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The White House is Changing the Real Estate Market in Pekin, IL as it Enters a Trump Era – Local Records Office

Written by Posted On Wednesday, 25 April 2018 12:51
PEKIN, IL PEKIN, IL

With January home sales dropping 3.2% in Pekin, Illinois, The Local Records Office advises homeowners and real estate agents to look forward into this new era and gain a better scope in how real estate is changing.

NAR forward pending index is looking to continue modest performance. According to NAR Chief Economist Lawrence Yun, it is not buyer demand that is the problem; it is that too few homes for sale, especially in the lower cost starter-home part of the market.

"The economy is good, jobs are being created, the wages are rising but not to the extent of home prices, so this disappointing January figure is all about the affordability challenges and from lack of inventory."

Contract signings are also down, which points to little improvement in home sales in the next month or two.

"Rising rates also begin to push out marginal buyers. We saw that back in 2013 and 2014 when interest rate rose steadily, that the pending contracts fell."

"One final reason is the northeast region extreme cold combined that with heavy precipitation is not an ideal time to walk around the backyard looking for a home."

Commercial real estatereal estate, however, is more upbeat. George Ratiu, the NAR Director of Quantitative and Commercial Research speaks on how the office, industrial, retail and multi-family segments are faring, "the small cap space, where a lot of realtor members are active, we have had basically strong close to the year, with the deal volume of up close to 10%, prices were up 7% and interestingly enough, the main concern for a realtor has been inventory, so there's a tightness in inventory, mirroring what has happened with residential where that inventory tightness is driving declines in volume, commercial is grappling with the same thing and the second thing, is the pricing gap between the buyers and sellers.", the latest data can also be found under the "Research and Statistics"

White House $1.5 Trillion Infrastructure Plan

The Trump administration released its $1.5 trillion infrastructure plans for investment projects for road and bridge construction, waterway improvements and rural development by spending $200 billion in taxpayer money towards bettering the future of Americans. This stimulates of "at least $1.5 trillion in new investment over the next 10 years, will also shorten the process of approving projects to 2 years or less, address unmet rural infrastructure needs, empower state and local authorities, and train the American workforce of the future" stated the White House in a 55-page legislative framework.

The president explains that his plan would emphasize projects in the rural area, including expansion of access to broadband where high-speed internet is more difficult to find.

Trump noted during the meeting at the White House with state and local leaders that "the rural folks have been left out." His plan would dedicate $50 billion to rural development.

Trump also says his plan to create public-private partnerships would spur one of "biggest and boldest infrastructure investments in American history."

"Washington will no longer be a roadblock to progress," Trump said, highlighting that parts of his plan would send money to states in form of grants. "Washington will now be your partner."

This had set a motion of a multi-year process that could eventually lead towards considerable investments in communities.

NAR fights for the rule to offer a health plan to Realtors

The Department of Labor released a proposal to allow "working owners" to band together to form association health plans (AHPs) was a significant move because it includes independent contractors, "working owners" are independent contractors and small business owners with no employees. Though, in part, it needs to "allow all working owners to be part of association plans." And currently, owners who have coverage through a spouse won't be eligible.

Christie DeSanctis is a NAR Regulatory Policy Representative and speaks on what the proposal does as of now and how the eligibility rule does not apply to those with a working spouse and have coverage are not eligible, but may not be the most affordable option, so we are advocating for working families to have a choice without cutting them off before they can even look at that option.

"NAR has long documented the challenges of finding affordable health insurance coverage and historically the rate of uninsured members has ranged between 20 and 30 percent," wrote the NAR President Elizabeth Mendenhall in a 15-page letter that was addressed to the Labor Secretary Alexander Acosta, echoing earlier support. "It is therefore critical that the Department of Labor support the needs of the real estate industry to have affordable health care options so these individuals can continue to focus their role on boosting America's economic growth."

Currently, nearly 9 out of 10 Realtors that work as independent contractors are forced to purchase insurance through individual markets, are often provided fewer choices at higher costs, according to experts with NAR.

And as many as 46% of the NARs' 1.3 million members reported paying for their health insurance out of pocket, while 32% said they were insured through their spouse, partner or family member, according to a profile of group's members from the year 2017. Only 3% said they were covered by an employer's health plan, according to NAR.

Bipartisanship –Democrats and Republicans are coming together to ease lending restrictions

The bipartisan bill –democrats and Republicans meet in an effort of easing reporting requirements of all the largest banks and also easing some lending restrictions on community banks. Those, of course, are our country's smallest banks, and often the only lending option in rural areas.

NAR supports healthy competition between all banks at all sizes. And the bill is expected to do that, while still ensuring safeguards that are in place, to prevent risky banking practices that could harm our economy.

NAR's Senior Legislative Policy Representative, Vijay Yadlapati, explains this bill would get rid of all the rigorous requirements that the smaller community banking institutions would allow them, or free up a lot of their resources to serve the community by making more mortgages available for their consumers.

And Colin Allen, NAR's Legislative Representative also explains, that a lot of these smaller community banks have "large regulators hanging over their heads, bank inspectors and things like that just coming in and pulling loans out, and saying ‘no you did this wrong, you did that wrong' and I think a lot of nervousness about lending will be lifted off generally."

The House also passed a bill, but there are big differences between the Senate and the House versions.

Tax relief for those who went through a foreclosure or a short sale

In the last ten years, NAR has been one of the most forceful advocates for the IRS not to count for giving mortgage debt as taxable income. And every year, Congress has passed that tax relief to keep it going.

Barry Grooms, a Broker in Sara Bay Real Estate Sarasota, Florida testified in Washington that financially struggled households should not be penalized for actions taken by their mortgage lender.

Reform of the National Flood Insurance Program (NFIP)

Cities need the federal government to pass long-term reauthorization and reform of the National Flood Insurance Program. The program is focused on implementing recent legislation by adjusting premium increases, issuing new rates and mapping updates, supporting mitigation and ensuring a special advocacy to connect policyholders with information that they need to better understand the program.

 

 

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