Gaylord

Gaylord

(Update: Added comment from Century 21 CEO Tom Kunz)

A sampling of reaction from the Orange County real estate industry to the U.S. House of Representatives’ rejection of the economic bailout plan:

Dick Gaylord, a Long Beach broker and president of the National Association of Realtors:

“Historically, housing has led the nation out of downturns. There’s not going to be a recovery without a housing recovery. Liquidity must be restored to the financial system to prevent a freeze in the flow of credit into mortgage markets. … If the flow of credit into the mortgage market doesn’t improve, home sales are going to remain constrained. The faster Congress acts, the sooner we’re going to see broad stabilization in home prices that, in turn, will help economic recovery. … In the final analysis, I feel good about it. I feel there will be continued negotiation, and by the end of the week, there’ll be some kind of plan.”

Allan Gantt, general manager for Presidential Real Estate and president of the Southern California Multiple Listing Service:

“It certainly doesn’t help consumers confidence in the banking industry or the ability of us to get loans for our clients. Probably, something will be done in Washington because both the Democrats and Republicans say we need it. They just need to slap each other around politically. I think something will be done. They have to, or the credit markets will slow up. … This whole banking mess needs to get straightened out before real estate will see a big recovery.”

Mike Cocos, general manager for ERA North Orange County:

“We’re going to see more seller financing, seller carrybacks and loan assumptions. Those are all the tricks and techniques we used in the early ’90s. … If nothing is going to get done, credit will tighten. We’ve been seeing that for the last few months. … To move real estate, you’ve got to have financing. It’s hard to pay cash for a house.”

Don Readinger, president of the Orange County Association of Realtors:

“If the bailout happens, it could make financing available. But if it doesn’t happen, it could make the market tighter because it would be hard to get money for loans. … (But) I’m concerned if they do do a bailout, they won’t have the proper restraints.”

Rich Cosner, president of nine Prudential California Realty offices in Orange County and the Inland Empire:

“Within a week, they’ll have it figured out, and they’ll come up with the votes they need. They’re not going to blow it off and continue down this path. There’s too much at stake. … (The bailout) is a necessary evil, and it’s the better of two evils, the other being the total meltdown of the economic system.”

Kunz

Tom Kunz, president and CEO of Century 21:

“It’s going to be interesting to see what becomes of it but hopefully the House and the Senate will get together and figure this thing out and get it taken care of. Until then all we can do continue is keep our heads up keep moving forward and continue to work with what we have in the marketplace. What we do know is that sooner or later something will get resolved.”

More bailout news …

What O.C. house delegation was thinking before the vote …