Recently President Obama announced the Homeowner Affordability and Stability Plan. According to the White House the plan is designed to help homeowners at risk of foreclosure due to an inability to pay their mortgage.
The Keys2Day Team has examined this proposal and evaluated it for its potential to help revive the local real estate market.
As of the end of January 2009 Maryland had an available housing inventory of 43,160 units. Many of these houses are foreclosed properties in direct competition with owner occupied properties and investment properties.
For the past 12 months The Keys2Day Team has been a proponent of foreclosure moratoriums and modifications. It is our belief that keeping owners in their homes, while still obligating them to pay for the property, will begin to remove inventory from a market that is already suffering from over supply.
In addition, it is important to remember that homeowners who have not experienced problems paying their mortgages, well over 90% of mortgage holders, are still exposed to the effects of foreclosures in their neighborhoods. Houses that sell at foreclosure usually sell at a discount. This helps decrease values of other homes in the area.
While we do not agree with every aspect of The President’s plan we do think that it will, if executed properly, help stem the tide of foreclosures. This will address, what we see, as the main two issues in the housing market: (1) over supply and (2) devaluation. The results of which should be a supply/demand balance and price stabilization.
Finally, wed like you to examine the President’s proposal for yourself. Take a look at it here. It’s important that we all stay informed about what is the most expensive item most of us will ever purchase.
If you have any questions please do not hesitate to contact us 2day.
Sunday, February 22, 2009
Monday, February 2, 2009
Get Stimulated
The Keys2Day Team is spending the next few weeks focusing on sharing and gathering information designed to help real estate professionals, buyers and sellers move through this market productively. 2Day's topic - the economic stimulus legislation and how it can effect the real estate market.
OK here's the latest - Senate Minority Leader Mitch McConnell, R-Ky., told reporters Monday that "a stimulus bill must fix the main problem first, and that's housing." He promised that Republicans would offer a plan to have the government step in to reduce mortgage rates to the 4 percent range, which could shore up home prices and lower housing payments for millions of Americans.
On the other side of the isle Sen. Charles Schumer, D-N.Y suggested Democrats would support a GOP-backed idea to double a home buyers tax credit from $7,500 to $15,000 and make it available to all home buyers instead of those purchasing their first home.
OK this actually sounds stimulating. Not like the so called Housing Stimulus Bill championed by both Democrats and Republicans last year. You remember the one that raised the FHA down payment requirement from 3% to 3.5%. Yeah bring more money to the table in a recession Oh yeah that's what I call stimulus. The craziest part about it? There were politicians trying to explain this provision as if it made sense.
What do you think about the suggestions offered by Sen. McConnell and Sen. Schumer? Can we expect these ideas to revive the market? Would you be more likely to purchase with these incentives? Talk to us.
OK here's the latest - Senate Minority Leader Mitch McConnell, R-Ky., told reporters Monday that "a stimulus bill must fix the main problem first, and that's housing." He promised that Republicans would offer a plan to have the government step in to reduce mortgage rates to the 4 percent range, which could shore up home prices and lower housing payments for millions of Americans.
On the other side of the isle Sen. Charles Schumer, D-N.Y suggested Democrats would support a GOP-backed idea to double a home buyers tax credit from $7,500 to $15,000 and make it available to all home buyers instead of those purchasing their first home.
OK this actually sounds stimulating. Not like the so called Housing Stimulus Bill championed by both Democrats and Republicans last year. You remember the one that raised the FHA down payment requirement from 3% to 3.5%. Yeah bring more money to the table in a recession Oh yeah that's what I call stimulus. The craziest part about it? There were politicians trying to explain this provision as if it made sense.
What do you think about the suggestions offered by Sen. McConnell and Sen. Schumer? Can we expect these ideas to revive the market? Would you be more likely to purchase with these incentives? Talk to us.
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