IDX Transparency and Rule Change

Posted by PSAR Communication on Sep 10, 2021 3:49:09 PM

CRMLS launched a new IDX transparency initiative on September 1st, 2021.

What is IDX?  “Internet Data Exchange” is a means by which each MLS Participant (AKA Broker In the MLS) subscribing to the (IDX) program permits the limited electronic display of Participant’s listings appearing in Internet Data Exchange Database on each Participant’s (Other Broker's) IDX Internet websites and on applications for mobile devices that said participating Broker Participants and R.E. Subscribers control.

The newly updated rule Rule 12.16.5 listing credit:

All Listing Brokers grant permission for any Advertising Broker to display any listings submitted to the service by the Listing Broker only if the listing display or advertisement is clear so that a reasonable real estate consumer understands:

a) Who is the Listing Agent & Broker?
b) Who is the Advertising Broker?
c) How to contact that Listing Agent or Broker.

Note: These changes only affect how agent and broker IDX websites display your MLS data in public sites, not any other form of marketing. They are unrelated to communications between you and your clients.


What are the full implications of this rule? How do agents and brokers make sure your IDX feeds are compliant? Where did this rule come from, and why, and how does it benefit you?  To answer these questions and more,

Ed

CRMLS’s Vice President and General Counsel Edward Zorn - VP & General Counsel at California Regional MLS (CRMLS), will host a Webinar Wednesday, September 15th at 2:00 PM centered on the IDX Transparency Initiative.

Register for Webinar

Edward Zorn,  will also review frequently asked questions,  display examples of this new change, and take questions live.


Art Carter, CEO of CRMLS

 

Art Carter, CEO of CRMLS

Provides quick insight into the rule change on this 2:35 minute video.

 

 

 

 

Topics: Announcements, Brokers/Managers, CRMLS, Industry

HOUSING MARKET CONTINUES TO NORMALIZE IN JULY

Posted by Rick Griffin on Aug 27, 2021 8:02:59 AM

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As a follow-up from white-hot conditions in both home sales and prices, the California housing market moderated for the third straight month in July.

Both home sales and prices have tempered from the heated market conditions seen over the past year, according to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.).

Closed escrow sales of existing, single-family detached homes statewide on a seasonally adjusted annualized rate were dipped 1.6 percent in July 2021, when 428,980 homes were sold, compared to the previous month of June 2021 when 436,020 homes were sold. July 2021 statewide home sales also were down 2 percent from July 2020, when 437,890 homes were sold on an annualized basis. The statewide annualized sales figure, collected from more than 90 local REALTOR® associations and MLSs statewide, represents what would be the total number of homes sold during 2021 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Despite the slight decline, July’s statewide sale total was the second highest for a July in the past six years. Also, the state’s home sales pace maintained a solid year-to-date increase of 27.3 percent.

In San Diego, home sales in July 2021 were 7.4 percent lower compared to June 2021, but 1.4 percent higher than July 2020.

Home prices also remained at moderate levels in July 2021.

After setting record highs for the past four consecutive months, California’s median home price slipped 1 percent on a month-to-month basis to $811,170 in July 2021, down from June 2021’s $819,630 and up 21.7 percent from the $666,320 recorded last July 2020. The median price in California remained above the $800,000 benchmark for the fourth consecutive month.

In San Diego, the median price for a single-family detached home in July 2021 was $860,000, which was $5,000 or 0.6 percent lower than the June 2021 price of $865,000, but 19.6 percent higher compared to the July 2020 price of $719,000.

July 2021 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
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“The California housing market continues to normalize from the white-hot conditions we experienced at the height of the pandemic with both sales and prices moderating as we slowly transition from the peak home-buying season into the fall,” said C.A.R. President Dave Walsh. “The market remains solid, however, as sales were still the second highest level for a July in the last six years, and the statewide median price continues to perform above last year’s level by double-digits. Housing supply, while improved, remains tight and market competition is still heated with homes flying off the market in record time.”

“Despite dipping slightly from its record peak set in June, California’s median price remains elevated as supply constraints continue to provide upward pressure to support home prices,” said Jordan Levine, C.A.R. Vice President and Chief Economist. “However, home prices should ease as housing inventory improves in the third quarter and the market continues to normalize during the traditional off-season.”

Other key points from C.A.R.’s July 2021 resale housing report included:

-- At the regional level, all major regions posted a dip in sales from a year ago, when home sales began to surge as mortgage rates continued their downward trend. San Francisco Bay Area (-1.4 percent) and Southern California (-1.4 percent) held up relatively well, but more affordable counties within the regions such as Napa (-36.9 percent), Solano (-14.7 percent) and San Bernardino (-13.2 percent) also recorded sharp declines from a year ago.

-- Active listings in California in July 2021 reached the highest level since last October 2020, signaling continuous improvement in the state’s housing supply condition. The number of for-sale properties increased 15.4 percent in July 2021 from June 2021 as more homes were being listed on the market. Despite an increase in total active listings in July, new listings added in the month dipped slightly for the first time after gaining year-over-year for four straight months. New active listings inched up by 0.7 percent from June 2021 to July 2021 percent but dipped on a year-over-year basis from July 2020 by 0.9 percent. Housing supply typically climbs during this time of the year and remains on an upward trend until late July-to-early August.

-- The imbalance between supply and demand continued to heat up the market, with many buyers offering sales bids over the asking price. In July, more than 70 percent of homes sold above their asking price, making it the tenth consecutive month since September 2020 that more than half of homes sold above their asking price.

