SILVAR  :  Newsroom  : Real Estate Articles

Real Estate Articles

Local REALTOR® Association Official Speaks to Kiwanis Club of Los Altos

Image about Local REALTOR® Association Official Speaks to Kiwanis Club of Los Altos
Wednesday, November 5, 2008

"If you live and work in Los Altos, you don't have much to worry about," because the Silicon Valley housing market "represents an island of stability," Silicon Valley Association of REALTORS® Executive Officer Paul Cardus assured members of the Kiwanis Club of Los Altos Tuesday. Cardus, a guest speaker at the local club's weekly meeting, gave an update on the local housing market and talked about SILVAR's role as a REALTOR® association.

Cardus mentioned the California Association of REALTORS® recently reported home sales in the state increased 96.7 percent in September compared with the same period a year ago, while the median price of an existing home fell 40.9 percent. The median price of an existing, single-family detached home in California during September 2008 was $316,480, 40.9 percent below the revised $535,760 median for September 2007, and down 9.6 percent compared with the median price of $350,140 in August 2008.

He explained at one time, the state saw the median home price increasing because higher-end homes in the market were selling. These days, the state's median price has fallen because it is more difficult to get jumbo loans to finance pricier homes, and there has been a significant shift toward a higher portion of sales occurring in lower-cost inland markets. These distressed sales are making up a large percentage of the sales transactions and the discounted prices of these homes are pulling the median price down.

Cardus, however, pointed out that region-wide price depreciation varies by location and as in any sale, "location is important. You have to put it in perspective. You need to look local."

Cardus said in the Bay Area, and especially in the Silicon Valley region, the housing market has experienced fewer distressed sales in comparison to other parts of the state and county. He indicated statistics from the Silicon Valley Association of REALTORS®' local MLS show homes in Los Altos continue to increase in value. The median sales price for a single family home in Los Altos in the month of September was $1,794,250, up from $1,602,650 in September 2007. Closed sales were also up in September compared to last year.

The local REALTORS® official said entry-level housing affordability has improved in California. The California Association of REALTORS® reported the percentage of households that could afford to buy an entry-level home in the state stood at 48 percent in the second quarter of 2008, compared with 24 percent for the same period a year ago. In Santa Clara County, Cardus disclosed the percentage of households that could afford to buy an entry-level home stood at 33 percent in the second quarter of 2008, compared with 21 percent for the same period a year ago.

Cardus said the increase in the conforming loan limit has helped to improve affordability in high cost areas like California. For 2008, the loan limits are 125 percent of the area median house price, up to $729,750, but not less than $417,000, but starting January 2009, the limits will be 115 percent of area median, up to $625,500, but not less than $417,000. He said the National Association of REALTORS® is urging Congress to act during a lame-duck session after the election to make the $729,750 conforming loan limit permanent.

"Making the conforming loan limit of $729,500 permanent would be a tremendous incentive to help people continue to be able to purchase homes," Cardus said.

Cardus informed the Kiwanis members that SILVAR has over 600 Realtors and affiliates who live and work in Los Altos, and the association's members continue to strive to help people purchase homes and realize the American dream of homeownership.

Kiwanis Club President Laura Bajuk thanked Cardus for the informative presentation. She also thanked SILVAR for its support of the Los Altos community. Through the Silicon Valley REALTORS® Charitable Foundation, SILVAR's REALTOR® and affiliate members make charitable contributions to help create more productive and enriched communities where they live and work.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

» Back to Real Estate Articles

Site Navigation