Rick Griffin

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New PSAR Service Center in Clairemont will serve diverse housing market

Posted by Rick Griffin on Nov 30, 2018 2:42:51 PM

IMG_9166PSAR is proud to announce that a new Service Center in San Diego’s Clairemont community will open in December. The new centrally located PSAR facility, easily accessible throughout central San Diego, will be at the Liberty Park Plaza, 4340 Genesee Ave., Suite 230, San Diego. A grand opening celebration will be announced soon.

Clairemont is a vibrant, culturally and ethnically diverse suburb conveniently located for commuters between three freeways, including Interstate 5 and 805 and State Route 52. Its perch atop the mesas of San Clemente Canyon and Tecolote Canyon affords enviable views of Mission Bay and the Pacific Ocean.

The community’s early developers, Lou Burgener and Carlos Tavares, changed the community’s name from Morena Mesa to Clairemont in honor of Tavares’ wife, Claire. In the early 1950s, Clairemont became San Diego’s largest post-war subdivision. Burgener once boasted that between 1952 and 1954 an average of seven tract homes were constructed per day. Clairemont was known at the time as the largest development of its kind in the country. Considered innovative at the time, homebuilders abandoned a more traditional gridded blocks and streets in favor of cul-de-sacs and meandering streets. 

Today, Clairemont offers perhaps the most multicultural dining options in San Diego County. Here you can find international markets, as well as Thai, Italian, South African, Mexican and Lebanese restaurants all within the same block.

The housing markets for Clairemont (92117), Pacific Beach (92109), University City (92122) and Linda Vista (92111) vary greatly for both detached and attached homes. According to recent housing market statistics from industry source HomeDex:

-- The median sales price for a detached single-family home in Clairemont was $729,000 in October 2018, which was 10.3 percent higher than the $660,750 price in October 2017. The October 2018 monthly figure for detached homes in Clairemont was 8.7 percent higher than the year-to-date median sales price of $690,000.

-- In Pacific Beach, the median sales price for a detached single-family home was $1.295 million in October 2018, which was 5.6 percent higher than the $1.226 million in October 2017. The October 2018 monthly figure for detached homes in Pacific Beach was 8.6 percent higher than the year-to-date median sales price of $1.250 million.

-- In University City, the median sales price for a detached single-family home was $922,500 in October 2018, which was 2.7 percent higher than the $898,000 price in October 2017. The October 2018 monthly figure for detached homes in University City was 5.9 percent higher than the year-to-date median sales price of $900,000.

-- In Linda Vista, the median sales price for a detached single-family home was $610,000 in October 2018, which was 3.3 percent lower than the $630,500 price in October 2017. The October 2018 monthly figure for detached homes in Linda Vista was 9.1 percent higher than the year-to-date median sales price of $635,000.

For attached homes, the market also varies greatly among the four communities.

-- For attached homes in Clairemont, the median price was $441,250 in October 2018, which was 6.5 percent higher compared to the $414,500 price the same month a year ago. The October 2018 monthly figure for attached homes in Clairemont was 10.8 percent higher than the year-to-date median sales price of $399,000.

-- For attached homes in Pacific Beach, the median price was $615,000 in October 2018, which was 2.3 percent lower compared to the $629,500 price the same month a year ago. The October 2018 monthly figure for attached homes in Pacific Beach was 0.8 percent higher than the year-to-date median sales price of $620,000.

-- For attached homes in University City, the median price was $485,000 in October 2018, which was 10.7 percent higher compared to the $438,000 price the same month a year ago. The October 2018 monthly figure for attached homes in University City was 8 percent higher than the year-to-date median sales price of $464,250.

-- For attached homes in Linda Vista, the median price was $420,500 in October 2018, which was 7.6 percent lower compared to the $455,000 price the same month a year ago. The October 2018 monthly figure for attached homes in Linda Vista was 4.1 percent higher than the year-to-date median sales price of $433,750.

Homebuyers continue to wait it out, says C.A.R.

Posted by Rick Griffin on Nov 21, 2018 9:34:49 AM

Ave_days_on_Market_Med_price-2California’s housing market declined for the sixth straight month in October, according to the latest housing market report from the California Association of REALTORS® (C.A.R). C.A.R. also found that existing home sales in the state dropped below the 400,000 level for a third consecutive month. The last time there were three straight months when the sales dipped below 400,000 was February 2015.

Summarizing the overall housing market, mortgage rates remain affordable while demand for existing homes is slowing, home prices are falling slightly, price growth is moderating, price reductions are becoming more common and a tight supply of available homes, still low, is increasing, while many potential buyers are putting their homeownership plans on hold.

In October, C.A.R. said the month’s sales figures was up 3.8 percent from the revised 382,550 level in September and down 7.9 percent compared with home sales in October 2017 of 431,070.

C.A.R. said October’s statewide median home price was $572,000, down 1.2 percent from September ($578,850) and up 4.7 percent from October 2017 ($546,430).

In San Diego County, the median price of a single-family home was $635,500 in October 2018, a slight decrease from the $640,000 price reported for September 2018 and a 13.2 percent decline from October 2017 when the median price was $603,000. San Diego’s year-over-year comparison between October 2018 and October 2017 was the largest decrease among any Southern California market, said C.A.R. Orange, San Bernardino, and San Diego counties all experienced year-over-year, double-digit declines of 11.3 percent, 11.4 percent, and 13.2 percent, respectively. Sales in Los Angeles County declined 5.9 percent and were down 2.9 percent in Riverside County.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 397,060 units in October, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2018 if sales maintained the October pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

“Homebuyers continued to put their homeownership plans on hold in October and wait out the market,” said 2019 C.A.R. President Jared Martin. “With mortgage rates at seven-year highs making homeownership more expensive and home prices beginning to flatten, this phenomenon will likely continue for the near term as buyers wait for further price adjustments and for interest rates to stabilize.”

