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REALTOR®: C.A.R. Economist Says There Are Long-term Gains in Real Estate

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Wednesday, May 6, 2009

Approximately 150 REALTORS® attended the California Association of REALTORS® 2009 REALTOR® Special Weapons and Tactics event on April 30 at the Doubletree in San Jose, and listened to news about gains in sales and opportunities for buyers.

The S.W.A.T. event gave REALTORS® the opportunity to learn valuable information about the market, including local market data, latest details of the stimulus package, and tips on navigating complicated transactions.

The morning session featured a continental breakfast, a local economic update from C.A.R. economist Robert Kleinhenz and a panel discussion of legal experts and successful practitioners who shared tips on loan modifications, short sales and foreclosures. The afternoon featured a four-hour CE course on "Distressed Properties (Short Sales, Foreclosures and Lender REOs)."

Kleinhenz discussed the state of the California budget and policies impacting the housing market. He said lenders are strongly encouraged to come up with loan modification plans to help homeowners in trouble.

The C.A.R. economist's summary of the California housing market contained good news, as he noted affordability is up dramatically and that there are great opportunities for first-time home buyers, as well as repeat buyers.

Encouraged by record low levels in interest rates and continued decline in home prices, motivated homebuyers are helping statewide sales improve, he said. Sales of existing single-family homes surged to 590,390 in the first quarter of 2009, an increase of 9.7 percent from the fourth quarter of 2008, and a jump of 82.7 percent from the first quarter of last year. The California Association of REALTORS® expects sales to increase 25 percent by the end of the year and mortgage rates to remain low.

The median price for a California home continued to decline, with deeply discounted distressed sales at high levels in many parts of the state. The median home price for existing single-family detached homes dropped 40.1 percent from a year ago to $250,640 in the first quarter of 2009, reaching a level not seen since early 2001.

Kleinhenz then showed REALTORS® a chart illustrating gains in home values for the long-term, especially if homeowners keep their homes over five years.
"This is an important message you should convey to your clients," Kleinhenz told REALTORS®.

"Now is also a perfect time for first-time buyers or repeat buyers," said Julia Keady, president of the Silicon Valley Association of REALTORS®. "If you have a stable income and are thinking of moving up, prices are down slightly, which will allow you to buy a right-sized home and save on property taxes and take advantage of the superior interest rates available now, which will save you many thousands of dollars over the life of your loan."


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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