We all know that 2020 was a unique and daunting year, led by the world-wide pandemic that touched people and businesses in a myriad of ways. Society as well experienced various forms of upheaval whose impacts are yet to be determined.

The real estate industry was not immune to the influences of 2020, facing its own set of challenges. Fortunately for the membership of PSAR, it was Robert Cromer’s year to serve as PSAR President.

Throughout 2020, Robert maintained a steady hand at the wheel as leader of our association. He brought a measured tone, demonstrated authenticity and inspired teamwork among the PSAR Board of Directors.

Recently, several elected officials have recognized Robert for his outstanding leadership and resilient make up while leading PSAR as board President.

Earlier this week, Robert received a certificate of appreciation from San Diego County Supervisor, District 1, Nora Vargas.

Robert has also drawn noteworthy praise for his recent comment posted on a National Real Estate Masterminds Facebook page. His response to a question about the value of association participation was inciteful and he used great metaphors to help make his point.

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In his own words, Robert said the following:

I was on a National Real Estate Masterminds page and someone posted today. “What is the big difference between being a Real Estate Agent and a REALTOR®?” You can imagine some of the negative responses. One person wrote “$800.” Others said “REALTORS® subscribe to a code of ethics.”

Here was my answer: Not being a Realtor is like showing up to a beautifully hosted party at a home without bringing the host a bottle of wine or side dish. Then you eat several plates of food, drink beverages and enjoy everyone’s company without contributing. A person can do that, but it kind of sucks for the host and those who contributed (provided food, cleaned the home before, set up tables, hired the caterer, broke everything down, took the trash out, cleaned up after you, etc.).

NAR and CAR (California) spend millions of dollars fighting for personal property rights and home-ownership, lobbying against laws that would restrict one of the greatest ways to provide security for millions of families and change one’s socioeconomic status-- being a home owner. They have been doing this for many years, before any of us were REALTORS® and when we were just kids.

Now take it one step further and imagine them as your parents, who have always looked after you and your friends. In states that were shut down, they lobbied Congress to make us essential workers, so we could feed our children and so the states’ economies did not fold like bad poker hands. They also made sure we were included in the stimulus package and PPP loans. There are thousands of more examples that smarter people than I on this page can add. Don’t show up to the party without being a contributor. You wouldn’t do that to your parents, would you?

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Rich D’Ascoli, PSAR CEO, commented on Robert’s response:

I have devoted the past fifteen years of my life advocating for Realtors. I join hundreds of volunteers in saying this post was inspirational. It moves a lot of people who are involved with, and give so much to, this industry. 

Robert is referring to those who are not REALTORS®. His perspective also applies to those REALTORS® who volunteer versus those who don’t; to those who contribute to the PACs and HAF and those who don’t.  It is critical that individuals look at the history and understand the issues before jumping to conclusions. Just two years ago AB-5 passed requiring that most Californians become employees. The fact that Realtors are not employees right now did not happen by chance. There is a massive organization in place to protect not only homeownership but also the interests of those who facilitate it. There are a few REALTORS® doing so much to help all REALTORS® It’s important to honor and recognize their selfless efforts.

Robert’s words as a REALTOR® are meaningful. I wish more of our leaders would step up and articulate these same ideals.

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In addition to recognition from Supervisor Nora Vargas, Robert is receiving honors from other elected officials, including Congressman Juan Vargas, State Senator Ben Hueso and Assemblywoman Lorena Gonzalez.

Some of those officials are preparing a proclamation containing these tributes to Robert:

WHEREAS, Robert Cromer served as 2020 President of the Pacific Southwest Association of Realtors (PSAR), one of the largest real estate trade organizations for San Diego-area REALTORS®;

WHEREAS, Robert provided outstanding leadership and vision during a surreal year of setbacks and hardships when a brutal pandemic swept the globe as the shadow of COVID-19 enveloped the land;

WHEREAS, PSAR thrived and grew its membership during an unparalleled, difficult and challenging year, thanks to Robert’s demonstration of strong leadership and clear communication that relieved anxiety and encouraged strength and resiliency among PSAR members;

WHEREAS, Robert embodied PSAR’s mission to empower REALTORS®, to protect private property rights and create homeownership opportunities for all, while adhering to the highest standards of integrity and the REALTOR® Code of Ethics;

WHEREAS, Robert’s example of leadership and decision making in uncertain times, plus his blend of competence, firmness, calmness and empathy in a crisis, empowered PSAR members to flourish by leveraging a collective strength in service to homebuyers and sellers throughout the greater San Diego County community;

THEREFORE, we hereby join the 3,500 PSAR real estate professionals in thanking Robert Cromer for his tremendous volunteer service and offering our best wishes for a successful real estate career in the future as a past PSAR President. Good luck and best wishes.