“October’s sales decline was not as severe as the double-digit drop experienced in September, but the continued pullback in sales suggests the market will continue to slow and likely soften further into 2019,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “Likewise, as home sales continue to soften, the median price, which was the lowest since March 2018, will also ease up,” said Appleton-Young.

Other key points from C.A.R.’s October 2018 resale housing report included:

  • Homes are taking longer to sell than they did just a few months ago. The median number of days it took to sell a California single-family home rose from 21 days in October 2017 to 26 days in October 2018.
  • Meanwhile, in San Diego County, the median number of days a home remained unsold on the market was 24 days in October 2018, compared to 19 days in both September 2018 and October 2017.
  • Statewide active listings rose for the seventh consecutive month after nearly three straight years of declines, increasing 28 percent from the previous year. October’s listings increase was the largest in four years.
  • Active listings in the $500,000-$750,000 price range experienced the largest year-over-year gain (43.9 percent), followed by homes priced $750,000-$999,999 (40.1 percent). The sub-$200,000 market was the only price segment with a decline of 6.2 percent from last year.

    The unsold inventory index, which is a ratio of inventory over sales, increased year-to-year for the seventh consecutive month in October from 3.0 months in October 2017 to 3.6 months in October 2018. The index measures the number of months it would take to sell the supply of homes on the market at the current sales rate.
  • The 30-year, fixed-mortgage interest rate averaged 4.83 percent in October, up from 3.90 percent in October 2017, according to Freddie Mac. The five-year, adjustable mortgage interest rate also increased in October to an average of 4.08 percent from 3.18 from October 2017.
In other recent real estate and economic news, according to news reports:
  • According to real estate tracker CoreLogic, a chill is settling over the once white-hot Southern California housing market. San Diego home sales decreased 17.5 percent in September 2018. A total of 2,942 homes were sold in the county, down 17.5 percent from 3,568 during the same month the previous year. It was the lowest number of sales for a September in 11 years, compared to September 2007 just before the Great Recession when 2,152 units were sold.
  • CoreLogic also said in September 2018, the median price of a San Diego County home was $575,000, up 7.5 percent from $535,000 in September 2017, but it was the first decrease since January 2018 after hitting an all-time high of $583,000 in August. Most experts are attributing the slowdown to a rise in mortgage interest rates as potential buyers balk at higher monthly payments.
  • The number of seriously underwater homes in San Diego County continued to decline in the third quarter as home equity maintained an upward trajectory, according to Attom Data Solutions. The real estate analytics company’s latest report found that only 6.5 percent of San Diego homes surveyed had mortgages that were at least 25 percent higher than the property's estimated market value.
  • Discounts, gift cards, and free streaming services for new renters are on the rise across the nation, but San Diego County seems to be bucking that trend, according to a HotPads report. The online real estate company found that rental listings advertising a concession have increased by 15.8 percent since the fall of last year, but San Diego County has seen a 27.1 percent decrease in rental concessions year-over year. HotPads pegged the median San Diego County rent at $2,680 a month, representing a 4.8 percent year-over-year increase.
  • San Diego County’s unemployment rate rose slightly in October, although total nonfarm employment increased by more than 10,000 jobs, according to the California Employment Development Dept. The county unemployment rate ticked up from an adjusted 3.2 percent in September to 3.3 percent in October, but is down from 3.6 percent in October 2017. A year ago, the rate stood at 3.6 percent.
  • Wages and salaries jumped by 3.1 percent in October, the highest level in a decade. Also in October, U.S. consumer confidence rose to an 18-year high amid optimism about jobs and the economy, according to the Conference Board.

Topics: Industry, Market Information

2019 Installation Dinner was inspirational, entertaining

Posted by Rick Griffin on Nov 16, 2018 3:45:47 PM
Robert Calloway Installation-blog-1It was an inspirational, wonderful and unforgettable evening. More than 255 people gathered at the Admiral Kidd Conference Center on Harbor Island for PSAR’s 2019 Officers and Directors Installation Dinner. Held Friday, Nov. 9, this year’s installation event was at an exclusive venue, the Admiral Kidd Conference Center located on military property on Naval Base Point Loma. The views of the San Diego Bay and downtown skyline were stunning.

The installation celebrated success in the PSAR REALTOR® community with REALTORS committed to serving in the industry. The program featured the swearing in of the 2019 PSAR board of directors, including Robert Calloway as 2019 PSAR president.

In his message to the members, Calloway stated the following:

“The 2019 theme for PSAR is Salute to Service. On Jan. 20, 1961, it was a cold day in Washington, D.C. for President John F. Kennedy’s inauguration. There, Mr. Kennedy spoke his famous words: `And so, my fellow Americans: Ask not what your country can do for you, ask what you can do for your country.’ He then continued by addressing his international audience: `My fellow citizens of the world: Ask not what America will do for you, but what together we can do for the freedom of man.’ It was a call to action for the public to do what is right for the greater good. President Kennedy called on all Americans to commit themselves to service and sacrifice.

“Today, I am calling on all PSAR members to do the same. Let me encourage you to get involved by volunteering and serving on a PSAR committee or on the board of directors. Don’t just show-up, volunteer. Find your passions, utilize your strengths, be a participant, not just an observer, and you will get more out of PSAR. You will develop your skills, advance your career and the experience will be rewarding to you both personally and professionally. While no one is capable of doing everything, everyone is capable of doing something. However, all of us can extend the reach of PSAR by building relationships and spreading the word about the many benefits PSAR offers.”

Joining Robert on the PSAR board of directors during the 2019 calendar year beginning Jan 1, 2019, will be: Robert Cromer as president-elect, Sam Calvano as secretary-treasurer and Jan Farley as immediate past president. Other REALTOR® members also serving on the 2019 board will include: Mike Anderson, Yvonne Cromer, Carey Guthrie, Shonee Henry, Sean Hillier, Robert Kilbourne, Jason Lopez, Dennis Ryan, Norma Scantlin and Ditas Yamane. Also serving on the board will be Tony Santiago as an affiliate director.

