The real estate industry is facing significant changes to buyer-representation, and PSAR members need to stay informed. With the recent Sitzer-Burnett settlement, the passage of California’s AB 2992, and NOW a newly released California Department of Real Estate (DRE) bulletin, REALTORS® are navigating uncharted territory. These updates reflect an ongoing evolution in the industry, but inconsistencies between them may create challenges for REALTORS® working to remain compliant.

C.A.R. Legal is currently reviewing these documents in detail and will likely reach out to the DRE for clarification regarding the bulletin. REALTORS® can expect further guidance as these details are analyzed more thoroughly.

This blog is a first look at how these changes align—or don’t. While this is not a definitive legal analysis, it highlights important areas to consider.

Key Inconsistencies REALTORS® Need to Understand

1. Timing of Agreement Execution

• Choose: Sitzer-Burnett Settlement: REALTORS® and MLS subscribers must secure a signed buyer-broker agreement before touring properties.

• AB 2992: Allows the agreement to be signed as late as the execution of a purchase offer.

• DRE Bulletin: Reflects AB 2992’s timing, which is less stringent than the settlement.
  Impact: REALTORS® may face conflicting guidance depending on whether they are complying with AB 2992, the settlement, or MLS rules.

2. Agreement Expiration

• Choose: AB 2992: Limits agreements to a maximum of three months.

• Sitzer-Burnett Settlement: Does not specify a duration but requires clear terms.

• DRE Bulletin: Does not mention expiration limits.
  Impact: REALTORS® could face compliance issues if agreements extend beyond three months under California law, even if not restricted under the settlement.

3. Compensation Negotiation and Disclosure

• Choose: Sitzer-Burnett Settlement: Caps compensation at the agreed amount and prohibits exceeding it from any source.

• AB 2992: Allows buyers to negotiate seller concessions to cover agent fees but does not impose a cap.

• DRE Bulletin: Discusses compensation but lacks clarity on handling caps or seller concessions.
  Impact: REALTORS® may inadvertently violate settlement terms by exceeding the agreed-upon compensation if following only state law or the bulletin.

4. Scope of Applicability

• Choose: Sitzer-Burnett Settlement: Applies to all REALTORS® and covered MLS participants.

• AB 2992: Broadens applicability to all California buyer’s agents, regardless of MLS or REALTOR® status.

• DRE Bulletin: Suggests universal applicability but does not distinguish between REALTORS® and non-REALTORS®.
  Impact: REALTORS® operating outside MLS systems may face uncertainty about compliance standards.

5. Content of Agreements

• Choose: AB 2992: Mandates detailed agreements specifying services, compensation, payment timing, and an expiration date.

• Sitzer-Burnett Settlement: Requires clear compensation disclosure but does not specify other elements.

• DRE Bulletin: Mentions transparency but omits critical details about mandatory agreement elements.
  Impact: REALTORS® risk non-compliance if agreements lack required elements under AB 2992.

First Look Recommendations for REALTORS®

1. All Association members who are REALTORS(s) and all MLS members must abide by the terms of the settlement, even if AB2992 is less restrictive. Consult Your Broker: Brokers are a key resource in clarifying compliance with these changes

2. Utilize the C.A.R. Legal Hotline: REALTORS® should seek professional guidance on navigating the complexities of overlapping requirements.

3. Adopt a Conservative Approach:

   • Execute agreements before property tours, consistent with the settlement.

   • Ensure agreements meet AB 2992’s requirements, including the three-month expiration limit.

   • Disclose compensation clearly and avoid exceeding agreed-upon amounts.

What’s Next?

The DRE bulletin is brand new, and this is PSAR’s first analysis of its potential implications. While C.A.R. attorneys will undoubtedly provide a more detailed review, it’s critical for REALTORS® to begin understanding these changes now. Taking a proactive and cautious approach will help REALTORS® avoid missteps and serve clients effectively during this transitional period.

PSAR is here to support its members through these changes. Stay tuned for updates and additional resources as more information becomes available.

Home sales slowed in San Diego County and across the state in September 2024, despite the lowest interest rates since spring, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 253,010 in September 2024, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2024 if sales maintained the September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

California sales decreased 3.4% in September 2024 from August 2024, when 262,050 homes were sold on an annualized basis. Home sales statewide hit the lowest level in nine months.

In a year-over-year comparison, the statewide sales pace was up 5.1% in September 2024, compared with September 2023, when 240,840 homes were sold on an annualized basis.

The sales pace has remained below the 300,000-threshold for the past two years, while year-to-date home sales for 2024 edged up 0.9 percent compared to the first nine months of 2023.

The sales pace for home sales in San Diego County decreased by 14.6% in September 2024, compared to August 2024. In a year-over-year comparison, the sales pace was 9.4% higher compared to September 2023.

“The inventory of homes for sale has steadily improved in recent months as the market moves into the typical off-peak home-buying season,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “With home prices likely to moderate further in the coming months, the fourth quarter could offer an opportunity for potential buyers who have been waiting to re-enter the market, especially as interest rates gradually return to historical averages.”

