I turned 55 years old last October. For the record, I’m fairly technologically savvy for a guy my age. I can do lots of “things” on my computer and most of my friends call me (unfortunately) when they have problems with their machines. I have a Black(Crack)berry. Yes, I’m addicted to it – I don’t go anywhere without it AND my computer.
Please understand, I believe in the entire concept of social media. It actually makes sense to me. The idea of blogging, email, LinkedIn, text messaging, FaceBook, Twitter and even MySpace have a logic behind them, albeit all for different reasons. I can’t and won’t deny that I’ve wasted more than a few minutes responding to my friends and business associates when any of the aforementioned social networking groups forward a notice that I’ve been pinged, invited to join, had my “wall” written on or been emailed in an attempt to contact me – the reasons don’t matter.
In a world where the speed of communication increases exponentially on a regular basis, I wonder how many ways we’ll find to communicate more effectively (I remember bag phones). Sometimes I worry that I won’t complete my real job because I’ll feel obligated to tell someone that that I just filled my car’s gas tank and that the price of fuel has gone down – in 140 characters or less. Or, I might leave a message on everyone’s wall that “I am preparing to pack for the Midyear Meetings in Washington because I don’t want to miss the Housing Symposium”.
Now, having poked fun at the many social methods of communicating, let me say that I find these new ways of talking to each other, and of promoting ourselves and our business, fascinating. If you haven’t found the reason to use the latest technology-based communication methods, then you are probably behind the times. They all have good reason to exist. It’s just a matter of what works best for you.
Twitter, one of the newest ones, definitely intrigues me. Over the long run, it might even cause users to shorten their communication to what is necessary…if it doesn’t, that’s ok, too. After all, good communication is the basis of everything. Best to everyone. Spring is almost here!! – Jim Helsel, 2009 NAR Treasurer
It’s Saturday afternoon and I’m gathering my personal financial data as I prepare to meet with my accountant to complete my income tax returns. I don’t know anyone who relishes this chore, but at least we only suffer through it once year. A little while ago I came upon my bank statement indicating how much interest I’d paid during calendar year 2008 as part of my mortgage payment. It struck me, as it always does, that without mortgage interest deductibility the taxes I owe would be significantly greater. NAR has consistently maintained a policy that if MID were taken away from owners that property values would drop. Moreover, one of the major incentives to homeownership would be lost.
The National Association of Realtors® understands that homeownership is a basic underpinning to our country’s economic wellbeing. That is why, year after year, NAR has stood shoulder to shoulder with property owners in the halls of Congress as The Voice for Real Estate® protecting the retention of MID.
If anyone believes the recent suggestion that there be a reduction of MID for home mortgages at the “upper level” won’t trickle down to every level of property ownership then we need only to remember how the sale of properties at every level affects every other level. Property sales also affect nearly every other component of our economy as well. More succinctly, a reduction in demand will not only decrease property values at the “top end” but it will filter down to lower priced properties affecting everyone that buys, sells or owns property. At a minimum, there would be a loss in value equal to the present value of the tax benefit being taken away. In the early years of homeownership or in cases where buyers borrow to finance the majority of a property’s value the loss of MID could actually place the property’s value lower the original purchase price. It is estimated that the total current present value of MID using reasonable discount rates is approximately $90 to $133 billion. Such a loss in current home values would harm an already fragile market.
There are many reasons to retain mortgage interest deductibility. For a more complete discussion regarding MID and its attributes I would encourage you to visit www.realtor.org. For now…I need to finish my taxes. Uncle Sam is calling!!! – Jim Helsel, 2009 NAR Treasurer
Last week, your Leadership Team had our annual meeting with the past presidents of the National Association of REALTORS®. We were also privileged to have a former CEO and previous NAR staff attend. Each year, NAR senior staff provides an in depth briefing of the issues facing the association and how we will address those issues for the benefit of our members.
It is also the Leadership Team’s opportunity to acquire knowledge and feedback from past leaders of this association. They have an insider’s view of the workings of this great and complex organization that few individuals can offer.
Anyone that has served this association from president to treasurer does so because of their passion for serving our members. (Believe me, it is not because of our AIG bonuses!) After listening to the dialog last week, it is evident that our passion has not waned. In fact, it has never been higher.
