National News
On Common Ground: Sustainability and Climate Risk
The latest issue of On Common Ground details how towns have recovered from extreme weather, implementing state-of-the-art building techniques and preventative measures to protect communities and property investment. It includes REALTOR® partnership success stories, sustainable and equitable development solutions, and options for paying the costs associated with creating protection. Read this issue of On Common Ground here.
Pending Home Sales Descend 3.9% in April
The Pending Home Sales Index (PHSI), www.nar.realtor/pending-home-sales, a forward-looking indicator of home sales based on contract signings, slid 3.9% to 99.3 in April. Year-over-year, transactions fell 9.1%. An index of 100 is equal to the level of contract activity in 2001.
“Pending contracts are telling, as they better reflect the timelier impact from higher mortgage rates than do closings,” said Lawrence Yun, NAR’s chief economist. Read the full story here.
NAR Statement on President Biden’s Housing Supply Plan
National Association of REALTORS® President Leslie Rouda Smith issued the following statement Monday regarding President Joe Biden’s plan to address the housing supply shortage:
“Last year, a landmark research report commissioned by NAR recognized a shortage of 5.5 million homes in the U.S.—a gap so large it would take more than a decade to dig out of, even with accelerated new construction.
“With rising mortgage rates and a persistent shortage of affordable homes, the dream of homeownership is limited for many middle-income, first-time, and first-generation homebuyers. Urgent action is needed to tackle our nation’s housing supply crisis. NAR welcomes the administration’s work on this effort and encourages policymakers to look at comprehensive action.” Read More
State News
Ohio Lawmakers introduce R-PACE measure to protect consumers
Ohio REALTORS® is pleased to announce the introduction of House Bill 646 jointly sponsored by Representatives Bill Roemer (R-District 38) and Al Cutrona (R-District 59). The legislation will enact guardrails around Residential Property Assessed Clean Energy (R-PACE) financing to protect consumers and homeowners.
Concerns with R-PACE financing:
- R-PACE administrators are not required to apply the “ability to repay” rules or “Know Before You Owe” disclosures. This could financially devastate a homeowner if they are not fully aware of what they’re signing up for. Since the R-PACE loan is a “super lien” if the homeowner cannot afford the increased property tax bill, they could lose their home to foreclosure.
- Home energy audits are also not required to obtain a PACE loan, leaving a homeowner uncertain if a financed improvement achieves the promised energy and financial savings.
- Disclosure and transactional complexity creates confusion for both the seller and buyer. A seller may not know when to disclose an existing R-PACE loan to their REALTOR, leading to an interruption or cancellation of a home sale.
- The Federal Housing Administration, Fannie Mae, Freddie Mac and the Veterans Administration do not back mortgages with PACE loans. And since the loan stays with the property until sold, borrowers cannot access cost-saving refinancing options, or obtain a loan for home purchase.
- There are growing reports of fraud and abuse, including predatory targeting of low-income and elderly homeowners resulting in financial distress of the property owner, and even foreclosure
REALTOR® study finds institutional home buyers in Ohio surpass national rate:
The number of residential home sales involving institutional buyers in Ohio outpaced the national average, according to the latest findings by the National Association of REALTORS®. Overall, institutional buyers accounted for 16% of home sales across Ohio in 2021, tying the state for the nation’s sixth highest rate. The report — Impact of Institutional Buyers on Home Sales and Single-Family Rentals — found a 1.5% uptick in the share of institutional buyers in Ohio from 2020 to 2021. Read More
Local News
NAR DC Legislative Meetings
Dayton REALTORS® was well represented at NAR’s Legislative Meetings in Washington, DC. During the meetings members received updates from various NAR committees and learned about best practices for issue advocacy. They also heard from speakers such as Anna Palmer and Jake Sherman (Punchbowl news), Lawrence Yun (NAR Economist), and Doug Sosnik (political/policy expert).
The committees at Dayton REALTORS® are working to bring a variety of speakers to speak with our membership. Our goal is to create a dialogue between public officials and Dayton REALTORS® and our membership. If you have any questions on how to get involved, how to run for office, or the advocacy work of Dayton REALTORS® please contact Dan Douglas at DDouglas@DaytonREALTORS.org.