Also announced at the installation were recipients of special awards, including:
  • Laurie MacDonald, East County Realtor of the Year;
  • Sarah Heck, South County Realtor of the Year;
  • Robert Hillard, East County Affiliate of the Year;
  • Juanita Adame, South County Affiliate of the Year;
  • Nikki Coppa, East County Broker-Office Manager of the Year;
  • Max Zaker, South County Broker-Office Manager of the Year.
Jan Farley presented four Presidential Awards of Appreciation. Recipients included: Shun Wakita and Aaron Kerper for their services as a Sandicor Director; Anthony Andaya and Sarah Heck for their service on the PSAR Legal Taskforce.

Special guest speaker Sammy Lee Davis drew several standing ovations at the installation. Davis served in the U.S. Army during the Vietnam War and was awarded the nation’s highest military medal for valor, the Medal of Honor. As Private First Class Davis, he told an emotional first-person story of a nightlong mortar firefight at Cai Lay in Vietnam as experienced by his Battery C group. His entertaining performance of “Oh Shenandoah” on his harmonica was breathtaking. Mr. Davis certainly made this year’s Veterans Day Weekend very memorable.

In his message to the member, PSAR CEO Rich D’Ascoli stated: “While many question the viability of REALTOR® associations, PSAR is continuing to get stronger. We remain committed to our collaborative relationships with other local associations, such as NSDCAR, C.A.R., NAR, as well as, most recently, as a member of the California Regional Multiple Listing Service (CRMLS.) Together, REALTORS® are thriving because our associations are the glue that both holds the industry together and the fuel which powers our members for success.

“While REALTORS® may operate in an extremely competitive business arena, we come together through our associations and the MLS to create a marketplace that directly benefits consumers. As an industry, we don’t give ourselves enough credit. Because of REALTORS®, the MLS creates a transparent marketplace that provides consumers with choices and information which helps them to make sound financial decisions. Residential buyers and sellers are making the largest investment decisions of their lifetime. Without REALTORS®, we wouldn’t have the MLS marketplace or the market transparency that exists today.”

Topics: Events, Education, Leadership

PSAR endorsed candidates, propositions were Election Day winners

Posted by Rick Griffin on Nov 9, 2018 12:31:19 PM

411-winners-BLOG

PSAR’s Government Affairs Committee endorsed a number of local candidates who were winners in this week’s November 6th general election. Also, PSAR was victorious in positions regarding a local proposition and statewide propositions.

 PSAR endorsed Brian W. Jones who won the seat to represent the State Senate 38th District. With 100 percent of the precincts reporting, Jones drew 56 percent of the vote. Jones, a three-term Republican Assemblyman and current Santee city councilman, succeeded Joel Anderson (R-Alpine), who was termed-out. The massive 38th District, with nearly 1 million residents and covering about 30 percent of San Diego County, stretches from Lemon Grove to Fallbrook, from Borrego Springs to Alpine and includes most of eastern and northern San Diego County. It encompasses eight municipal cities, including Lemon Grove, Santee, La Mesa, El Cajon, Poway, Escondido, San Marcos and San Diego’s Scripps Ranch community, as well as the communities of Lakeside, Ramona and Julian. As an assemblyman, Jones has always been a reliable vote for policies that protect homeownership and private property rights.

PSAR also supported the successful reelection of three city mayors, including Mary Casillas Salas in Chula Vista, Bill Wells in El Cajon and Mark Arapostathis in La Mesa.

Salas won with 70.1 percent of the vote. She has been an elected official since 1996, beginning with the Chula Vista City Council followed by the State Assembly. She became mayor in 2014.

Wells, also an incumbent, won handily with 66 percent of the vote. Elected to the City Council in 2008, Wells has been the city’s mayor since 2013. 

Arapostathis ran unopposed for his mayor’s seat in La Mesa. He was elected as mayor in 2014.

Other PSAR candidates who were successful in their city council races included: John McCann, Chula Vista; Ron Morrison, National City; Gary Kendrick, El Cajon; Bill Baber, La Mesa; Ronn Hall, Laura Koval, Rob McNelis, Santee; Jerry Jones, Lemon Grove.

In a special district race that drew a PSAR endorsement, Dan McMillan was reelected to the Helix Water District board of directors.

PSAR organized a massive campaign to defeat of Measure “W,” a rent control initiative in National City that drew 54 percent of “no” votes. In the city of more than 60,000 residents, about 70 percent of residents are renters. 

National City voters said they did not favor the city government creating new costly bureaucracy  which would limit how property owners manage their rental units . Most econommists agree that the measure would have eliminated incentives for property owners to fix up their units and discourage new housing construction.

PSAR believes rent control reduces the quality and quantity of housing. Typically, rent control leads to reducing available rentals and landlords skimping on repairs. Rent control eliminates incentives for landlords and property owners to fix up, or invest in, their units, as well as discourages new housing construction and decreases the number of available rental units.

In statewide propositions, PSAR agreed with the California Association of REALTORS® (C.A.R.) in its positions on Propositions 1, 5 and 10.

Prop. 1, the Housing Programs and Veterans’ Loans Bond that was supported by C.A.R., passed by a 54.2 percent margin. As a result, the state will borrow up to $4 billion in general obligation bonds for housing-related programs benefiting veterans. The vast majority of the bonds, about $3 billion, will be set aside for various types of housing programs. The biggest share, or $1.5 billion, will go toward the construction and rehabilitation of permanent and transitional rental housing and apartments for California households who earn of up to 60 percent of the area median income. The second biggest portion of the $3 billion, about $150 million, will be earmarked for cities, counties, transit agencies, and developers to build higher density housing near transit stations.

Prop. 5, the Property Tax Transfer Fairness Initiative that was supported by C.A.R., was defeated (42 percent voted “yes,” 58 percent voted “no”). Voters said no to expanding property tax savings for older homeowners. If approved, Prop. 5 would have allowed homeowners over ages 55 to transfer their lower property tax rates with them when moving to a newly bought home anywhere in the state. Prop. 5 was initiated by C.A.R. The measure qualified for the ballot after C.A.R. submitted nearly 1 million voter signatures to the Secretary of State’s office.

