How will the Obama Administration affect the real estate industry? Dr. Paul Light et. al. explain

At the NAR Conference and Expo, Dr. Paul Light, a professor at NYU and an expert on presidential transitions, headlined a panel about how the Obama administration will address the housing sector. NAR’s Show Daily publication also ran this headline on the front page (see picture at right).

Here’s what Dr. Light had to offer:

  • Obama transition is expected to be smooth, Bush administration is cooperative
  • For the most part, appointments to housing positions won’t be known until late this year or early next
  • It will take several more months to place sub-cabinet level appointments
  • Obama is sometimes faulted for not making quick decisions, so his appointments could be very drawn out due to analysis paralysis
  • Obama will have one of the most difficult transitions in history (Dr. Light compared Obama transition to Lincoln, who had inherited a situation where several states had seceded and Roosevelt dealing with the Great Depression)
  • Economic stimulus will be a primary concern for Obama. Others initiatives could be Medicare, jobs, and energy, but there is not a lot of money for new government programs.

The two other panelists had this to say…

  • Obama will be facing a bleak unemployment situation. Some are estimating up to 9 percent
  • Obama will inherit more calls for regulation of banking and housing sectors
  • Obama will inherit Republicans in Congress who are angry at Wall Street for causing their fall from power
  • Obama will need to solve crisis in the confidence of lenders and borrowers
  • Dealing with the cycle of foreclosures will be important. Obama will force lenders’ hands on modifying mortgage terms
  • Obama may be faced with a situation where FHA is unable to manage risk better than other lenders. It might be necessary to rescue the rescuers.
  • Said transition isn’t going as smooth as Dr. Light thinks, citing the fact that the memorandum of understanding between the Bush administration and the Obama transition team still had not been signed as of 3 p.m. today
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4 Responses to How will the Obama Administration affect the real estate industry? Dr. Paul Light et. al. explain

  1. George Wynn says:

    Voting him took risks… :D Argh.

  2. Ki says:

    Its kind of wierd for the next few weeks. Is Bush going to start any new policies to deal with the financial crisis considering he is about to leave office. It would seem wierd since Obama might not end them. Its almost like they should agree on things before they get implemented because their is not point in trying to implement something that will only be around for a month.

  3. It will be really hard for Obama to revive the Economy of US it would really take a long time and hopefully he will not make the people who voted him regret that they did. I think he should make a solution for the economic problem that would last for a long time and will benefit the majority and let the people know how good he is as a leader.

  4. If you want to see a reader’s feedback :) , I rate this post for 4/5. Decent info, but I just have to go to that damn yahoo to find the missed bits. Thanks, anyway!

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