-- Statewide, the unsold inventory of available homes for sale improved slightly from 1.7 months in June 2021 to 1.9 months in July 2021, but remained sharply below last year’s level of 2.1 months for July 2020. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell-out given the current rate of sales.

July 2021 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)
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-- In San Diego County, the inventory of available homes for sales in July 2021 also improved slightly to 1.7 months, compared to 1.5 months in June 2021, but below last year’s level of 1.9 months in July 2020.

-- The median number of days it took to sell a California single-family home was eight days in July 2021, which was the same number for June 2021, down from 17 days in July 2020. The eight-day figure compares to seven days in May 2021 and April 2021. Prior to setting record low numbers this year, the previous statewide record was nine days in November 2020.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was seven days in July 2021. That number compares to six days in June 2021, seven days in May 2021, six days in April 2021 and March 2021 and seven days in February 2021 and January 2021, as well as eight days in December 2020 and seven days in November, October and September 2020. The timeframe a year ago in July 2020 was 10 days. The median represents a timeframe when half the homes sell above it and half below it.

-- The statewide sales-price-to-list-price radio was 103.8 percent in July 2021 and 100 percent in July 2020. Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

-- The 30-year, fixed-mortgage interest rate averaged 2.87 percent in July, down from 2.98 percent in July 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.49 percent, compared to 3.02 percent in July 2020.

Topics: Brokers/Managers, Market Information

Fair Housing 2021

Posted by Richard D'Ascoli on Aug 4, 2021 1:30:00 PM

New Fair Housing Rsources

Diversity is a core value of PSAR.  Realtors are the stewards of the right to own, use and transfer private property, and fair housing protects buyers, sellers, landlords and tenants.  Our livelihood as REALTORS® is dependent on fair housing laws.

Resources, Training & Updates

This post was originally posted in January 2020, it has been updated a couple of times.  It was last updated on August 4th to add NAR resources, book links, and interesting research compiled by the Non-Profit Local Initiatives Support Corporation (LISC) about Redlining in San Diego County.

NY Newsday ran an investigative story in 2019 called LI Divided. The story made clear that in order to pursue the goals of the Fair Housing Act, we need to make sure that real estate agents are accountable, that we continue to improve the real estate culture and that we provide solid training.

NAR launched Fairhaven, a fair housing simulation training for REALTORS® that uses the power of storytelling and game-play to help members identify, address and prevent discriminatory practices in real estate. Inspired by real stories, this innovative online experience has agents work against the clock to sell homes in the fictional town of Fairhaven, while confronting discrimination in the homebuying process. Learners will also walk in the shoes of a homebuyer facing discrimination. The training provides customized feedback that learners can apply to daily business interactions.

PSAR's Board of Directors encourages all Realtors to enhance awareness of fair housing practices via this no-cost program. Be an advocate for fair housing and the future of our industry. Commit to combating discrimination in real estate. You can learn more about Fairhaven by viewing the promotional Video at the link shown below.


Get started NOW by visiting https://fairhaven.realtor/ to explore the fictional town of Fairhaven and assess how well you are adhering to fair housing principles.

Hate Speech: In 2020 REALTORS implemented rule changes to ensure that the REALTOR® Code of Ethics extends beyond real estate-related activities. It is now a violation for REALTORS® to use harassing or hate speech toward any of the protected classes under Article 10 of NAR's Code of Ethics. Those protected classes are defined by race, color, religion, sex, handicap, familial status, national origin, sexual orientation, and/or gender identity. Violators may be disciplined by punishment up to and including removal from the Association. . Read more here.

REALTOR Resources:

Other San Diego County Resources:

Join the discussions.

The Deliberately Fair Housing (DFH) Facebook Group is a private group open for interested professionals.  It is a great place to find more current resources and updates.  This group hosts monthly discussions online and also has a book club discussion group facilitated by Realtor Tim Ambrose and PSAR CEO Richard D'Ascoli. 

PSAR also purchased copies of the book The Color of Law by Richard Rothstein.  The Association is giving the book to members and civic leaders willing to participate in Reading Circles to discuss the book.  Please contact support@psar.org for more information about obtaining a copy and joining a reading Circle.

_______________________________________

PSAR's mission is to empower Realtors.

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth, and development of the Real Estate industry in San Diego County. 

Topics: Education, Brokers/Managers, Leadership, Government Affairs, Market Information, Industry

Six Days to sell a home in San Diego, eight days statewide

Posted by Rick Griffin on Aug 2, 2021 8:00:51 AM

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Despite an impressive performance in the first six months of the year, momentum appeared to be slowing for the California housing market with existing home sales in June dipping for the second month in a row.

According to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.), home sales statewide on a seasonally adjusted annualized rate were 2.2 percent lower in June 2021, when 436,020 homes were sold, compared to May 2021, when 445,600 homes were sold. However, home sales increased 28.3 percent in June 2021, compared to June 2020, when 339,910 homes were sold on an annualized basis.

With strong sales growth in June, the state housing market ended the first half of the year with a year-to-date home sales increase of 33.6 percent.

Monthly numbers for closed escrow sales of existing, single-family detached homes in California is based on information collected 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 2021 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

In San Diego, home sales in June 2021 were 16 percent higher compared to May 2021, and 29.2 percent higher than June 2020.

Meanwhile, home prices continued to increase in June 2021.

Statewide, the median price for a single-family detached home in June set a new record high for the fourth straight month. The median price increased slightly by 0.2 percent on a month-to-month basis to $819,630 in June 2021, up from $818,260 in May 2021, and 30.9 percent from the $626,170 price recorded in June 2020.

