With the extension of the home buyer tax credit and higher loan conforming limits for high-cost areas, local REALTOR® officials are even more confident of a sustainable recovery and healthy outlook for housing this year.
Jeff Bell, 2010 president of the Silicon Valley Association of REALTORS® and a REALTOR® with Coldwell Banker in Cupertino, says the projections are enhanced by a tax credit expansion to more home buyers through the middle of 2010. "We are hopeful about the impact of the expanded tax credit because it will stabilize home prices as qualified buyers continue to absorb inventory that will include additional foreclosures over the coming year," Bell says.
Although 2009 was a year of adjusting and relearning many real estate lessons, most of the marketplaces in the region have stabilized and have even excelled with regard to sales as the troubled inventory is slowly being absorbed by demand, which has been fueled by low mortgage rates and first-time buyer incentives.
It's all about our location, according to past president Julia Truesdale Keady. "We should remember although there have been negative influences on our economy and our markets, we are seeing very positive signs in our region. We have a very diverse economy in addition to our strong educational institutions, climate desirability and access to the arts," remarks Keady, a Realtor with Alain Pinel Realtors in Palo Alto. "This is a wonderful place to live and work. People love to live here. We still have more jobs here than housing. This shortfall in housing units is what creates our high demand."
With that said, what are local REALTOR® officials advising home buyers and sellers?
John Tripp, who is with Foundation Trust and a member of the association's Los Gatos/Saratoga District, says, "Buyers need to think about the intangible values of home ownership, such as family benefits, pride of ownership, investment for the long-term."
"Don't overbuy," Tripp cautions. "Get pre-approved first before you start your search. Find an experienced REALTOR® who is familiar with the area where you want to purchase a home, and together prepare a systematic program for a search of homes in the area, your price range and needs."
Tripp says sellers need to be realistic about pricing. "Sellers need to realize the market value should not be perceived as needed value. Sellers cannot get overly encumbered with debt and perceive the value of their home will cover all their financial needs, including their big debt load," says Tripp.
Tripp explains, "A professional Realtor can be objective about setting a correct price for the home based on the neighborhood, the number of properties available, and the type of property for sale."
Mark Burns, a Realtor with Coldwell Banker and chair of the Cupertino/Sunnyvale District, says, "This is truly a great time for buyers. Rates ought to remain at the low levels they are now for at least the first three quarters of this year. It's very likely they will rise by the end of the year."
It is also going to be a great time for sellers, according to Burns. "Move up homes will have fallen more dollar-wise than the homes people will be selling and the gap to make the move will be much smaller than it has been in years past," Burns says. "Many areas will continue to have low inventories as they have this year, which will support stable prices and the potential for multiple offers and slight appreciation in a lot of our areas."
The REALTORS® are realistic too. "2010 will be a very unsettled year because we are unable to predict employment rate, financial markets, inflation – how long can the government keep those rates low?" according to Tripp. "What's the deficit spending effect on taxes? Can government keep the financial markets stable? But, it's a great time to take advantage of those conditions to buy!"
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.