C.A.R. says 2010 will mark the “new normal” for California Housing Market
The California Association of Realtors says median home prices are expected to rise modestly next year as the housing market begins to experience its “new normal.”
“This new normal likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation,” says James Liptak.
Liptak made his comments as part of C.A.R’s 2010 California Housing Market Forecast.
C.A.R. Vice President Leslie Appleton-Young says distressed properties are expected to account for nearly one-third of sales next year. She also says inventory will be “relatively lean, under six months during the off-season months, and a roughly four-month supply during the peak season.”
“The wild cards for 2010 include foreclosures, loan resets, the labor market and the California budget crises as well as the actions of the federal government,” Appleton-Young said.
For the full report, click here.
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C.A.R. releases technology use survey
More and more real estate business is originating from the Internet, according to a survey released this week by the California Association of REALTORS®.
The survey shows that 55 percent of California realtors’ business on average originated from the Internet. That’s up from 48 percent last year and 24 percent five years ago.
The survey also shows that 46 percent of realtors use a social networking Web site to “stay on top of trends in their business,” with LinkedIn ranking the most popular among the sites.
"With the top technology challenges in recent years for REALTORS® stemming from either keeping up with or reducing the amount of e-mail, many have managed to tackle those challenges head-on by integrating the tools necessary to be able to respond quicker and while out in the field," says C.A.R. President James Liptak.
C.A.R. released the survey results this week at the opening session for Tech Tuesday.
Here are a few other key findings from the C.A.R. survey:
- 45 percent of realtors say they use a laptop or tablet computer in the field. Last year, 33 percent said they did.
- 70 percent of realtors promote their listings on search engines and classified Web sites. Yahoo Real Estate is the top site used.
For more information, click here.
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Survey shows more affordable prices luring home buyers
The “2009 Survey of California Home Buyers” is out and it shows that lower home prices and other factors drove home sales this year.
The California Association of Realtors’ survey shows that 68 percent of buyers said price drops motivated them to buy a home. Thirty-nine percent say low interest rates helped them get to a better location and 23 percent said the “likelihood that rates will move up” was a motivating factor.
Home sales in California rebounded in 2008 and early 2009, after back-to-back years of sharp declines, C.A.R. President James Liptak said.
“Housing affordability has improved dramatically in response to the decline in home prices along with historically low mortgage rates, creating a tremendous opportunity for home buyers in California,” Liptak said.
The survey also showed:
- The share of first-time home buyers grew to 38 percent in 2009. Last year, the group made up 19 percent of the buyers.
- Nearly 90 percent of traditional market sales were financed through fixed-rate mortgages.
- Home buyers spent 8.4 weeks thinking about buying a home this year. That compares to 7.2 weeks last year.
For a quick summary, look here or take a look at the full 2009 Survey.
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C.A.R. offers mortgage protection plan for first-time buyers
The California Association of REALTORS® announced a new program this week that could help you attract first-time buyers.
Under the C.A.R. Housing Affordability Fund Mortgage Protection Program, qualified first-time homebuyers could receive up to $1,500 a month for six months to help with mortgage payments if they get laid off from their jobs.
To qualify, applicants must:
- Be a first-time homebuyer
- Close by the end of the year
- Use a California REALTOR® in the transaction
- Buy the property in California
- Be a W-2 employee
“The Mortgage Protection Program was developed to help ease the anxiety of consumers who are concerned about potential job loss and its impact on their ability to pay their mortgage should they purchase a home,” said C.A.R. President James Liptak. “It also provides peace of mind to those buyers who are actively searching for a home.”
C.A.R. expects about 3,000 households will receive assistance in the first year. C.A.R. says its Housing Affordability Fund will dedicate $1 million toward the program.
For more details, click here.
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- California Association of Realtors®
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New report focuses on turbulent year in California housing market
The housing market in California experienced a turbulent year in 2008, with improved home sales, lower home prices, and the financial market meltdown. That’s according to a report by the California Association of Realtors®, the “State of the California Housing Market 2008-2009” that was released this week.
Here are some of the report’s findings:
- Almost one of five sellers sold their property because their property was in foreclosure, short sales, or default.
- The number of sellers who sold their home with a loss hit a record-setting 22.2 percent.
- The median price of existing homes, including single-family homes, condos and town homes, dropped by nearly 18 percent to $440,000 in 2008. A year earlier, the median price was $535,000.
“The market will continue to experience large year-to-year decreases in the coming months before leveling out in 2009. The statewide median price is expected to decline 31.7 percent to $381,000 for 2008, the first decline since 1996. The statewide median price will further decline by 6 percent in 2009 to $358,000,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.
C.A.R. says sales generally improved over last year, after two years of declines exceeding 20 percent. In 2008, annual sales are expected to increase 12 percent, with a further 12.5 percent annual increase projected for 2009.
C.A.R. President James Liptak says that the share of first-time buyers increased from 30.4 percent in 2007 to 35.9 percent in 2008. That’s well below the peak levels in the 1990s, when half of the market consisted of first-timers, Liptak says.
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NAR, C.A.R. have new leaders for 2009
There is new leadership at the National Association of REALTORS® and the California Association of REALTORS®.
Charles McMillan, who’s been a REALTOR® for more than 20 years, is the 2009 NAR president. He is also the director of realty relations and broker of record for Coldwell Banker Residential Brokerage, Dallas-Fort Worth.
McMillan was NAR 2008 president-elect, and was the first vice president in 2007. He also served as the Texas Association of REALTORS® president in 1998.
In a speech at a NAR leadership summit in August, McMillan spoke about change, warning, “if you are not ready and willing to address change, you will not succeed.” He also said that leaders must be able to distinguish short-term change and real progress. McMillan’s final point was this: “I believe all change starts at the individual level. It cannot be forced on an organization, each and every member is responsible for doing their part.”
Meanwhile, James Liptak, a broker with Country Real Estate in Paso Robles, is the 2009 C.A.R. president. Liptak is also president of James & Sydney Liptak Inc.
In a story in California Real Estate Magazine, Liptak says he wants to be C.A.R. president because “This is the most successful real estate organization in the world. … We’re the largest state trade association in the country, and we’re the best. It’s like standing on top of Mount Everest. You’re looking at the rest of the world, and you’re looking at it from a very advantageous viewpoint.”
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