C.A.R. has issued guidance on the Governor's stay at home order.  This is not guidance from PSAR or our Board of Directors.  CAR has a legal team that is qualified to interpret and opine on legal matters.  Please consult your own legal council for advice and consult.  PSAR, CAR and NAR leaders continue to communicate with officials to educate them about the real estate business in this time of crisis.  

For more information please follow this link: 

Service information can be found here.

DRE Closes Offices

All DRE offices are closed to the public until further notice in compliance with Governor Gavin Newsom’s Executive Order N-33-20, issued March 19, 2020, ordering all California residents to shelter in place to slow the spread of COVID-19. 

PSAR Changes Services 

PSAR Launches New Temporary Processes to comply with the Governor's order. 

PSAR will support sale of  lockboxes and retail merchandise via pre-payment over the phone and pickup by appointment only.  Boxes that need repairs, replacement, or new batteries will be exchanged  for refurbished boxes following a pre-scheduled troubleshooting session.

Offices are closed, but member support will be provided by phone, chat, email or video call.  The PSAR staff is ready to provide full support to our realty community while adhering to the mandated state guidelines. 

We, like you, are working through this challenge by adapting to a dynamic environment.  If you would like to express any concerns or comments, please email support@psar.org.

The R.E.A.L. Awards program to honor PSAR’s top producing agents will be postponed.

Due to concern for public safety as a result of COVID-19, commonly referred to as coronavirus and in recognition of state health officials’ recommendations, PSAR will delay the inaugural Real Estate Achievement and Leadership (R.E.A.L.) awards event, originally scheduled for Friday, March 27, at Viejas Casino and Resort. The event will be rescheduled to a future date.

Earlier this week, Gov. Gavin Newsom joined state health officials from the California Department of Public Health in recommending the cancellation of gatherings of 250 or more people across the entire state, escalating efforts to slow the spread of the virus.

All who purchased tickets to the March 27 event will be given the option of attending the future event or receive a refund.

Of course, we’re disappointed about the delay of this exciting event. However, the health, safety, and well-being of the entire PSAR community is the top priority for the Association leadership. I can assure you that your Association will continue to closely monitor this public health crisis and stay in contact with local, state and federal health experts to ensure that best practices are being followed and if additional precautions are advised. Some other PSAR meetings may be cancelled while others will be held remotely.

Over the next two weeks we will take time to regroup, and when the storm passes, put on an amazing event. The R.E.A.L. awards will be a celebration, with over 400 real estate professionals, of the successes we have respectively had in our businesses. Nobody is more disappointed in the delay than each of our dedicated group of volunteers who worked diligently during the past two months to make this event a memorable experience.

The R.E.A.L. Awards Committee members include Yvonne Cromer, Reshia Guarnotta, Amber Tannahill, Lupe Soto, Laurie Mac Donald, Carey Guthrie and Tony Santiago.  

The R.E.A.L. awards programs will honor PSAR’s top producing agents and provide a platform on which to be recognized for their hard work and dedication by their associates, other professional peers and PSAR. Award recipients are agents and brokers who have achieved excellence through production and industry leadership. Awards are based on either sales volume dollars or units sold, including listings or sales units entered in the MLS, and closed in 2019.

For information about other PSAR rescheduled programs (click here).

The virus, which causes a respiratory disease known as COVID-19, first appeared in Wuhan, China, last year.. Cases have been recorded in more than 100 countries and on every continent except Antarctica. More than 4,717 people have died and more than 128,000 others have been infected, many of whom are in China. In the U.S., more than 1,700 people have been infected across at least 46 states with at least 41 deaths, and 31 of them were elderly people from the state of Washington.