June 2021 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
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The median price in California remained above the $800,000 benchmark for the third consecutive month. The median represents the point at which half of homes sell above a price, and the other half below it.

The pace of growth in home prices appeared to be decelerating, as the change between May and June remained below one percent, and the increase was the smallest in the past four months. On a month-to-month basis, the statewide median price increase in June 2021 was slightly below the average May-to-June growth rate of 1.0 percent observed between 1979 and 2020.

In San Diego, the median price for a single-family detached home in June 2021 reached a new record of $865,000, which was 1.6 percent higher than the May 2021 price of $851,000 and 27.6 percent higher compared to the June 2020 price of $678,000.

“We’re starting to see what a difference just a slight uptick in inventory and listings can do to help lessen the buying frenzy and create a sense of normalcy,” said C.A.R. President Dave Walsh. “The market is still extremely competitive, with 70 percent of homes selling above list price; however, the number of new listings increased in June, and both the share of listings with a reduced price and median reduction amount increased, giving buyers more opportunities to purchase.”

 â€śOn a year-over-year basis, the statewide median price increased more than 30 percent for the third consecutive month. Tight supply, low rates and the change in the mix of sales continue to be the primary factors pushing up home prices to record levels,” said C.A.R. Vice President and Chief Economist Jordan Levine. "However, we are expecting price growth to slow from this point on as the top end of the market begins moderating. With pending sales down for the first time in 14 months, closed sales – which have been declined 5 out of the last 6 months – will likely remain lackluster as the market enters the second half of the year.”  

Other key points from C.A.R.’s June 2021 resale housing report included:

-- Home sales in June for four of the five major regions in the state set new record-high median prices in June, with each region increasing by more than 20 percent from a year ago. The San Francisco Bay Area continue to grow at the fastest pace with a year-over-year gain of 35.0 percent, followed by Southern California (30.3 percent), the Central Valley (23.8 percent), the Far North (22.0 percent) and the Central Coast (20.8 percent).

-- Sales growth statewide in the higher-priced markets remained strong in June 2021, while the number of sales of lower-priced properties remained below last year’s levels. The million-dollar market increased in demand by triple digits in a year-over-year comparison, with sales of homes priced $2 million and above surging 141 percent from a year ago. In contrast, sales of homes priced below $300,000 continued to fall precipitously with the year-over-year growth rate declining 48 percent in June. Tight housing supply continues to be the primary constraining factor for sales in the lower price segment. More homes were sold in the million-dollar market than the sub-$500k market in the 2021 second quarter of 2021, a condition that has not been observed in California in the past.

-- Active listings in California in June 2021 reached the highest level since last October 2020, signaling an improvement in the state’s housing supply condition. The number of for-sale properties increased 15.4 percent in June 2021, compared to May 2021, as more homes were being listed on the market. New active listings, while still down 12.3 percent from two years ago, increased in both a month-over-month basis and year-over-year basis by around 8 percent for June 2021. Housing supply typically climbs during this time of the year and remains on an upward trend throughout the late July-early August timeframe.

-- Statewide, the unsold inventory of available homes for sale decreased to 1.7 months in June 2021, compared to 1.8 months in May 2021, and below last year’s level of 2.7 months for June 2020. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell-out given the current rate of sales.

-- In San Diego County, the inventory of available homes for sales in June 2021 also decreased to 1.5 months, compared to 1.6 months in May 2021, and below last year’s level of 2.2 months in June 2020.

June 2021 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)
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-- The median number of days it took to sell a California single-family home was eight days in June 2021, compared to seven days in May 2021, which was the same number in April 2021, down from 21 days in June 2020. The eight-day figure compares to 10 days in February 2021, 11 days in January 2021, 11 days in December 2020, nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 15 days in March 2020. Prior to setting record low numbers this year, the previous statewide record was nine days in November 2020.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was six days in June 2021. That number compares to seven days in May 2021, six days in April 2021 and March 2021 and seven days in February 2021 and January 2021, as well as eight days in December 2020 and seven days in November, October and September 2020. The timeframe a year ago in June 2020 was 12 days. The median represents a timeframe when half the homes sell above it and half below it.

-- The statewide sales-price-to-list-price radio posted a record high in June 2021 of 104.1 percent, compared to 99.5 percent in June 2020. Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

-- The 30-year, fixed-mortgage interest rate averaged 2.98 percent in June, down from 3.16 percent in June 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.56 percent, compared to 3.09 percent in June 2020.

Topics: Brokers/Managers, Market Information

Court Denies Legal Challenge to County’s Eviction Moratorium Ordinance

Posted by PSAR Communication on Jul 28, 2021 1:41:06 PM

The Pacific Southwest Association of REALTORS and many of our property managers and owners are financially supporting the Southern California Rental Housing Association's (SCRHA) efforts to seek an injunction preventing the county from implementing and enforcing its rental moratorium. The County has been ineffective at distributing the hundreds of millions of dollars received from the federal government for rent relief programs.  SCRHA is distributing the following press release: 

Court Denies SCRHA’s Legal Challenge to County’s Eviction Moratorium Ordinance; SCRHA Immediately Appeals Decision

Ordinance Threatens Safety, Quality of Life of Tenants; Livelihoods of Thousands of County Property Owners Who Provide Rental Housing.

SAN DIEGO (July 27, 2021) – Over a month after a decision was expected, a federal judge has finally issued a decision denying the Southern California Rental Housing Association’s (SCRHA) request for a preliminary injunction to prevent San Diego County from implementing or enforcing the San Diego County Emergency Eviction Moratorium Ordinance.

