Does housing policy influence housing movement in your neighborhood?

Asked by Trulia Los Angeles, Los Angeles, CA Tue Feb 5, 2013

For example, do/did you see more first time home buyers with the first time home buyer rebate program?

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Meredith McK…, Agent, Pasadena, CA
Tue Feb 5, 2013
The first time homebuyer rebate program and state/federal policy that allowed sellers to short sale their homes without tax consequence both positively influenced housing movement. On the negative side, federal policy that allowed Fannie Mae to bulk sell defaulted properties to investors have shut homebuyers out of the market by creating an artificially low inventory which are driving prices up. This short-term bulk sale scheme to tighten inventory so that prices would increase to support property tax bases rising more quickly to support local government services could end up hurting low income and transitional neighborhoods where many foreclosures occurrred, since most investor owners are renting out these homes and condos rather than putting them on the market for sale.

Meredith McKenzie
Broker Associate #01142186
Podley Properties
Pasadena, California
0 votes
Donny Opoku, Agent, Ladera Heights, CA
Thu Feb 7, 2013
Of course. Housing is a market. If policies change it ultimately effects an educated buyer decision.
0 votes
Madelaine Ko…, Agent, Los Angeles, CA
Wed Feb 6, 2013
The first time homebuyer programs and rebates helped tons, I had one of the best years ever in that I sell a lot of homes in that price range.
The Short sale tax forgiveness program is awesome but I am afraid that not enough home owners realize what it is...
NOW, the investors program is great, let them buy the homes and fix them up so people can get loans on them...The investors where here 10 years ago buying up everything,also. creating low inventory..they pay taxes on the income.
NOW the capital gains tax increase has already hurt the housing market as sellers will not be selling! I have had one instance already....
0 votes
Bill Hooper, Agent, Los Angeles, CA
Tue Feb 5, 2013
Yes we did, the housing credit did motivate first time home buyers, unfortunately it has long since expired! However, rates are lower, that should be motivation enough. The most difficult issue at present is the low housing inventory, multiple offers are common now and driving prices up.

Bill Hooper
0 votes
Caroline Har…, Agent, Northridge, CA
Tue Feb 5, 2013
Absolutely yes!

It is something that will play a role in our economy and real estate market as well as in our business, but it doesn't usually happen right away. By the time clients hear about these programs or new regulations, they are either coming due or have past.

I like to do my part in keeping my neighborhood up to date on all the latest from the news influencing their real estate market so that they can have the chance to act on it.

Caroline Harabedian
RE-Search Concept
8700 Reseda Blvd., Suite 213-B
Northridge, California 91324
(818) 967-9626 mobile
(818) 979-0226 fax
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