Many consumers last year were hit with conflicting messages about the real estate market and the value of home ownership. As 2011 begins, a REALTOR® official reviews 2010, looks toward a new year in real estate remain actively engaged in advocating public policies that encourage responsible, sustainable home ownership well into the future.
Silicon Valley Association of REALTORS® 2011 President Gene Lentz describes 2010 as one of real estate contrasts. Over the past 12 months, many consumers took advantage of historic buying opportunities as home sales and prices gradually stabilized. Meanwhile, the country continued to face economic challenges, leading others to question the value of owning a home.
During the first half of 2010, the extended $8,000 first-time home buyer tax credit and expanded $6,500 tax credit for repeat buyers helped encourage sales and stabilize prices. Home buyers also took advantage of historic affordability levels with rock-bottom interest rates. According to the current National Association of REALTORS® Housing Affordability Index, a median-income family with a down payment of 20 percent has 184.2 percent of the income required to purchase a median-priced home.
"Affordability conditions saved the 2010 home buyer thousands of dollars a year," said Lentz. "Buyers with fixed-rate mortgages will save money every year they are living in their home. This is truly an example of how home ownership builds wealth over the long term."
While many consumers became home owners in 2010, others faced the possibility of losing their home to foreclosure. Partly in response to rising foreclosure rates, some questioned whether the government should be encouraging home ownership through federal programs and tax incentives.
"Home ownership didn't create the foreclosure crisis – Wall Street greed and irresponsible lending practices did," said Lentz. "Home ownership benefits individuals and families, as well as strengthens our communities. Owning a home is one of the best ways to build long-term wealth and provides many social benefits such as reduced crime rates, improved childhood education and increased stability."
In general, however, consumers have remained passionate about home ownership. According to a 2010 Bankrate.com survey, 90 percent of respondents said they had no regrets about buying their current home. A survey released by Fannie Mae in December 2010 found that most Americans – both those who currently own their homes and those who rent – strongly aspire to own a home and to maintain home ownership.
"Consumers are passionate about owning a home, which underscores how important home ownership is in America," said Lentz. "As we begin 2011, Realtors® remain committed to ensuring the dream of home ownership is available to anyone who is able and willing to assume the responsibilities of owning a home."
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.