U.S. District Court Judge M. James Lorenz denied SCRHA's motion, citing the temporary nature and public interest of the ordinance. In his July 26, 2021 decision, Lorenz stated that it is beyond dispute that owners are impacted by the eviction moratorium, but he said in the ruling: “However, the harm they are suffering in terms of stress and emotional hardship will be short-lived, as the Ordinance is set to expire in the middle of August 2021.”
Within an hour of receiving the ruling on July 27, 2021, SCRHA filed an appeal with the U.S. Court of Appeals for the Ninth Circuit.

“We are greatly disappointed with this ruling, which leaves housing providers with no recourse to deal with renters who cause problems for their neighbors or who otherwise violate their agreements,” said SCRHA Executive Director Alan Pentico. “Bottom line: This is unfair to everyone. That’s why we will continue to challenge this extreme and unconstitutional law.”

“As housing providers, we believe in doing our part and serving our community. We were designated as essential workers during the COVID-19 pandemic – and we have continued to show up to maintain and operate our rental communities,” Pentico added. “Sadly, housing providers’ own rights have been trampled. It’s a shame that this court chose to minimize the real harm that the eviction moratorium is causing to housing providers and rental communities.”

The County’s Emergency Eviction Moratorium Ordinance indefinitely bans nearly all evictions within the County. The ordinance, which affects evictions within both the unincorporated areas of the County and within all local Cities, went into effect on June 3, 2021 – dramatically limiting the rights of property owners who rent out their homes, duplexes, condos, accessory dwelling units, or apartments to tenants.

SCRHA filed a lawsuit in U.S. District Court seeking an injunction against the ordinance, saying it threatens the livelihoods of thousands of county property owners – many of them independent, small “mom and pop” landlords – and strips them of their federal constitutional rights to use and control their own properties. Most troublingly, the ordinance fails to protect public safety because it doesn’t allow evictions of violent, lawbreaking or nuisance-creating tenants unless the landlord can prove an “imminent health and safety threat,” and it doesn’t allow financially stressed owners to move into their own homes. For more information, visit http://socalrha.org/evictionban.

The Eviction Moratorium Ordinance would end 60 days after all work-at-home and stay-at-home orders are lifted. The stay-at-home and work-at-home orders expired on June 15, 2021, making the ordinance’s tentative expiration date August 14, 2021, the ruling stated. However, the County’s motion had indicated the ordinance was set to expire on August 10, 2021.  For more information about the lawsuit look here.

PSAR encourages all property managers and housing providers to consider joining the SCRHA.  We partner with SCRHA to help protect private property rights.

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C.A.R, COVID LEGAL DOCUMENTS are available for addtional help

The C.A.R. COVID-19 forms are all available in zipForm® Plus in the C.A.R. forms library, and can be easily located by searching the library under the “COVID-19” category. Additionally, you can find the following Quick Guides and Legal Q&A’s on our website here:

 

Topics: Announcements, Brokers/Managers, Market Information, Industry

San Diego housing market takes a slight breather from buyer fatigue.

Posted by Rick Griffin on Jun 25, 2021 3:27:06 PM

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After months of breakneck market competition, the California housing market experienced a mild case of homebuyer fatigue in May with a slight decrease in home sales from April. However, home prices continued to increase in May, setting another record high.

According to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.), home sales statewide on a seasonally adjusted annualized rate were down 2.7 percent in May 2021, when 445,660 homes were sold, compared to April 2021, when 458,170 homes were sold. However, homes sales increased 86.7 percent in May 2021, compared to May 2020, when 238,740 homes were sold on an annualized basis.

The sharp year-over-year sales jump was expected as the housing market was hit hard by the COVID-19 pandemic shutdown last year, when home sales dropped to their lowest level since the Great Recession.

The monthly number for closed escrow sales of existing, single-family detached homes in California is based on information collected 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 2021 if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

In San Diego, home sales in May 2021 also were down 3.2 percent, compared to April 2021, but up 76.1 percent from May 2020.

May 2021 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
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Meanwhile, home prices continued to increase in May 2021. Statewide, the median price for a single-family detached home inched up 0.5 percent from $814,010 in April 2021 to set a new record of $818,260 in May 2021. The figure marked a whopping 39.1 percent year-over-year increase since May 2020, when the statewide median home price was $588,070. The year-over-year price gain was the highest ever recorded, and it was the second straight month that the state recorded an annual increase of over 30 percent. 

Robust demand of higher-priced properties contributed to the record-setting statewide median price. With million-dollar home sales surging more than 200 percent from May 2020, its market share is nearly double what it was a year ago when it was at 15.6 percent. More million-dollar properties were sold in the past couple of months than homes priced below $500,000.          

In San Diego, the median price for a single-family detached home in May 2021 reached $851,000, which was 3.1 percent higher than the April 2021 price of $825,120 and 29.9 percent higher compared to the May 2020 price of $655,000.

“The overheated housing market is showing signs of a much-needed cooling and could be a sign of waning buyer interest as the torrid pace of home price increases and buyer fatigue adversely affected demand,” said C.A.R. President Dave Walsh. “We’re seeing many would-be buyers taking a break and hoping to see more listings as the economy reopens and prospective sellers list their homes for sale.”

“A lack of housing inventory continues to push up prices, and modestly higher interest rates, increased competition, and declining affordability have caused some buyers to become discouraged. Despite strong growth rates, the level of home sales has fallen on a monthly basis in four of the last five months,” said C.A.R. Vice President and Chief Economist Jordan Levine. “Additionally, pending sales data for May, which was virtually unchanged from April, suggests further slowing in coming months. Fortunately, new listings have finally started to rise, which could help to sustain a higher level of home sales deeper into summer by providing much-needed supply.”    

