Fox says market is on the upswing
The California Realtor Expo 2007 was held from October 9-11 at
the Anaheim Convention Center. According to organizers, the trade
show attracts nearly 12,000 attendees and is the largest state real
estate trade show in the nation. At this event, the California
Association of Realtors (CAR) announced its forecast for the 2008
housing market. CAR president Colleen Badagliacco says prices will
go down an additional 4 percent, and the volume of houses sold will
decline 10 percent.
The areas predicted to be hardest hit will be the Inland Empire
and the Central Valley, due to the huge amount of new homes built
in recent years. Higher priced homes, specifically those above a
million dollars, will fare the best in this market.
Fox says market is on the upswing
The California Realtor Expo 2007 was held from October 9-11 at the Anaheim Convention Center. According to organizers, the trade show attracts nearly 12,000 attendees and is the largest state real estate trade show in the nation. At this event, the California Association of Realtors (CAR) announced its forecast for the 2008 housing market. CAR president Colleen Badagliacco says prices will go down an additional 4 percent, and the volume of houses sold will decline 10 percent.
The areas predicted to be hardest hit will be the Inland Empire and the Central Valley, due to the huge amount of new homes built in recent years. Higher priced homes, specifically those above a million dollars, will fare the best in this market.
However, FOX news Saturday morning said the home starts are up again, and if you believe trends which have followed for 20 years or so, the resale market should begin to rebound following this. FOX went so far as to say it believes a bull market is coming for housing. See? The media is so tired of reporting “bad” news about the market that they’re coming forward with “good” news. No one wants to hear about sturm and drang any more. So they jump onto the positive markers rather than beating us up with the negative.
Yes, Glenn, there is a Pollyanna.
So what’s happening close to home in the real estate market? In the first half of October in San Benito County, 58 homes were taken off the market due to expiration, withdrawal or cancellation of the listing contract. In the south Santa Clara region, 96 homes were removed. It seems sellers are really finally getting the message. In the words of Badagliacco, “Now is not the time for homeowners to ‘test the waters’ – only serious sellers should put their homes on the market in what will continue to be a challenging sales environment.” So there it is in a nutshell…sell if you have a dream to get on to, sit tight if you just have the idea of a change in the back of your mind.
Some clients of mine tried to sell their home earlier this year. When it didn’t sell quickly, or even get any showings even though it was Home of the Week, they got discouraged and took it off the market. So they made a few changes to the interior. Whoa, doggies! It looks drop-dead gorgeous and they feel like it’s a new home for them! If you can’t move to a new house, move on down to the paint store and invest in a stylish new interior color. Head over to Fortino’s and get a new accent piece or a lamp. It’s amazing what you can do with not much money.
This might be a good time to call in a stager. If you think they’re just useful when you sell a home, think again. They work with the furnishings you already have and give you a new stylish look. It’s not that expensive, and you’ll have some direction as to what you should highlight, refurbish or deep six. Call your local Realtor for a recommendation of a good stager.
In life, it always helps when you stop bemoaning the challenge and get into action on a solution. “Be the change you want to see in the world,” said Gandhi. This is great advice, though sometimes hard to implement!
And what else is new in the world of real estate? Why, the passage of H.R. 1852, the “Expanding American Homeownership Act of 2007,” by the U.S. House of Representatives. Introduced by Congresswoman Maxine Waters (D-Calif), this act modifies the FHA mortgage insurance program, providing American homeowners with safe, affordable mortgage alternatives fairly priced without teaser rates or negative amortization. CAR is currently working towards getting the bill passed in the Senate.
In addition, Waters introduced and the House passed legislation to take money from Fannie Mae, Freddie Mac and the Federal Housing Administration to build affordable rental housing and provide down-payment assistance for first-time home buyers. HR 2895, the National Affordable Housing Trust Fund Act of 2007, will be the largest expansion in federal housing programs in decades. Supporters say it will provide $800 million a year to build and rehabilitate 1.5 million units of rental housing over the next decade.
These programs will hopefully address two of the major challenges facing the American public in regards to housing…affordability of primary residences and availability of quality alternatives to home ownership.
The year 2007 undoubtedly will go down in the annals of real estate history (is there such a place?) as one of turmoil and tumult. However, it is providing a thorough housecleaning of the industry. Consumers will never again be so trusting of their mortgage lenders, signing on the dotted line without reading the fine print. Agents who got in the game for easy money have left the playing field. Professional agents working hard to provide service for their clients have a chance to show the right stuff.
It’s the last quarter of 2007. We Realtors are making plans and creating strategies to serve you even better in 2008.
Be kind to your Realtor!
