California's elected Insurance Commissioner Steve Poizner and the California Land Title Association announced today the introduction of a first-in-the-nation website for consumers to shop online for title insurance. The new web portal is called Title Wizard. It can be found at the following websites: CA Department of Insurance, CA Land Title Association, and the author's blog under favorite links.

This new web portal enables consumers to shop for rates. According to Commissioner Poizner, "The CLTA has answered the call to develop a high-tech solution in a first step to infuse competition into the Title Insurance industry" because "too often, consumers have to rely on a middle man to select their Title Insurance. Now, consumers will be empowered to compare prices and services online with the touch of a button."

Along with offering consumers the ability to compare rates on nearly 100 title companies, Title Wizard also offers a consumer education center to inform homeowners on the closing process.

Congratulations California! First in the nation again!

CA HOUSING PRICES STILL GOING UP

But Increases Are Not At the Heated Pace Seen In Recent Years

View of California's most expense real estate - the Santa Barbara Pier and Coastline

Affordability continues to present a challenge for buyers (and REALTORS®) in California.  Recent statistics provided by the California Association of REALTORS® bear this out.  In spite of the increasing in prices paid for homes sellers (and REALTORS®) are feeling a slowdown in sales due to the more than doubling of homes on the market year over year in most areas of the state. 

While this should bode well for buyers they appear to be holding back despite the fact interest rates are extremely favorable the choice of homes is so much greater.  Makes me think that too much choice may simply make it too difficult for some buyers to decide to act.  When the supply was limited buyers were gobbling up homes like relatives fighting for the last piece of pie at Thanksgiving dinner.  But that is not the case today.

The CAR survey  determined the median home price in California during September 2006 rose to $553,050.  The median is the point at which half of the homes sold for more than a specific amount and the remaining half sold for less than the amount.

The highest median home price during the same period was found in Santa Barbara County's South Coast where the median home was selling for $1,025,000.  The High Desert region was once again the lowest median home price in the statewide survey.  In that area the median price increased to $329,040 from $321,500 in January 2006.

Sacramento REALTORS® Are First In The Nation

BROKER TRAINING INSTITUTE DEBUT IS A SUCCESS!

Left to right: Judy Wegener, SAR Director of Education; Corey Wilkerson, SAR Education Committee Chair; and yours truly. 

The Broker Training Institute was enthusiastically championed by SAR Education Committee Chair Corey Wilkerson and his entire committee.  The BTI brought together brokers interested in elevating their knowledge and skills to improve ways to help their agents and clients achieve greater success.  What made the program a success was the tremendous support of a variety of brokers and other real estate industry professionals who put time and energy into developing the curriculum and presentations for the BTI.

Each of the participating brokers attended six half day sessions devoted to a range of topics critical to running a successful real estate brokerage.  Topics included:

• A panel discussion with local brokers and Q & A from BTI participants
• Insurance Concerns
• Running a Brokerage from a legal perspective
• Creating a vision and office logistics
• Marketing your Office and broker responsibilities
• Creating a manageable filing system
• How to run a stimulating office meeting
• Training and retaining high producing, ethical agents

Another significant aspect of the SAR Broker Training Institute is that it will serve as a model for the National Association of REALTORS® and other state and local association around the country.  The NAR and other association have already been in contact with Judy seeking information for the benefit of their members.  Proving once again that the really cool trends start in California!

The cooling trend in Sacramento area real estate that began nearly a year ago is continuing and moving the housing market toward a much needed equilibrium point.  Unfortunately few seem to understand this.  Despite a slight uptick in activity during August, September saw another decrease in sales and though inventory remains high it too is finally beginning to scale back.  Here are a few quick statistics of interest from the Sacramento Association of Realtors. 