Other key points from C.A.R.’s May 2021 resale housing report included:

-- Home sales in May for all major regions in the state experienced at least a 44 percent year-over-year growth in sales in May, with the Central Coast notching the biggest jump at 111.8 percent and sales in all four counties in that region surging by more than 99 percent. The San Francisco Bay Area also increased in sales by triple-digits (104.6 percent) from last year, followed by Southern California (80 percent), the Far North (58.6 percent), and the Central Valley (44 percent).

-- Sales growth statewide in the higher-priced markets remained strong in May 2021, while home sales in the lower-end continued to be lackluster. Demand in the million-dollar segment increased by more than 200 percent year-over-year, with sales of homes priced $2 million and higher surging over 300 percent from a year ago. On the other hand, sales of properties priced below $300,000 continued to fall precipitously, with the year-over-year sales dropping 34 percent in May. Tight housing supply continues to be the primary factor constraining sales in the lower price segment.

-- Three out of five major regions reached new record high median prices in May, with each region growing more than 20 percent from a year ago. The San Francisco Bay Area had the highest year-over-year gain of 38.9 percent, followed by Southern California (33.1 percent), the Central Coast (32.6 percent), the Central Valley (27.1 percent), and the Far North (22.1 percent).

-- Active listings in California reached the highest level in six months after a 6.6 percent monthly increase in May and are expected to continue inching higher, following the seasonal pattern. Housing supply typically climbs during this time of the year and usually remains on an upward trend through late July and early August. The pace of growth on a month-to-month basis is on par with the average growth rate of 6.7 percent from April to May recorded between 2015 and 2019.

May 2021 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

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-- Statewide, the unsold inventory of available homes for sale improved slightly to 1.8 months in May 2021, compared to 1.6 months in April 2021, but remained sharply below last year’s level of 4.3 months for May 2020. The month-over-month rise in inventory is partly due a slight increase in housing supply, but a slowdown in housing demand in May also contributed to a bump in the index. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell-out given the current rate of sales.

-- In San Diego County, the inventory of available homes for sales in May 2021 improved slightly to 1.6 months, compared to 1.5 months in April 2021, but was sharply below the 3.5 months figure posted for May 2020.

-- The median number of days it took to sell a California single-family home hit another record low of seven days in May 2021, which was the same number in April 2021, down from 17 days in May 2020. The seven-day figure is lower than the eight days in March 2021, previously the lowest ever recorded. The eight-day figure compared to 10 days in February 2021, 11 days in January 2021, 11 days in December 2020, nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 15 days in March 2020. Prior to setting record low numbers this year, the previous statewide record was nine days in November 2020.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was seven days in May 2021. That number compares to six days in April 2021 and March 2021 and seven days in February 2021 and January 2021, as well as eight days in December 2020 and seven days in November, October and September 2020. The timeframe a year ago in May 2020 was 11 days.

-- The 30-year, fixed-mortgage interest rate averaged 2.96 percent in May, down from 3.23 percent in May 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.62 percent, compared to 3.16 percent in May 2020.

Topics: Brokers/Managers, Market Information

Heated market and a shortage of homes for sale continue upward

Posted by Rick Griffin on May 23, 2021 7:00:00 AM

The California housing market reached a milestone in April that the San Diego market already has experienced.

The state’s median home price for an existing, single-family detached home exceeded the $800,000 benchmark for the first time ever in April 2021, according to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.). The median price represents the point at which half of homes sell above a price, and the other half below it.

Heated market conditions and a shortage of homes for sale continued to put upward pressure on home prices in the state in April, driving California’s median price to $813,980, almost as high as San Diego’s April monthly figure of $825,120.

The statewide median home price set a new record high in April 2021, breaking the previous record set in March 2021. The statewide median home price of $813,980 in April 2021 was 7.2 percent higher compared to $758,990 in March 2021 and 34.2 percent higher when compared to the $606,410 figure for April 2020.

April 2021 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
blog_210521_chart1

The year-over-year price gain was the highest ever recorded, and it was the first time since June 2013 that the state recorded an annual increase of more than 30 percent. 

San Diego’s median price for a single-family detached home of $825,120 in April 2021 was 3.1 percent higher than the median home price of $800,000 in March 2021 and 23 percent higher compared to $671,000 in April 2020.

Meanwhile, California home sales in April 2021 soared from last year’s pandemic-level lows with the start of the spring home buying season.

Home sales in the state increased on a monthly basis for the third consecutive month, rising 2.6 percent to 458,170 homes from 446,410 homes in March 2021 and up 65.1 percent from April 2020, when 277,440 homes were sold on a seasonally adjusted annualized basis. The statewide annualized sales figure represents what would be the total number of homes sold during 2021 if sales maintained the April pace throughout the year.

The sharp sales jump in April 2021 was expected following last year’s pandemic shutdown when home sales dropped more than 30 percent from the previous April.  Year-to-date statewide home sales were up 26.2 percent in April 2021.

In San Diego County, the number of home sales in April 2021 was 10.5 percent higher compared to March 2021, and 55.2 percent higher than April 2020.

“California continues to experience one of the hottest housing markets as homes sell at the fastest pace ever, with the share of homes sold above asking price, the price per square foot and the sales-to-list price all at record highs, while active listings remain at historic lows,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “The high demand and shortage of homes for sale, driven by these market factors, continued to drive up home prices and shatter the record-high set just last month.”