 ~Thanks, Robert Cromer, for your service to PSAR. We’re all very grateful.

We turned the calendar a few weeks ago and bid a not-so-fond adieu to what many felt to be one of the worst years in modern history. The year 2020 was a tough year in multiple respects, made worse by the fact that no one could see it coming. During the majority of this surreal year, a brutal pandemic made it appearance, and the shadow of COVID-19 enveloped our state, country and world. We gladly put 2020 in our rearview mirror. With a new year comes a new PSAR Board of Directors.

Here is your PSAR Board of Directors serving during the 2021 calendar year.

Ditas Yamane will serve as 2021 PSAR board president, succeeding Robert Cromer, who will serve as past president. Max Zaker and Sam Calvano will serve in 2021 as president-elect and secretary-treasurer, respectively.

Directors serving on the 2021 PSAR board will include Mike Anderson, Yvonne Cromer, Merrie Espina, Jason Lopez, Laurie MacDonald, Peter Mendiola, Rafael Perez, Amy Ruiz, Amber Tannehill and Mike White. Andrea Martino will serve as the affiliate director.

So, what should PSAR members expect in 2021? How will the 2021 housing market differ from that of 2020? What other differences can we expect in 2021?

To find some answers, we consulted 2021 PSAR board members and asked them to share in their own words 2021 housing market forecasts. You will be happy to note that the overall tone of the comments is positive. Their comments appear below.

-- “The housing market will remain seller-friendly with high buyer demand and relatively low mortgage rates. Slow housing supply will lead to rising housing prices. Home builders are expected to build more residential housing to help increase inventory even while facing higher cost of materials, longer materials delivery, labor skills shortage and especially regulatory cost burdens. With mortgage rates at their lowest, it will, indeed, be a spring frenzy. As resilient real estate professionals, it will be an eventful 2021 for us in the housing market as we continue to serve our clients, the real estate community and our neighborhood community.”
-- Ditas Yamane, 2021 President.

-- “I believe the market will continue to surge in early 2021 to fall or late 2021 due to more demand than supply of homes. If sellers want to sell, spring and early summer will be the optimal times. Even with job losses due to COVID-19, there are hundreds of thousands of millennials finally ready to buy. Why now? Most of them got married later and had kids, the number one reason for buying a home, later than any other generation before them. Because the millennials are the largest generation on the planet, they will continue to push prices up. San Diego is currently building about half as many homes as needed to just to keep up with demand. So if you are a buyer, get in asap so you can partake of the 7-to-10 percent increase we will see in 2021.”
-- Robert Cromer, 2020 President.

-- “Economic predictions are at best an opinion, but understanding the political and economic indicators could help provide some insight into what we can expect in the California housing market in 2021. The cost of money (mortgage interest rate) will remain below 4 percent offering massive financial incentive, especially for first-time homebuyers, and will continue to drive up home prices. Consumer confidence (overall job market and unemployment rate) may force and/or encourage homeowners to sell as we reach the peak in home prices, resulting in more inventory. The sun will continue to shine in California making it a desirable destination in which to live, play and invest in real estate.” 
-- Max Zaker, 2021 President-Elect.

-- “Here is what I foresee: Stable values, stable demand and a slight increase in rates. Vacancy will increase for commercial and residential rental properties, which will stabilize rents.”
-- Sam Calvano, 2021 board secretary-treasurer.

-- “I don't think there's any reason to think the trends in the housing market will change anytime soon. There is still a huge housing shortage, even with so many making the exodus from California. Many first-time buyers, and it appears many move-up buyers, are looking for bigger homes, often in the suburbs further away from downtown areas and job centers. My understanding is that interest rates will remain incredibly low allowing buyers to pay the rising prices often with a lower down payment and still keep their mortgage payments in check. Perhaps we’ll have as much as a 7-to-8 percent increase in values in 2021, although sooner or later prices are going to have to level off. Builders are doing what they can to meet the demand, but they cannot keep up.”
-- Mike Anderson, 2021 board member.