I was awed by the individuals and their accomplishments as I looked around the room. For example, we should thank 2002 NAR President Martin Edwards for his hard work during his presidency on the Community Choice in Real Estate legislation. It recently became law and now banks are forever banned from getting involved in real estate. 1995 NAR President Gil Woods fought the battle of banning mortgage interest deduction—winning for all of us and our consumers.
All of us can be thankful that NAR’s current leadership stands on the strong shoulders of previous leaders. This benefits all of our members and our industry. — Vicki Cox Golder, 2009 NAR President-Elect
This past week I attended the Region One meetings in Portsmouth, New Hampshire. Dr. Paul Bishop, Managing Director of Real Estate Research for NAR, presented some extraordinarily enlightening stats from recent homebuyer research:
• 67% of first-time home buyers purchased a home in 2008 based upon their desire to be homeowners – not as an investment strategy.
•87% of home buyers still viewed their home purchase as a “good” financial long term investment.
I must say, these figures prove what I have known and experienced as a selling Broker. In the Dayton, Ohio, market where I have lived and worked in over the past 30 years, home prices have appreciated between 2 and 4 percent, until the past 2 ½ years. We have never seen double-digit appreciation. For the most part, people buy a house here because they want to have a home, a place of retreat, a place of comfort, a place to live out life – not because they think it will it turn a staggering financial gain.
REALTORS® know that homeownership is more than a financial investment. Call it the American Dream, whatever; owning a home is as central to our life. It’s an investment in our families, our communities and our future.
So, why is it that Wall Street geniuses were allowed to construct faulty financial networks and programs, so they could make money on the backs of homeowners? And, now that so many of those homeowners are at risk of losing their homes, why is it that housing solutions are being conceived of and designed by people who have never sold a home in their lives, and do not have a clue as to what can help a buyer buy and a seller sell?
Jim Cramer can scream all he likes, but it was people like him who supported and nurtured a faulty financial market that lead to the down turn of at least a third of our economy – an economy built on housing. Wall Street, not Maple Street, attached itself to what looked like easy money. But in the end, someone had to pay, and it’s all homeowners who are suffering.
I applaud Jon Stewart for (finally) taking Jim Cramer and Wall Street to task in a public forum. If you haven’t seen the interview on the Daily Show, you can watch it here, and send the link to your fellow REALTORS®.
| The Daily Show With Jon Stewart | Mon – Thurs 11p / 10c | |||
| Jim Cramer Extended Interview Pt. 1 | ||||
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As Jon says, we don’t find any humor in any of this when the American Dream has been taken away from so many.
The past two years have taught us all valuable lessons about the financial system that most of us simply took for granted. We are smarter now, and I am confident that the proper regulations will be put in place so that this never happens again. Next time you watch Jim Cramer scream at your TV, go ahead and scream right back at him: “You will never know a better return than when you have a place to call home”. – Steve Brown, 2009 VP & Liaison to Committees
In 2001, NAR began our fight against the Fed/Treasury proposal to allow national banking conglomerates into real estate. For eight years, we sounded the alarm that blurring the line between banking and commerce would be bad for consumers and ultimately put our financial system at risk.
Although our voice was heard in Washington, we couldn’t quite convince enough lawmakers that a permanent ban was needed. Still, we kept the drumbeat going.
Oh, what a difference a couple of years makes!
During the past year and a half, we have seen our fears play out on a national stage. Many large banks that took too many risks in an effort to grow their businesses are now in financial trouble. Unfortunately, it has fallen to the taxpayers to keep the financial system afloat.
On Wednesday, I breathed a long sigh of relief when President Obama signed the 2009 Omnibus Appropriations bill that bars national banking conglomerates from entering real estate brokerage and management. The long fight is finally over.
These last two years have shown us that sometimes the path to victory requires a patient, steadfast fight. I hope this victory will encourage you that NAR is making remarkable strides to bring stability back to America’s financial system and to make our businesses as successful as possible.
As Harriet Beecher Stowe once said: “When you get into a tight place and everything goes against you, till it seems as though you could not hold on a minute longer, never give up then, for that is just the place and the time that the tide will turn.”
