Despite reports that Bay Area home sales are at their slowest pace in 15 years, many markets in the area are doing well and now is actually a good time to buy a home, California Association of REALTORS® President Colleen Badagliacco told members of the Silicon Valley Association of REALTORS® (SILVAR) early this week.
"Bad news gets eyeballs. … It's turned out to be a media cycle drama and Realtors just have to have a conversation with consumers and bring the numbers and information to them," Badagliacco said.
Badagliacco said Northern California, particularly Silicon Valley, is actually leading California's housing market and only a relatively small portion of Silicon Valley is affected by subprime lending problems and foreclosures, compared with the rest of the state. Unlike the economic slump in the 1990s, where the state experienced massive job losses, "the bottom line is that we are adding jobs and the economy is strong. We know that things are not that bad in Northern California."
The demand for housing is still strong overall in California, but negative news about the housing industry has intensified market uncertainty, forcing more buyers, sellers and lenders to the sidelines, said C.A.R.'s president.
Badagliacco said the market continues to have four strong groups of buyers: seniors, who have a long history of buying homes and are in the market to sell their homes, buy new homes and perhaps downsize; the boomers, who have a strong history with real estate, have lots of money and are seeking secondary homes for investment or vacation purposes; and Generation X and Y, who have seen the market go straight up, but are hesitant to make an investment.
"This is a time to have a conversation with Generation X and Y," Badagliacco told SILVAR members. "Real estate is an excellent investment, but if you plan to flip the house in a few months, maybe you ought to rethink your strategy. As rents increase, you need to take a closer look at the renting versus buying equation. If you can save and build some equity, you should take advantage of the softer market."
Badagliacco also advised Realtors to use this time to improve their skills and become more astute with new technology and the Internet, upon which Generation X and Y rely. She said Realtors would do well by establishing interactive Web sites, utilizing online transaction management, PDAs and other up-to-date technological equipment.
Realtors need to move forward and learn new technology, she stressed. "Do not be afraid of it; embrace it. Be open to it and the higher the trust level you will have, and you will be ready for the next home buyer who is just sitting there, waiting."
Badagliacco recommends the following readings: Wikinomics by Don Tapscott and Satisfaction by J.D. Powers.
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 email or call the SILVAR office at (408) 200-0100.