjustable-rate mortgages declined in October due to tighter credit standards and shrinking interest-rate savings compared to fixed-rate loans.  ARMs accounted for only 17 percent of loan applications in October 2007, the lowest number since June of 2003, according to Freddie Mac’s Primary Mortgage Market Survey®.

The federal government’s terrorism insurance program was signed into law by President Bush at the end of last year.  The commercial real estate market and the health of the nation’s economy as a whole will benefit from the reauthorization of this program.  The program is known as the Terrorism Risk Insurance Revision Extension Act.

The terrorism insurance program, initiated after the September 11, 2001 terrorist attacks, has helped stabilize the commercial real estate industry.  The new law will extend the program for seven years, covers both foreign and domestic acts of terrorism, retains the “trigger level” at $100 million of damages at which point federal assistance kicks in, and establishes a blue ribbon commission tasked with recommending a long-term private market solution.

Consumers rely more heavily on the Internet than any other source when it comes to solving issues connected to the government or for access to government-provided resolution support, according to a new study by the Pew Internet & American Life Project.

In a recent survey, respondents were asked to reveal how they attempted to resolve problems connected to a number of issues over the last two years, such as health concerns; school financing; tax matters; and starting a business.  Of those who said they had encountered such issues, 58 percent said they used the Internet, either at home, work, or in a public library or other public setting to obtain help from the government.  By comparison, 53 percent said they turned to professionals such as doctors, lawyers or financial experts; 45 percent went to friends and family members; 36 percent said they consulted newspapers and magazines; 34 percent said they contacted a government office or agency directly; 16 percent said they consulted television and radio; and 13 percent said they went to the public library.

AB 1356 (Houston) Agents of Equity Purchasers, which passed the Assembly Appropriations Committee on January 24th, will be eligible for consideration on the Assembly Floor this week.  Existing law effectively (and inappropriately) precludes legitimate agents from representing investor purchasers of properties that are in foreclosure because it requires buyers’ agents to purchase a bond for twice the value of the property.  These bonds are not available.  This bill will allow an alternate means of demonstrating financial responsibility by maintaining E&O insurance in a similar amount, by certifying that the licensee is in good standing with the DRE, and providing consumers with access to the Real Estate Recovery Fund for protection against fraud.