As the virus spreads, causing the shutdown of offices and schools across the U.S., many people are understandably on edge. However, the same preventative measures recommended to prevent the spread of influenza are also effective in reducing the risk of contracting or spreading coronavirus. Here are some recommended actions that will reduce the risk of contracting and spreading coronavirus:

• Stay home and do not travel if you have a fever, cough, shortness of breath or any other cold or flu-like symptom.
• Wash your hands frequently with soap and water for at least 20 seconds. If soap and water aren’t available, use    an alcohol-based hand sanitizer.
• Avoid touching your eyes, nose, and mouth with unwashed hands
• Avoid close contact with anyone who is sick
• Clean and disinfect frequently touched objects and surfaces
• Cover your mouth and nose with a tissue when you cough or sneeze, or cough or sneeze into your sleeve 
• Call ahead to your doctor before visiting

El Cajon Mayor Bill Wells, Councilmember Steve Goble and Councilmember Phil Oriz, thank you for listening to the concerns of PSAR and El Cajon residents.

Following testimony by PSAR members, the El Cajon City Council recently voted “no” on a proposal to add sewer charges to homeowners’ property tax bills.

PSAR testified that adding sewer charges to property taxes would have had a far-reaching negative impact for homebuyers and for the city of El Cajon. If approved, it would have meant that future homebuyers would need more money to qualify for a mortgage. It also would have resulted in a loss of buying power for homebuyers. Adding the charges would lower housing values and reduce equity, since a higher property tax bill will shrink a homebuyer’s available pot of money needed to purchase a home. 

Fortunately, three members of the El Cajon City Council, including Mayor Bill Wells and council members Steve Goble and Phil Ortiz, agreed with PSAR and voted to protect homeowner interests by not placing property sewer charges on the San Diego County property tax roll.

“Our members are gratified at the city council’s decision,” said Rich D’Ascoli, CEO, PSAR. “We look forward to sitting down, rolling-up our sleeves and helping El Cajon develop a mutual, long-term solution that will not adversely affect homebuyers and home sales. We’re ready to work with the city to find a better solution. Adding sewer charges to property taxes would have reduced the buying power of homebuyers. We have a number of better ideas that will not hurt homebuyers.”

This is not the first time the El Cajon City Council has attempted this. In July 2013, a proposal to add sewer charges to property tax bills was flushed down the proverbial toilet.  In El Cajon, the city maintains nearly 200 miles of underground pipeline, the majority of it construction before 1965. Many lines date back to the 1920s. 

PSAR Plans to protest proposal to hike property taxes with sewer bill.

The El Cajon City Council is attempting to add sewer charges to homeowners’ semi-annual property tax bills. The City Council is scheduled to discuss this proposal at their next meeting, located at 200 Civic Center Way, El Cajon, 92020, on Tuesday, March 10 at 3:00 pm.

PSAR encourages you to advise your El Cajon clients who own property (residential, commercial, industrial) to send a protest letter to the El Cajon City Clerk before 2:00 pm Tuesday, March 10, in protest of adding sewer charges to their property tax bills.

This may seem at first to be an innocent action by elected officials. However, in reality, adding sewer charges to property taxes would have a far-reaching impact to individual homebuyers and for the city of El Cajon overall.

If these additions are approved, future homebuyers would need more money to qualify for a mortgage. The reason is because higher property taxes always result in lower borrowing ability. Another negative effect would be lower housing values, including lost equity, because a higher property tax bill will shrink a homebuyer’s available pool of money available to purchase a home. 

The bottom line is that anytime a property tax bill increases,  the higher amount  adversely affects the local real estate industry. Adding sewer charges to property taxes will reduce the buying power of homebuyers. 

Here are some numbers to consider: 

For a typical $400,000 home, purchased with 20 percent down and an 80 percent, 30-year mortgage loan at 5.5 percent, the monthly mortgage payment is approximately $1,817, insurance is $67 (based on $800/year) and property taxes are $367 (based on 1.1 percent of assessed value) for a total monthly payment of $2,251. However, if a sewer charge of $45 (based on property taxes of $540/year) were to be added, the total monthly mortgage payment for the same home would increase from $2,251 to $2,296. Sewer charges are calculated based on water use at each property. 