Regarding home sales prices, September’s statewide median price declined 2.3% from $888,740 in August 2024 to $868,150 in September 2024. The September 2024 figure was 2.9% higher than the revised $843,500 recorded in September 2023. The statewide year-over-year gain was the 15th straight month of annual price increases. 

September 2024 County Sales and Price Activity

Home prices could soften further in the coming months as the market enters the traditional off-season but should continue to post year-over-year growth for the remainder of the year.In San Diego County, the average price for an existing, single-family detached home was $1 million in September 2024. The median price in August 2024 was $1,010,000, a 1.0% difference with September 2024. A year ago, in September 2024, the median price for a San Diego home was $973,100, a 2.8% difference.

It was the seventh consecutive month the median monthly price for a San Diego County home has been $1 million or higher.

Sales in higher-priced market segments continued to have an effect on the mix of sales, but the impact on the statewide median price growth has tapered in recent months. While the sales pace for the $1 million-and-higher price segment remained moderately low in September at 3.9%, sales in the sub-$500,000 market continued to underperform, dropping 8.6% from a year ago. Moderation in the median price growth could be observed in the coming months if the share of homes priced at or above $1 million continues to shrink in the fall.

“Economic uncertainty and hopes for lower interest rates may have caused many buyers to hold off on a home purchase,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “As a result, home sales declined for the second consecutive month, reaching their lowest level this year. However, the recent rebound in bond yields is a reminder that rates will continue to fluctuate, and waiting may not be the best strategy when it comes to homebuying.”

Other key points from C.A.R.’s September 2024 resale housing report include:

• At the regional level, home sales in Southern California increased 1.1% in September 2024 when compared to last year’s sales level.
  
  
• At the regional level, median home prices in Southern California experienced a 3.7% increase in September 2024, compared to September 2023.
  
  
• Home prices in September 2024 continued to grow on a year-over-year basis on a county level throughout the state, with median sales prices in 38 counties rising from a year ago.
  
  
• The statewide unsold inventory index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, increased in both month-over-month and year-over-year comparisons. The index was 3.6 months in September 2024, up from 3.2 months in August 2024 and up from 2.8 months in September 2023.

September 2024 County Unsold Inventory and Days on Market

• The unsold inventory index of available existing homes for sale in San Diego County was at 3.2 months in September 2024, compared to 2.8 months in August 2024, 2.6 months in July 2024, 2.7 months in June 2024 and 2.5 months in September 2023. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate.

• Total active listings at the state level rose 36% on a year-over-year basis. It was the eighth consecutive annual gain in for-sale properties and the seventh straight month of double-digit active listing increases.
  
  
• With the market entering the off-season and housing demand likely to improve in the next couple months, housing inventory could begin to tighten up as we move further into the fall. 
  
  
• New active listings at the state level improved from a year ago for the ninth consecutive month, with eight of them recording a double-digit increase. Despite a decelerating growth rate in listings in September 2024 for the second straight month, new listings increasing by double-digits this late in the year continues to be an encouraging sign for the supply side.
  
  
• The median number of days it took to sell a California single-family home was 24 days in September 2024, up from 22 days in August 2024 and 18 days in September 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 18 days in September 2024, compared to 17 days in August 2024 and 14 day sin September 2023. For previous months in 2024, the figures were 16 days in July, 14 days in June and 12 days in May, April and March. The median represents the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100.0 percent in September 2024 and 100.0 percent in September 2023.
  
  
• The statewide median price per square foot for an existing single-family home was $424 in September 2024, up from $416 in September a year ago.
  
  
• The 30-year, fixed-mortgage interest rate averaged 6.18 percent in September, down from 7.20 percent in September 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Home sales were lower in San Diego County, as well as in California, in August 2024 as buyers held out and adopted a “wait-and-see” approach, despite interest rates at the lowest level since spring, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 262,050 in August 2024, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2024 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Statewide, the August 2024 sales pace fell 6.3%, compared to the 279,810 homes sold in July 2024. Home sales were up 2.8% from a year ago in August 2023, when a revised 254,820 homes were sold on an annualized basis. The sales pace has remained below the 300,000-threshold for 23 consecutive months.

Year-to-date statewide home sales through August 2024 edged up 0.5%, compared to the same period last year.

In San Diego County, the sales pace for home sales decreased by 4.7% in August 2024 from July 2024. Year-over-year sales between August 2024 and August 2023 were 3.2% higher.

“Home price growth in California continued to moderate in August as the market neared the end of the traditional home buying season,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “With the Federal Reserve signaling it will lower interest rates soon, mortgage rates are expected to ease well below their recent peaks. As such, housing affordability will improve in the fall, and buyers will benefit from lower costs of borrowing in the coming months.”

Regarding home prices, the statewide median price was essentially flat, inching up 0.2% from $886,560 in July 2024 to $888,740 in August 2024. California’s median home price was 3.4% higher than the revised $859,670 recorded in August 2023. The year-over-year gain was the 14th straight month of annual price increases, albeit the smallest since September 2023. 

