Real Estate Articles
REALTOR®: Land an Asset in Silicon Valley, Real Estate Expert Says
There is value in land; it's an asset, especially in Silicon Valley. It's the reason why the region is a "competition market." This is what Carole Rodini told members of the Silicon Valley Association of REALTORS® (SILVAR) as they gathered at Holbrook-Palmer Park in Atherton last week.
Rodoni, who is past president of Alain Pinel in Silicon Valley and past COO of Cornish & Carey Residential Real Estate, speaks frequently to Realtors and consults for First American Title nationally. She gave SILVAR members an overview of the economy, the housing market, and her analysis of the future.
Silicon Valley has a very protected real estate environment, especially in areas like Menlo Park, Atherton, Palo Alto, Los Gatos, and Los Altos. Although there are some foreclosures, this region will weather the market better than most. While it is a declining market in many areas, in Silicon Valley it is merely a "cooling market," according to Rodoni.
The real estate expert does not expect the economy to stabilize until late 2009. "I see us in the fourth or fifth inning, but we're not through with the credit side yet. It will be about 12 to18 months before we are done," she said.
"The housing market is a local and regional business," she stressed. "We should be interested in what's happening here."
Rodoni says despite the rise in interest rates, "we still have the lowest rates in the last 30 years. … We've lost investors and 30 percent of buyers because they can't get loans."
She told Realtors, "Tell your clients it doesn't matter what the interest rate is, the key is to get you a loan, get qualified and approved, then we can look for competitive rates and there are still many out there that are low and reasonable."
"Give it time, where it took three to four years to see appreciation (in homes), it will now take five to seven years.," Rodoni said. "Land here only gets more valuable. … The trick is to hold on in the bad times. We always will have multiple offers here because of location, zip code, school districts and lifestyle."
For sellers, key is the entry price. "Don't set prices above the entry point," she warned. If a home is priced too high, there is a danger it will be discounted again and again, and this will hurt the seller and the market in the long run.
"We have got to get buyers back in, but when do you discount it enough? You don't want to go there. Land is an asset that has strategy and location," Rodoni said.
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.