Happy Real Estate News

We heard an upbeat message at SILVAR’s Annual General Membership Meeting on Monday.
National Association of REALTORS® Chief Economist, Dr. Lawrence Yun, told our local association members, "The worst in sales is clearly over."
He said that in the San Francisco –San Jose area, the bottom has already occurred and prices are beginning to firm up. He stressed what we already knew: All real estate is local, and the Silicon Valley region is fortunate because so many people want to live here and demand for housing is high.
California’s housing market recovery started even before the home buyer tax credit, according to the national economist, and the tax credits boosted sales even more.
“California’s housing market correction was short, sharp and fast,” Yun said.
Yun’s message: Those with strong credit who can buy, should buy, while mortgage interest rates are still at a 50-year low. Things could change very quickly, especially if inflation creeps in.
“I don’t expect rates to remain low. They may increase next year,” he said. “If you’re willing to stay well within a budget and are comfortable with it, at a 4.4 mortgage interest rate, you’re protected under inflation.”
He hopes with the foreclosure moratorium banks will understand negotiating short sales would be a better option than foreclosures.
Yun said the federal tax credits did what they were supposed to do. The market must now be allowed to stand on its own. The key test will be this winter.
“If this winter’s sales match up with other winter home sales, I would say that would be a very positive sign,” Yun said. “Let’s give it time.”