Prop. 10, the Local Rent Control Initiative that was opposed by C.A.R., was defeated resoundingly (62 percent voted “no,” 38 percent voted “yes”). C.A.R. opposed Prop. 10 because it would have allowed for the expansion of rent control across California. The initiative would have repealed a 1995 law, the Costa-Hawkins Rental Housing Act, that limits county and city governments’ ability to slow rent hikes. It would have overturned an existing state law blocking cities from imposing rent control on rental units built after 1995 and on all single-family homes and condominiums. Repealing the longstanding Costa-Hawkins Rental Housing Act would have exacerbated the housing crisis, eventually allowing local governments to impose draconian rent control measures. If approved, unelected bureaucrats would have overseen rent control ordinances and determine how much landlords could charge tenants for renting apartments and houses. The election result means those prohibitions remain in place.

The PSAR Government Affairs Committee recommended the endorsements to the PSAR board of directors, which then ratified the recommendation. The Government Affairs Committee is involved in political advocacy and public policy and its impact on homeownership and private property rights.

Topics: Government Affairs

PSAR announces endorsements for Nov. 6th general election

Posted by Rick Griffin on Nov 2, 2018 1:20:48 PM

411-blogThe Pacific Southwest Association of REALTORS® (PSAR) has announced its endorsement of candidates for the Nov. 6th general election. Endorsed candidates include:

Brian Jones -croppedBrian Jones for California State Senate 38th District

Mary_SalasMary Casillas Salas, Chula Vista Mayor

John_McCann

John McCann, Chula Vista City Council, District 1

Ditas_YamaneDitas Yamane, National City Mayor


Ron_MorrisonRon Morrison, National City City Council


Bill-WellsBill Wells, El Cajon Mayor


Gary_KendrickGary Kendrick, El Cajon City Council


Mark_ArapostathisMark Arapostathis, La Mesa Mayor


Guy_McWhirterGuy McWhirter and Bill Baber, La Mesa City Council


Ron_HallRonn Hall, Laura Rose Koval, Rob McNelis, Santee City Council


Jerry_JonesJerry Jones, Lemon Grove City Council


Dan-McMillanDan McMillan, Helix Water District, District 1


John_OlsenJohn Olsen, Grossmont-Cuyamaca Community College District Board of Trustees, Area 1

 

PSAR’s Government Affairs Committee recommended the endorsements to the board of directors, which then ratified the recommendation. The Government Affairs Committee is involved in political advocacy and public policy and its impact on homeownership and private property rights.

In addition, PSAR is recommending the following:

  • “No” on Measure “W,” Rent Control in National City. If approved, Measure W would put a 5 percent limit on annual rent increases and ban certain types of evictions, making it tougher to evict problematic renters.
PSAR believes rent control reduces the quality and quantity of housing. Typically, rent control leads to reducing available rentals and landlords skimping on repairs. Rent control eliminates incentives for landlords and property owners to fix up, or invest in, their units, as well as discourages new housing construction and decreases the number of available rental units. Vote “No” on “W.”
  • “Yes” on California Proposition 5, Property Tax Transfer Fairness Initiative. If approved, Prop. 5 would allow homeowners over ages 55 to transfer their lower property tax rates to a newly bought home anywhere in the state. A couple, for example, could sell a home assessed at $250,000 for $750,000 then buy another property for $750,000 and continue to pay property taxes at the $250,000 valuation. If the new home cost more or less, property tax would be adjusted based on simple formulas that continued the property tax breaks that residents enjoyed with their previous homes.
PSAR believes this measure would create new homeownership opportunities by generating more sales of single-family homes in existing neighborhoods. This will benefit young families at a time when California faces a severe shortage of homes for sale. Prop. 5 is actually a smart idea that will both give older people more flexibility with their lives and introduce liquidity to a housing market that could badly use it. The revenue it would cost local government is relatively small. Also, Prop. 5 is a common sense way to expand the benefits of Proposition 13 protections while providing more affordable housing.

Prop. 5 was initiated by the California Association of REALTORS® (C.A.R.). C.A.R. qualified the measure for the ballot after it submitted nearly 1 million voter signatures to the Secretary of State’s office, indicating strong voter support. Vote “Yes” on Prop. 5.
  • “No” on California Proposition 10, Local Rent Control Initiative. If approved, Prop. 10 would overturn an existing state law blocking cities from imposing rent control on rental units built after 1995 and on all single-family homes and condominiums. Repealing the longstanding Costa-Hawkins Rental Housing Act would exacerbate the housing crisis, eventually allowing local governments to impose draconian rent control measures. If approved, unelected bureaucrats would oversee rent control ordinances and determine how much landlords could charge tenants for renting apartments and houses.

PSAR believes Prop. 10 is a flawed rent control initiative that would make housing more expensive, not less, and worsen the housing crisis. Vote “No” on Prop. 10.

In addition to positions on Prop. 5 and Prop. 10, C.A.R. is supporting Proposition 1, the Housing Programs and Veterans' Loans Bond. A “yes” vote on this measure would authorize the state to borrow up to $4 billion in general obligation bonds for housing-related programs benefiting veterans. If approved, additional affordable housing would be provided for veterans. The vast majority of the bonds, about $3 billion, would be set aside for various types of housing programs. The biggest share, or $1.5 billion, would go toward the construction and rehabilitation of permanent and transitional rental housing and apartments for California households who earn of up to 60 percent of the area median income. The second biggest portion of the $3 billion, about $150 million, would be earmarked for cities, counties, transit agencies, and developers to build higher density housing near transit stations. The remaining $1 billion would be earmarked for veterans participating in a home loan program. In addition to C.A.R., Prop. 1 has support from major California newspapers, including the San Francisco Chronicle, Los Angeles Times, and Sacramento Bee, as well as the League of Women Voters and Democratic state lawmakers.