August 2024 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

Home prices could soften further in the coming months but should continue to register year-over-year growth for the rest of the year.

Sales in higher-priced market segments continued to influence the mix of sales, but the impact on the state-wide median price growth has been reduced in recent months. While the sales pace for the $1 million-and-higher price segment decelerated in August to 3.6%, sales in the sub-$500,000 market also had a lackluster performance, dropping 9.0% below the year-ago level. Moderation in the median price growth could be observed in the coming months if the share of homes priced at or above $1 million continues to shrink in the fall.

In San Diego County, the average price for an existing, single-family detached home exceeded $1 million in August 2024. It was the sixth consecutive month the median price has remained at more than $1 million.

The median sales price in San Diego for August 2024 was $1,010,000, a 1.0% decrease from the $1,020,000 posted in July 2024. A year ago, in August 2023, the median price for a San Diego home was $1 million.

“Despite a slightly better lending environment in recent weeks, closed home sales pulled back in August as buyers evaluated whether to wait for the Federal Reserve to cut rates before entering the market,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “Pending sales, along with mortgage application trends, however, suggest that housing demand has been slowly improving in the past few weeks. If mortgage rates remain at their current low or dip further in the coming weeks, home sales should rise steadily as we move toward the end of the year.”

Other key points from C.A.R.’s August 2024 resale housing report include:

• At the regional level, home sales in Southern California fell 2.3% when compared to last year’s sales level.
  
  
• At the regional level, median home prices experienced a 4% increase in August 2024, compared to August 2023.
  
  
• Home prices continued to grow on a year-over-year basis throughout the state, with median sales prices in 36 counties registering price increases in August 2024, compared to median sales prices a year ago in August 2023.
  
  
• The statewide unsold inventory index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, increased both month-over-month and year-over-year. The index was 3.2 months in August, up from 2.9 months in July and up from 2.4 months in August 2023.

August 2024 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

• The unsold inventory index of available existing homes for sale in San Diego County was at 2.8 months in August 2024, compared to 2.6 months in July 2024, 2.7 months in June 2024 and 1.9 months in August 2023. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate.
  
  
• Active listings at the state level rose more than 39% from the year-ago level. It was the seventh straight month of annual gains in for-sale properties.
  
  
• New active listings at the state level improved from a year ago for the eighth consecutive month in August 2024. Despite a decelerating growth rate in August, the increase in new listings at the tail end of the buying season is an encouraging sign that supply conditions in California will continue to improve in the coming months. 
  
  
• The median number of days it took to sell a California single-family home was 22 days in August, up from a revised 17.5 days in August 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 17 days in August 2024, compared to 16 days in July 2024, 14 days in June 2024 and 13 days in August 2023. For previous 2024 months, the figures were 12 days in May, April and March. The median represents the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales price-to-list-price ratio was 100% in August 2024 and 100% in August 2023. 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 original list price and is expressed as a percentage. A sales-to-list ratio with 100% or above suggests that the property sold for more than the list price, and a ratio below 100% indicates that the price sold below the asking price.
  
  
• The statewide median price per square foot for an existing single-family home was $427, up from $416 in August a year ago.
  
  
• The 30-year, fixed-mortgage interest rate averaged 6.50% in August, down from 7.07% in August 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Home sales were higher in San Diego County as well as in California, reaching a five-month high statewide in July 2024, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

Fueled by the lowest interest rates since spring, closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 279,810 in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2024 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

July 2024’s statewide sales pace rose 3.6% from the revised 270,200 homes sold in June 2024 and increased 4.1% from a year ago in July 2023, when a revised 268,840 homes were sold on an annualized basis. The sales pace has remained below the 300,000 threshold for 22 consecutive months, and year-to-date home sales edged up 0.2% from the first seven months of 2023. Year-to-date statewide home sales inched up 0.2%.

In San Diego County, the sales pace for home sales increased in July 2024 in both monthly and year-over-year comparisons. Sales of existing, single-family homes in San Diego County increased in July by 11.8% from June 2024, and 11.1% from July 2023.

“California’s housing market kicked off the second half of the year with a moderate increase in home sales in July as interest rates continued their downward trend,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “Despite transitioning into the off-season, the market should remain vibrant in the coming months if the availability of homes for sale continues to improve, and mortgage rates moderate further in the third and fourth quarters.”

Regarding home prices, the statewide median price slipped in July 2024 for the second month in a row, after setting a record high in May 2023. July’s median price dipped 1.6% from $900,720 in June 2024 to $886,560 in July 2024. California’s median home price in July 2024 was 6.5% higher than the $832,530 recorded in July 2023. 

July 2024 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

The year-over-year gain in July 2024 was the 13th straight month of annual price increases, albeit the smallest since January 2024. Home prices could soften further in the coming months but should continue to register moderate year-over-year growth for the rest of the year.

