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STUART THOMAS, OWNER, RE/MAX SELECT ONE IN HUNTINGTON BEACH

1) Orange County home sales activity is improving and what is needed to keep it moving in a positive direction are stable policies from Congress, meaning do not eliminate the home mortgage interest deduction or abolish federal lending institutions Fannie and Freddie, which together with the Federal Housing Authority have provided stability and liquidity to the housing market for more than 70 years, giving hundreds of thousands of American families the chance to own a home.

2) As for the economy, the key right now is job creation, possibly followed by underwriting standards. Historic low interest rates may not last, especially if the economy begins to add jobs. Right now rates are more likely to increase over the next few years than prices to fall further, which means that purchasing power may be as good as it gets today.

3) Short sales and foreclosure sales are here for the foreseeable future. The banks need to think creatively about how to pare down their REO and distressed inventory and so we may see some aggressive new programs next year. I don’t know that deeds-for-lease programs would be all that popular and instead think that refinancing options for borrowers who continue to make payments on time, despite being upside down due to drops in appraised values, should be given some better alternatives than what they have now, which is nothing but strategic default.

4) 2012 is an election year and that usually stirs the pot as people either try to anticipate the outcome of the national election or simply sit out and wait to see what happens afterward. After President Obama took office there was a boost in confidence and optimism, but that didn’t last very long as soon as people saw it was the same old tug-of-war between the executive and Congress and between the political parties.

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