photo credit: lrargerich
The US government must urgently boost home buyer confidence if the real estate market is to recover, property experts have said.
The National Association of Realtors (NAR) has sent a letter to Congress demanding a housing stimulus package is put together to help the sector.
Any successful measures could help stage a recovery in the American economy as a whole, the group said.
While people looking to sell homes have been hit hard by falling values, foreclosed homes have presented opportunities to first-time buyers and property investment firms.
NAR said a federal mortgage interest buy-down programme is needed, drawn from the Treasury Department’s troubled asset relief program.
Lower interest rates on existing and new home loans would also be needed, the group said.
NAR president Charles McMillan said:
“Housing has always led our economy out of downturns, and lower interest rates coupled with foreclosure mitigation are key ingredients to stabilising the housing markets and preserving homes and communities.”
NAR has also asked that the $7,500 tax credit for first time home buyers be extended to all house purchasers.
According to figures from the group, as many as 700,000 new home sales could be generated by a one to two per cent cut in the interest rate.
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