• Closed escrows of single family homes in September were down 38.1% from a year ago. 
• The median sale price of a single family home was $363,000 which is down 5.7% from September 2005
• Closed escrows of Condos/PUDs in September were down 36% from a year ago.
• The median sale price of a Condo/PUD $237,000, 4% lower than September 2005

The Sacramento market was one of the hottest housing markets in the nation the past couple of years so while this may look gloomy to some it is simply an overheated market moving back toward equilibrium.  Despite our sluggish sellers market our Sacramento economy remains stable and interest continue to be very low.  Based on the economic stability of the region and the strength of real estate nationally it is my observation that the primary forces causing skepticism in the market is psychological.  That is, the constant drumbeat in the news of gloom and doom in real estate combined with the large number of people who are too late in trying to capitalize on the phenomenal appreciation we have experienced the past several years creates a misinformed public who perceives the negative news as reality.  And, the dynamic continues.  However, once the housing market reaches the equilibrium point between buyers and sellers the standoff will end and we will move into a "normal" market for the first time in several years.  And that's my two cents! 

California's most expensive real estate market.

Affordability in markets such as ours here in California certainly presents a challenge for buyers and us as agents.  Recent statistics provided by the California Association of REALTORS®  bear this out. 

In the C.A.R. survey, the median home price in California during January 2006 was $551,300.  The median is the point at which half of the homes sold for more than a specific amount and the remaining half sold for less than the amount. 

The highest median home price in the C.A.R. survey during that same period was in Santa Barbara County's South Coast where the median priced home was $1,120,000.  The lowest median home price in the survey was in the High Desert where homes sold for $321,500.

New construction of single family homes is anticipated to be continue at a steady pace in 2006.  Despite what our local papers seem to tell and inspite of gradually rising interest rates the future continues to look bright for new home construction.

According to the February Housing Market Index compiled by the National Association of Home Builders and Wells Fargo Bank, new home builders appear confident the new home market will remain healthy and continue to stabilize in the coming year.

In a news release yesterday by the National Association of Home Builders, home builder and NAHB president David Pressly said, "After several record-breaking years for home sales, builders are anticipating a return of the market to a healthy and steady pace." 

More information on the housing statistics and what they mean can be found on the NAHB website.

Can you tell in this photo if the sun is rising or setting on the new home industry?  Well, this is certainly no big surprise for anyone watching the economy and the housing market but the market is throttling back just a bit.  The California Building Industry Association recently sent out a news release indicating a projected slowing of new home construction in 2006. 

While the outlook is far from bleak, the reality is the CBIA is projecting 185,000 to 205,000 new home starts in 2006 which is down approximately 5% to 10% from the record numbers of homes constructed during 2004 and 2005.  All in all, I would say the sun isn't setting on the robust new home market.  In fact, the sun may be shining even more brightly on buyers because they may find builders willing to negotiate great deals to keep their inventory moving.

What are your thoughts?  What would you be looking for in a newly constructed home?  Please share your comments by clicking below. 

Yesterday a group of six northern California MLSs (Metrolist Services) who announced their plan to consolidate into a single 46,000 member MLS has named the new organization the Northern California Real Estate Exchange, or NCREX for short.  The new real estate exchange is expected to facilitate the sale of over $100 billion dollars of real estate annually. NCREX also released further details regarding its near-term consolidation plan. 

"The 12 person regionalization task force chose the term 'real estate exchange' because the term 'MLS' is somewhat outmoded and means different things to different people; plus it also has historical baggage attached to it." said Gregg Larson, CEO of Clareity Consulting. "We are trying to create a brand new real estate information exchange for the next 20 years, and we wanted to start with a blank sheet of paper to design it properly." Larson added, "A fresh name helps free up people's thinking, which opens the possibility to do something truly remarkable in northern California."  

NCREX has begun its search for brokerage owners and brokerage senior executives to fill 12 of its 15 director seats. The three remaining seats are reserved for the organization's future CEO and two outside directors.  NCREX is searching for broker candidates who are business oriented, successful, and well respected industry leaders. To best represent its participants and subscribers, the directors will come from a mix of small, medium, and large size companies. "NCREX is being designed to serve its brokers, agents and other subscribers, not to be a profit center. Our goal is to create a technically competent information management and service delivery organization that is financially stable and designed to meet the challenges of tomorrow's business world. NCREX is not being designed to enrich anyone or any organization in the process." said Larson, the NCREX spokesperson.