-- 2021 will continue to see a lack of homes for sale. Inventory shortage has been a major issue over the past couple of years and I expect that to continue in the New Year.  Currently we have about a 1 month supply of homes and that is fueling the continued price increases in the San Diego region. So, it will be a great time to consider selling as buyers are willing to pay top dollar. While the lack of inventory can present challenges for buyers and result in increased competition for homes, the historically low interest rates will continue to drive buyer demand and offset the higher prices. When you factor in the pandemic and lockdown, buyers also want some room to move around. Since many people have transitioned to remote work from home, we are seeing many leave the urban setting. After all, if one is working from home there is no need to live close to the office or commute. A good internet connection and great coffee will work just fine!
-- Jason Lopez, 2021 board member.

-- “Many homeowners affected by COVID-19 who either temporarily or permanently lost jobs or unexpectedly have reduced hours and income are on forbearance. Termination of forbearance, while homeowners are still held hostage by inability to catch up, will force sellers to sell or face foreclosure by their lenders. Their inability to qualify for any affordable option to keep their home will create new inventory.  There will be more houses to sell and will lessen the competition among buyers. With increased inventory, home prices will be stable and will allow for affordability again. Interest rates are of enormous importance to virtually everyone. Most borrowers respond to low interest rates, which is a motivation to invest in home purchase.”
-- Merrie Espina, 2021 board member.

-- “My prediction for the future of our housing market in 2021 is that we will continue to see low inventory and higher demand due to low interest rates. I believe that there has never been a better time to invest in real estate and I think that people will be looking for larger homes to accommodate working and schooling from home and more usable outdoor space as well. I also believe that, in addition to building relationships, agents will need to focus on their online and social presence to set themselves apart from the pack as this is going to be a primary resource for both buyers and sellers to identify an agent with whom they wish to work.”
-- Amber Tannehill, 2021 board member.

-- “With every New Year is the opportunity to harness the energy born out of the previous year’s struggles. So, overall, I’m optimistic for 2021, although for real estate I’m expecting more of the same market conditions. My wish for everyone at PSAR is that the New Year bring renewed hope and joy as we continue on our journey one day at a time.”
-- Mike White, 2021 board member.

With more than 3,500 members, PSAR is, one of the San Diego County’s largest real estate trade groups for San Diego-area REALTORS®. Services to REALTORS® include California Regional MLS services, educational training classes, advocacy and resources for realtors, including lock boxes and signage.

After 13 years of serving PSAR members as a loyal and dedicated PSAR employee, Joyce Evans is retiring. Her final day is Friday, January 29. She started her career with PSAR on January 7, 2008.

Over course of her career with PSAR, Joyce has served in a number of capacities, including communications coordinator marketing manager (which included graphic design, marketing, advertising) member services (onboarding new and transferred members, resolving a range of member issues), new member orientation coordinator, and retail sales. When PSAR published a bimonthly magazine, Joyce was the designer.

Outside of the real estate industry, Joyce, who has lived in San Diego since 1982, has brought her considerable skills and work ethic to bear in a number of different industries, including academic, landscaping, printing, building maintenance, and coal-powered energy. In all instances, she held marketing and graphic design positions. Joyce has a bachelor’s degree in art from California State University Northridge. A notable achievement of hers occurred when she was on the design team of McQuiston & Partners, that created 13 coffee table books that were published between 1989 and 1993 and resulted in Joyce being the recipient of several design awards.)

During the past two of years at PSAR, Joyce has served as the PSAR education manager, overseeing scheduling and organizing training classes and a variety of seminars, both on site and virtual.

Before she departs, all PSAR members are invited to send Joyce an email with their thoughts to joyce@psar.org, or mail a card to 880 Canarios Ct., Chula Vista, CA 91910.

Joyce and Rich D’Ascoli, PSAR CEO, recently spent some time together discussing the highlights of her illustrious career at PSAR. The recording is available on Facebook, where well-wishers comments also can be posted.

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Rich: We are really going to miss you, Joyce. You’re known as one of the most beloved and kind and respected members of the staff. You reflect the essence of our association, our staff’s willingness to go the extra mile to help our members, and empathy for any problems a member may be facing. You really are able to feel their pain.

Joyce: Thank you, Rich. You get the credit for forming an excellent group of employees who really work well together as a team. I will miss the camaraderie, the way we encourage each other and the friendships and relationships with members. Every PSAR employee works extremely hard. I’m not kidding when I say it can be a tough job on some days and it’s not easy to display a good disposition. We all wear a lot of different hats. But, I thank the Lord Jesus Christ for teaching me that everybody needs to be loved and no one is less of a person than anybody else. I will miss some of our members dropping by the office simply to give hugs to the staff. Our members are some of the greatest people on this planet.

