The largest real estate trade show in the state drew thousands of California's key executives, top producers and movers and shakers who attended for educational, networking and professional development opportunities. The state association also released its 2006 housing market forecast and the result of a technology survey.

Silicon Valley Association of Realtors President Willi Krauss, Region 9 chairwoman Judy Jarvis Ellis and CEO Janet Case led a delegation from the local area. John Tripp of Foundation Trust, Brian Bernasconi of Alain Pinel Realtors, Denis Byron of Byron and Associates and David Tonna of Windermere Silicon Valley Properties also attended and reported back to fellow Realtors at a recent Los Gatos/Saratoga District meeting.

Since technology has become so integral in the real estate transaction, an entire day at the convention was devoted to training. Called Tech Tuesday, the day started with a panel discussion of the ever-changing role of technology in the real estate industry. The 2005 use of technology survey was also released. It tracks current trends in technology on topics ranging from computer and technology usage to Internet needs and adoption within the real estate business.

It found that 90 percent of Realtors have a high-speed Internet connection at home, an increase from 82 percent a year ago and 71 percent in 2003. The primary form of communication with clients is email for 46 percent of Realtors. Thirty-one percent of Realtors said their most important technology upgrades in 2005 were Blackberry or Treo accessories.

More than 60 percent of Realtors post listings to their own websites while 67 percent view the Internet as extremely or very important in the marketing and promotion of their business. The survey showed that 33 percent of business for Realtors comes from the Internet.

Also discussed and released at the convention was the housing market forecast that touched on the state's economic landscape, housing affordability, home sales and median price projections for 2006. Presented by California Association of Realtors chief economist Leslie Appleton-Young, the forecast echoed David Lereah, chief economist for the National Association of Realtors, with a prediction of an ease in home appreciation for the coming year.

According to Appleton-Young, the rate of home price appreciation will moderate next year following four years of steep increases, while sales in 2006 are expected to decline slightly from this year's record pace.

The median home price in California will increase 10 percent to $575,000 in 2006 compared with a projected median of $523,1150 this year, while sales are projected to fall about 2 percent compared with 2005. The double-digit gain in the median price of a home, which California has experienced for most of the past five years, will again be fueled by the continuing shortage of housing across much of the state. California typically gains nearly 250,000 new households, yet only will build about 200,000 new housing units this year, creating a shortfall of about 50,000 units.

"We expect the fixed mortgage interest rate to rise to 6.4 percent next year and the adjustable rate to hit 5.1 percent, which will make it more difficult for many families in California to be able to afford a home," said Jim Hamilton, the association's president. "While still near their historic lows, up-ticks in interest rates coupled with the continued increase in the median home price will push affordability in California to a new all-time annual low of 15 percent next year."

Appleton-Young said, "The economic fundamentals at both the state and national level continue to support a strong housing market in the Golden State for the foreseeable future. However, we also expect that the wave of new loan products that have flooded the market over the past several years have injected a higher level of risk into the market, while affordability barriers to homeownership will continue to push residents inland and even out of state.

"Declining affordability will constrain sales in 2006 at a greater rate than we've previously experienced, especially in markets where there are higher price options compared with the state as a whole," Appleton-Young said. "Not all areas of the state will continue to experience the unprecedented double-digit median price increases of the past five years. Some high-cost areas, especially those in the more costly coastal regions, face a potential leveling off of median price gains compared with the 10 percent gain we expect for the state as a whole."

Other topics of interest at the Expo included litigation issues, information about disclosures and new forms for disclosures, an update on Meagan's law, and changes to the environmental hazards booklet handed out by Realtors during the real estate transaction.

The convention provides an opportunity for local Realtors to keep abreast of the latest trends, developments and issues affecting the industry as a whole and to bring back current information to better serve their clients.