Real Estate Articles

People Need REALTORS(R) Now More Than Ever

Housing market conditions change so fast and can differ by even just a couple of streets. This is why people need REALTORS® now more than ever to guide them through their transactions, according to California Association of REALTORS® Vice President and Chief Economist Leslie Appleton-Young.

“It’s so important to use a REALTOR® today,” Appleton-Young stressed at the Women’s Council of REALTORS® Forum, a gathering of members from the San Mateo, Santa Clara, Santa Cruz and Monterey county chapters, held in San Jose last week.

In February, the national median home price fell to $165,400, down 15.5 percent from a year ago, when the median was $195,800 and conditions were close to normal. In California, the median price is at $247,000, down by over 40 percent and way below its peak of $853,000 in May of 2007. In Santa Clara County, the February median home price was $445,000, down from its peak of $868,410 in 2007.

“I have never seen prices drop this fast and this low,” the C.A.R. chief economist said.
 
Appleton-Young said the “market is on fire” today due to the sales of REOs and foreclosures; pendings are also way up. Sales are up especially in lower-end homes priced $500,000 and below. These sales are accounting for 82 percent of transactions.

It is a strong market for first time homebuyers and investors. “They are gobbling up the foreclosures,” she stated. “Housing affordability is fabulous, but the median down payment for first-time homebuyers is 20 percent.”

For 2009, Appleton-Young expects a 25 percent increase in sales, a softening of prices especially at the high-end, and the median price to linger at around $248,000.

Consumers need REALTORS® and REALTORS® need to be prepared to help their clients. Appleton-Young advised REALTORS® to use all the tools available to them to help their clients. She gave WCR members a brief demonstration of Clarus™ MarketMetrics™, a new benefit SILVAR provides its members. Clarus™ MarketMetrics™ generates market and price-point analysis charts and reports derived from MLS data for REALTORS® to share with their clients. These reports can be invaluable as a prospecting tool, an aid to setting seller expectations, or as a companion set of data to justify a buyer’s offer.

“Read, read, read and be knowledgeable,” she added.“Go to speaker presentations, use free tools, Client Direct, take advantage of all the education opportunities out there.”

Among the books Appleton-Young recommends REALTORS® read are Hot, Flat and Crowded, by Thomas L. Friedman, and The Ascent of Money: A Financial History of the World, by Niall Ferguson.

SILVAR members Ryan Iwanaga and Chris Trapani, both from the Sereno Group, were among the 60 REALTORS® who attended the WCR Forum. While acknowledging Appleton-Young’s bleak report, both REALTORS® from the Sereno Group remained optimistic.

“I see tremendous opportunity in the lower-priced areas,” said Iwanaga.

Iwanaga said the upper-end market was sluggish for a while, but appears to be moving this month. “I still see our market as being very robust and active. There are very good opportunities out there, especially for first-time home buyers,” he said

“Trapani said there has been a significant increase of activity in April, especially in the last two weeks.

“Homes priced around the $2 million range are moving. There have been strong offers, even multiple offers in Mountain View, Sunnyvale and Cupertino. Los Altos and Los Gatos remain strong. I predict the figures will show an up-tick in April and May,” he said. “I wouldn’t be surprised if we even see a bump up in the median price.”

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, e-mail , or phone (408) 200-0109.

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