Furthermore, with a 40 percent minimum qualifying income, the homebuyer would need an annual income of $68,880 instead of $67,530 without the sewer bill added to their property taxes. That translates to a 2 percent higher income needed to qualify for the same loan. A homebuyer’s purchasing power is reduced by $8,000 when  an increased average sewer charge is added to the property tax bill. 

There are many issues and questions with which residents should be concerned. Seniors and individuals on a fixed income will be hit by a large bill at the end of the year. What considerations have been made for these individuals? Who will ratepayers go to when there is an error on the sewer bill if those charges are added to the annual tax payment? Although billing through the tax roll may be slightly less expensive each month, an incorrect bill can be much more impactful. The city intends to defer income from sewer ratepayers until the end of the year. How is that money financed? Isn’t it better for the city to collect this money upfront rather than waiting until the end of the year to bill? How much will this cost taxpayers?

This is not the first time the El Cajon City Council has attempted this action. In July 2013, a proposal to add sewer charges to property tax bills was flushed down the proverbial toilet. Municipalities are attracted to pass-through wastewater sewer costs coupled with property taxes because it saves the city time and money in mailing and administrative processing costs. It also allows for an easier way for cities to earmark construction costs for necessary sewer line repairs. In El Cajon, the city maintains nearly 200 miles of underground pipeline, with the majority of piping constructed before 1965. Many lines date back to the 1920’s. 

Last year, El Cajon approved higher sewer rates over the next five years. A typical customer paying $48.31 each month for sewer services will see his or her bill increase to $55.09 in 2020, $61.22 in 2021, $69.70 in 2022, $77.35 in 2023 and $88.76 in 2024. The city’s 17,000 residential customers haven’t seen a rate increase since 2011. Before then, the last adjustment to sewer rates in El Cajon was in 1999. Wastewater in El Cajon is piped to San Diego’s Point Loma treatment plant where it is treated and then released into the ocean.

The El Cajon City Council meeting on Tuesday, March 10 will begin at 3:00 p.m. at El Cajon City Hall, 200 Civic Center Way, El Cajon. The city council meeting is open to the public. PSAR members are encouraged to attend. Oral objections and/or protests may be made at the public hearing.

You are also encouraged to send an e-mail to the City of El Cajon stating your opposition. In your e-mail, refer to the “Sewer Billing System Change to the Property Tax Roll.” Protest emails must be sent prior to 2:00 p.m. on March 10. Any written objection or protest must include your name, Assessor Parcel Number (APN), sewer service address and a statement indicating your opposition to the placement of the sewer charges on the property tax bill. Protest emails can be sent to the City Clerk Angela Cortez at cityclerk@cityofelcajon.us,  or the City Manager Graham Mitchell at gmitchell@cityofelcajon.us.

###

January’s home sales were down by 19% from December 2019.

San Diego County’s housing market started this year with a 14.6 percent increase in existing home sales for January 2020, compared to January 2019, according to recent statistics from the California Association of REALTORS® (C.A.R.). However, January’s home sales were down by 19 percent from December 2019.

The median sales price of an existing single-family home in San Diego County in January 2020 was $660,000, a slight $5,000 increase from the $655,000 figure for December 2019. In January 2019, the median sales price in San Diego was $610,000, a decline of 8.2 percent from January 2020.

Statewide, in January, mortgage interest rates, which were at near or record lows, continued to sustain California home sales, while statewide home prices pulled back from one of the highest levels recorded last year.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 395,550 in January 2020, down 0.7 percent from the 398,370 level in December 2019 and up 10.3 percent from January 2019, when 358,540 homes sold. January was the second straight month for sales below the 400,000 benchmark.

January 2020’s statewide median home price was $575,160, down 6.5 percent from December 2019’s price of $614,880, and up 7.1 percent from January 2019’s price of $536,830.