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Rich: Why did you decide to retire?

Joyce: Well, I believe it’s a good time to move on to other things. The timing is right. My husband Gordon and I plan to do some camping and visiting friends over the next couple of months. I’m hoping to get the vaccine before I leave. However, I’m not really retiring. I’m hoping to take my real estate sales license exam next month and begin a new line of work as a REALTOR^®. It’s sorta funny that here I am, at 69 years of age, ready to start something new. Hey, after I get my license and sign-up with PSAR, I will know how to complete the paperwork. 

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Rich: What are some memories of your time at PSAR? I always appreciated your efforts to speak Spanish with our Spanish-speaking members. We always joked together that you reminded me of my annoying sister.

Joyce: And you, Rich, reminded me of “mi hermanito es irritante.” Thankfully, I took Spanish in high school and college. But, seriously, I enjoyed brainstorming with you about marketing strategies. Also, when PSAR was down to only three employees during the recessionary years in 2008 and 2009, you hosted after-work tailgating in the parking just to talk, tell jokes and encourage each other during those tough times. And, I will always be grateful, Rich, for how you emphasized to the staff to learn and use the latest technology to improve our service to our members. You were patient with the learning curve and never afraid for us to try new things. I appreciated the opportunity to be on the cutting edge of technology. So, when COVID and the lockdowns hit us, we hardly missed a beat with continuous remote service to our members during probably one of the toughest years ever for the real estate profession. Fortunately, there are many technology tools that REALTORS^® can use to make their jobs easier. I have many good memories of my time at PSAR.

Although 2020 will be remembered as a surreal year of setbacks and hardships when a brutal pandemic changed the world amid government-imposed lockdowns, it was a terrific final month on the calendar for California’s housing market.

According to the most recent monthly home sales and price report from the California Association of REALTORS^® (C.A.R.), released Friday, the state’s housing market closed out 2020 on a high note with solid home sales in December, plus a record-high median home price for the fifth time in the year.

December 2020’s statewide sales total exceeded the 500,000-units benchmark for the second month in a row. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 509,750 units in December 2020. It was an increase of 0.2 percent from 508,820 in November 2020, and 28 percent higher from December 2019, when 393,370 homes were sold on an annualized basis.

The year-over-year, double-digit sales gain marked the fifth consecutive month and the largest yearly gain since May 2009.

For the 2020 year, annual home sales rose to a preliminary 411,870 closed escrow sales in California, up 3.5 percent from 2019’s pace of 397,960.

Meanwhile, California’s median home price set another record in December 2020, after dipping below the $700,000 benchmark the previous month. The statewide median home price rose 2.7 percent on a month-to-month basis to $717,930 in December 2020, up from $698,890 in November 2020. Home prices continued to gain on a year-over-year basis with the statewide median price surging 16.8 percent from $614,880 recorded in December 2019.

The double-digit increase in a year-over-year comparison was the fifth in a row, and the month-to-month gain was higher than the long-run average of 0.8 percent observed between 1979 and 2019.

For the 2020 year, the statewide median home price was $659,380, an increase of 11.3 percent from a revised $592,230 in 2019.

In San Diego County, December 2020 home sales were 4.4 percent higher compared to November 2020 and 30.3 percent higher than in December 2019.

The median home price for a single-family detached home in San Diego County dropped slightly in December 2020 to $730,000, compared to $740,000 in November 2020, a 1.4 percent decrease, but a 11.5 percent increase from December 2019’s figure of $655,000.

December 2020 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

“It’s a testament to the strength of the market that even after the pandemic effectively shut down the spring home-buying season in 2020, the market still was able to recover the substantial sales lost in the first half of the year and even top 2019’s levels,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “With mortgage rates expected to stay near the lowest in history, demand for homeownership will continue to be strong, so home sales should remain elevated into the first half of 2021, as motivated buyers take advantage of the increased purchasing power.”

“Home prices, which usually peak during the summer, were unseasonably strong in December,” said C.A.R. Vice President and Chief Economist Jordan Levine. “The imbalance between supply and demand continues to fuel home price gains as would-be home sellers remain reluctant to list their homes during the pandemic, contributing to a more-than-40-percent year-over-year decline in active listings for the seventh straight month.”

