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REALTOR®: Realtors Convene in Record Numbers, Aim to Improve Market Confidence

Monday, November 19, 2007

Members of the San Mateo County Association of REALTORS® (SAMCAR) were among the 30,000 Realtors® and guests gathered in Las Vegas for the 2007 REALTORS® Conference & Expo. Lots of discussion centered on the real estate market and the need to educate the public about the value of housing as a good long-term investment.

NAR President Pat V. Combs urged Realtors® to help restore confidence in the real estate market by educating the public that over the long-term, buying a home continues to be a good investment. With the market’s positive economic fundamentals, 2007 is turning out to be one of strongest years on record, she said.

“Housing continues to be a good long-term investment,” said Combs, vice president of Coldwell Banker-AJS-Schmidt. Combs told Realtors to consider evidence and gather the information they need to help refute inaccurate stories and build confidence in the market.

“Real estate is alive and well and there are plenty of opportunities for consumers and Realtors in the current market,” said Combs.

NAR Chief Economist Lawrence Yun pointed to an increase in jobs and the projected growth of the gross domestic product at 3.3 percent as evidence of positive economic fundamentals.

“Interest rates remain at historically low levels,” said Yun. He explained that, in the early 1980s, interest rates hovered at 15 percent, and later stalled at 10 percent in the early 1990s. Today, interest rates are at 6.4 percent and are projected to remain near this level throughout 2008.

Yun also told attendees that home prices are holding up extremely well. “2007 is shaping up to be a solid year with home prices at near record highs. In fact, only two years were better – 2005 and 2006 – which set records at the time,” said Yun.

Geoffrey Craighead, president of the San Mateo County Association of REALTORS® said San Mateo County is one of the core markets that appears to be holding up amid mortgage market woes. Figures from DataQuick Information Systems show the median home price in San Mateo County was $775,000 in October 2007, up 2.6 percent from the previous year. While October home sales were down 28.8 percent from October 2006, they appear to be rallying. In San Mateo County, 512 homes sold in October 2007, up from 486 sold during the prior month.

Craighead said while buyer hesitancy remains an issue in the real estate market, “demand for homes in the county continues to be strong, as there is limited supply of land devoted to housing in San Mateo County. In addition, the economy is great in San Mateo County. Unemployment is less than 4 percent and jobs are being added daily. Purchasing a home here would be a good long-term investment.”

Realtors were also briefed on several legislative and regulatory proposals that would further help restore consumer confidence and protect buyers, sellers and homeowners. These include eliminating the “phantom” income tax that affects individuals who have had a loan forgiven or had to foreclose because they couldn’t pay their mortgage, revitalizing the Federal Housing Administration’s mortgage-insurance program, and addressing the rising cost of insurance and the impact of natural disasters on insurance rates.

In October, the U.S. House of Representatives passed the Mortgage Cancellation Tax Relief Act, with the intent of eliminating tax on forgiven debt in a foreclosure or short sale. The legislation is awaiting action in the Senate.

Also this fall, the House passed the expanding American Homeownership Act of 2007, H.R. 1852, which would make FHA a viable refinance alternative for people stuck in subprime mortgages and give home buyers access to more affordable loan options. The Senate Banking Committee recently passed similar legislation. The House also passed National Flood Insurance Program reform legislation that would help protect homeowners, renters and commercial property owners from losses sustained during flooding; this is awaiting Senate action.

The San Mateo County Association of REALTORS® (SAMCAR) is a professional trade organization representing over 3,800 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula. SAMCAR 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 San Mateo County.

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 contact Julie Ziemelis, Director of Public Affairs, e-mail , or phone (650) 696-8214.

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