Real Estate Articles
C.A.R. CEO Tells REALTORS® Keep Calm, Embrace Technology
There are some who fear a recession is coming, but California Association of REALTORS® CEO Joel Singer is confident California's housing market will remain solid. At SILVAR's Economic Seminar & General Membership Meeting last Friday, Singer acknowledged the market may not be as robust as it was a couple of years ago because of limited supply and low affordability, but he does not see a major slowdown in 2020.
"We are feeling the impact, but market activity has been steady and the economy is going to allow it to be sustained," said Singer. "California is the engine of innovation. It's an unprecedented place to live. It will not be surpassed, but we can do better."
Singer shared data that shows California has a good solid market. In September home sales were up in every part of the state; in fact, home sales had the largest gain in 30 months. The statewide median home price is still above $600,000. Mortgage interest rates are still near historical lows, so in most counties homebuyers are paying lower mortgage payments.
Singer said the forecast shows more of the same for 2020. "If you liked this year, you'll like next year."
It's a sign of a "mature market," Singer said, with stable price growth and a slight decline in sales due to the limited housing supply and affordability issues.
Though still above 100, the consumer confidence index has dropped due to lots of uncertainties worrying the American public, like the US-China Trade war, the future of Brexit, inconsistent policies, the impeachment inquiry, an overvalued stock market, talk of a recession.
Singer noted a big threat to the market is the wildfire insurance crisis. Stung by $24 billion in losses, insurers are raising rates and dumping customers. A REALTOR® survey found 27 percent of REALTORS® or their clients have had issues with fire insurance. The inability to obtain insurance is hurting the housing market. Thirty-four percent of REALTORS® reported having a potential buyer decide not to buy because they had difficulty obtaining insurance.
C.A.R.'s CEO mentioned the real estate industry is also experiencing changes due to technology and the emergence of new models. Technology is driving a shift in power from the broker to the agent. Agents can now access information on their own. Consumers, too, have access to information. Venture capitalists are seeing opportunities in real estate with iBuying. Singer said iBuyers look for convenience. They are buying certainty and set the floor for home prices.
"There are opportunities in this market," said Singer. Surveys show majority of buyers and sellers still rely on a trusted REALTOR® for help in finding the right home, determining listing price/strategy, negotiating price or terms of sale. They need a professional who knows the market and tech, who can explain the data and price a home correctly.
"This area has extremely high values. It's stunning here. It's the type of transaction that requires an expert to fix things. ... What's better than a trusted agent is a trusted agent who has experience in technology. Don't get left behind. ... Keep calm and embrace technology," Singer told SILVAR REALTORS®. "What you do really matters. You create trust. You put people into homes and are very good at it. Don't let anyone talk you out of it."
View C.A.R. CEO Joel Singer's PowerPoint presentation HERE.
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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.
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