The Pacific Southwest Association of REALTORS® (PSAR), a 2,600-member trade group for San Diego-area REALTORS®, offers educational training, advocacy and other services and resources to its REALTOR® members. Founded in 1928, PSAR has played a significant role in shaping the history, growth and development of greater San Diego County. The Association maintains a leadership role in the industry, empowering REALTORS® by leveraging our collective strength so they may serve homebuyers and sellers and the greater community. For more information, visit www.PSAR.org.

Topics: Government Affairs

Housing Market is Cooling, Inventory Rising, Buyers are Waiting

Posted by Rick Griffin on Oct 26, 2018 4:32:22 PM

Ave_days_on_Market_Med_price-1

California’s housing market “continued to deteriorate” in September, according to the latest housing market report from the California Association of REALTORS® (C.A.R). Mortgage rates remain affordable while demand for existing homes is slowing, home prices are rising at a slower rate and a tight supply of available homes, still low, is increasing.

In September, C.A.R. said the state’s housing market posted its largest year-over-year sales decline since March 2014. In addition, home sales remained below the 400,000-level sales benchmark for the second consecutive month, indicating that the market is slowing as many potential buyers put their homeownership plans on hold.

C.A.R. said September’s statewide median home price dropped to $578,850 in September. The September 2018 statewide median price was down 2.9 percent from $596,410 in August 2018 but up 4.2 percent from a revised $555,400 in September 2017.

In San Diego County, the median price of a single-family home in San Diego County was $640,000 in September 2018, up from $605,000 during the same month a year ago, according to CAR. The median price in September 2018 was down 3 percent from $660,000 in August 2018.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 382,550 units in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2018 if sales maintained the September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

“The housing market continued to deteriorate and the decline in sales worsened as interest rates remained on an upward trend,” said C.A.R. President Steve White. “More would-be buyers are self-sidelining as they believe home prices will start to come down soon, making housing more affordable despite rising interest rates. Tax reform, which increases the cost of homeownership, also is contributing to the decline, especially in high-cost areas such as the San Francisco Bay Area and Orange County.”
“Price appreciations have slowed in the last few months and inventory has risen considerably since June when the statewide median price hit a new peak,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “Buyers are becoming increasingly concerned about market developments and are reluctant to purchase at the prevailing market price. As such, the deceleration in price growth will likely continue in coming months.”

Other key points from C.A.R.’s September 2018 resale housing report included:

  • -- Homes are taking longer to sell than they did just a few months ago. The median number of days it took to sell a California single-family home ticked up from 20 days in September 2017 to 23 days in September 2018, a sign that market competitiveness is not as heated as it was in 2017. The statewide number of days for August 2018 was 21 days. Meanwhile, in San Diego County, the median number of days a home remained unsold on the market was 19 days in September 2018, compared to 18 days in August 2018 and 16 days in September 2017.
  • -- Statewide active listings rose for the sixth consecutive month following 33 straight months of declines, increasing 20.4 percent from the previous year. September’s listings increase was the biggest in nearly four years.
  • -- The Unsold Inventory Index, which is a ratio of inventory over sales, rose again to 4.2 months in September 2018 from 3.3 months in September 2017. It was the highest level in 31 months. The index measures the number of months it would take to sell the supply of homes on the market at the current sales rate.
  • -- The 30-year, fixed-mortgage interest rates averaged 4.63 percent in September, up from 3.81 percent in September 2017, according to Freddie Mac. The five-year, adjustable mortgage interest rate also increased in September to an average of 3.94 percent from 3.16 percent from September 2017.
In other recent real estate and economic news, according to news reports:
  • U.S. home sales fell for the sixth straight month in September 2018, a sign that housing is remaining a weak spot for the economy. The National Association of REALTORS® said that sales declined 3.4 percent in September, the biggest drop in 2 ½ years, to a seasonally adjusted annual rate of 5.15 million. That’s the lowest sales pace since November 2015.
  • Rising mortgage rates, paired with already high home prices, are giving pause to homebuyers and are partly to blame for the slowdown in sales, according to CoreLogic. With some rates running at around 5 percent for 30-year fixed-rate loans, CoreLogic reported that mortgage rates this summer reached the highest level in seven years, making it harder for some buyers to enter the market.
  • Mortgage payments are rising faster than home values. A new Zillow analysis report found that monthly mortgage payments are rising at significantly higher levels than home values. For example, in San Diego County, the median home value rose just 4.9 percent year-over-year while the monthly mortgage payments jumped by 13.6 percent from a year ago, according to Zillow.
  • According to Redfin, San Diego County’s housing inventory level climbed 30.7 percent year-over-year in September, trailing only San Jose (82.7 percent) and Seattle (54.5 percent). Inventory levels may have climbed, but Redfin’s recent overall assessment for San Diego County still gives us an 84 out of 100 ranking on a competitive scale with 100 being the most competitive.
  • Rents have stabilized recently, which means many would-be buyers may not feel as much pressure to buy a home right now. However, looking ahead, San Diego County's average rent is projected to soar to $2,187 by 2020, according to a forecast by the USC Lusk Center for Real Estate in partnership with Beacon Economics. The USC forecast estimates that in two years average monthly rents in San Diego County will increase by $209 over their current levels. It also predicts rents will rise by $91 in Los Angeles County, by $52 in Orange County, by $107 in Ventura County and by $78 in the Inland Empire. The forecast also said while San Diego County's vacancy rate was unchanged at 3.94 percent in 2018, it is projected to drop to 3.75 percent in 2020 despite several thousand units that are either under construction or will be in development soon.
  • Analysts remain mostly optimistic about the broader economy. Most forecast growth will top 3 percent for an annual rate in the July-September quarter, after a robust expansion of 4.2 percent in the second quarter.
  • San Diego County created 700 jobs in September 2018 and added 27,000 jobs in the past year, according to a recent jobs report from the California Economic Development Department. The largest month-over-month increases occurred in the government sector, which added 5,100 jobs. With the creation of 14,700 jobs, the professional and business services sector reported the largest year-over gains. San Diego County's unemployment rate fell from a revised 3.4 percent in August to 3.2 percent in September. By comparison, the unadjusted unemployment rate was 3.9 percent for California and 3.6 percent for the nation during the same time frame, according to the report.

