Canada burns while America chokes, a lone voice calling for GSE reform and a blip of good news on affordable homeownership. Looking into the wild and wooly world of real estate, here are our Hits and Misses for this week.
Miss: Trudeau Fiddles While Canada Burns. Most Americans were unaware that Canada is dealing with an environmental crisis of nationwide wildfires until this week when smoke from up north polluted the U.S. Northeast and Mid-Atlantic regions, creating orange-grey skies and forcing many to wear masks when outdoors. Prime Minister Justin Trudeau blithely blamed the crisis on “climate change” while ignoring his government’s incompetent forest management program that enabled the vast wooded areas to grow out of control thanks to a mostly hands-off “sustainable” approach. If Trudeau’s government used a more focused controlled burning approach that has reduced wildfires for centuries by Canada’s First Nations population, today’s crisis would not have happened. The level of property damage and environmental destruction from this catastrophe has yet to be tabulated, and hopefully Canadians will demand something better from their prime minister than a dull it’s-not-my-fault shrug.
Hit: Forgotten But Not Gone. Kudos to former FHA Commissioner and MBA President and CEO David H. Stevens for penning a cogent op-ed column this week (not for this website, alas) on the long-overdue need to end the conservatorship of Fannie Mae and Freddie Mac, warning that the government-sponsored enterprises have become politicized tools of successive administrations. “As each succeeding FHFA director comes into the role the industry, potential homeowners, lenders and more will face the risk of a cascading series of policy initiatives being implemented by the GSEs at the behest of the FHFA, regardless of whatever protests that may come from the respective staffs at either GSE,” Stevens wrote. While his voice is a singular cry in the policy wilderness, Stevens deserves praise for reminding us that 15 years of conservatorship is long enough.
Miss: The Deafening Silence of Political Indifference. Stevens’ op-ed was well received within the housing space, but it was ignored by both sides of Capitol Hill. Not surprisingly, Stevens was speaking the truth that Washington didn’t want to acknowledge – and neither the Executive nor Legislative Branch are eager to disrupt the too-comfortable status quo that conservatorship of the GSEs has created for them. The absence of federal leadership on this issue is emetic.
Hit and Miss: Affordable Homeownership Opportunity Progress (Sort Of). This week, the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index determined that 45.6% of new and existing homes sold during the first quarter of this year were affordable to families earning the U.S. median income of $96,300 – up 38.1% from the previous quarter. That’s the good news. The bad news: the previous quarter was the lowest level for that index since NAHB began tracking affordability on a consistent basis in 2012. And the first quarter index level was also far below the 56.9% score from one year earlier. More work is needed, of course but at least the index isn’t plumbing new nadirs.
Hit: A Different Spin on an Aging Favorite. Fans of HGTV’s “Fixer to Fabulous” starring Dave and Jenny Marrs will be happy to know that the series has been renewed for a 16-episode fifth season. But what might be more intriguing is a new four-episode spinoff series called “Fixer to Fabulous: Italiano” that takes the Marsses to Italy where they are tasked with restoring a crumbling, centuries-old villa. Loren Ruch, head of content at HGTV, declared, “We can’t wait to showcase the Marrs as their fans have never seen them before, completely out of their element for a remarkable renovation set in the stunning Tuscan countryside.” Kudos to HGTV and the Marsses for being willing to readjust their formula in what could be a very entertaining change of pace.
Photo: Anthony Quintano / Flickr Creative Commons
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