More than 250 homes were held open during the Labor Day holiday weekend
and though many buyers were taking a home-hunting break to enjoy the
fine weather, there was plenty of serious activity in most areas. Listing
inventory and sales activity were both reported as being overwhelmingly
steady in most areas. Offices are buzzing in anticipation of a busy
September. There is pent-up demand for the new listings coming to the
market this week.
As agents, buyers and sellers alike settle into the school year after
refreshing vacations, let’s set the record straight as we move
into Fall by rewriting the headlines from a new perspective. “99.2%
of Mortgages are Not in Foreclosure.” “Economy is Extremely
Strong, with Many Business Sectors Reporting Huge Profits.” “The
Global Economy is Exploding!” “People Are Buying Houses.”
Sadly, our media continues to focus on the negative and to create misconceptions
in the minds of consumers about the housing market.
During our Coldwell Banker California Previews International Retreat
in Monterey during the last week of August, more than 200 agents were
treated to a speech by the renowned real estate economist Gary Watts.
He handily dispelled the misconceptions and myths propagated about the
current state of the real estate business, and made an excellent case
for forecasting continued strength in the California housing market
and the lending markets. Watts was so impressive that we have invited
him to speak in all four of our regions in order to enlighten and energize
you with a dynamic and informative presentation. Here are some excerpts:
“California is home to 36.5 million residents with a population
growing over 800,000 last year. However, by 2025 our population will
explode (nearly doubling) to 60 million people. With our large diversified
economy, California will continue to prosper, the demand for housing
will remain strong and as this housing downturn comes to an end, we
will once again do very well!”
“The media will still report about massive delinquencies and huge
foreclosures in the sub-prime market, but those reports will not be
accurate because they don’t explain the difference between a delinquent
payment, a notice of default or a foreclosure.”
“All you read and hear is that real estate is going down, yet
last month, prices in the U.S. rose 3.4% from a year ago and California
is up almost 1%. The Bay Area prices have gained 4.1% over last year
and southern California median price is up 3.7%.”
Rick Turley
President
Coldwell Banker SF/Peninsula
