Where McCain, Obama Stand on Housing (REALTORS Association)

As the race for the presidency shapes up as a contest between Sen. John McCain, the presumptive Republican nominee, and Sen. Barack Obama, who claims the Democratic nomination, here are their initial positions on housing and related economic issues.

McCain:
1. Proposes to spend up to $10 billion to allow some homeowners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Believes government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.

Obama:
1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help homeowners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.

WI REALTORS® Association 1st Quarter Press Release

Wisconsin Home Prices Fall Modestly as Sales Decline

Madison - Declining home sales nationwide and bad weather here in Wisconsin combined to drive state home sales down in the first quarter of 2008 compared to that same quarter in 2007, yet home prices fell only slightly, according to figures recently released by the Wisconsin REALTORS® Association (WRA).

Wisconsin home sales dropped 24.1 percent in the first quarter, which was somewhat higher than the rest of the Midwest region, which was down 18.3 percent. “It’s important to remember that bad weather always dampens home sales, and given the record snowfall this winter, we were expecting weak numbers for the first quarter,” said WRA Chairman Michael Spranger. “People don’t like to look at houses when the weather is bad, and the weather was definitely bad in January and February this year,” he pointed out.

Spranger noted that Wisconsin’s housing market started to improve in March, which means it’s likely that much of the spring sales activity has gotten pushed into the second quarter. “The good news is that market fundamentals remain solid, with 30-year fixed rate mortgages still around 6 percent, and statewide unemployment under 5 percent in the first quarter,” Spranger said.

Wisconsin’s median home prices fell by a modest margin (-3.8 percent to $154,000) in the first quarter of 2008 as compared to the first quarter of 2007. “We need to be careful interpreting changes in the median price given the rather sizeable change in sales volume, since it’s very likely that the mix of homes changed from year to year,” said Bill Malkasian, WRA President. “But it is healthy to see some price moderation.” Malkasian added, “The price change indicates that housing is becoming more affordable, while not significantly diminishing the asset value of homes. This remains an excellent time for first-time home buyers to get into the housing market given the low mortgage rates and the healthy inventories statewide.”

Looking ahead, the WRA released results from an online survey of top real estate offices from around the state, which showed broker optimism about the market for the balance of 2008. Fifty-two percent of survey respondents said they expected sales in the second quarter of 2008 to be at or above last year, and almost 73 percent said sales in the third quarter would be the same or better than last year. Sixty-eight percent of brokers in the survey also predicted buyer interest would be the same or higher than last year in the second quarter, while 88 percent of survey respondents said that sellers would be more motivated in the second quarter of this year than they were in the second quarter of 2007.

“Overall, it’s not surprising that it takes some time for buyers and sellers to get on the same page when market conditions change,” said Malkasian, noting that REALTORS® continue to work hard to bring the two sides together. “These survey findings do suggest that with highly motivated sellers, there are now some excellent opportunities for buyers,” he indicated.

The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 17,000 real estate brokers, sales people and affiliates statewide. Sales estimates for the state are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county figures on sales volume and median prices are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted. Median prices are only computed if the county recorded at least 10 home sales in the quarter.

Wisconsin Home Prices Stable Compared to Nation

Wisconsin Home Sales Dip in 2007 But Prices Stable
State's housing news much better than nation

02/08 REALTORS® Association Press Release

Madison - Wisconsin housing sales decreased but prices increased in 2007, leaving Wisconsin’s real estate market in much better shape than many parts of the Midwest and the nation, according to the year-end analysis of existing home sales conducted by the Wisconsin REALTORS® Association (WRA).

Wisconsin home sales declined in 2007 by 10.8 percent relative to 2006, but median prices actually rose 0.2 percent over the period to $164,000, according to the REALTORS®’ report. Sales in the Midwest were also down by a similar margin, falling 10.5 percent over last year, but sales nationally were down nearly 13 percent.

“It’s a mistake to look at Wisconsin’s housing market through the lens of national indicators,” said WRA President William Malkasian. “Housing in our state and throughout much of the Midwest is much less volatile than many markets in other parts of the country, especially the Western United States,” said Malkasian. “While 2007 was a rough year for housing sales compared to our recent boom years, Wisconsin’s housing future looks like it will be brighter, faster.”

Malkasian pointed to recent action by the Federal Reserve to substantially cut short term interest rates as another positive sign for the housing market. “Thirty-year fixed mortgage rates averaged 6.3 percent for 2007, but fell to 5.8 percent in January, and this was before the Fed’s latest interest rate cuts,” said Malkasian. “These steps by the Fed will help to keep housing affordable for credit worthy buyers, and offer excellent buying opportunities in this market,” he said.

While sales fell in 2007, median prices in the state actually rose slightly, showing the underlying strength of Wisconsin’s housing market, according to the WRA report. “The stability of prices in this soft market is a good sign for buyers,” said WRA Chairman Michael Spranger. “The fact that we are not seeing the significant changes in the median prices that have been recorded in other parts of the country is an indication that housing remains a good way to accumulate and maintain household wealth for Wisconsin residents,” said Spranger.

According to Spranger, recent REALTOR® polling supports his optimism for Wisconsin’s housing market in 2008. “Wisconsin citizens love their homes, their neighborhoods and their state,” said Spranger, “and we asked their opinions in the middle of January!” According to the REALTORS®’ January survey, 83 percent of Wisconsin citizens ranked their quality of life as good, 80 percent gave their neighborhoods the same ranking and 74 percent said the same about their homes.

The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 18,000 real estate brokers, sales people and affiliates statewide. Sales estimates for the states, broad national regions, and the U.S. are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county and regional sales figures and median prices within Wisconsin are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted.

Current Mortgage Rates

The following are current 30-year fixed mortgage rates at a few area banks.

Associated Bank: 6.055%
M & I Bank: 6.156%
Northshore Bank: 6.274%

Current Mortgage Rates

The following are current 30-year fixed mortgage rates at a few area banks.

Chase Bank - 6.19%
M & I Bank - 6.27%
North Shore Bank - 6.%

WHEDA Loans

WHEDA is loan program in Wisconsin designed to help first-time home buyers finance a home purchase. The program started in 1972 as a way to make loans for low and moderate income households. WHEDA loan benefits include:
-Low, fixed interest rate
-Low closing costs (usually around $800)
-Low down payment (3% of purchase price)
-Lower mortgage insurance premiums
-Job Loss Protection
-Home buyer education.

In Brown County, your income must be less than $63,700 (1-2 person family) to qualify for a WHEDA loan.

When choosing a home to purchase, the price must be less than $204,432 and it must be your principal residence.

Keep in mind that although WHEDA is able to assist many first-time home buyers, there are some items that can affect your approval, such as poor credit history, not enough time at your current job, or not enough savings for the down payment.

Please contact me if I can answer any questions or get you more info about WHEDA loans.

Current Mortgage Rates

The following are average 30-year fixed mortgage rates in our area for the week of 4/7/08.

Associated Bank - 5.81%
M & I Bank - 6.03%
North Shore Bank - 6.15%