I just returned (literally) from the Strategic Planning Committee Meetings in Chicago. Actually, I spent this entire week in Chicago. In fact, the entire 2008 Leadership Team has been in NAR’s Chicago office this week for lots and lots of things but most importantly the Strategic Planning Committee, and I want, no, I need to say how I impressed I am with this year’s committee.
I’ve participated in these meetings in the past, and what struck me most this time was not just how many new faces were in the room, but also how engaged these new participants were in the planning discussion. I found the new committee members, many of whom have been in the business less than five years and are active every day, have a very strong sense of where the business is headed and what NAR needs to do long-term to help our members succeed. Sometimes I wonder why it’s so easy for these younger folks to figure this out and the rest of us struggle so much. Age has a funny way of doing those things!
So, while it’s important to have the “old” guys like me there to lend our perspective, I am proud that we have created an environment where all members feel vested in the future of our Association.
Believe me when I tell you that NAR’s Second Century is in very good hands. The next generation of REALTORS® really does understand what the real estate profession is all about – and they have lots of wonderful ideas to get us where we need to be and to keep our Association at the top of everyone’s list for the future. – Jim Helsel, 2008 NAR Treasurer
As President of NAR, I travel to a lot of wonderful places. But, last week was a very special trip for me, as I had the chance to visit my hometown of Steubenville, Ohio, and spend time with some great friends along the way. Here are just some of the highlights of my trip…
My first stop was in Pittsburgh, where my friend, Helen Hanna Casey, who also is on NAR’s Executive Committee, invited me to speak to REALTORS at the Howard Hanna Company Reception.
It was great to see Helen in action. There were about 250 agents at the dinner, which was held at the CLO Cabaret Theatre – a Pittsburgh landmark. And, let me tell you, their enthusiasm was contagious.
The Pittsburgh economy is improving, thanks to steady job growth, and that is helping the housing market. Howard Hanna’s agents are seeing new business, and they are very optimistic.
After the reception, I had dinner with my friend, and fellow Steubenville native, Chuck Bonfiglio, President of the Florida Association of REALTORS, and his wife Roberta. Helen and her husband Steve joined us for dessert. It was a perfect evening, and I left there feeling energized and excited.
On Friday, I made my way over to Steubenville, where I had a wonderful homecoming. I spoke to REALTORS from District 7 and explained to them that we are seeing some positive developments in many of the local markets there and that the job growth in Pittsburgh should help boost their markets, too. The elected officers from the Ohio Association of REALTORS were there, as well. In fact, Ohio Executive Don Freels shared some more good news – foreclosures have declined across the state.
Earlier that day, I shared the same positive outlook with local reporters at a press conference. Check out the great article that appeared the following day in one of the local papers:
http://www.heraldstaronline.com/page/content.detail/id/504608.html?nav=5010
Finally, I got a key to the city and visited my alma mater, Franciscan University of Steubenville, where I met with University President, Father Terrance Henry, T.O.R.
I could not have asked for a better homecoming. Many thanks to all of the officers and staff at the Steubenville Board of REALTORS for making it possible, especially Rick DeLuca and Joann McLain. No matter how far I travel, Ohio will always be home for me. – Dick Gaylord, 2008 NAR President
I have heard from many of you recently, and also know firsthand, how difficult the market is currently. But, no matter how tough the market is, REALTORS are tougher. And right now, REALTORS have a great opportunity to show our grit by letting U.S. Senators know how important it is to pass the Housing Stimulus legislation.
This bill will help restore confidence in the market by making the increases to the loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration permanent. It will help REALTORS do what we do best – put people into homes.
If you haven’t already communicated with your U.S. Senators, please join the more than 45,000 who already have. With the simple click of your mouse, you will join thousands of REALTORS who have let Congress know that this legislation is vital to jumpstarting the housing market.
Just go to the REALTOR Action Center to show your U.S. Senator just how tough we are. Do it now! — Vicki Cox Golder, 2008 First Vice President
Last week, I spent a few days in Sacramento at the California Association of Realtors® business meetings. Before I gave my NAR update to the Board of Directors, I stopped in to talk with the NAR Directors. Rather than give them a similar update, I decided to ask them how they think NAR is doing this year.