Topics: Market Information

Fabulous Gathering Awaits PSAR Members at Installation Dinner on Nov. 9th

Posted by Rick Griffin on Oct 19, 2018 1:49:27 PM

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It will be an unforgettable experience that you don’t want to miss. PSAR will present its 2019 Officers and Directors Installation Dinner on Friday, Nov. 9, at the Admiral Kidd Conference Center, 33050 McDonough Road, San Diego, 92136 (some GPS devices may show the address as 33050 Acoustic Ave.).

Bigger and better than ever, this year’s Installation Dinner is destined to be the biggest real estate event of the year, as we welcome the 2019 board of directors in this exclusive venue. Located on military property on Naval Base Point Loma at the Harbor Drive Annex, the Admiral Kidd Conference Center is virtually surrounded by the splendor of the San Diego Bay and downtown skyline and offers breathtaking views of the San Diego Bay. The facility features a lovely lawn setting and a deck overlooking the bay.

The installation event will celebrate success in the REALTOR® community with the top producers in the industry. The program will feature the swearing in of the 2019 PSAR board of directors including Robert Calloway as 2019 PSAR president. Also announced will be winners of the East County Realtor of the Year, South County Realtor of the Year, East County Affiliate of the Year and South County Affiliate of the Year. Additional awards will include Broker-Office Manager of the Year for both East County and South County.

Don’t be late. Networking with colleagues and industry peers will start at 6 p.m. Stella Artois premium beer and wine (Chardonnay and Cabernet Sauvignon) will be hosted. This will be your opportunity to reconnect with old friends and engage with new friends, raising your profile, expanding your influence, telling your story and generating referrals and greater business.

Dinner will begin at 7 p.m. Farmer’s table appetizer display will include assorted cheese and crackers and veggie display. Hors-d'oeuvres will be passed. Hors-d’oeuvres will include fresh roasted tomato bruschetta, smoked salmon and cucumber roulade, bacon wrapped scallops and beef empanadas. Plated dinners choices will include chicken Marsala (breast of chicken simmered in rosemary Marsala wine sauce), grilled New York steak (with carmelized onions and a rich bordelaise sauce) or vegetarian (pasta primavera). Chardonnay and Pinot Noir wine will be served with dinner.

Tickets are priced at $85 per person, which is a tremendous bargain. RSVPs can be made at blog.psar.org/installation. Sponsorship opportunities are still available for this special night. Several different affordable sponsorship opportunities are currently being offered. This is a prime advertising opportunity to situate your brand in front of other industry professionals and get the attention your brand deserves. More sponsorship information is available by contacting Sally Valdez at PSAR at (619) 579-0333.

Special guest speaker at the PSAR Installation Dinner will be Sammy Lee Davis, a veteran who served in the U.S. Army during the Vietnam War and was awarded the nation’s highest military medal for valor, the Medal of Honor.

Davis took some ribbing in the Army because he shared a name with the famous entertainer. Much later, long after his military days were over, he would again gain some acclaim among his old comrades, this time as the “real Forrest Gump.” That’s because news footage of Davis receiving the Medal of Honor from President Lyndon B. Johnson appeared in the 1994 “Forrest Gump” motion picture with Tom Hanks’ head in place of Davis. Gump’s functional Medal of Honor citation was loosely based on Davis’ real one.

Early on November 18, 1967, his unit of 11 guns and 42 men were transported via helicopter into an area west of Cai Lay to set up a forward fire-support base. Shortly after midnight the next morning, Private First Class Davis’s Battery C came under heavy mortar attack. Almost simultaneously, an estimated 1,500 Vietcong soldiers launched an intense ground assault, failing to overrun the Americans only because a river separated the two forces. Davis’s squad was operating a 105 mm howitzer that fired 18,000 beehive darts in each shell. When he saw how close the enemy had come, Davis took over a machine gun and provided covering-fire for his gun crew. But an enemy recoilless rifle round scored a direct hit on the howitzer, knocking the crew from the weapon and blowing Davis sideways into a foxhole.

Convinced that the heavily outnumbered Americans couldn’t survive the attack, Davis decided to fire off at least one round from the damaged artillery piece before being overrun. He struggled to his feet, rammed a shell into the gun, and fired point-blank at the Vietcong who were advancing five deep directly in front of the weapon; the beehive round cut them down. An enemy mortar round exploded nearby, knocking Davis to the ground, but he got up and kept firing the howitzer. When there were no more rounds left, he fired a white phosphorus shell, and then the last round he had a “propaganda shell” filled with leaflets. On Nov. 19, 1968, exactly one year and one day after the nightlong firefight at Cai Lay, Davis received the Medal of Honor from President Lyndon Johnson.

Davis is the author of “You Don’t Lose ‘Til You Quit Trying: Lessons on Adversity and Victory from a Vietnam Veteran and Medal of Honor Recipient.” The book is available on Amazon.

Topics: Events

Best Practices: 5 Leadership Traits for Successful Brokers

Posted by Rick Griffin on Oct 12, 2018 2:44:51 PM
JoeGarzanelli-232x300Here is the latest in a series of occasional articles on “Best Practices” from PSAR members.

By PSAR Broker & REALTOR® Joe Garzanelli

Brokers are wired for achievement. But, it’s not easy being a broker. We get busy. We get overwhelmed. And we can need to constantly remember to keep the main thing the main thing.

No broker wants to be seen as a “flash-in-the-pan,” short-timer with lots of fanfare that soon fizzles. However, only over time, the true value of a broker as a leader can be made clear.