January’s median price drop, the largest in the last seven years, was largely due to a change in the mix of sales with lower-priced properties making up a bigger share of the market, coupled with a seasonal slowdown. January marked the fourth straight month that the median price registered year over year growth of 6 percent or higher. 

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

“The strong sales momentum that we saw in the second half of last year carried over into the new year, thanks to favorable homebuying conditions,” said 2020 C.A.R. President Jeanne Radsick, a second-generation REALTOR® from Bakersfield, Calif. “And while home sales were up double-digits from a year ago, it’s important to remember that current sales are being compared to a market that one year ago was at its lowest level in 10 years as economic uncertainties clouded the market outlook while the government shutdown delayed escrow closings.”

“With interest rates on a declining trend again due to concerns about the impact of the coronavirus, motivated buyers will have an opportunity to stretch their purchasing power in the housing market,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “The economic outlook, however, is less clear than a month ago before the outbreak of the disease, and we should expect market uncertainties to continue to linger on for the short term.”

With prices rising faster in recent months as housing inventory continued to shrink, consumer optimism rose both month-over-month and year-over-year based on those who believe it is a good time to sell a home. According to a monthly Google poll conducted by C.A.R. in January, 62 percent said it is a good time to sell, up from 56 percent a month ago, and up from 50 percent a year ago.

The same motivating factors, however, may have curbed the optimism for homebuying as only 23 percent of the consumers who responded  to the poll believe that now is a good time to buy a home, slightly less than last year (25 percent), when interest rates were 84 basis points higher.

Other key points from the January 2020 resale housing report include:

-- The available supply of homes for sale in the state inched up slightly after reaching an 80-month record low in December but declined on a year-over-year basis for the seventh consecutive month.

-- Housing inventory continued to dwindle, with active listings declining 26.9 percent in January following a 25.9 percent dip in December.  The January drop was the largest since April 2013.

-- The median number of days it took to sell a California single-family home devreased from a year ago, to 38 days in January 2019 to 31 days in January 2020. That compares to 28 days in December 2019, 25 days in November 2019, 24 days in October 2019, 24 days in September 2019, 23 days in August 2019 and 21 days in July 2019.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was 23 days in January 2020, which compares to 20 days in December 2019 and 28 days in January 2019. In other months, the number-of-days figure was 17 days in November 2019, 18 days in October 2019, 18 days in September 2019, 17 days in August 2019, 15 days in July 2019, 13 days in June 2019, 14 days in May 2019, 17 days in April 2019, 19 days in March 2019 and 22 days in February 2019.

-- The sizable drop in active listings, together with the surge in sales, resulted in a decline in Unsold Inventory Index (UII) to 3.4 months from 4.6 months a year ago. On a month-to-month basis, supply climbed 1.6 percent from the prior month but was lower than the average December-to-January increase of 2.8 percent, based on data going back to 2008. 

The 30-year, fixed-mortgage interest rate averaged 3.62 percent in January, down from 4.46 percent in January 2019, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 3.33 percent, compared to 3.91 percent in January 2019.

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

-- After a slow start to the year, San Diego County home prices finished 2019 on a high note. Prices in the San Diego metropolitan area jumped more than any other West Coast market in December, according to the S&P CoreLogic Case-Shiller Indices. San Diego metro’s price gain was 4.7 percent, ahead of the national average of 3.8 percent. America’s Finest City ranked fourth in the 20-city index for annual price gains, its highest showing since November 2017.

-- San Diego County’s median home price opened the year at $585,000, up slightly from the previous month. Home prices in January were up 7.9 percent annually, said CoreLogic. The median was down from the peak reached in November 2019 of $594,909. The same factors that have pushed up national and local home prices the past few months, including a shrinking number of homes for sale, low interest rates and job demand, are expected to continue to put upward pressure on prices.

