For 100 years, Realtors® have added value to the real estate transaction, according to Leannah Hunt, President of the Silicon Valley Association of REALTORS®.
When the National Association of Realtors® was established in 1908, fewer than half of U.S. households owned their own home. Today, the number approaches 70 percent, noted Hunt.
"Homeownership is a great financial and personal investment that strengthens our communities and builds wealth over the long term. That is why our local association of Realtors® has fought along with the national association to protect consumers in the real estate transaction, promote affordable housing, and expand homeownership opportunities for all Americans and will continue to do so into our second century," Hunt said.
When the organization that would become NAR was founded, its mission was to radically transform the real estate industry into a respected profession. NAR's Code of Ethics was adopted in 1913; the association was only the second trade group in the United States to adopt mandatory ethical standards. NAR's early leaders also sought to establish homeownership as a cornerstone of the American dream and to expand it to the growing middle class.
Throughout the years, NAR has worked closely with the federal government to create programs and initiatives that expand homeownership opportunities. NAR played a key role in legislation that created the Federal Housing Administration in 1934; FHA pioneered the long-term amortization that today allows millions of middle-income borrowers to buy a home.
In 1938, when the Federal National Mortgage Association was created, which is now known as Fannie Mae, NAR achieved another long-sought goal: creating a steady source of low-cost mortgage funds.
Today, NAR is the leading advocate for private property rights, homeownership and housing issues, Hunt said.
"In addition, NAR, along with state and local associations like ours here in Silicon Valley, have worked to build stronger communities," she said. "Today, as Realtors®, we continue to educate consumers about the long-term financial and social value of homeownership."
The Federal Reserve Board reports that a homeowner's net worth is 46 times that of a renter's. Over the past 30 years, the national median existing-home price has increased an average of more than 6 percent per year.
"Benefits of homeownership go beyond the pocketbook," Hunt added. Homeowners are more likely to vote and volunteer time for political and charitable causes than renters, and they do not move as frequently. Homeowners are engaged in their communities, which in turn helps prevent crime, improve childhood education and support neighborhood upkeep.
"As NAR embarks on its second century, it is with a renewed commitment to ensuring a strong and vital real estate industry and a firm belief in the long-term value of homeownership as the foundation of the American dream," said Hunt.
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.