“Not only do skyrocketing home prices threaten already-low homeownership levels and make it harder for those who don’t already have a home to purchase one, it also brings to question the sustainability of this market cycle,” said C.A.R. Vice President and Chief Economist Jordan Levine. “As vaccination rates increase and the state reopens fully, higher home prices will hopefully entice prospective sellers who have held off putting their homes on the market during the pandemic to feel more comfortable listing their homes for sale, which would alleviate pressure on home prices.”   

Other key points from C.A.R.’s April 2021 resale housing report included:

-- Home sales in April from a regional perspective saw sharp gains with each region growing more than 38 percent from last year. The San Francisco Bay Area had the highest year-over-year increase of 101.4 percent, with five of its nine counties growing by triple digits from a year ago. The Central Coast came in second with an increase of 81.7 percent, followed by Southern California (65.5 percent), the Central Valley (39.8 percent), and the Far North (38.8 percent).

-- All but two of the counties tracked by CAR, 49 of 51, recorded a year-over-year sales increase in April, with 31 counties increasing more than 50 percent from a year ago, and 11 counties growing by triple digits. Six of the counties with an annual growth rate of more than 100 percent had a median price above $1 million in April 2021. Counties with an increase from last year had an average gain of 70.7 percent in April 2021, compared to 32.9 percent in March.

-- Sales growth in California in April 2021 remained concentrated in higher-priced markets, while home sales in the lower-end continued a lackluster performance. The million-dollar segment in April increased in demand by more than 200 percent in year-over-year comparisons, with sales of homes priced $2 million and higher surging more than 300 percent from a year ago. Meanwhile, sales of properties priced below $300,000 continued to fall precipitously, with the year-over-year growth rate dropping 34 percent in April 2021, compared to April 2020. Tight housing supply continues to be the primary constraining factor for fewer sales in the lower-price category.

-- New record median prices were set in all major regions in April 2021, with each region growing more than 20 percent from April 2020. The Central Coast region continued to have the highest year-over-year gain of 40.8 percent, followed by the San Francisco Bay Area (35.6 percent), Southern California (28.6 percent), the Central Valley (25.5 percent) and the Far North (22.8 percent).

-- Active listings in California fell more than 50 percent in April 2021 from April 2020, marking four straight months when the housing supply was cut in half from the same month a year ago.. The ongoing decline in inventory is due to the surge in demand over the past 10 months, as well as a lack of new listings. While new active listings in April 2021 experienced robust year-over-year growth compared to April 2020, when the government-imposed pandemic shutdown was underway, the level of newly added supply is still significantly below pre-pandemic levels. On a month-to-month basis, for-sale properties inched up by 7.4 percent in April 2021, compared to March 2021, and should climb further in the coming months if the market follows its typical seasonal pattern.

-- Statewide, the unsold inventory of available homes for sale dropped to 1.6 months in April 2021 from 1.7 months in March 2021 and was down sharply from April 2020, when there was 3.4 months of housing inventory. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell-out given the current rate of sales.

April 2021 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)
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-- In San Diego County, the inventory of available homes for sales in April 2021 remained at 1.5 months, the same number for March 2021, compared to 1.8 months in both February 2021 and January 2021 and 2.7 months in April 2020.

-- The median number of days it took to sell a California single-family home hit another record low of seven days in April 2021, down from 13 days in April 2020. The seven-day figure is lower than the eight days in March 2021, previously the lowest ever recorded. The eight-day figure compared to 10 days in February 2021, 11 days in January 2021, 11 days in December 2020, nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 15 days in March 2020. Prior to setting record low numbers in March and April 2021, the previous statewide record was nine days in November 2020.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was six days in April 2021, which was the same number in March 2021. That number compares to seven days in both February 2021 and January 2021, as well as eight days in December 2020 and seven days in November, October and September 2020. The timeframe a year ago in April 2020 was eight days.

-- The 30-year, fixed-mortgage interest rate averaged 3.06 percent in April, down from 3.31 percent in April 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.81 percent, compared to 3.31 percent in April 2020.

Topics: Brokers/Managers, Market Information

CAR Releases Update Regarding Open Houses in San Diego County

Posted by PSAR Communication on May 13, 2021 10:39:20 AM

Open Houses in San Diego County

C.A.R Released the following information last night to REALTORS®. CAR attorneys are looking into what it means when it comes to hosting open houses. The links in this email raise questions including how these changes apply to San Diego County, the use of the PEAD, registrations, maintaining physical distance, and much more. Give your broker some time to look into this. The information was released, now the attorneys and brokers need to figure out what it means.

The California Dept. of Public Health has just updated its guidance on open houses, and further updates are pending. The following is now on live on the COVID-19.ca.gov website. C.A.R. will be providing more details regarding this guidance so that REALTORS® are in full compliance, but the following is the information currently on the California State official website:

Shown properties, like open houses – effective immediately
In-person showings of properties, like open houses, are permitted and must follow the indoor gatherings capacity limits in the CDPH gatherings guidance. Check the Attendance section of the gatherings guidance for the capacity limits for each tier. 

People who feel sick or have COVID-19 symptoms are not permitted to attend. The physical distancing between different households must be maintained, and hand sanitizer should be made available. Face coverings are required. See the CDPH guidance for the use of face coverings for complete details and exceptions. All other restrictions in the real estate guidance remain in place.

