The annual California Association of Realtors (CAR) meeting was
held a couple weeks ago in Monterey. Members of the local
associations went to hobnob with their fellow wizards, though
according to San Benito County Association of Realtors past
president Roy Navarro there was no salsa dancing this year. (Which
just goes to prove that there WAS salsa dancing last year.)
The annual California Association of Realtors (CAR) meeting was held a couple weeks ago in Monterey. Members of the local associations went to hobnob with their fellow wizards, though according to San Benito County Association of Realtors past president Roy Navarro there was no salsa dancing this year. (Which just goes to prove that there WAS salsa dancing last year.)
Many thanks to the Realtors who donated their time and energy to get us up-to-date information and to create a strong, cohesive state organization, especially Rick Pennington, the aforementioned Roy, and Renee Kunz.
CAR reports home sales decreased 15.3 percent in December in our golden state compared with the same period a year ago, while the median price of an existing home increased 3.7 percent.
“The market continues to level out as buyers and sellers search for common ground in today’s more balanced environment,” said CAR President Colleen Badagliacco. “The number of homes for sale peaked in June and July and has since edged downward. Although time on the market remains higher than it was a year ago, competitively priced homes continue to sell well.”
Excuse me, but isn’t that what I’ve been saying all along in this column? Oh, well. It always carries more weight when it comes from “The Expert.”
Closed escrow sales of existing, single-family detached homes totaled 450,550 in December at a seasonally adjusted annualized rate, according to information collected by CAR from more than 90 local Realtor associations statewide. Home resale activity decreased 15.3 percent from the 531,910 sales pace recorded in December 2005.
These statewide sales figure show what the total number of homes sold during 2006 would be if sales maintained the December pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. The median price of an existing, single-family detached home in California during December 2006 was $567,690, a 3.7 percent increase over the revised $547,400 median for December 2005. The December 2006 median price increased 2.2 percent compared with November’s revised $555,280 median price.
CAR Vice President and Chief Economist Leslie Appleton-Young says, “Year-over-year sales declined in most regions last month, albeit at a lesser pace then what we experienced earlier this year. The price picture across the state continues to be mixed. Increases were strongest in urban areas that experienced relatively less new home building or strong economic growth in recent years. Prices were weakest where there has been robust home building activity or in those areas of the state that were popular with second-home buyers.”
Media often looks for the negative spin on economic information. So don’t always believe the headlines! (Well, unless they’re in this paper, of course.) To see how our region fares in the economic sea, look at the employment numbers. Obviously, people with jobs buy houses. Second, look at the inventory. Over history, we have generally had six to seven months worth of houses on the market. We’re about there now, a little more in the upper price echelon, a little less in the more affordable range. And last, we need to look at the annualized monthly sales. We’re below our recent peak, but it looks like it’s flattening out.
So buyers, I would tell you that now is the perfect time to get the perfect house. Lots of us were forced into less-than-ideal homes because we bought when the inventory was so low. Whoa, doggies! Remember? What we saw was what we got.
But things have changed. Sellers, you now need to be realistic about your pricing and the length of time it will take to sell your home. You also have to bite the bullet and do whatever it takes to make your home show its best face. Slapping a coat of paint on and kicking the garbage under the bed won’t cut the mustard in today’s market.
A good Realtor’s value is greater today than ever. While it has long been established as fact that a home sold with a Realtor gets more than its competition sold without one (more than covering the fees, I might add) there is much more to this story. There is now more negotiation happening during a transaction and nothing can take the place of the expertise, experience and knowledge of a good agent.
The year 2007 is a year of unlimited potential. We face uncertainties: the interest rate, the war in Iraq, the threat of terror. But we can make of the year exactly what we want. So don’t be afraid to dream! Maybe you’ve outgrown your house, or it’s outgrown you and you want to downsize. Perhaps you’ve always wanted to live in a different city, state, country. Or perhaps you just want to be across town closer to your best friend. Whatever you want, call your local Realtor. You might just be surprised to find out that things fall into place when you dream and believe. You’ll never know if you don’t make the call.
Be kind to your Realtor.
