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Region's brokers share views on housing market, what to expect for 2012

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Wednesday, November 2, 2011

Bay Area brokers report the region's housing market is doing well compared to the rest of the state, affordability in the state of California has never been better, and yet, consumers hesitate. It's the job of REALTORS® to educate consumers about the local market and make sense of the information they receive, they say.

Several of the region's brokers shared their views on the housing market and gave REALTORS® the heads-up on what to expect for 2012 at a Silicon Valley Association of Realtors tour meeting in Menlo Park last week. They included Mike James, Coldwell Banker Residential Brokerage vice president; Maureen Barker, regional director of Keller Williams Realty Northern California and Hawaii; Larry Klapow, vice president and managing officer of Intero Real Estate Services San Mateo; and Don Faught, vice president and managing broker of Alain Pinel Realtors Pleasanton and Livermore Valley offices.

"California is on sale … interest rates are great, money is free," said Faught, who also serves as treasurer of the California Association of REALTORS® (C.A.R.).

Yet, even with lower home prices and historical low interest rates, consumers continue to hesitate. The biggest challenges facing consumers are uncertainty about the future, the lack of jobs or fear they may not have a job in the future, and difficulty meeting strict loan requirements, according to the brokers.

Klapow said consumers are experiencing a "crisis of confidence." People are nervous about the future and those that want to purchase homes are having a difficult time getting a loan.

People are feeling so much uncertainty about the future that they won't act, added Barker.
James said consumers today have access to so much information, and it is the REALTOR®'s job to make sense of the information and educate them. He believes 2012 will be much like 2011.

"If you don't like 2011, then you need to change what you are doing, put more effort and reach out to all areas," James told REALTORS®.
"We have to prove our worth to clients," added Barker. "It's important to be the trusted advisor, so our value is perceived. We need to hone our skills and focus on providing services for them."

Faught added he loves the technology, which speeds up sales, but consumers also need to personally be in touch with REALTORS®. "Technology helps facilitate what we need, but we need to get in touch with consumers and each other," said Faught.

The brokers also discussed the importance of participating in organized real estate. "It is important to have a voice in our industry in Washington," stressed Klapow.

With budget constraints at all levels of government, Faught said real estate and home ownership as we know it is being threatened. Congress allowed the high conforming loan limits to expire on September 30, which forces buyers in high-cost areas like Silicon Valley to purchase homes at significantly higher interest rates and substantially larger down payments. Also, there are lawmakers considering reducing or eliminating the mortgage interest deduction.

"We need to be involved," said Faught. "If we are not involved in politics, there won't be an industry."

"Remain relevant. Filter through information and apply to each client's unique situation," Klapow advised REALTORS®.

 "We are affected by what we know. Our value is educating consumers. We need to work ourselves so we can work the data and help consumers understand it," said Faught.


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.

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