Perhaps due to increasing home prices, more consumers said it is a good time to sell, according to C.A.R.’s monthly Consumer Housing Sentiment Index. Conducted in early January, the poll found that 59 percent of consumers said it is a good time to sell, up from 55 percent a month ago, and up from 56 percent a year ago. Meanwhile, low interest rates continue to fuel the optimism for homebuying; one-fourth of the consumers who responded to the poll believed that now is a good time to buy a home, unchanged from last year.

Other key points from C.A.R.’s December 2020 resale housing report included:

-- Home sales from a regional perspective increased by double-digits in all major regions in December 2020, with a year-over-year gain of at least 20 percent in nearly every region. The San Francisco Bay Area remained on top with the highest gain of 40.2 percent over last year, followed by Southern California (31.4 percent), the Far North (30.8 percent) and the Central Valley (22.2 percent).

-- Median home prices from a regional perspective also posted increases in December 2020 by more than 10 percent in year-over-year comparisons. The Central Coast region had the largest year-over-year price increase, gaining 17.9 percent from a year ago. The San Francisco Bay Area had the second largest increase of 16.4 percent, followed by the Central Valley (15.5 percent), the Far North (15.2 percent) and Southern California (13.0 percent).

-- Active listings declined in December 2020 as expected during the holiday season. Active listings fell 47.1 percent in December 2020, compared to December 2019 from last year and continued to drop more than 40 percent on a year-over-year basis for the seventh straight month. On a month-to-month basis, for-sale properties dropped 18.6 percent in December 2020, higher than the five-year average of -14.0 percent, observed between 2015 and 2019.

-- The unsold inventory of available homes for sale dropped to 1.3 months in December 2020, matching the record-low set in 2004. Statewide inventory in November 2020 was 1.9 months. Inventory levels measured in months refers to the number it would take for the current supply of available homes on the market to sell-out given the current rate of sales. C.A.R. said the surge in the coronavirus cases played a role in the decrease in active listings as homeowners remain concerned about the worsening coronavirus pandemic situation.

December 2020 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

-- In San Diego County, the inventory of available homes for sale in December 2020 was 1.2 months, compared to 1.6 months in November 2020, 1.8 months in October 2020 and 2.2 months in December 2019.

-- The median number of days it took to sell a California single-family home was 11 days in December 2020, compared to nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 28 days in December 2019. The nine-day November 2020 figure was the lowest ever recorded.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was eight days in December 2020, compared to seven days in November, October and September 2020. The timeframe a year ago in December 2019 was 20 days. The December 2020 eight-day figure also compares to eight days in August 2020, 10 days in July 2020, 12 days in June 2020, 11 days in May 2020, eight days in April 2020, 10 days in March 2020, 12 days in February 2020 and 23 days in January 2020.

-- With homebuying interest remaining high, the housing market in Californian’s mountain resort areas in December 2020 continued to exhibit strong gains compared to December 2019. Mammoth Lakes saw the biggest year-over-year sales increase in December 2020, surging 116.7 percent from the same month a year ago, followed by Lake Arrowhead (78.6 percent), Big Bear (54.1 percent) and South Lake Tahoe (31.7 percent).

-- Overall for the year 2020, home sales in mountain resort communities increased 92.7 percent in Big Bear, 51 percent in Lake Arrowhead, 49.5 percent in South Lake Tahoe and 37.5 percent in Mammoth Lake.

-- The 30-year, fixed-mortgage interest rate averaged 2.68 percent in December, down from 3.72 percent in December 2019, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.79 percent, compared to 3.39 percent in December 2019.

In other recent real estate and economic news, according to news reports:

-- If a COVID-19 vaccine distribution proves successful, Fannie Mae economists are expecting the U.S. economy is poised for a strong year in 2021. Consumer spending is expected to accelerate during the spring, ultimately driving a considerably faster pace of growth in the second half of 2021.

-- The number of active listings in San Diego declined 20.6 percent in December 2020 in a year-over-year comparison, according to Realtor.com. Nationwide, the percentage decline for housing inventory in December was 39.6 percent year-over-year. The number of new listings can vary greatly from market to market. In December, San Jose, Calif. saw its new listing count climb by 123.8 percent and San Francisco-Oakland’s market increased by 98.9 percent.