I’ve been a broker for more than 40 years, and I’ve been in real estate for 50 years. So, what would I consider as important leadership traits for successful brokers and all other real estate professionals? Here are a few traits I’ve learned along the way:
  • Brokers are continual learners.
    The world is always evolving. Because of technology, things are changing fast. And, what makes a successful broker today will not keep him or her as a successful broker tomorrow. So, the most successful brokers are consistent learners. Learning is the lifestyle of leadership. They never rest on their laurels; rather, they are continually getting smarter and updating their skills. The moment you stop learning is when you stop leading. The moment you think you know it all you’re dead in the water. The cliché is true that you either make dust or you’ll eat dust.
  • A broker’s work ethic is on display.
    Everyone in the brokerage can clearly see a successful broker’s strong work ethic. They are willing to do whatever is necessary to get the job done. While others live to avoid pain, a successful broker will do the things others are unwilling to do. And, hard work is the foundation of their success. They are never satisfied because there’s always something they can do better. Plus, they learn the entire business, not just their position.
  • Resilience and persistence is a broker’s middle names.
    The most successful brokers are leaders who have persisted in their profession long after others would have given up. Resilience is the ability to bounce back and recover from loss, failure, stress or disappointment. It’s the ability to keep going. The best brokers understand that success is sometimes three steps forward and two steps backwards. Nobody goes through life with an unbroken chain of successes. Everybody has failures and mistakes. We all embarrass ourselves. We all have pain. We all have problems. We all have pressures. But, the people who make it in life have endurance, resilience and persistence.
  • The best brokers surround themselves with excellence.
    The best brokers are transparent and willing to be open about their strengths and weaknesses. They know how to prioritize their activities and play to their own strengths to achieve maximum results. Plus, they’re not afraid to seek assistance because everyone has something to contribute. They’re smart enough to realize that you can’t become the best version of yourself without a little help along the way. They never claim to have it all together in every area. So, they recruit to their team both talented younger people and veteran professionals who add different perspectives and help the overall organization. The perspective of those who see the world differently can add something indispensable to your brokerage.
  • The best brokers are humble leaders.
    Successful brokers experience trials, endure failures and know what it’s like to be last and hungry. In those times, they learn humility and accept the fact that earning respect is a process. So, when their moment of breakout leadership eventually arrives, they accept the rewards of recognition with humility and gratitude, not pride. They enjoy sharing the credit.

Topics: Brokers/Managers, Leadership

East County Housing Market Overview

Posted by Rick Griffin on Oct 5, 2018 5:16:21 PM

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Here is the latest in the real estate market in the San Diego’s East County region in the following zip codes: 91901, 91905, 91906, 91916, 91917, 91931, 91934, 91935, 91941, 91942, 91945, 91948, 91962, 91963, 91977, 91978, 91980, 92004, 92019, 92020, 92021, 92036, 92040, 92066, 92070, 92086. The following statistics on housing market activity in the East County is from the HomeDex Housing Market Report for August 2018.

  • The median sales price for a detached single-family home in East County reached $535,000 in August 2018, which was 5.4 percent higher than the $507,500 price in August 2017. The August 2018 monthly figure for detached homes is higher than the year-to-date median sales price of $522,000.
  •  For attached homes, the median home price in the East County was $330,000 in August 2018, which was 11.9 percent higher compared to the $295,000 price the same month a year ago. The August 2018 monthly figure for attached homes is higher than the year-to-date median sales price of $320,000.
  • The average number of days in August for an East County home on the market (the time between when a property is listed and an offer is accepted) was 31 days for detached homes and 17 days for attached homes. In August 2017, the numbers were 32 and 22 days, respectively.
  • Closed sales totaled 304 detached units in August 2018, which was a 24.9 percent year-over-year drop compared to the 405 units sold in August 2017. For attached home sales, closed sales totaled 103 in August, a 12 percent decline from August 2017’s total of 117. 
  • The percentage of original list price received for detached homes was 98.4 percent in August, a 0.3 percent change from 98.7 percent in August 2017. For attached homes, the percentage was 99.3 percent in August, a 0.4 percent difference from 99.7 percent in August 2017.
  • The number of new detached listings on the market in August totaled 672, a 21.7 percent increase from the 552 new listings in August 2017. For new attached listings, the total was 143 in August, a 9.2 percent increase from the 131 new listings in August 2017.
  • The year-to-date totals for detached listings was 6,285 through August, a 7.4 percent increase from 5,854 listings through August 2017; the year-to-date total for attached property listings was 1,663 through August, a 17.2 percent increase from the 1,491 listings through August 2017.
    According to HomeDex, the economy is under scrutiny, but certainly not deteriorating. While some housing experts are starting to look for recessionary signs such as fewer sales, dropping prices and even foreclosures, others are taking a more cautious and research-based approach to their predictions. Housing starts are performing admirably, prices are still inching upward, supply remains low and consumers are optimistic. A report from the National Association of Home Builders (NAHB) said that rising home prices, higher interest rates and increased building material costs have pressured housing affordability to a 10-year low. Nationally, median household income has risen 2.6 percent in the last 12 months, while home prices are up 6 percent.

Topics: Market Information

California Home Sales Falter for 4th Straight Month

Posted by Rick Griffin on Sep 29, 2018 10:11:32 AM

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California’s housing market faltered in August for the fourth straight month as high home prices continue to take a toll on demand statewide, according to the latest report from the California Association of REALTORS® (C.A.R.).

Home sales in San Diego County declined by 10.4 percent in August in a year-over-year comparison. Regionally, Southern California had the largest decline, with sales falling 8 percent in year-over-year. Orange and Los Angeles counties saw year-over-year declines of 10.4 percent and 8.9 percent, respectively.

In its August home sales and price report, C.A.R. said the statewide median home price edged higher $596,410, up 0.8 percent from $591,460 July 2018 and up 5.5 percent from a revised $565,320 in August 2017.

