Why National Association of Realtors Supports Government Intervention

NAR President Dick Gaylord has asked members to educate themselves and their customers on how the “rescue” bill can help the housing market and the economy. He has been quoted as saying “Like it or not, the housing market can’t rebound until we resolve the problems in the financial markets”.

When asked by members who want to know why NAR is supporting an unprecedented government investment in financial institutions and the housing market Mr. Gaylord’s response was “Many buyers can no longer find financing they need to buy a home, contracts are being pulled off the table, and sellers are cancelling their listings.”

He went on to say that without “swift and substantial intervention,” real estate practitioners and consumers will be faced with a market where:

Getting a mortgage, small business or short-term loan could be extremely difficult to obtain, even with good credit. Consumer and business bankruptcies will be on the rise significantly and lines of credit will be reduced and interest rates on credit cards will rise. Consumer and business spending will be declining, budget deficits will be increasing and there will be declining revenue collections at all levels of government.

Gaylord also said that the cost of such a plan is likely to be below the figures that have been widely reported.  But, as NAR Chief Economist Lawrence Yun has said, there is a very good chance that taxpayers will reap a positive return on this investment over the long term.

So my fellow real estate practicioners, friends and consumers lets get this crisis solved. Get educated and as Gaylord also said, “I believe we can get beyond debate over who is responsible for the current situation and move toward a solution that will benefit REALTORS and all of the consumers we serve.

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