-- The median monthly rent in San Diego was $2,355 in November 2020, which was a 3.8 percent year-over-year increase, according to Zillow. San Diego is the 8th most expensive city to rent an apartment, according to Zumper. Zumper’s report said the rental rate for a one-bedroom unit in San Diego grew 0.6 percent to $1,800 a month in December, while a two-bedroom's monthly rate increased 2.6 percent to $2,400.

-- Home prices continue to rise faster than wages across the nation, according to Attom Data Solutions. In the 2020 fourth quarter, home-ownership expenses consumed 29.6 percent of the average wages, compared to 26.4 percent in 4Q 2019. For the 4Q 2020 timeframe, homeownership costs exceeded an industry standard of 28 percent in 55 percent of U.S. counties, up from 43 percent in 2019 and 33 percent three years ago.

-- San Diego home prices are expected to rise by 8.3 percent in 2021, according to CoreLogic. The increase is the most of any other U.S. major city. The main reason is the lack of homes for sale will continue to push up prices. A secondary reason is income inequality. The pandemic has benefited high-wage workers who have been able to work from home, while low-wage workers lost income because their jobs were among the first shuttered during government-imposed shutdowns. Other cities with expected home price increases in 2021 include Miami (3.2 percent), Los Angeles (3.2 percent) and Washington, D.C. (2.9 percent), while the national average is expected to be around 2.5 percent. In contrast, Houston, hit hard by declines in the oil industry and the recent hurricane season, will see prices decrease 1.4 percent.

More than 100 PSAR members learned more about property tax benefits available to clients of REALTORS^® from Proposition 19 during a Zoom meeting earlier this week with Taxpayer Advocate Jordan Marks of the San Diego County Accessor-Recorder-County Clerk (ARCC) Office.

Recorded Video of the Presentation

Attachments from the presentation:

• Jordan Marks Presentation Slides
• Assessor Homeowners Exemption Form
• Assessor Senior Exclusion Form
• Prop 58 Parent to Child Exclusion Form

Prop. 19, approved by California voters in the recent November general election, offers significant benefits to homeowners and sellers. The ballot measure was endorsed by the California Association of REALTORS^® (C.A.R.) and other business and community organizations because it will spur housing economic recovery.

Simply put, Prop. 19 expands the affordable housing tools by allowing senior homeowners over 55 years old, people with severe disabilities and victims of natural disasters or wildfires to keep their low tax base and move or rebuild anywhere statewide.

In addition, Prop. 19 addressed a tax loophole allowing families to pass their homes and affordable tax bases to their children, but no longer allowing them to be used for a commercial purpose.

However, Marks told PSAR members that it’s important to remember that some rules relating to Prop. 19 will change on Feb. 15 and April 1.

Before Feb. 15, in the case of transferring home ownership from parent to child or grandparent to grandchild, the law allows for unlimited transfer of assessed value on a primary resident with no requirement to live in the property and up to $1 million of assessed value on all non-primary residential properties.

After Feb. 15, the law changes with a limit of $1 million transfer of assessed value on a primary resident, plus a requirement to live in the property and no transfer of assessed value on any property not a primary resident.

Before April 1, for relocating homeowners over 55 years old, the current rules limit the senior exclusion from property tax reassessment to one time plus a requirement to live in the property.

After April 1, the senior exclusion from property tax assessment can be claimed for three times for any property in the state (but unlimited times for those whose homes were destroyed or substantially damaged by a wildfire or natural disaster). Filing for the exclusion must occur within two years from the date of the sale or purchase.

It’s no surprise that Merriam-Webster, the dictionary publisher, selected “pandemic” as its 2020 Word of the Year. The COVID-19 coronavirus pandemic changed life in ways that none of us could have imagined in 2019. It was on every TV channel, every news website and part of every conversation. Everyone was impacted, including homebuyers and sellers.

Indeed, the pandemic even changed homebuyers’ housing preferences, according to the California Association of REALTORS’® (C.A.R.) Annual Housing Market Survey, which reveals homebuyers’ behavior throughout the 2020 year.

The recently-released survey found that more than two in five California REALTORS® (43 percent) saw a pandemic-related change in their buyers’ preferences in the property type they wanted to purchase in 2020.

In response to pandemic-related, government-imposed prolonged lockdowns and quarantines that forced homebound distance learning for school and working remotely for the job, the most frequent homebuyer requests included a bigger home (39 percent), a home with more rooms (35 percent), a home in a suburb rather than in an urban area (37 percent) and a home in a rural area rather than a city or suburb (26 percent). Not surprisingly, the survey also found 37 percent of homebuyers in 2020 were less concerned about the commute time to work.