Stronger sales momentum in the higher-priced market segment on a statewide basis continued to contribute to median price growth, especially because homes priced at $1 million and above have been selling faster than lower-priced homes.

The $1 million-and-higher segment rose year-over-year in July 2024 by 24.5%, while sales in the sub-$500,000 segment dropped 1.6%. While sales of homes priced above $1 million were down for the second straight month, they accounted for 35.4% of all sales in July 2024, near the recent high recorded in May 2024. California easily boasts the most cities with million-dollar-priced homes, followed by New York and New Jersey. 

In San Diego County, the average price for an existing, single-family detached home in San Diego lingered at more than $1 million in July 2024. It was the fifth consecutive month the median price exceeded $1 million.

The median sales price in July 2024 was $1,020,000, a slight 3.2% decrease from the $1,054,180 posted in June 2024. A year ago, in July 2023, the median price for a San Diego home was $969,020, a 5.3% difference with July 2024.

“As the economy showed more signs of cooling in the past couple of months, mortgage rates continued to come down, reaching the lowest level in 15 months,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “This improvement in lower borrowing costs could motivate homebuyers on the sideline to reenter the market, especially since home prices began to soften at the tail end of the homebuying season.”  

Other key points from C.A.R.’s July 2024 resale housing report include:

• At the regional level, home sales in nearly all major regions bounced back and rose higher than year-ago levels in July 2024. The San Francisco Bay Area (19.2%) increased the most, followed by Southern California (11.4%) and the Central Valley (10.3%) regions.
  
  
• At the regional level, all major regions experienced an increase in their median price from a year ago in July. The Central Coast posted the biggest price jump on a year-over-year basis, increasing 8.0% from a year ago, followed by Southern California at 6.1%.
  
  
• The statewide unsold inventory index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, was mixed. The index was at 2.9 months in July 2024, down from 3.0 months in June 2024 and up from 2.5 months in July 2023.

July 2024 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

• The unsold inventory index of available existing homes for sale in San Diego County was at 2.6 months in July 2024, compared to 2.7 months in June 2024 and 2.0 months in July 2023. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate.
  
  
• Active listings statewide rose 39.0% on a year-over-year basis. It was the sixth straight month of annual gains in for-sale properties and the highest since January of last year.
  
  With mortgage rates likely to moderate in the coming months, further improvement in the supply side could be observed in the market for the rest of the year as the lock-in effect continues to ease.
  
  
• New active listings at the state level increased from a year ago for the seventh consecutive month. With mortgage rates moderating throughout the month, the pace of growth accelerated in July 2024 (19.5%) after slowing to a single-digit growth rate in June 2024.
  
  
• The median number of days it took to sell a California single-family home was 20 days in July and 16 days in July 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 16 days in July 2024, compared to 14 days in June 2024 and 12 days in July 2023. The figures for the previous 2024 months were 12 days in May, April, and March. The median represents the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100.0% in July 2023 and 100.0% in July 2023. The 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 original list price and is expressed as a percentage. A sales-to-list ratio of 100% or above suggests that the property sold for more than the list price, and a ratio below 100% indicates that the price sold below the asking price.
  
  
• The statewide average price per square foot for an existing single-family home was $437, up from $408 in July a year ago.
  
  
• The 30-year, fixed-mortgage interest rate averaged 6.85% in July, up from 6.71% in July 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

High mortgage rates continued to hamper home sales in San Diego County in June 2024, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

The sales pace for San Diego County home sales declined in June 2024 in both monthly and yearly comparisons. Sales of existing, single-family homes in June 2024 in San Diego County decreased 9% from May 2024, and 1.9% from June 2023.

Statewide, the sales pace in June 2024 decreased 0.8% from May 2024, and 2.7% from June 2023. Year-to-date statewide home sales edged lower by 0.5%. California home sales remained stagnant for the second consecutive month in June 202, as mortgage rates remained above 7% throughout most of May when escrows were opened for most of June’s sales.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 270,200 in June 2024, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2024 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The sales pace has remained below the 300,000-threshold for 21 consecutive months, and year-to-date home sales have fallen behind last year’s level by -0.5 percent through the first half of this year.

“With interest rates coming down to the lowest levels since February and the availability of homes loosening up further in the last few months, the housing market is gearing up for another run in the second half of the year,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “We could see a pickup in market momentum at the start of the third quarter if rates decline in a more sustainable way in the coming weeks and buyers decide to take advantage of lower costs of borrowing.”

Meanwhile, the average price for an existing, single-family detached home in San Diego remained at more than $1 million in June 2024. It was the fourth consecutive month for the median price to exceed $1 million (March, $1,020,000; April, $1,047,500; May, $1,025,000; June $1,054.180).

June 2024 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

San Diego’s median sales price in June 2024 was $1,054,180, a 2.8% increase from the $1,025,000 posted in May 2024. A year ago, in June 2023, the median price for a San Diego home was $958,250, a difference of 10.0%.

Statewide, the median home price took a step back in June 2024. The California median price was $900,720 in June 2024, compared to $908,040 in May 2024, a difference of 0.8%, and $837,850 in June 2023, a difference of 7.5%.