-- San Diego County's housing inventory plummeted 34 percent year-over-year in January, marking the third most precipitous decline in the U.S., according to a new Realtor.com report. San Diego's drop was exceeded only by San Jose-Sunnyvale-Santa Clara (37.3 percent) and Phoenix-Mesa-Scottsdale (35.4 percent). Nationally, housing inventory declined 13.6 percent from January 2019, the steepest year-over-year decrease in more than four years. It pushed the supply of “for sale” homes in the U.S. to its lowest level since Realtor.com began tracking the data in 2012.

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

-- San Diego County was the fourth least affordable housing market in the U.S. last year, according to a First American Financial Corp. survey that concluded the least affordable markets were along the California coast. The survey found San Jose was the nation's least affordable market when comparing median income to sales price. San Jose’s median household income of $128,570 was sufficient to purchase an $806,600 home, but the median price for a single-family home in the city was over $1.03 million in 2019. San Francisco was the second least affordable with a median household income of $114,763 and a median priced home of $945,547. San Diego’s median household income of $81,274 in 2019 was sufficient to purchase a $509,883 home, but the median price of a single-family home in the county was $564,813.

-- 90 percent of Americans are satisfied with the way things are going in their personal life, reflecting a new high in Gallup's four-decade trend. The latest figure bests the previous high of 88 percent recorded in 2003.These results are from Gallup's Mood of the Nation poll, conducted in January, which also recorded a 20-year high in Americans’ confidence in the U.S. economy. The percentage of Americans who report being satisfied with their personal life close to the 86 percent who said in December that they were very or fairly happy.

-- U.S. employers added 225,000 jobs in January, a higher number than expected. The unemployment rate ticked up slightly, at 3.6 percent. Wages increased 3.1 percent from the previous year; wages have grown at an average pace of 3 percent for the last 18 months. Also, the “labor-force participation rate,” meaning the percentage of Americans seeking employment, also increased.

#  #  #

The PSAR family recently lost another former PSAR president. Jeri Norman Vanderpool, who served as PSAR president in 1994, passed away February 4, 2020, roughly one month before her 91st birthday. She died peacefully from natural causes at home, in her favorite chair, surrounded by family members. Jeri, a lifelong resident of Chula Vista, had been a PSAR member since 1975.

Jeri was born on March 18, 1929, in San Diego. Her parents were Chet and Idell Norman. She attended F Street Elementary School in Chula Vista and graduated as valedictorian of Sweetwater High School, class of 1946. As a young person, she enjoyed water skiing on the Colorado River.

She attended San Diego State College and worked at Southwestern College when it first opened in 1961. She worked as an office manager for Chula Vista surgeon Dr. George Cave and later joined Mascot Realty in Bonita. Following that, she earned her broker’s license and founded Vanderpool Properties, which offered real estate sales and property management services. She operated Vanderpool Properties for more than 40 years.  

Jeri was active in real estate sales until age 90, when she turned over the business to a granddaughter, Meggan Copeland.

Family members remember Jeri as a fiercely independent single parent and a hard worker who enjoyed helping people with their real estate needs. She was a leader in the community, involved in the Girl Scouts, Republican Party and school activities, overseeing the PTA, Halloween Carnival and other special events. Active in the Chula Vista Chamber of Commerce, she was also an active participant in Toastmasters International. Jeri held a private pilot's license as well.

PSAR staff members remember Jeri for her humor, sultry voice and intelligence. She was fun, funny and very smart.

She is survived by a sister, Pat Greaser, a son, Richard Vanderpool, a daughter, Susan Giamanco and three grandchildren, David Vanderpool, Chelsea English and Meggan Copeland, as well as three great-grandchildren. She was preceded in passing by her son, Tom Vanderpool.

A Celebration of Life service for Jeri Vanderpool will be held at 2 p.m., Saturday, February, 29, at Norman Park Center, located at 270 “F” St., Chula Vista. RSVPs are not required. All are invited to attend.