The survey also showed a variety of interesting aspects of homebuyers’ behavior statewide in 2020.
For example:

-- The top three reasons homebuyers purchased a home in 2020 included tired of renting (25 percent), desire for a larger home (20 percent) and desire for a better location (19 percent). For first-time homebuyers, tired of renting was the most popular reason at 54 percent. For repeat homebuyers, 25 percent said their primary reason for buying in 2020 was a desire for a larger home, an increase from 21 percent in 2019. Respondents agreed that low mortgage rates made buying a home makes more sense than renting for many first-timers.

-- The average number of multiple offers made on available homes for sale in 2020 reached its highest level since 2013. Nearly two-thirds (59.2 percent) of homes sold in 2020 received multiple offers at an average of 4.8 offers per home. In 2019, less than half (47.7 percent) of homes sold received multiple offers with an average of 3.9 offers on each home. Homes priced between $500,000 and $1 million received the most multiple offers in 2020 with 67.3 percent receiving an average of six offers.

-- The real estate housing market in 2020 was one of the most competitive markets in decades. A large share of properties sold above their asking price in 2020. Approximately 35 percent of homebuyers paid more than what home sellers asked for in 2020, compared to a quarter (26.7 percent) in 2019. The 2020 figure was the highest in seven years and is 16 percent higher than the long-run average. Homes in the $500,000-to-$1 million price range sold the fastest with an average of 10 days.

-- More people purchased vacation and second homes in 2020, the highest percentage since 2016. Vacation homes represented 6 percent share of total sales, compared to 4 percent in 2019. The flexibility to work from home, plus a desire to move away from metropolitan areas, resulted in higher housing demand in resort areas. Overall, home sales in California resort areas outperformed other housing sectors in the state in 2020. In addition, the share of investor buyers of rental properties was 8.1 percent, the lowest since 2001, due to uncertainty over eviction moratoriums.

-- Home sellers in 2020 pocketed a gain of roughly $210,000 from their home sale, which was about 63 percent higher than the price they paid for their home. Not surprisingly, the longer a homeowner lives in their home will increase the profit they can expect when they sell. Sellers who lived in their homes for less than five years earned a 16 percent profit from their sale in 2020, while those who lived in their home five or more years earned a 100 percent profit.

C.A.R. has conducted its Housing Market Survey annually since 1981.

Starting January 8th 2021 (ran out of funds mid January), you can apply on behalf of your clients for the California Association of REALTORS^® Housing Affordability Fund (HAF) Home Essentials Program.  

• Be a first-time homebuyer
• Homebuyers must use a California REALTOR^® in the transaction
• Purchase a primary single-family residence in California with the intent to occupy the property as a primary residence
• The conforming loan amount on the single-family residence must be at or below the FHA conforming loan limit
• The purchase of the single-family residence must use financing. All-cash purchases do not qualify

Starting December 30th, 2020, REALTORS^® can apply for California’s new relief grant program for small businesses affected by the COVID-19 pandemic. The program provides micro grants ranging from $5,000 to $25,000 to eligible small businesses (including independent contractors and sole proprietors) impacted by COVID-19 and the related health and safety restrictions. The grant amount will be based on the business’s annual revenue as documented in its most recent tax return:

• For annual revenue of $1,000 to $100,000, the available grant amount is $5,000.
• For annual revenue of greater than $100,000 up to $1,000,000, the available grant amount is $15,000.
• For annual revenue of greater than $1,000,000 up to $2,500,000, the available grant amount is $25,000.

A small business must satisfy certain criteria to be eligible to receive a grant award — read the criteria in full here. Please keep in mind that even if you meet all eligibility requirements, it is not guaranteed you will receive a grant.

Applications for the program must be submitted through a Community Development Financial Institution (CDFI) that has partnered with the state of California to distribute the funds. The list of partners, organized by location and by language services, can be found here.

The first round for applications opens on December 30, 2020, at 8:00 a.m. and closes on January 8, 2021, at 11:59 p.m. Approval notifications will begin on January 13, 2021. There will be a second round for application submissions and reviews, although the dates for that round have not yet been announced.

See the grant California Small Business COVID-19 Relief Grant Program website for more information.

