Slow Market, Election Shakeup Present Opportunity

Unlike in housing downturns of the past, today's consumers have job stability and the financial wherewithal to purchase a home.
By: Kelly Quigley: REALTOR® Magazine Online
Despite a softening real estate market, the sky isn’t falling. In fact, today’s market conditions are ideal for buyers, who can choose from a wider selection of homes, find better deals, and still take advantage of low interest rates.

“The media isn’t telling the story. These are perfect conditions for the buyer,” said Tom Stevens, president of the NATIONAL ASSOCIATION OF REALTORS®, at the Member & Director Update on Thursday evening.

To help consumers cut through the negative media messages and realize that now is the right time to buy, NAR is running full-page ads in major national newspapers, including The Wall Street Journal, USA Today, and the Los Angeles Times. The ads are the start of a larger NAR campaign, which also will include radio and network TV commercials.

“A price correction is not something we should fear,” added NAR Chief Economist David Lereah. Buyers who had been on the cusp of affording a home will have the opportunity to jump into the market, he said.

And unlike in housing downturns of the past, which were spurred by job losses and high interest rates, today’s consumers have job stability and the financial wherewithal to purchase a home, Lereah added. He also noted that 74 percent of housing markets are now on an upward swing.

What's Happening On Capitol Hill

While NAR’s “Buy Now” campaign is getting its message across in the media, the association is working hard on Capitol Hill to pass key legislation in 2007, despite the shakeup in Washington, D.C., said Jerry Giovaniello, NAR’s chief lobbyist.

Although Democrats control the House and the Senate, NAR is well-positioned to gain the congressional support needed to create affordable small-business health insurance coverage, protect the mortgage-interest deduction, and to keep banks from entering the real estate business.

“Our issues are bipartisan,” Giovaniello said. “We have supporters on both sides of the aisle. Our loyalty is to the REALTOR Party.”

Task Forces Gear Up

On other fronts, one NAR task force is considering changes to the way association leaders are elected. Proposed changes, which will be discussed during 2007, include expanding the size and representation of the Nominating Committee and starting a Leadership Academy to encourage greater member participation in leadership roles.

The Disaster Planning and Mitigation Task Force has proposed that NAR create a disaster response “strike team” to determine if and how REALTORS® should provide recovery assistance as well as develop programs that will assist REALTORS® in preparing for natural disasters.