This will not be the last battle that tries our resolve. We have proven that, when it comes to protecting consumers and the real estate industry, REALTORS® will never give up. – Gary Thomas, 2009 Vice President and Liaison to Government Affairs
Some of you may remember the song “Rainy days and Mondays,” by the Carpenters. Here in New England, this winter has been “Snowy days and Mondays.” Let me tell you about one snowy Monday, yesterday in fact, that was a powerful and encouraging day. Realtor® leaders from New England gathered in Portsmouth, New Hampshire for the New England Realtor® Conference. It had all of the elements that Realtor® gatherings have right now: a bit of commiseration, a little dry humor, some real concern, and a lot of resolve.
Realtors® from New England were sharing solutions to common problems with Association leadership and the larger real estate market. What struck me is that Realtors® are doers and problem solvers. If there is one thing this economic headache is producing it is some great brainstorming! The Right Tools, Right Now initiative is an excellent example. What also struck me is that Realtors® are always underestimated. If you need to get from point A to point B, call a Realtor®. He or she will get you there and quickly.
When I was a child my grandfather would say to me, “Many hands make light work.” The lesson this Monday was that we can make things happen if we work together, not merely because many hands make light work, but rather the solutions are in our heads and in our hands. When we gather, with purpose and focus, we can work through solutions and create our future.
Real estate has been battered by this economy. It is note worthy that virtually everyone maintains that housing will lead us out of the economic mess. As Realtors® we are ready, willing and able to assume our lead role in the recovery. We simply need to do it.
That was the best part of the Realtor® meeting in New Hampshire. There is a change within us as Realtors®. On this snowy Monday, I saw evidence of what makes us amazing. We have moved from ‘its way beyond us’ to pro-active problem solving. We are fixers and we are fixing again.
The weather is a good teacher. There are seasons, warm temperatures, cold temperatures, wet days, snowy days, sunny days, stormy days, and great days. The economy is the same. On a snowy day in New England, a group of 150 leaders learned again the obvious: we will get through this. Spring is on the way! — Ron Phipps, 2008 NAR First Vice President
This week, I am in Las Vegas at the 2009 RE/MAX International Convention. At the opening general session, I had a chance to hear from two great speakers: Dave Liniger, chairman and co-founder, and Margaret Kelly, CEO of RE/MAX International.
Dave talked about the next three years and said the business will be dominated by foreclosures, REOs and short sales. He told agents to be prepared because lending institutions are going to need our help, and they are looking for agents who have additional experience and training in these areas. I naturally thought about REBAC’s course on foreclosures and short sales.
http://www.realtor.org/edmatrix.nsf/pages/REBACForeclosure?OpenDocument
Margaret gave a speech on preparing for the next year and provided four important pieces of advice:
• Work harder than ever and have fun doing it.
• Make use of all of the educational opportunities out there, especially designations.
• Employ the latest technology.
• Enter each day with a positive attitude.
She recommended a book called The Energy Bus. It’s about a guy who was down on his luck and had to take the bus. One day, the woman bus driver gave him ten tips that changed his life. I encourage you all to read the book, stay positive and help all REALTORS® take a ride on The Energy Bus.
I was honored to receive RE/MAX’s Distinguished Service Award. In presenting me with the award, RE/MAX highlighted the contributions I made as 2008 President of NAR – keeping members upbeat and communicating in a challenging year. I share it with each and every one of you, who inspired me with your energy and indomitable spirit. – Dick Gaylord, 2009 NAR Immediate Past President
Earlier today, President Obama announced his plan to help millions of families avoid foreclosure by refinancing or modifying their mortgages. The plan also strengthens the federal commitment to Fannie Mae and Freddie Mac. Visit the page below for more information on how the plan will work.
http://www.realtor.org/government_affairs/gapublic/homeowner_afford_stability_plan
While these measures will certainly help many homeowners and our communities, they alone are not enough to get the housing market and the economy back on track. The economy continues to take a toll on the real estate market – both residential and commercial. As we reported yesterday, Pending Home Sales are at an all-time low. The economy will continue to stagger along until we stimulate investment in housing. In other words, if we want to fix the economy, we need to find ways to get buyers back into the market.
Yesterday, President Obama made a surprising statement, encouraging Americans to invest in the stock market, as a way to build long-term value.
With all due respect, Mr. President, I’ve been in the real estate business for 30 years, through all kinds of ups and downs. Given the choice between investing in stocks or investing in the security, safety, and shelter of Americans’ most precious asset — the family — by purchasing a home, I choose homeownership hands down! With prices and interest rates at all-time lows, there are even more reasons to be bullish on the American Dream. – Charles McMillan, 2009 NAR President