Home prices will likely continue recording positive year-over-year gains in the second half of the year, though the pace of growth could moderate if the rest of the year follows the traditional seasonal pattern.

Sales of higher-priced homes are a contributing factor to California’s rising median home price, especially since homes priced at $1 million and above are selling faster than lower-priced homes.

In a year-over-year comparison between June 2024 and June 2023, the million-dollar-and-higher market segment rose 2.0%, while the sub-$500,000 segment declined by 21.0% in the same time period. Currently, sales of homes priced above $1 million now make up 36.3 percent of all sales, nearly the biggest share in at least the last five years. California easily boasts the most cities with million-dollar-priced homes, followed by New York and New Jersey. 

“Home sales pulled back in June as interest rates remained volatile at the end of the second quarter. The average 30-year fixed rate mortgage began to decline since early July though and recently reached the lowest level in five months as the inflation cooling trend continued,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “While it will take a couple of more reports for the Federal Reserve to begin cutting rates, housing affordability for qualified buyers should begin to see some improvement in the coming months.”   

Other key points from C.A.R.’s June 2024 resale housing report include:

•  At the regional level, home sales in all major regions continued to be softer than year-ago levels, including -11.5% for Southern California.
  
  
•  At the regional level, all major regions registered an increase in their median price from a year ago, including a gain of 7.4% for Southern California.
  
  
• The unsold inventory statewide index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, improved from both the prior month and year. The index was 3.0 months in June, up from 2.6 months in May and up 2.2 months in June 2023.

June 2024 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

• The unsold inventory index of available existing homes for sale in June 2024 in San Diego County was 2.7 months. The figure was 2.0 months in June 2023. For previous 2024 months, the figures were 2.4 months in May, 2.2 months in April and March, 2.3 months in February and 2.6 months in January. Inventory levels indicate the number of months it would take for the available supply of homes on the market to sell-out given the current rate of sales.

• Active listings at the state level rose on a year-over year basis for the sixth consecutive month.
  
  
• The median number of days it took to sell a California single-family home was 18 days in June and 15 days in June 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 14 days in June 2024. The figure was 11 days in June 2023. For previous 2024 months, the figures were 12 days in May, April and March.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100.0 percent in June 2023 and 100.0 percent in June 2023. 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 original 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 statewide average price per square foot for an existing single-family home was $440, up from $412 in June a year ago. Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 53 counties.

• The 30-year, fixed-mortgage interest rate averaged 6.92 percent in June 2024, up from 6.71 percent in June 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Home prices and home sales in San Diego County are continuing to surge, despite mortgage interest rates at the highest levels in five months, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

Sales of existing, single-family homes in San Diego County increased 6.2% from April 2024 to May 2024. In a year-over-year comparison, between May 2024 and May 2023, the sales pace was 0.7% higher.

Also, the average existing, single-family detached home in San Diego is selling for more than $1 million. The median sales price in May 2024 was $1,025,000, a small 2.1% decline from $1,047,500 in April 2024. A year ago, in May 2023, the median price for a San Diego home was $935,000, a difference of 9.6% with May 2024.

Statewide, the May 2024 real estate market was a slightly different story.

Higher mortgage rates hampered California home sales, both on a monthly and an annual basis. In addition, the statewide median home price exceeded $900,000 for the second straight month to set another record-high.

May 2024 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 272,410 in May 2024, according to 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 2024 if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

May 2024’s sales pace dipped 1.1 percent from the revised 275,540 homes sold in April 2024, and were down 6.0 percent from a year ago in May 2023, when a revised 289,860 homes were sold on an annualized basis. The sales pace remained below the 300,000-threshold for the 20th consecutive month and year-to-date home sales were flat.

“California home sales stalled in May as mortgage rates reached the highest level in five months and may have contributed to the slowdown in market activity,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “However, a moderation in interest rates in the past couple of weeks and recent improvements in housing inventory could create an opportunity for motivated buyers to reenter the market before the homebuying season peaks.”

The statewide median price set another record high in May 2024, edging up 8.7 percent from $835,280 in May 2023 to $908,040 in May 2024, exceeding the $900,000-benchmark for the second month in a row.

California’s median home price was 0.4 percent higher than April 2024’s $904,210. The year-over-year gain was the 11th straight month of annual price increases for the Golden State. CAR said seasonal factors and tight housing supply conditions are expected to put upward pressure on home prices in the coming months.

Stronger sales of higher-priced properties continued to contribute to solid median price growth in May 2024, especially since million-dollar home sales in California have been rising more rapidly than their more affordable counterparts in the state. Sales in the million-dollar-and-higher market segment rose 15.5 percent year-over-year in May 2024, while sales in the sub-$500,000 segment declined by 12.2 percent. Sales of homes priced above a $1 million now make up 36.6 percent of all sales, the biggest share in the last five years.

California easily boasts the most million-dollar cities where the median home price is above $1 million. New York and New Jersey follow behind California.

