Featured Properties

C.A.R. Selected to Serve as the Ambassador Association to REIA

The California Association of REALTORS® (C.A.R.) was recently selected to serve as the Ambassador Association to the Real Estate Institute of Australia (REIA), the Association’s counterpart in Australia, through the National Association of REALTORS® (NAR) International Ambassador Association Program. Modeled after the Sister Cities International program, NAR appoints “partner” state and local REALTOR® associations to each participating foreign association. NAR maintains bilateral cooperating agreements with 80 real estate associations in 59 countries. As the Ambassador Association to Australia, C.A.R. will: Host and assist delegates from Australia during official visits to the U.S. Help delegates from Australia navigate NAR’s REALTOR® Annual Conference and Expo Provide association management advice if requested Provide opportunities for member-to-member business contacts

The percent of first-time buyers increased dramatically in 2009, from 35.9 percent in 2008 to 47 percent in 2009, according to the “State of the California Housing Market” released by the California Association of REALTORS®. The share of first-time buyers exceeded the long-run average of 38.6 percent and was the highest since 1995, when more than half of all buyers were first timers.

According to the survey conducted by C.A.R. on the effectiveness of the federal tax credit for home buyers, nearly 40 percent said they would not have purchased a home if the federal tax credit was not offered. The large number of distressed properties led to more than half of all first-time buyers purchasing an REO/foreclosure or short sale property. Statewide, REO/foreclosures and short sales accounted for almost half of all annual sales in 2009, an increase from 35.6 percent in 2008. The median price of distressed properties declined nearly one quarter to $250,000 in 2009 compared with $330,000 in 2008. Meanwhile, the median price of non-distressed properties decreased only 10.4 percent to $485,000 compared with $541,000 in 2008.

Many sellers sold their homes with a loss in 2009, and those who experienced a net cash loss increased for the fifth consecutive year. With one-third of sellers experiencing a net cash loss in 2009, it was the highest level on record since C.A.R. started tracking net cash losses in 1989, and was more than triple the long-run average of 9.3 percent. Following two consecutive years of significant declines in prices, the median net cash from home sales declined 50 percent last year to $50,000 from $100,000 in 2008.

Affordable home prices also enabled first-time buyers to purchase larger homes. The average size of a first-time buyer’s house increased to 1,560 square feet in 2009 compared with 1,300 square feet in 2005. Nearly 80 percent of first-time buyers purchased a single-family home, a slight increase from 78.5 percent in 2008, but a significant increase from 2005 when only 61 percent of first-time buyers purchased single-family homes.

Recently, the Federal Reserve (Fed) responded to a joint letter from 79 members of Congress, which urged the U.S. Treasury and Fed to take a more active role in commercial real estate credit markets. The Fed stated that the assessment of commercial real estate is one of its “highest priorities.” The Fed also intends to continue to analyze commercial real estate markets as well as the effectiveness of its supervisory guidance. Furthermore, the Fed also believes its ongoing industry and examiner outreach will be critical as regulatory agencies and the industry work through challenging issues in the commercial real estate credit markets. The bipartisan letter was sent to the U.S. Treasury and Fed in late January, raising concerns that liquidity problems in the commercial real estate industry may threaten an economic recovery. Specifically, the letter asked the agencies to establish clear methods for loan modifications, develop metrics to differentiate performing and non-performing properties, and take other steps to provide investor confidence in commercial real estate markets. The National Association of REALTORS® and commercial REALTOR® leaders worked with Congress on the letter and encouraging cosigners. More than $1.4 trillion in commercial real estate loans will come due by 2013 and roughly 65% of those deals will have trouble getting financing.

Consumer tip: Online banking, bill paying and shopping are conveniences that most people want to enjoy. And most of the time, high-tech transactions are completed quickly and without a glitch. However, just as with other transactions, in a small percentage of cases something goes wrong. That’s why you need to take precautions against theft and error. In particular, even as banks and merchants tighten up security, Internet thieves devise new, sophisticated ways to trick consumers into sending money or into revealing information that can be used to commit fraud. If you bank online, frequently check your deposit accounts and lines of credit to spot and report errors or fraudulent transactions, just as you should do with traditional banking.

Richard Tegley is a Broker/REALTOR®, a Director of the California Association of REALTORS® (C.A.R.) and the National Association of REALTORS® (N.A.R.) Richard can be reached at (951) 533-9340 or email Tegley@surfcity.net
031610

Return to article list

Return to article list