Real estate experts were cautiously optimistic about the current and future state of the industry at the State of the Real Estate Industry forum during the 2010 REALTORS® Conference & Expo held November 5-8 in New Orleans. The meetings were attended by about 20,000 REALTORS®, including members of the Silicon Valley Association of REALTORS®.
At the forum, panelist Margaret Kelly, chief executive officer of RE/MAX, said today's market shouldn't be called the new normal because the old market was abnormal. "The spike up and down in the housing market wasn't normal so we shouldn't be measuring ourselves against it," she said.
Kelly said despite some challenges there are plenty of opportunities in the housing market, including low mortgage interest rates, abundant inventory and stable prices, which are attracting buyers to the market right now.
Panelist Ron Peltier, chairman and CEO of HomeServices of America, Inc., said the nation is in the seventh inning of the housing market correction. He noted today's real estate market closely resembles the market in 2000, which many people thought was a good year in real estate.
"The rise in sales and prices during the boom was unrealistic and unsustainable, and all of that nonsense has been pushed out of the market – today buyers need to have jobs and be creditworthy," said Peltier. "The underlying principles of home ownership are now the same as they were 100 years ago; we want a sense of home and community, we strive for long-term not short-term home ownership, and we have sense of pride for owning a home."
To achieve a full housing recovery, Peltier said that the market must work through the foreclosure issue, which is dragging down home sales and prices, consumer confidence and the health of the housing market and economy.
Panelist Alex Perriello, president and CEO of Realogy Franchise Group, told attendees there are no signs that the housing market will recover in the short term and that many agents and offices have had a difficult time adjusting to the new conditions by "right sizing" their offices with fewer staff and lower budgets. Perriello said agents are facing many challenges, including working with distressed clients who can't sell their homes, are underwater on their mortgage or are facing foreclosure.
Jeff Bell, president of the Silicon Valley Association of REALTORS®, said real estate experts and officials gathered at the NAR conference were positive about a market recovery, but there appears to be a consensus that "recovery cannot happen overnight."
"I think it's important to note while recognizing that home ownership is an investment for the future, we need to focus our attention away from quick appreciation to the traditional, satisfying benefits of owning a home beyond the pocketbook," said Bell. "Home ownership provides shelter and security for our families, and fosters positive involvement in community life. It's the cornerstone of a healthy community."
Bell added, "We're all certain the market will fully recover. It's just going to take some time."
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.