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Carole Rodoni spoke to REALTORS® in Palo Alto early this month.
The current slowdown in home sales is attributed to seasonal factors, combined with higher home prices and a rise in interest rates. This development does not disturb some experts in the real estate industry.
According to Carole Rodoni, president of Bamboo Consulting, Inc. and formerly president of Fox and Carskadon Real Estate, chief operating officer of Cornish and Carey Real Estate, and president of Alain Pinel Realtors home prices have come back an average of 24 percent in the Bay Area. In Silicon Valley, she said the market has been “on fire.” In some places like Palo Alto, prices are up 40 percent.
A speaker at the Palo Alto District’s January tour meeting, Rodoni said the San Francisco Bay Area is experiencing an “economic revolution,” attracting investors, international buyers and those with cash. Compared to the rest of the state and nation, real estate in Silicon Valley moves at a different pace.
“Silicon Valley is the heart of technology. At the end of the day, it’s a good thing because you cannot own or run a business today without technology,” said Rodoni.
Many baby incubator tech companies are sprouting in the region and mammoth giant companies based here, like Apple, Google and Yahoo, are acquiring more companies and workers every day. Start-ups that succeed will go public and give birth to more millionaires, according to Rodoni.
Rodoni predicts this year Silicon Valley will continue to have multiple segment markets, depending on price point, location and area. Buyers need to decide which type of market they are in – is it a negotiable market or a multiple offer market. If it is the latter, are they willing to pay the premium price?
It is still a very good time to buy. While an interest rate of 2.5 percent last year would be better than 3 or 4 percent this year, it is still better than the average 7 percent, said Rodoni.
“At these still very low interest rates, you gain equity on your property and it doesn’t have to appreciate,” explained Rodoni.
Rodoni said she has been asked if the slowdown is a sign of a bubble bursting. She believes not. The market is merely “taking a breath” for now. It doesn’t mean it is in a bad state; it is merely readjusting, said Rodoni. Expect more action in the spring. It will be a good market moving forward, she said.
California Association of REALTORS® 2014 President Kevin Brown administered the oath of office to SILVAR’s new president and board of directors.
SILVAR’s 2014 leadership team was installed last night at Villa Ragusa in Campbell. California Association of REALTORS® 2014 President Kevin Brown administered the oath of office to SILVAR’s new president and board of directors. C.A.R. 2013 President Don Faught served as the evening’s emcee.
David Tonna, a REALTOR® and broker associate with Alain Pinel Realtors, was installed as 2014 President; Christopher Isaacson, a REALTOR® with Coldwell Banker in Woodside, President-elect; and Phyllis Carmichael, a REALTOR® with Coldwell Banker in Los Altos, Treasurer.
Joining the three lead officers as this year’s board directors are Carolyn Miller (RE/MAX Real Estate Services), past president; Suzanne Yost (Alain Pinel Realtors), Region 9 Chair; Lehua Greenman (Coldwell Banker), Menlo Park/Atherton District Chair; Jeff Beltramo (Coldwell Banker), Palo Alto District Chair; Bonnie Kehl and Joe Brown (Coldwell Banker), Los Altos/Mountain View District Co-chairs; Sue Bose (Referral Realty), Cupertino/Sunnyvale District Chair; Mark Von Kaenel (Keller Williams Bay Area Estates), Los Gatos/Saratoga District Chair; John Tripp (Foundation Trust), National Association of REALTORS® Director; Jeff Bell (Coldwell Banker), Mark Burns (Referral Realty), Eileen Giorgi (Keller Williams Bay Area Estates), Bill Moody (Referral Realty), Karen Trolan (Alain Pinel Realtors), Directors At-large; and Simon Offord (The Law Offices of Peter Brewer), Affiliate Chair.
The Silicon Valley Association of REALTORS® informed its members and their clients that Fannie Mae and Freddie Mac will postpone plans to increase mortgage guarantee fees. The news was recently announced by Rep. Mel Watt, D-N.C, incoming director of the Federal Housing Finance Agency, which oversees the government-sponsored enterprises (GSEs). Watt said he will delay the planned increases in mortgage fees until he has time to review the rationale behind it.
Fannie Mae and Freddie Mac said last month that they intend to charge more to lenders who guarantee loans for borrowers with mid-range-or-below credit scores, as well as borrowers who don’t meet certain down payment guidelines. The fees were set to take effect in March and April of 2014.
Critics in the mortgage and housing industry had argued that the fees were too high. Fee hikes on lenders are usually passed on to borrowers via higher interest rates
SILVAR’s 2014 Installation Dinner is next week on Thursday, January 9, 6 p.m. at Villa Ragusa, 35 South 2nd Street in Campbell. At this special event, 2014 President David Tonna and the 2014 officers and Board of Directors will be officially installed.
Taking the oath of office with Tonna will be Chris Isaacson, President-elect; Phyllis Carmichael, Treasurer; Carolyn Miller, Past President; Suzanne Yost, Region 9 Chair; Lehua Greenman, Menlo Park/Atherton District Chair; Jeff Beltramo, Palo Alto District Chair; Bonnie Kehl and Joe Brown, Los Altos/Mountain View District Co-chairs; Sue Bose, Cupertino/Sunnyvale District Chair; Mark Von Kaenel, Los Gatos/Saratoga District Chair; Jeff Bell, Mark Burns, Eileen Giorgi, Bill Moody, Karen Trolan, At-large Directors; John Tripp, NAR Director; and Simon Offord, Affiliate Chair. The special awards for REALTOR® of the Year, Affiliate of the Year and Spirit of SILVAR will also be presented during the evening.
Thank you in advance to this year’s Installation Sponsors: Los Gatos/Saratoga District; Alain Pinel REALTORS® – Los Gatos, Saratoga and Almaden Valley; MLSListings Inc.; Kenneth Chan – HSBC; Sereno Group; Troy Harrison Property Inspections; Pacific Union Real Estate; and Daddario Roofing Company.
Silicon Valley Association of REALTORS® says ... 