Topics: Brokers/Managers, Market Information, Marketing

RECORD MEDIAN HOME PRICES FOR BOTH CALIFORNIA AND SAN DIEGO IN MARCH

Posted by Rick Griffin on Apr 28, 2021 8:00:00 PM

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Fierce competition in the California housing market in March drove the state’s median home price to a new record high while sales remained solid heading into the spring homebuying season, according to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.).

The statewide median home price in March reached a new all-time high of $758,990.

Similarly, the median home price in San Diego in March rose to a new record of $800,000.

In addition, nearly two-thirds or 63 percent of homes sold above the asking price in March 2021, reflecting the combination of intense demand and short supply. California already had set a record for share of home selling over listing price at 56 percent in February 2021.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 446,410 in March 2021, down 3.5 percent from 462,720 in February 2021 but were up 19.7 percent from March 2020, when 373,070 homes were sold. The annualized sales figure represents what would be the total number of homes sold during 2021 if sales maintained the March pace throughout the year.

The monthly sales decline was the third in a row, and the sales pace was the lowest since last July. The nearly 20 percent sales gain was attributed to weak home sales a year ago as the coronavirus outbreak abruptly halted the real estate market and economy, CAR said.  

March 2021 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
blog_210427_chart1

Meanwhile, California’s median home price set another new record high in March 2021 as the statewide median price surged nearly 24 percent from a year ago. The statewide median home price in March 2021 climbed 8.6 percent on a month-to-month basis to $758,990, up from $699,000 in February 2021 and up 23.9 percent from the $612,440 recorded in March 2020. 

The year-over-year statewide gain, from March 2020 to March 2021, was the highest since October 2013 and it was the eighth straight month that California’s median price registered a double-digit gain.

In San Diego County, the number of home sales in March 2021 was 29.3 percent higher compared to February 2021 and 18.1 percent higher compared to March 2020.

San Diego’s median price for a single-family detached home in March 2021 was a record high of $800,000, which was $35,000 or 4.6 percent higher than the median home price of $765,000 in February 2021 and 18.5 percent higher compared to $675,000 in March 2020.

The median price represents the point at which half of homes sell above a price, and the other half below it.

“While intense homebuying interest is the engine that continues to drive housing demand, a shortage of homes for sales is the rocket fuel pushing prices higher across the state. A lack of homes for sale is creating unprecedented market competition, leading to a record share of homes selling above asking price in March,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “With more of the state’s COVID-19 restrictions being lifted in the coming months as we move into the spring home buying season, we should see home sales improve as more prospective home sellers feel comfortable listing their homes for sale.” 

“The market sentiment is drastically different today compared to a year ago at the onset of the pandemic,” said C.A.R. Vice President and Chief Economist Jordan Levine. “With the U.S. economy positioned to grow at the fastest pace since the early 1980s and mortgage rates trending down again in the past week, consumer confidence will improve further, so in the coming months, we should continue to see a solid bounce-back from last year as the market maintains its momentum.”

Other key points from C.A.R.’s March 2021 resale housing report included:

-- Home sales in March from a regional perspective experienced a double-digit sales surge compared to a year ago. The San Francisco Bay Area had the highest year-over-year gain, at a growth rate of 35.0 percent from March 2020. The Central Coast (31.8 percent), Far North (26.1 percent), and Southern California regions (23.3 percent) experienced a sales increase of more than 20 percent from last year.

-- Home sales in resort markets remained robust in March, with Big Bear, Lake Arrowhead and South Lake Tahoe all increasing more than 50 percent from a year ago. South Lake Tahoe was particularly strong in March 2021 with sales rising 128.1 percent compared to March 2020. Lake Arrowhead also had a strong month of March with sales growing near triple-digits year-over-year, while Big Bear increased by 54.8 percent and Mammoth Lakes jumped by 16.7 percent.

March 2021 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)
blog_210427_chart2

-- All major regions recorded double-digit increases in the median price increases from last year. The Central Coast region posted the highest year-over-year growth rate of 26.4 percent, followed by the San Francisco Bay Area (21.3 percent), Southern California (20.5 percent), the Central Valley (18.6 percent) and the Far North (12.4 percent).

-- All 51 counties tracked by C.A.R. reported a gain in median price on a year-over-year basis, with 45 of them increasing more than 10 percent.

-- Active listings statewide fell 51.1 percent in a comparison between March 2021 and March 2020. It was the third consecutive month that listings declined more than 50 percent. On a month-to-month basis, for-sale properties inched up by 5.3 percent in March.

-- The available supply of homes for sale continued to tighten up across the state, with all major regions near record low levels. Forty-nine of the 51 counties covered by C.A.R. recorded a decline in active listings on a year-over-year basis in March, and 30 of them dropped more than half from levels a year ago.

-- Statewide, the unsold inventory of available homes for sale dropped to 1.6 months in March from 2.0 months in February and was down sharply from a year ago, when there was 2.7 months of housing inventory. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell-out given the current rate of sales.

-- In San Diego County, the inventory of available homes for sales in March 2021 dropped to 1.5 months, compared to 1.8 months in both February 2021 and January 2021 and 2.4 months in March 2020.

-- The median number of days it took to sell a California single-family home in March 2021 hit a record of eight days, the lowest every recorded. The eight-day figure compared to 10 days in February 2021, 11 days in January 2021, 11 days in December 2020, nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 15 days in March 2020. Prior to March 2021, the previous statewide record was nine days in November 2020.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was six days in March 2021. That number compares to seven days in both February 2021 and January 2021, as well as eight days in December 2020 and seven days in November, October and September 2020. The timeframe a year ago in March 2020 was 10 days.

