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Raleigh Regional
Assn. of Realtors
111 Realtors Way
Cary, NC 27513
( 919) 654-5400 voice
( 919) 654-5401
fax
info@rrar.com
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Inside Scoop
Issue
32– March, 2008
 The
Inside Scoop – By Debra Shaw and Tara
Lightner
REALTORS®:
This newsletter is designed to provide you with an update of important real
estate issues and political activities. It will be emailed to REALTOR® members
monthly.
Who'd
Have Guessed It?
By all accounts
we were supposed to know our two party candidates weeks ago. That was the design
set up by the parties when they reset the primary dates in so many states. It
was to give the party nominees more time to raise money and improve their chances
against each other. So how is it that we are still unsure of the nominees? No
one called this right - not the pundits, the media columnists, the consultants,
or the garden variety political junkies. I guess voters still have a few tricks
up their sleeves. The North Carolina
primary is scheduled for May 6th, with absentee ballot requests beginning March
17th.
Here's what we DO know statewide:
Richard Moore is giving Bev Purdue one heck of a scare. Pat McCrory is making
Fred Smith and Bill Graham more than a little nervous and Bill Dautridge will
make Janet Cowell work for the State Treasurer's job. Richard Morgan wants the
top teacher's job and has jumped into the race for Superintendent of Public
Instruction. The biggest local shocker is former Raleigh
councilman and business owner John Odom challenging long time Insurance Commissioner
Jim Long.
In Wake County: Vernon Malone
will have a primary challenger in Ann Akland, a long-time EPA staffer. Chris
Mintz, two years off his shellacking by Ty Harrell in the democratic primary
for House District 41, will challenge incumbent senator Neal Hunt in November
for State Senate District 15. Janet Cowell's departure leaves three democrats
vying for State Senate District 16, and the winner will take on John Alexander
in what is viewed as a safe democratic seat. Paul Terrell will face a very tough
incumbent opponent in popular lawyer and former House Speaker, Dan Blue. Golden
boy Grier Martin should take care of J.H. Ross with relative ease in District
34, if past campaign history is any indication. Wake
County republican leadership member and REALTOR® Eric
Weaver will take on Jennifer Weiss and force her to spend some campaign money.
Ed Ridpath will take on House Minority
Leader Paul Stam again in the mostly southern Cary-Apex House seat. Expect the
Democratic Party and their big money supplier, the Service Employees International
Union (SEIU) to spend some bucks in this one. Ditto for the Linda Coleman race,
House District 39, where they dumped serious cash to shore her up in 2005, and
she only has a general opponent in November. Two democrats have filed for the
primary against House republican incumbent Marilyn Avila in House District 40.
Apex Town Commissioner Bryan Gossage will take on incumbent House Representative
Ty Harrell in what is sure to be a very costly election. Harrell upset longtime
uber-conservative stalwart Russell Capps in this affluent conservative district
in 2005. All three Wake county commissioners will be challenged in November
- including the District 4 race where republican architect and incumbent Kenn
Gardner will be challenged by liberal activist and slow growth advocate Stan
Norwalk. Expect Norwalk to go after Gardner on growth and Gardner to go after
Norwalk on reassignment. Could be a particularly messy one!
Congress
May Consider Second Stimulus Aimed at Housing
With economic
recovery an object on the distant horizon, the idea of a second stimulus package
aimed at jump starting the housing sector is getting some traction. One proposal
is to include a tax credit for buyers - a move that could help reduce the large
amount of housing inventory currently on the market. A similar plan was put
in place to clear out inventory in the 1970s, according to the National Association
of Home Builders.
NAR Chief Economist
Lawrence Yun, remarked that help for first time homebuyers is of particular
importance. "People will realize that the worst in housing is come to an
end if they see bold measures," said Yun. According to the National Association
of Homebuilders (NAHB), bold measures like a substantial tax credit would help
to move some inventory and set off more sales in a chain reaction.
Congress
Considers Proposals to Avert Foreclosures
There's so many
options floating around, it's hard to keep track. Here's a much abbreviated
run down.
1. Uncle Sam Buys Mortgages.
Government buys at-risk mortgages from lenders at steep discounts, restructures
the loans to reduce payments and resells the loans in secondary markets. Investors
in mortgage-backed securities take a loss, but get most of their investment
back. Borrowers get a refinanced mortgage. Pro: gets homeowners out of high-interest
rate loans. Cons: Costs $10-$20 billion in seed money - Administration sees
it as bailing out lenders and investors, and wants to keep government in advisory
role - letting banks restructure loans themselves.
2. Fannie and Freddie buy the
troubled loans and repackage them for sale in the secondary markets.
Fannie and Freddie are GSEs (government sponsored entities) and government backing
is thought to encourage private lenders to issue these loans. The plan would
jump-start the market for mortgages by establishing a true market value for
the securities backed by these loans. Another variation has the loans being
bought, refinanced and insured by FHA, and the insurance would be paid by the
borrower. Pros: Uses existing agencies and lending industry to repackage and
insure loans. Cons: Administration does not want this level of involvement.
Cost: Roughly same seed money $10-$20 billion.
3. Community Reinvestment Funds.
The Foreclosure Prevention Act of 2008 calls for states to use community development
funds administered by the Treasury Department and usually used to boost lending
in underserved areas, to buy foreclosed properties, rehab them and sell or rent
them. Cost: $4 billion in reinvestment funds. Pros: Gets foreclosed properties
back in use. Cons: Doesn't prevent foreclosures. Note: Partisan in the senate,
but has legs, and could be enacted as part of a larger bill.