California is home to 210 million-dollar cities, more than the next five states combined, and 12 more than a year ago. In San Diego County, 10 cities or communities with typical home values above $1 million include Rancho Santa Fe, Del Mar, Coronado, Solana Beach, Encinitas, Carlsbad, Poway, Bonita, Pala and Bonsall.

“A persistent shortage of homes for sale, particularly in the more affordable market segments, continued to push up California’s median home price to new record highs over the past couple of months,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “With mortgage rates coming back down from their recent peaks and market competition heating up, the statewide median price may have more room to grow before the summer ends."

Other key points from C.A.R.’s May 2024 resale housing report include:

• At the regional level, home sales in all major regions continued to soften when compared to their year-ago levels, including -1.0% for Southern California.
  
  
• At the regional level, all major regions registered an increase in their median price from a year ago, including a double-digit price gain of 10.0% for Southern California.
  
  
• The unsold inventory statewide index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, remained flat at 2.6 months in May 2024, the same number for April and March 2024. In May 2023, the index was 2.1 months.

May 2024 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

• The unsold inventory index of available existing homes for sale in May 2024 in San Diego County was 2.4 months. The figure was 1.7 months in May 2023. For previous 2024 months, the figures were 2.2 months in April and March, 2.3 months in February and 2.6 months in January. Inventory levels indicate the number of months it would take for the available supply of homes on the market to sell-out given the current rate of sales.
  
  
• Active listings at the state level rose on a year-over year basis for the fourth straight month, and the increase was the largest in 15 months.

With recent economic reports showing some promising signs that inflation could be cooling in a more sustainable fashion for the rest of the year, mortgage rates may moderate in the coming months as the daily fluctuations in yields continue. Further improvement on the supply side could be observed in the California housing market before the end of the home buying season.

• The median number of days it took to sell a California single-family home was 16 days in May 2024 and April 2024, and 17 days in May 2023.
  
  In San Diego, the median number of days it took to sell an existing, single-family home was 12 days in May 2024, a figure that was identical to April and March 2024 and May 2023.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100% in May 2024, a figure that was identical to April, March and February 2024, as well as May 2023.
  
  
• The 30-year, fixed-mortgage interest rate averaged 7.06 percent in May, up from 6.43 percent in May 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

The Spring 2024 homebuying season kicked off with an encouraging start for home sales and record-high home prices, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

The typical California single-family, detached house for sale now costs more than $900,000, a first-time-in-history, record-breaker for the median price. The April 2024 statewide median home price was $904,210, up 5.8% from the March price of $854,490, and up 11.4% from the $811,510 posted in April 2023.

The year-over-year gain was the 10th straight month of annual price increases in the Golden State.

Seasonal factors and tight housing supply conditions will continue to put upward pressure on home prices across the state in the coming months.

Historically speaking, it was roughly two years ago, in March 2022, when the median crossed $800,000 for the first time. Other statewide $100,000 home-price thresholds include $700,000 in August 2020, $600,000 in May 2018, $500,000 in April 2004, $400,000 in August 2003 and $300,000 in March 2002.

In San Diego County, home prices are still moving higher and approaching $1.1 million. The median sales price of an existing, single-family detached home in April 2024 was $1,047,500, a 2.7% difference from March 2024, when the median price was $1,020,000. In February 2024, the median price was $980,000. A year ago, in April 2023, the median price for a San Diego home was $930,000, a difference of 12.6% from April 2024.

April 2024 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

Meanwhile, as prices continue to rise, home sales also are rebounding.

On a statewide basis, the sales pace increased 3% for April 2024, when 275,540 existing, single-family detached homes were sold on a seasonally adjusted annualized rate. The statewide annualized sales figure represents what would be the total number of homes sold during 2024 if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The 3% increase is a comparison with the previous month of March 2024, when 267,470 homes were sold. In a year-over-year comparison between April 2024 and April 2023, the sales pace difference was 4.4%. The year-to-date home sales grew 1.6%.

The number of California homebuyers in April 2024 was below 300,000 for the 19th consecutive month. Since 1990, homebuying in the state has averaged 402,000 sales per month.

In San Diego County, sales of existing, single-family homes increased 7.5% in April 2024, compared to March 2024, and 8.8%, compared to April 2023.

“April’s rebound in both home sales and price shows the resilience of California’s housing market and is a signal that buyers and sellers are beginning to adjust to the higher interest rate environment,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “Market fundamentals are showing signs of improvement, and competition is on the rise again; homes are selling faster and nearly half the share of homes is selling above asking price, the highest in nine months.”

“While the market performed solidly in April, we don’t expect to see a rapid recovery as long as inflation remains sticky and mortgage rates continue to fluctuate despite recent dips,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “However, housing inventory has also started to increase, which will provide much-needed supply to the market and facilitate a higher level of home sales in the second half of the year.”

Sales of homes priced at or above $1 million in California continued to hold up better than their more affordable counterparts in the state during the last few months. Sales in the $1 million-and-higher market segment in April 2024 surged 39.8% year-over-year, while the sub-$500,000 segment declined moderately (-8.0%) during the same timeframe.