To better serve the current and future needs of real estate professionals in northern California, the MLS participants have agreed to standardize on a single set of business rules and regulations and a common database structure. The organization will begin mapping the multiple databases into one common database format in late January. NCREX expects to have the standardized and consolidated database completed and populated by mid 2006 and available to brokers and their authorized IDX providers by Q3 2006. The multiple MLS organizations will consolidate operations and convert to the new NCREX system throughout 2007.

It is believed the regional MLS will create efficiencies for real estate brokers and agents by eliminating the need to belong to and navigate multiple MLSs and conform to multiple sets of rules and regulations.  These changes will allow brokers and agents to better serve consumers. The organizations founding NCREX are REInfolink, Contra Costa MLS, Bay East MLS, East Bay Regional Data, Central Valley MLS and the San Francisco Association of Realtors MLS. Other Northern California MLSs are invited to join NCREX. 

The idea of a state-wide MLS has been percolating recently.  This is a natural first step in that direction. However, to date the MLS associations involved are in the greater San Francisco Bay Region.  It remains to be seen if other REALTOR association located throughout Northern California - notably Sacramento, Sutter-Yuba and some of the other fastest growing areas will join with NCREX to make it a truly Northern California MLS or if it remains primarily a tool for Bay Area users. 

The past five years the nation's real estate market has been red hot for sellers and their agents.  But just as when we overeat and don't exercise during the holidays when they are over we realize we need to regain balance in our lives.  So too, we need balance in the housing market.  Well, have no fear 2006 is here and the key word for the housing market in 2006 is balance.  

According to David Lareah, the chief economist of the NATIONAL ASSOCIATION OF REALTORS®, "A modest slowdown in home sales, coupled with improvements in housing inventory, means the market is in the process of normalization. That will help to bring balance between home buyers and sellers, yet sales will remain historically strong.

While REALTORS® have enjoyed the overheated market we also know the housing industry cannot sustain double-digit price increases year after year.  A cooling trend certainly will help to settle down prices and increase affordabililty.  In turn, this will benefit first-time home buyers as well as our economy by creating more homeowners. 

Home sales for 2005 are projected to finish the year at an amazing 7.1 million units.  Sales of existing-home are forecast for 2006 to slow by 4.4 percent to 6.79 million this year making it the second highest on record.  A modest slowdown from the past five years which saw consecutive annual record sales.  Similarly, new homes sales which are estimated to be a record 1.29 million in 2005 are projected to dip only slightly to 1.21 million.

Economics 101 - Supply and Demand.  Great news for home buyers.  Buyers are no longer going to be fighting over a limited supply of homes in 2006.   Bidding wars we saw in recent years are going to only fond memories for home sellers and their REALTORS®.  That means home prices generally will appreciate slower and closer to the long-term norms which is the overall rate of inflation plus one or two percentage points. Again, good new to buyers because lower price appreciation provides greater opportunities for first-time buyers yet maintains the investment advantages of home ownership for sellers.

More good news for buyers and sellers is that anticipated loan rates will increase nominally and are not projected to go above 6.7% during 2006.  Stabilizing the supply of homes, capital and demand by home buyers will return balance to the housing market and maintain affordability.  All good things for REALTORS® and all Americans. 

Prediction for 2006:  I am going out on a limb here but I believe 2006 will be another great year (near record sales) for homeownership!

For those who enjoy statistics here are a some to ponder from the CA ASSOCIATION OF REALTORS®.

CA Median Home Price - Nov. 05: $548,400 (Source: C.A.R.)
CA Affordability Index - Oct. 05: 15 percent (Source: C.A.R.)
CA highest median home price by C.A.R. region Nov. 05:             - Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
CA lowest median home price by C.A.R. region Nov. 05:             - High Desert $320,860 (Source: C.A.R.)
Mortgage rates - week ending 1/5:           30-yr. fixed: 6.21%; Fees/points: 0.5%           15-yr. fixed: 5.76%; Fees/points: 0.5%           1-yr. adjustable: 5.16%; Fees/points: 0.7%           (Source: Freddie Mac)