In San Diego County, C.A.R. reported that the median single-family housing price was $660,000 in August 2018, compared to $650,000 in July 2018. The August 2018 figure was 9.1 percent higher from the $605,000 registered in August 2017.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 399,600 units in August, according to information collected by C.A.R. from more than 90 local REALTOR® associations and multiple leasing services statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2018 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

It was the first time in two years for single-family detached home sales to fall below the 400,000 sales benchmark. August’s sales figure was down 1.8 percent from the revised 406,920 level in July and down 6.6 percent compared with home sales in August 2017 of 427,630.

“Home sales activity remained on a downward trend for the fourth straight month as uncertainty about the housing market continues to mount,” said C.A.R. President Steve White. “Buyers are being cautious and reluctant to make a commitment as they are concerned that home prices may have peaked and instead are waiting until there’s more clarity in the market.”

“While home prices continued to rise modestly in August, the deceleration in price growth and the surge in housing supply suggest that a market shift is underway,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “We are seeing active listings increasing and more price reductions in the market, and as such, the question remains, ‘How long will it take for the market to close the price expectation gap between buyers and sellers?’”

Other key points from C.A.R.’s August 2018 resale housing report included:

  • The median number of days it took to sell a California single-family home was 21 days in August 2018, compared to 18 days in July 2018 and 18 days in August 2017. Meanwhile, in San Diego County, the median number of days a home remained unsold on the market was 18 days in August 2018, compared to 14 days in both July 2018 and August 2017.
  •  Statewide active listings rose for the fifth consecutive month after 33 straight months of declines, increasing 17.2 percent from the previous year. August’s listings increase was the biggest in nearly four years. Much of the listings increase is attributable to lower-priced properties. The number of homes available for sale and priced below $750,000 grew more than twice as much as homes priced above that price level. With fewer homes being sold, statewide inventory is starting to climb. The unsold inventory index, which is a ratio of inventory over sales, rose again in August from 2.9 months from August 2017 to 3.3 months in August 2018. The index measures the number of months it would take to sell the supply of homes on the market at the current sales rate.
  • California condominium/townhome median price in August 2018 was $474,570, compared to $486,330 in July 2018 and $446,850 in August 2017.
  • The 30-year, fixed-mortgage interest rates averaged 4.55 percent in August, up from 3.88 percent in August 2017, according to Freddie Mac. The five-year, adjustable mortgage interest rate also increased in August to an average of 3.87 percent from 3.15 from August 2017.
In other recent real estate and economic news, according to news reports:
  • San Diego County home prices in July increased 6.2 percent in the past year year, faster than the nationwide average of 5.9 percent, but slower than other California cities, according to the most recent S&P CoreLogic Case-Shiller 20-city index. In July, Las Vegas was the number-one metro area yet again with a 13.7 percent annual increase. It was followed by Seattle at 12.1 percent and San Francisco at 10.8 percent. The monthly change for local home prices from June to July 2018 was 0.0 percent, according to the report.
  • Realtor.com, operated by the National Association of REALTORS®, reports that the coastal cities of San Jose, Seattle and San Diego were the three markets with the biggest inventory jumps over last year, all posting increases of 28 percent or more. As a result, the increased inventory has led to an increase in price discounts. Realtor.com found that Seattle had an 8 percent increase in price discounts, San Jose had a 7 percent rise in price discounts, and the cities of San Diego, Riverside, Indianapolis, Riverside, and Los Angeles all had a 5 percent spike in price discounts from a year ago. Nearly 40 of the 45 largest markets saw an increase in the share of price discounts over last year.
  • LendingTree reports that San Diego is the second most difficult place in the U.S. to get into a home, behind only Los Angeles. San Francisco came in third. San Diego has an average leverage ratio of 3.62, or the ratio of mortgage cost to borrower's income. The region's leverage ratio is based on a median mortgage amount of $442,000, and a median borrower household income of $122,000. The study used Home Mortgage Disclosure Act (HMDA) data, which includes more than 7 million mortgages originated in 2017, to calculate the leverage rate of borrowers in the 50 largest cities in America. The median amount borrowed was divided by the median borrower income for all purchases in the HMDA database for 2017.
  • Foreclosures and delinquency rates have dipped to a 12-year low, according to CoreLogic. Measuring the number of homeowners who were late on their mortgage payments by more than 30 days, the monthly analysis found that only 4.3 percent of mortgages in June were delinquent nationwide, compared to 4.6 percent the year previous and the same 4.3 percent in March. While the downtick may seem small, the number of Americans failing to make payments on their homes has been falling steadily over the past decade. Neither the delinquency rate nor foreclosure rate has been this low since 2006.
  • WalletHub, a company that offers free credit scores and credit reports updated daily, compared 182 U.S. cities based on 65 key metrics, including movie costs, open hours of breweries and fitness centers per capita, and San Diego came in as the tenth most fun city in America. More specifically, San Diego came in at #10 in number of attractions, #9 in parkland acres per capita, #8 in festivals per capita and #1 for fitness centers per capita. Other categories in which the city scored well included: playgrounds per capita (#19), restaurants per capita (#16, dance clubs per capita (#11) and bar accessibility (#30). Overall, San Diego hosts more than 35 million visitors each year, with that number expected to increase by 3.5 percent in 2018, according to the San Diego Tourism Authority.
  • Near record-low unemployment in the San Diego metropolitan region continued in August, with the rate falling to 3.4 percent from 3.5 percent in July. The state Employment Development Department reported there were 1,529,800 employed in San Diego County in July and just 54,300 unemployed. The unemployment rate in San Diego was below the state level of 4.2 percent and the national level of 3.9 percent. Economists say that even with a strong economy, there will be some “frictional unemployment” due to workers changing jobs. The lowest unemployment rate in San Diego in recent years was 2.9 percent in December 1999, while the highest was 10.9 percent — more than one in 10 workers — in March 2010 during the Great Recession.
  • For the first time in at least 20 years, there are now more job openings than there are people looking for work. There are more jobs than people out of work, something the American economy has never experienced before. There are 6.7 million job openings and just 6.4 million available workers to fill them, according to the Bureau of Labor Statistics.

Topics: Market Information