4. State Issued Bonds. Allows
state housing finance agencies, which normally assist in below-market rate mortgages
and first time homebuyers, to issue tax-exempt bonds to help troubled borrowers
refinance their mortgages. The plan would also expand the dollar amount to allow
the state finance agencies to issue $10 billion in bonds over the next three
years. Pros: Borrowers stay in homes and lenders would get their principal back,
with mortgages refinanced to more affordable fixed rates. Cons: Many states
already issue as much bond activity as they can and raising the limits will
not help them. Plus it is seen as passing the buck to the states. Note: This
proposal has wide support, including Ds and Rs, plus the administration.
Legislative
gap funding for turnpikes remains focus
"Gap funding",
the name given for the funding balance not covered under a toll system for proposed
turnpikes, is an important issue to keep mobility in our growing region. In
2007, the Raleigh Regional Association of REALTORS® took a position to support
the tolling of the southern loop and to support the need for gap funding. This
issue continues to be an important item of discussion for the statewide
21st Century Transportation Committee. In the Triangle, the 540/Triangle
Expressway project will be under construction in less than a year ---
if the legislature approves the gap funding needed to pay for the portion
of roadway construction costs that tolls will not cover. While tolls are
not the ideal solution, leaving 540 as an incomplete roadway would simply
be an unacceptable situation for regional mobility. Other regions also
have proposed toll roads under consideration, so this situation is not unique
to the Triangle. The benefit of using the toll option is that toll roads fall
under the jurisdiction of the NC Turnpike Commission, a quasi private, quasi
governmental entity that can usually save time and money dealing with costly
permitted requirements that can add years to a project.
Several organizations, including
the Regional
Transportation Alliance Business Leadership Group, have continued to highlight
the importance of completing our freeway system, including the need for
gap funding to accelerate the completion of turnpike routes. Few
issues are as critical to maintaining our high quality of life; while new roads
are not the total solution, they are certainly part of it. As you speak with
your neighbors, associates, legislators, etc. please continue to speak of the
importance of accelerating 540/Triangle Expressway -- and the need for legislative
gap funding -- at every chance you get.
Important
Voter Registration Initiative
The Raleigh Regional
Association of REALTORS® is undertaking an internal program to increase our
member voter registration rate. Voting is critical to shaping public policy
and if you don't vote, you don't have a voice. National statistics have shown
us that we can expect 40% of our membership not to be registered
to vote. As we strive to increase our registration rates, we are asking you
to help us AND help your clients. Each person or family that you relocate HAS
to change their critical documents to reflect their new address. One critical
document often lost in this shuffle, is their voter registration form. The next
time you are preparing for a closing, visit this website and print out a voter
registration form for your client. They will appreciate it and you will do something
to help increase voter registration in our area. http://www.sboe.state.nc.us/NCSBE/VR/VR%20Forms/form06.pdf
Falls
Lake Water Reduction
As Raleigh enters
into Stage 2 Water Conservation Measures, the Army Corps of Engineers will significantly
reduce the amount of water from the dam at Falls Lake, which equals about 17
million gallons per day, for the month of March. Approximately 39 million gallons
per day is used currently in the city. Water managers do not want to use the
sedimentation pool at the bottom of Falls Lake, nor do they want the reservoir
to run dry, and this latest effort is evidence they are tying to avoid those
things at all costs. In addition, Mayor Meeker wants to enforce spot inspections
of buildings to ensure the low-flow faucets and other devices have been installed,
and he stressed that conservation is still necessary because the city is still
in a drought. The recent rain has aided regional supplies in Orange, Durham
and Wake counties. More is expected but we remain in a deficit of over 8"
since January of 2007.
Mortgage
Debt Cancellation Relief
The U.S. House
of Representatives and the U.S. Senate passed the Mortgage Forgiveness Debt
Relief Act of 2007; this law states that borrowers will not have to pay tax
on the forgiven amount, once a lender forgives a portion of a mortgage debt
in a short sale, foreclosure, or a similar instance, and this will apply to
debts forgiven between January 1, 2007 and December 31, 2009. There is no income
limitation, although no more than $2 million of the debt is applicable, and
this applies only to a primary residence. Other provisions included in the
act are extensions for deductions for mortgage insurance premiums through 2010,
as well as a provision that a surviving spouse can claim a $500,000 claim for
up to two years after the spouse’s death.
Calling
All Agents -
Secret
Agents That Is ….
Our RPAC Spring event is almost here.
This year's event ….
Our night of gaming will
include all your Casino favorites: Three Card Poker; Texas
Hold 'em; Craps; Roulette; Blackjack and even slot machines. Come show off your
skills for a chance to win some wonderful gifts. A silent auction will also
be taking place for you non-gamers. Make plans to come join us on April 24th
at the REALTOR® building for a night of fun, food, drinks, and of course our
very own REALTOR® James Bond and Bond Girl Contest. The event will be catered
by Catering by Design, with a delectable menu of roasted pork loin, round of
beef, shrimp, an assortment of sushi and much more. Tickets to this fun event
are $25 each, and
can be obtained by calling 654-5400, ext. 235 or emailing debras@rrar.com.
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