As regional director of RE/MAX of New England, Jay Hummer oversees 275 offices throughout the region, including Rhode Island. He took a few minutes to talk with Providence Business News about President-elect Barack Obama and what changes a new administration might bring to the real estate business.
PBN: How has George W. Bush’s administration done in terms of tackling real estate issues?
HUMMER: The fact that millions of Americans currently live in fear of foreclosure due to predatory lending practices – and the “American Dream” of owning a home is now proving to be a challenge due to the subsequent lending practice crackdown – could unfortunately be a permanent stain on the Bush administration’s legacy. Looking forward, it is incumbent on President Obama to work with Congress to try and remedy the situation.
For Leaders Who Don't Have Time to Get Sick
Top performers guard their calendars, delegate relentlessly and optimize every hour of the day. Health,…
Learn More
PBN: Do you think the $7,500 credit for first-time buyers will have a positive affect?
HUMMER: I do think the $7,500 credit will have a positive effect on home sales. Let’s face it, it’s a buyer’s market right now and with the number of homes on the market reaching unprecedented levels, any additional impetus for prospective buyers to take that next step is welcomed. Once the market equalizes and the inventory is reduced, the supply-demand cycle should normalize and that’s good news for sellers, too.
PBN: What effects do you think Barack Obama’s administration taking the helm will have?
HUMMER: For the first time in several months, there is cause for optimism in the local housing market. Polls overwhelmingly showed that the economy was a primary factor for voters in choosing Barack Obama. As consumer confidence rises, the housing market should expect a halo effect.
Obama has suggested measures including: a 90-day foreclosure moratorium; allowing bankruptcy judges to modify mortgages to address the housing crisis; and creating a 10-percent universal mortgage credit to provide homeowners who do not itemize tax relief. These are all solid first steps and are a good indicator of how seriously the new administration takes the housing situation in the United States.
However, the election isn’t the only factor contributing to optimism. Rhode Island’s most recent housing numbers show that year-over-year single-family home sales were up 6.4 percent in September from the year prior. Although home prices have yet to stabilize, the first step to reverse falling prices is an increase in overall home sales.
PBN: Are there any specific policy changes you’d like to see?
HUMMER: With the Bush administration’s economic stimulus package carrying over to the new administration, it will be interesting to see how it affects consumer confidence and in turn, the housing market as a whole. It is also interesting that China recently proposed a $586 billion economic stimulus package geared toward bolstering their weakening economy. It is too premature, in my opinion to try and dissect President-elect Obama’s policies until we get a solid feel for what they are and how they will impact industry in general.
PBN: You have been working in real estate for 24 years now – which president’s policies did you like the most?
HUMMER: Every administration has its strengths, weaknesses, supporters and detractors. From Reaganomics through the Bush years, each brings a sense of optimism at the onset. While I can’t really pinpoint one administration’s policies that I personally liked the most, I can say that for President Obama, the opportunity is at hand to make a real difference and I hope he is able to achieve it.
RE/MAX of New England, based in Natick, Mass., has 275 offices and about 3,200 sales associates throughout Massachusetts, Connecticut, Maine, New Hampshire, Vermont and Rhode Island. For additional information, visit www.remax.com.
