Realtors demand focus on housing

The National Association of Realtors reported home prices fell in August. The median home price for the month was $168,300, representing a 5.1 percent decline compared to the median price in August 2010.

Sales rose in August compared to the year before, but 22 percent of the purchase activity came from investors, not consumers, thus hampering any sign of consumer confidence strengthening. The report also found that distressed homes accounted for 31 percent of total existing home sales in August, which is a slight increase from 29 percent reported in July 2011.

"The biggest factors keeping home sales from a health recovery are mortgages being denied to creditworthy buyers, and appraised valuations below the negotiated prices," said Ron Phipps, NAR president.

In response to poor housing market data, Phipps called upon lawmakers to keep housing the top priority on the nation's public agenda. Phipps believes housing and homeownership issues affect all Americans, and a strong housing market is the key to the nation's economic recovery. Phipps delivered this message during the New Solutions for America's Housing Crisis forum to a joint panel of experts, who were there to discuss the economic challenges of the housing market.

Phipps said the housing market has not shown enough recovery in the past few years and proposed legislation and regulatory rules be created to help homeowners receive tax benefits. This could help struggling borrowers remain in their homes, while nurturing consumer confidence. In addition, Phipps believes that overly stringent standards and lower mortgage loan limits are keeping qualified borrowers from obtaining home loans. He called upon mortgage lenders to reduce the overcorrection and underwriting standards. 

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