The Effect of Obama's Election on Florida Real Estate

The election of Senator Barack Obama as president of the United States, along with gains by Democrats in the U.S. House of Representatives and Senate begs the question, "How will the policies of the new administration affect the real estate housing industry, especially here in Florida?"

According to the National Association of Realtors (NAR) President, Charles McMillan, “Realtors® are excited by this historic election and are ready to work with our new president and the new Congress on issues that are at the heart of the American dream of home ownership.”

Availability of affordable mortgage financing and small business health insurance coverage are at the top of NAR's and local realtor's priorities. Importantly, those two issues are also priorities of both major political parties.

REFORM OF FANNIE MAE & FREDDIE MAC
NAR analysts expect the Obama Administration and the new Congress to focus first and foremost on regulatory reform of the country’s financial services industry. Lawmakers will be looking at what went wrong and what needs to change to ensure proper regulation of mortgage and other asset-backed securities.

A large part of this review will focus on potential changes to the secondary mortgage market companies, Fannie Mae and Freddie Mac, which are currently under government conservatorship. Among the options: folding them completely into the federal government, making them 100% private, or keeping them as the public-private hybrids they currently are.

The nomination by President-elect Obama of Tim Geithner to head the Treasury Department is a good omen. He is a talented and experienced expert on the U.S. and global financial world. He has been involved for many years working to stabilize the financial markets of the world.

ANOTHER STIMULUS PACKAGE
The Obama administration and Congress will also push for another economic stimulus package, particularly if the outgoing 110th Congress balks at passing one before the end of it's term. Hopefully this stimulus package will do more to stimulate jobs and therefore the affordability of housing, than the previous stimulus package. NAR and its siter organization in Florida, the Florida Association of Realtors (FAR) are also asking Congress to make the conforming high-cost loan limit of $729,750 permanent and to eliminate the repayment requirement in the currrent first-time homebuyer tax credit, both of which would stimulate the housing market.

FORECLOSURE ASSISTANCE & AFFORDABLE MORTGAGE FINANCING
NAR also expects the Obama administration and Congress to assure that Wall Street banks that are being "rescued" use some of that $700 billion to slow down the rate of home foreclosures and make home mortgage financing more available at reasonable rates. Many Florida communities, and particularly Sarasota nd Fort Myers, are witnessing painful downward pricing pressure on homes for sale inventories due to the huge overhang of homes and condominiums in foreclosure.

HEALTH INSURANCE REFORM
Looking a bit further ahead, Congress, with leadership from the new President, is expected to also take on comprehensive health insurance reform, an issue that impacts real estate professions as well as all small businesses. Making small business health insurance more affordable would be a great benefit to Realtors as well as to the millions of other small businesses in the U.S.

While in the short-term, everything is focused on turning the U.S. and global economies around, looking forward to the new Obama administration, there seem to be as many opportunities as challenges.

Because many of the issues facing the real estate industry are supported by both the Democratic and Repulican parties, it seems as though we have a good chance for improvement in the real estate market. And, it is certainly true that the Florida real estate industry, especially here in the metro Sarasota Bradenton Venice area, can use all the help it can get and the sooner the better.

If you have questions about buying or selling a home or condo in the Sarasota or Bradenton area, feel free to call upon Brian Ward, Sarasota Realtor with REMAX Alliance Group, an experienced real estate professional.