-- The 30-year, fixed-mortgage interest rate averaged 3.08 percent in March, down from 3.45 percent in March 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.78 percent, compared to 3.16 percent in March 2020.

Topics: Brokers/Managers, Market Information

SAN DIEGO HOME SALES 6% HIGHER SINCE LAST MONTH

Posted by Rick Griffin on Mar 19, 2021 3:14:32 PM

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California’s home sales and prices eased in February as mortgage rates spiked, while strong buying interest continued and tight housing supply restrained demand, especially in more affordable markets.

According to its monthly home sales and price report released this week by the California Association of REALTORS® (C.A.R.), the state’s housing market has recently encountered some speed-bumps due to rising mortgage interest rates.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 462,720 in February 2021, which was down 4.5 percent from 484,760 in January 2021, but 9.7 percent higher from February 2020, when 421,670 homes were sold on an annualized basis.

It was the eighth straight month for year-over-year gain in home sales. However, February’s nearly 10 percent home sales increase from a year ago was the smallest gain in the past seven months. Year-to-date statewide home sales were up 15.9 percent in February.

The statewide annualized sales figure represents what would be the total number of homes sold during 2021 if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Meanwhile, California’s median home price in February 2021 was essentially unchanged from January 2021, but was 20.6 percent higher than in the $579,770 figure for February 2020, recording the first back-to-back 20 percent yearly increase since February 2014. The statewide median home price dipped 0.1 percent on a month-to-month basis to $699,000 in February 2021, down from $699,920 in January 2021.

February 2021 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

blog_210320_chart1
The double-digit statewide increase from last year was the seventh in a row and the second largest since February 2014.

In San Diego County, February 2021 home sales were 6.1 percent higher, compared to January 2021, and 12.8 percent higher compared to February 2020.

San Diego’s median price for a single-family detached home was $765,000 in February 2021, a 4.8 percent increase from $730,000 in January 2021, and a 14.2 percent increase from $670,000 in February 2020.

The median price represents the point at which half of homes sell above a price, and the other half below it.

“The housing market has been cruising at a robust pace since the second half of 2020 but has encountered some speed-bumps recently as rates began to rise,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “While higher rates may slow growth in home sales temporarily, the major roadblock in the long run is a shortage of homes for sale. With inventory dropping more than a half from a year ago, the market will soften in the second half of 2021 if we don’t see enough homes come on the market to meet demand.”   

“The upward movement in rates has called into question whether the market will sustain its momentum going into the spring homebuying season,” said C.A.R. Vice President and Chief Economist Jordan Levine. “While rates are off their record lows, they are still relatively low by historical standards. Recent increases in mortgage rates will likely slow the pace of price growth in the coming months but will also motivate those who truly want to buy to enter the market before rates start moving further up.”

Other key points from C.A.R.’s February 2021 resale housing report included:

-- Home sales from a regional perspective surged in February, compared to a year ago. The Central Coast region posted the highest year-over-year sales gain, with a growth rate of 22.4 percent. The Far North (17.3 percent), the San Francisco Bay Area (16.1 percent), and Southern California (10.5 percent) regions also experienced double-digit year-over-year increases in sales from a year ago.

-- Resort marks continued to perform well in February. Sales growth in the resort markets was relatively strong when compared to the rest of California. South Lake Tahoe (56.7 percent), Lake Arrowhead (44.1 percent), and Big Bear (36.1 percent) all experienced sales increases of more than 35 percent from a year ago. The exception was Mammoth Lakes were sales were flat in February 2021. However, aggregated sales for the first two months of 2021 in mountain resort communities are up 40 percent from the same period last year.

-- All major regions recorded double-digit increases in the median price increased from last year with the San Francisco Bay Area growing the strongest at 26.5 percent. The year-over-year increase in the Bay Area’s median price was the largest since September 2013, and it helped to set a new record high in the median price for the Bay Area. The Central Valley region had the second highest price growth rate of all regions with its median price increasing 19.1 percent year-over-year in February, followed by Southern California (16.4 percent), the Central Coast (15.9 percent) and the Far North (11.7 percent).

-- Active listings statewide fell 52.5 percent in February 2021, compared to February 2021. It was a decline of more than 40 percent on a year-over-year basis for the eighth consecutive month. On a month-to-month basis, for-sale properties inched up slightly by 0.4 percent in February 2021 and should climb further in the coming months as the market prepares for the spring homebuying season and the pandemic situation continues to improve.

-- The unsold inventory of available homes for sale inched higher to 2.0 months in February 2021, from 1.9 months in January 2021. However, inventory levels in February 2021 were sharply lower than in February 2020, when there was 3.6 months of housing inventory. 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.

February 2021 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

blog_210320_chart2

-- In San Diego County, the inventory of available homes for sale remained at 1.8 months for February 2021, which was the same figure for January 2021. That compares to 1.2 months in December 2020, 1.6 months in November 2020, 1.8 months in October 2020 and 3.0 months in February 2020.

-- The median number of days it took to sell a California single-family home was 10 days in February 2021, compared to a revised 11 days in January 2021, 11 days in December 2020, nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 23 days in February 2020. The nine-day November 2020 statewide 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 seven days in February 2021, which was the same figure for January 2021. That compares to eight days in December 2020, seven days in November, October and September 2020. The timeframe a year ago in February 2021 was 12 days.

-- The 30-year, fixed-mortgage interest rate averaged 2.81 percent in February, down from 3.47 percent in February 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.83 percent, compared to 3.26 percent in February 2020.

Topics: Brokers/Managers, Market Information