Landlords and tenants alike have been hit hard with economic challenges resulting from the Covid-19 pandemic. Fortunately, several local cities and nonprofits who administer federal government programs on behalf of cities, have made rental assistance resources available to both landlords and tenants who have suffered Coved-related economic losses. PSAR members active in their communities should be aware of these following landlord/tenant resources:-- In San Diego, With funding from the federal government, the San Diego Housing Commission (SDHC) helps more than 16,000 households with low income pay their rent in the City of San Diego. Through this rental assistance program, SDHC made payments totaling more than $166 million to more than 5,800 participating landlords on behalf of low-income families during Fiscal Year 2020 (July 1, 2019 – June 30, 2020).

In 2019, SDHC expanded its focus on landlord outreach and engagement with the creation of the Landlord Services Unit. This unit is composed of seven specialized staff who provide quality customer service to landlords and tenants participating in the Section 8 Housing Choice Voucher rental assistance program. For more details about SDHC rental assistance resources for properties located within the City of San Diego, contact SDHC, www.sdhc.org or call 619-578-7131.

The SDHC Landlord Services Unit manages the agencies Landlord Partnership Program (LPP), which provides financial and support incentives to landlords who rent to families who receive federal rental assistance through the Section 8 Housing Choice Voucher program within the San Diego city limits (92037 and ZIP codes that begin with “921”, except for 92118). Landlords who participate in the LPP may be eligible to receive up to $500 for each rental unit rented to a Section 8 household and up to $3,000 to help cover repair expenses in excess of normal wear and tear and rent due that exceeds the security deposit following tenant move-out. For more information about LPP, please visit https://www.sdhc.org/doing-business-with-us/landlords/landlord-partnership-program/

SDHC’s services to landlords include consistent and on-time rent payment, access to an online landlord portal, and enhanced customer service.

-- In National City, South Bay Community Services (SBCS) launched a tenant-based rental assistance program in National City. The City of National City has reached out to PSAR seeking assistance in contacting property managers and management companies who have tenants with past due rent.

SBCS is now accepting applications for a COVID-19 Tenant Based Rental Assistance Program funded by the City of National City. This program will assist low-income families in who have suffered a loss in income or are unable to pay their past due rent because of Covid-related financial issues. You can help by notifying tenants that this rental assistance is available. Applications can be found at https://southbaycommunityservices.org/national-city-rental-assistance/. Application assistance is available in person at the National City Family Resource Center (304 W. 18th Street, National City), at  rentalassistance@csbcs.org, or by phone: (619) 336-8360
-- In Chula Vista, the city is developing its long-term strategic plan for housing and determining housing dollars usage, according to the city website. Earlier this year, the  Chula Vista City Council enacted a temporary eviction moratorium in response to Covid-19. The city’s moratorium, which provided eviction protection for residents and commercial tenants, was superseded and replaced with AB 3088, known as “The Tenant, Homeowner and Small Landlord Relief and Stabilization Act of 2020.” The law signed by Gov. Newsom on Aug. 31, protects renters, homeowners and small landlords through January 2021.

Chula Vista used a portion of the $3.3 million it received from the CARES Act to lend financial support to South Bay Community Services (SBCS), who assists residents with rent payments. An additional CARES Act allotment arrived Nov. 1, allowing SBCS to accept additional applications for rental assistance from those suffering economically from Covid-19 effects.-- In El Cajon, several nonprofits who have contracts with the city are assisting El Cajon residents with rent payments. The nonprofits include Home Start (619-430-0032), Interfaith Shelter Network (619-702-5399) CSA San Diego County (619-444-5700). Earlier this year, the El Cajon City Council allocated $800,000 in special block grant funding to those impacted financially by the Covid pandemic.-- In La Mesa, Home Start is overseeing a Rental Assistance Program. Applicants may qualify for up to three months of past-due rent assistance for those who have experienced job loss and/or other Covid-related financial challenges. Earlier this year, the La Mesa City Council approved $1.8 million in Coronavirus Aid Relief and Economic Security Act funding to businesses and residents. A portion of that money, roughly $600,000, was allocated to rental assistance to help people avoid eviction and homelessness. 
-- In Lemon Grove, Home Start is supporting the city’s rental assistance efforts. The Lemon Grove City Council allocated $100,000 of $162,371 in Federal Coronavirus Aid, Relief, and Economic Security Act funds to Home Start to help individuals needing hotel vouchers, transportation, reunification efforts and emergency items such as food, blankets and diapers. Funds are also available to those who need rental and utility assistance.

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