The change in the mix of sales of homes priced above $1 million accounted for more than one-third (36.4%) of all sales, which was the largest share in the last five years.  

The growth in sales of higher-priced homes continues to provide upward support to the statewide median price and was partly responsible for the solid increase in the year-over-year growth rate at the start of the second quarter.

Other key points from C.A.R.’s April 2024 resale housing report include:

• April 2024 home sales in all major regions of the state advanced both in month-over-month and year-over-year, including 8.7% in Southern California.
  
  
• At the regional level, all major regions registered an increase in their median price from a year ago, including a double-digit price gain of 12.1%. The San Francisco Bay Area recorded the biggest price jump on a year-over-year basis, increasing 15.5 percent from April 2023.
  
  
• The unsold inventory statewide index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, remained flat at 2.6 months in April 2024, the same number for March 2024. In April 2023, the index was 2.5 months.
  
  

April 2024 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

• The unsold inventory index of available existing homes for sales in April 2024 in San Diego County was 2.2 months, a figure that was identical to March 2024. The index was 2.3 months in February 2024 and 2.6 months in January 2024. In April 2023, the index was 1.9 months. Inventory levels indicate the number of months it would take for the available supply of homes on the market to sell out given the current rate of sales.
  
  
• New active listings at the state level in April 2024 increased from a year ago for the fourth consecutive month by double digits as more sellers listed their homes up for sale in time for the spring home buying season. Despite the moderate uptick in housing demand last month, the jump in new housing supply contributed to an improvement in the overall active listings.
  
  
• The median number of days it took to sell a California single-family home was 16 days in April 2024, 19 days in March 2024, and 20 days in April 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 12 days in April 2024, a figure that was identical to March 2024 and April 2023. For the previous 2024 months, the figure was 13 days in February and 21 days in January. The median represents the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100% in April 2024, a percentage that was identical to March 2024 and February 2024.
  
  
• The 30-year, fixed-mortgage interest rate averaged 6.99 percent in April, up from 6.34 percent in April 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

While California’s statewide housing market lost momentum in March after lower home sales, the sales pace did not slow down in San Diego County with a jump of more than 15 percent, plus a return to median home prices exceeding $1 million, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

Statewide, the sales pace for existing, single-family homes fell 7.8 percent from February 2024 to March 2024, and a drop of 4.4 percent from March 2024 to March 2023. March was the first time in three months for statewide home sales to decline on a year-over-year basis.

Also, the statewide sales pace remained below the 300,000-threshold for the 18th consecutive month. On a year-to-date basis, California home sales still exceeded the level experienced in first-quarter 2023 by 0.7 percent, but the gain continued to shrink in March. Year-to-date statewide homes sales were up 0.7 percent.

In contrast, home sales in San Diego increased 15.7 percent in a month-over-month comparison between March 2024 and February 2024. However, in a year-over-year comparison between March 2024 and March 2023, the sales pace was lower, a decrease of 7.1 percent.

Similarly, San Diego home prices kept moving higher. The median sales price of an existing, single-family detached home in March 2024 was $1,020,000, a 4.1 percent difference from February 2024, when the median price was $980,000. A year ago, in March 2023, the median price for a San Diego home was $915,000, a difference of 11.5 percent with March 2024.

March 2023 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

Home prices on a statewide basis also have been higher. The median price of an existing, single-family home in California was $854,490 in March 2024, compared to $806,490 in February 2024, and $793,260 in March 2023.

The year-over-year gain was the ninth straight month of annual price increases for the Golden State. March marked the 11th time in the last 12 months that the median price for an existing single-family home was above $800,000.

Sales of homes priced at or above $1 million dollars in California have been holding up better than their more affordable counterparts in the last few months.

The $1 million-and-higher market segment continued to grow year-over-year in March 2024 by a decent clip (9.9 percent), while the sub-$500,000 segment declined again modestly (-2.4 percent). The change in the mix of sales continued to provide upward support to the statewide median price and was partly responsible for the solid increase in year-over-year growth rate at the end of the first quarter.

“While home sales lost momentum in March, the housing market remains competitive as we’re seeing the statewide median home price reaching the highest level in seven months, and homes selling quicker than last year,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®.  “On the supply side, the market continues to improve with an increasing number of properties being listed on the market as more sellers begin to accept the new normal.”

“With mortgage rates reaching the highest levels since mid-November 2023, the housing market struggled to build on the momentum exhibited in the first two months of this year,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. ”While sales could be hindered by higher rates in the coming weeks, the uptick in recent months suggests that we could see a bounce back in housing activity when the market digests the latest inflation report.”

Other key points from C.A.R.’s March 2024 resale housing report include:

• Home sales in most major regions of the state declined on a year-over-year basis in March 2024, including 7.8 percent in Southern California.
  
  
• At the regional level, all major regions registered an annual increase in their median price from a year ago, including a double-digit price gain of 11.1 percent in Southern California.
  
