| Hopeful Signs on the Horizon |
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For homebuilders and homebuyers alike, 2009 began with some hopeful signs on the horizon. According to the most recent reports, last year San Bernardino County led Southern California in home sales, with a nearly 89 percent increase over this time a year ago and is still the most affordable county with a median home price of $180,000 - the only county in the region with a median price less than $200,000. In addition, mortgage rates remain at historic lows. According to financial publisher HSH Association, the last time 30 - year mortgage rates (the most common mortgage) were this low was sometime around 1961. Throughout 2009, mortgages are expected to remain at these historic rates or even decline as the government attempts to jump - start the national housing market by buying up mortgage-backed securities. Freddie Mac (the Federal Home Loan Mortgage Corporation) reported in January that average rates on 30 However, housing news is more than financial news. Last week, the Building Industry Association (BIA) Baldy View Chapter, the chapter that represents homebuilding professionals throughout eastern Los Angeles and all of San Bernardino County empanelled some of the region's most noted homebuilders to assess homebuilding's future here in San Bernardino County. Moderated by Russ Valone of MarketPointe Realty Advisors, the 2009 Inland Empire Housing Outlook was presented in conjunction with the Southern While we covered a great many issues, in summing up, one of the most important conclusions we drew from the panel was to concur with National Association of Home Builders (NAHB) President/CEO Jerry Howard, who said "(i)f we are going to successfully pull our nation out of recession, we must address housing first". The best way to address housing first is through NAHB's Fix Housing First, one of the largest coalitions of housing advocate sever assembled in the United States which was created to push for a housing recovery plan that will revive the economy. Fix Housing First consists of more than 600 organizations, home building companies and manufacturers and campaigns for a major stimulus package to stabilize home values and financial markets while reigniting consumer demand. The coalition is urging Congress to support enhancements to the homebuyer tax The Fix Housing First coalition recently Researchers studied the impact of a short- term program offered by the Fix Housing First Coalition that would combine a significant tax credit for all homebuyers from $10,000 to $22,000 with a time-restricted mortgage rate write - down to 2.99 percent. The economic analysis demonstrated that adding these housing stimulus provisions to the anticipated economic recovery bill would increase the Gross Domestic Product (GDP) by 1 percent annually while creating 940,000 new jobs every year. In addition, it would increase average homeowner equity by $25,000 by 2012 while increasing aggregate homeowner equity by more than $2 trillion by 2012. More importantly, it would increase revenues at the federal and state level that would exceed the cost of the program. So far, things are looking positive. Last week, the Fix Housing First Homebuyer Tax Credit legislation was introduced in the U.S. Senate by Senator Johnny Isakson (R-Ga.), to expand the homebuyer The good news for homebuyers is, there is no reason to put off home shopping. Both Isakson's proposal and the original tax credit legislation cover all homes purchased in 2009. Whether you're currently shopping for your first new home or just window-shopping, you can do more than just hope. Check out www.FixHousingFirst.com on the Internet. It may bring your American Dream of Homeownership that much closer. *****
By Scott Coler of Capital Pacific Homes, Inc. PUBLISHED FEBRUARY 7, 2009
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