The Norman Park Center, a community facility, is named after Jeri’s father, Chet Norman, who was the City of Chula Vista’s first Park Supervisor. The facility opened in 1963 as the Norman Park Center for Senior Citizens. Chet Norman passed away in the mid-1970s.

Everyone at PSAR extends their sympathies and condolences.

29% OF SAN DIEGO HOUSEHOLDS CAN BUY A MEDIAN-PRICED HOME

Slightly higher mortgage interest rates offset steady home prices and held California housing affordability constant during the 2019 fourth quarter, compared to the previous third quarter of the year. Fortunately, more Californians can afford a home purchase now, as compared to a year ago.

The percentage of home buyers who could afford to pay the $607,040 price for an existing, median-priced, single-family home in California in the fourth quarter 2019 was 31 percent, which was unchanged from the third quarter of 2019, but was up from 28 percent in the fourth quarter a year ago, according to the California Association of REALTORS® (C.A.R.) Housing Affordability Index (HAI). The statewide housing affordability index hit a peak of 56 percent in the fourth quarter of 2012.

The index is considered a fundamental measure of housing well-being for homebuyers in the state. Housing affordability is still the main reason for out-migration. Housing affordability is a much bigger problem for first-time buyers, with 49 percent of first-time buyers changing their county residency over affordability issues. The reasons why most buyers delay buying sooner include saving for a down payment, waiting for finances to improve, prices to stabilize and/or difficulty qualifying for a mortgage.

In San Diego County, 29 percent of local households could afford to purchase the $655,000 existing, median-priced home in the 2019 fourth quarter, up from 24 percent in the 2018 fourth quarter, but unchanged from the 2019 third quarter.

On a statewide basis, to qualify to purchase an existing, median-priced, single-family home of $607,040 in the 2019 fourth quarter, a household would need a minimum annual income of $119,600 to make the necessary monthly payments of $2,990.

In San Diego County, to qualify to purchase an existing, median-priced, single-family home of $655,000 in the 2019 fourth quarter, a minimum annual household income of $128,800 would be needed to make monthly payments of $3,220.

The monthly payments, including taxes and insurance on a 30-year, fixed-rate loan, assume a 20 percent down payment and an effective composite interest rate of 3.89 percent. The effective composite interest rate was 3.85 percent in third-quarter 2019 and 4.95 percent a year ago.

The affordability index for condominiums and townhomes also improved in the 2019 fourth quarter from a year ago but showed a decline compared to the 2019 third quarter because of higher median condominium prices. Forty-one percent of California households earned the minimum income to qualify for the purchase of a $480,000 median-priced condominium or townhome, down from 43 percent in the previous quarter. An annual income of $94,400 was required to make monthly payments of $2,360. Thirty-seven percent of households could afford to buy a condominium or townhome a year ago.

Compared with California, more than half of the nation’s households (57 percent) could afford to purchase a $274,900 median-priced home, requiring a minimum annual income of $54,000 to make monthly payments of $1,350.

Key points from the fourth-quarter 2019 Housing Affordability report include:

• Compared to a year ago, housing affordability improved in 44 tracked counties and declined in four counties.

• Affordability improved in all Southern California regions, with Orange County being the least affordable (26 percent) and San Bernardino County being the most affordable (51 percent).

• During the fourth quarter of 2019, the most affordable counties in California were Lassen (63 percent), Kings (55 percent), Tulare and Plumas (52 percent each). The minimum annual income needed to qualify for a home in these counties was less than $54,000.

•  San Francisco (18 percent), San Mateo (20 percent) and Santa Cruz (21 percent) counties were the least affordable areas in the state. San Francisco County required the highest minimum qualifying income in the entire state. An annual income of $314,800 was needed to purchase a home in San Francisco County. San Mateo County also required an annual income exceeding $300,000 to purchase a median-priced home.

###