  
• Unsold inventory statewide decreased 13.3 percent in March 2024 on a month-over-month basis but increased from March 2023 by 23.8 percent. The index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, dipped from 3.0 months in February 2024 to 2.6 months in March 2023. The index was 2.1 months in March 2023.
  
  

March 2023 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

• Active listings at the state level in March 2024 increased on a year-over year basis for the second consecutive month, and the increase was the largest in 13 months. It’s an encouraging sign that housing supply could be heading in the right direction as the market enters the spring home-buying season. However, mortgage rates could reach a four-month-high in coming weeks and rates are expected to remain elevated longer than previously anticipated, which could delay some potential sellers in putting their house up on the market.
  
  
• New active listings at the state level increased from a year ago for the third consecutive month by double digits as more sellers listed their homes on the market ahead of the spring home-buying season. The jump in new housing supply, along with a modest slowdown in housing demand last month, contributed to an improvement in the overall active listings.
  
  
• The median number of days it took to sell a California single-family home was 19 days in March 2024, 22 days in February 2024, 32 days in January 2024 and 24 days in March 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 12 days in March, 13 days in February 2024, 21 days in January 2024 and 15 days in March 2023. The median represents the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100 percent in March 2024 and February 2024, 98.9 percent in January 2024 and 99.1 percent in  March 2023.
  
  
• The 30-year, fixed-mortgage interest rate averaged 6.82 percent in March, up from 6.54 percent in March 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

In the wake of emergencies, the real estate industry in California faces unique challenges. Understanding the state's anti-price gouging laws is crucial whether you're a sales agent, broker, or property manager. These laws not only protect consumers during crises but also guide professionals in maintaining ethical standards.

Here's what you need to know: 

The Essence of Price Gouging in Real Estate
Price gouging occurs when prices for housing, rentals, or other essential services are significantly increased to exploit an emergency. For real estate professionals, this typically relates to the pricing of rentals, homes for sale, and emergency lodging. The goal is to prevent undue strain on those affected by disasters, ensuring access to housing remains fair and equitable.

California’s Stance on Price Gouging
California law, specifically Penal Code Section 396, restricts increasing the price of housing and other essential services by more than 10% following an emergency declaration. This applies to sales, rentals, and services across the board, ensuring that real estate professionals are aligned with legal and ethical pricing standards during critical times.

Timing and Application of the Law
These protections activate immediately upon an emergency declaration by federal, state, or local authorities and are initially set for 30 days. For real estate-related services, like reconstruction and cleanup, the period extends to 180 days. Importantly, officials can extend these timeframes to meet ongoing needs, affecting how properties are marketed and managed.

Staying Informed on Declarations
Real estate professionals should closely monitor emergency declarations to comply with legal requirements. This includes staying updated through the Governor's website and local government channels. Awareness of state and local declarations is key to ensuring your practices align with current regulations. The following locations are under price gouging protections.

Who and What Is Covered?
The statute broadly applies to all entities within the real estate sector, including individuals and companies involved in selling, renting, or managing properties. It covers a wide range of necessities, notably including rental housing, hotels, and motels, ensuring that the industry's response to emergencies is comprehensive and compliant.

Addressing Cost Increases and Violations
If your costs increase due to supplier price hikes, the law allows the cost to be factored into pricing, provided it can be justified. However, compliance with the statute is closely monitored, and violations can lead to severe penalties, including fines and criminal charges. Ensuring transparency and fairness in pricing is crucial to avoid legal repercussions.

Role of Real Estate Professionals in Compliance
As gatekeepers of housing and essential services, real estate professionals have a pivotal role in upholding these laws. This involves adhering to pricing regulations and advising clients and the community on their rights and protections. Your guidance can help navigate the complexities of emergencies, ensuring access to housing remains fair and stable.

Conclusion
For real estate professionals in California, understanding and complying with anti-price gouging laws is essential. These regulations ensure that during emergencies, the industry acts with integrity, maintaining fair pricing and access to housing. By staying informed and adhering to these laws, you play a vital role in supporting communities during their most vulnerable times, reinforcing the ethical standards that define the real estate profession.

This link provides useful guidance for identifying if a state of emergency affecting price gouging in rental housing is in effect. Simply locate your rental property's county on the list and note the code (a letter in parentheses) next to it. Then, refer to the explanations at the bottom of the page to understand which price gouging laws apply to your situation

Important Disclosure
Please note that the information provided in this blog post is for general informational purposes only and does not constitute legal advice. Real estate laws and regulations can be complex and subject to change. While we strive to present accurate and up-to-date information, we cannot guarantee the completeness, reliability, or applicability of the content to your specific situation.

As a real estate professional, it's essential to understand your actions' legal implications, especially in emergencies and price-gouging laws. Therefore, we strongly recommend consulting with a qualified attorney or legal expert to obtain advice tailored to your specific circumstances. Doing so will ensure you navigate these challenges with the utmost compliance and integrity, safeguarding your professional practice and the communities you serve.