To be honest, I expected a fair amount of criticism. After all, it’s a tough market, and this particular group doesn’t pull any punches. To my surprise, the directors praised our efforts this year to communicate and connect with members, especially through e-mail and videos. In fact, I had a number of people throughout the meetings approach me and say how useful our videos and podcasts have been. I was even more excited to hear how members and AEs are using the videos at other businesses meetings.
If you haven’t seen the latest and greatest, I urge you to take some time to visit our video page and the President’s Podcast on the President’s Report. I’ll even let you in on a secret: we are planning to produce several more videos this Summer, covering topics like political fundraising, commercial resources, and our Annual Conference in Orlando. So, keep and eye on your inbox for e-mails from me.
If you have other ideas how we can communicate and connect with members like you, please let us know. Just leave your comments and/or suggestions here. – Dick Gaylord, 2008 NAR President
Over the past several months, I have talked with members all across the country about their ideas to engage buyers and re-energize the marketplace. On Thursday on behalf of NAR’s 1.2 millions members, I shared the best of these ideas at a hearing about strengthening the housing market before the House of Representatives Small Business Committee.
The first is a homebuyer tax credit, which has broad support among our membership. In 1975, when the country was facing an economic situation similar to today, a temporary tax credit helped cut high inventory caused by the over-supply of newly constructed homes in an economic downturn.
For the homebuyer tax credit to have optimal impact it must include three features. First, it would apply to all residential real estate, not just foreclosed property. Second, by making the tax credit temporary buyers would need to act in a relatively short amount of time. Third, to increase purchasing power income limits be increased, especially for single individuals. All three features are necessary for the tax credit to bring buyers back to the market.
The second idea is to bring back the small investor, who currently is penalized by an out-of-date tax law. In 1986, when the tax code was written, individuals who earned less than $100,000 could take advantage of an exemption that allowed them to continue to invest in real estate as individual owner-landlords while not paying higher taxes. With the median salary having increased over the past 22 years, less people can take advantage of the exemption. So, I urged Congress to index the $100,000 income cap for inflation. In today dollars, the cap would increase to $185,000, which would greatly expand the available pool of small investors. And more investors means more homes sold.
The homebuyer tax credit and bringing back small investors are two excellent ideas to jumpstart the housing market. We’ll keep you updated on their progress as they move through Congress, and let us know if you have more great ideas to rebuild the market. – Jim Helsel, 2008 NAR Treasurer.
Last week, in my entry “Why Settle with the DOJ,” I explained the facts about our settlement agreement. Obviously, USA Today failed to read our news release or visit our web site, www.realtor.org/DOJ, and get all the facts BEFORE commenting on the news.
The May 29th editorial, “One bright sign emerges in a gloomy housing market,” included many inaccuracies and blatantly misinterpreted our settlement agreement with the Department of Justice. Last Friday we sent a letter to the editor, asking for both a correction and an apology. As of today, we have not received a response.
Download the letter here. I encourage you to read it, and then share your views with USA Today readers by leaving a comment at the bottom of the story page: http://blogs.usatoday.com/oped/2008/05/one-bright-sign.html. – Dick Gaylord, 2008 NAR President
Last Sunday, I opened the outlook section of the Washington Post and read the article, “Where Credit’s Due: Villans in the Mortgage Mess.”
The article (accurately) points out that there is sufficient blame to go around for the mortgage crisis. That’s not new. Unfortunately, it fails to mention all of the great work many of us in the housing industry are doing to resolve the problem.
REALTORS have been working with the Center for Responsible Lending for several years now to help borrowers understand their mortgage options. We also have been pushing regulators to enforce responsible lending practices. And, we continue to work with Congress to pass legislation that would make housing more affordable through homeownership tax credits and increased conforming and FHA loan limits. These are solutions that will have a positive impact on our markets and on families who are struggling.
In all of our efforts to stabilize the market, we must be careful not to overreact and implement policies that make it impossible for good borrowers to obtain credit. It’s easy to find folks to blame, what we really need are solutions that protect consumers and strengthen the housing market. – Dick Gaylord, 2008 NAR President
