A new law, Assembly Bill 723 (AB 723),  will soon change how real estate professionals advertise properties using digitally altered images. This bill, which adds Section 10140.8 to the Business and Professions Code, was a key focus for C.A.R. (Best Practices Here)

From the start, the California Association of Realtors (CAR) was deeply engaged on this issue. CAR opposed the initial bill, arguing that it was duplicative of existing false advertising laws and created "unnecessary liability and risks unintended consequences" for members.

CAR's advocacy focused on two key problem areas:

1. Vague Definitions: The initial language risked penalizing agents for "routine, good-faith edits" like decluttering or minor corrections, which are standard industry practices. CAR pushed for a clear definition that targeted only material changes.

2. Third-Party Liability: The bill could have made licensees liable for images scraped by or posted on third-party websites that they do not control.

CAR's voice was partially agreed with. The final version of the bill includes amendments that "attempt to address opposition concerns". Specifically, the law now clearly exempts common photo-editing techniques and limits an agent's compliance burden to websites they directly control.

Here is a clear breakdown of the new law as passed best practices for compliance.

The Heart of the Law: What's "Altered" and What Isn't?

This law is not intended to penalize professional photography. Its goal is to stop deceptive alterations that mislead consumers about the physical reality of a property. The law itself, in BPC § 10140.8, creates a, two-part definition:

1. What IS an "Altered Image" (Disclosure Required)

A disclosure is required if an image is "altered through the use of photo editing software or artificial intelligence to add, remove, or change elements" of the real property.

This includes, but is not limited to, changes to:

• Furniture, appliances, flooring, and walls

• Fixtures, paint color, hardscape, and landscape

• Elements "outside of, or visible from, the property," such as streetlights, utility poles, views through windows, and neighboring properties

• This also includes "virtual staging" where furniture or other physical attributes are digitally added to a room.

2. What IS NOT an "Altered Image" (NO Disclosure Needed)

This is the key clarification CAR successfully lobbied for. You do not need a disclosure for "common photo editing adjustments" that "do not change the condition" or "representation" of the real property.

The law explicitly exempts:

• Lighting

• Sharpening

• White balance

• Color correction

• Angle

• Straightening

• Cropping

• Exposure

The Rule: You can make the photo look better (brighter, crisper, more true-to-life). You cannot make the property look different (new grass, no power lines, different-colored cabinets).

Disclosure Duties: How to Comply

If you use an image that meets the definition of "digitally altered," you must do the following:

1. For ALL Advertising (Print or Online): You must include a "reasonably conspicuous statement" on or next to the image disclosing that it has been altered.

2. For PRINT Advertising (Flyers, Mailers, etc.): In addition to the disclosure statement, you must also provide:

• "a link to a publicly accessible internet website, URL, or QR code that includes, and clearly identifies, the original, unaltered image".

3. For ONLINE Advertising (MLS, Website, etc.): The law provides a more direct compliance path for websites "over which the real estate broker or salesperson... has control". You have two options:

• Option A: Follow the print rule (disclosure statement + link/QR code).

• Option B: Simply "include the unaltered version of the picture" in the posting itself.

Best Practices for Easy Compliance (Check with your Broker for Broker Specific Guidance)  CRMLS is currently evaluating this new law.

This law goes into effect on January 1st, 2026

Here is a straightforward action plan (Check with your Broker, for Broker specific rules:)

• For Print Ads:

  • Create a single, public webpage or photo gallery (like on a brokerage site or a cloud service) with all the original photos for that listing.

  • Generate a single QR code that links to that gallery.

  • On any altered photo in a flyer, add the text: "Image has been digitally altered. Scan QR code for original photos."

• For Online Ads (The Easiest Way):

  • When uploading to the MLS or a website that yor firm has control over, simply upload both versions of the photo.

  • Use the photo caption to label them clearly. This satisfies all requirements.

  • Altered Photo Caption: "Virtually Staged" or "Digitally Altered"

  • Original Photo Caption: "Original Photo - Unaltered"

By posting both labeled photos in the same gallery, you are being "reasonably conspicuous" and are "includ[ing] the unaltered version", placing you in full compliance.

Did you know?  PSAR MLS subscribers receive 30 FREE photo edits per month with REimagineHome.  Communicate your vision and bring more value to your listing. Watch a quick video overview, or get started with this helpful guide.

Why this was pushed for: Trust and Transparency

The Consumer Federation of California pushed for this law to protect consumers from being "misled" and to give them a "true picture" of the property.

They said "Today, with the advancement of technology these tricks are easier than ever. But consumers are far too often misled by such images, only to waste their valuable time and effort when they actually see the property in person. To many consumers this feels like a bait and switch tactic, and we would argue that in some cases this is an unfair business practice."

Find C.A.R. information regarding new laws for 2026 here.

Here are the topic headings listed on the “2026 New Laws” chart by California Association of REALTORS®. You can view full descriptions and links here: 

• Advertising: Digitally-Altered Images

• Closed-loop payment system: Broker-provided form of payment accepted by vendor or referral source

• Data-broker: Broker prohibition on selling consumer personal information

• Energy: Building decarbonization: Prepaid charge disclosure

• Energy: Solar: Fire-resistant building materials; residential roofing permits

• Fire safety: Detached accessory dwelling units: Home hardening & defensible space requirement

• Housing element: Back-of-the-bill sale of certain homes built after wildfires — contractor disclosures and licensing

• Liquefied petroleum gas (LPG): Ventura County ordinance: Required LPG leak-event inspector

• Manufactured housing: Factory-built home network connection disclosure

• Nudity: Sexually-explicit or pornographic images on rental listings prohibited

• Privacy: Tenant property owner access agreements: Keys/pads access disclosure; use of biometric or facial recognition prohibited

• Private works construction: Claim resolution process for contracts with owner by contractor/subcontractor

• Real property transactions: County of Los Angeles – Wildfires: Unsolicited offers of purchase following disaster-declared homes

• Real property transactions: Preapproved plans for single-family and multifamily housing — local agency program

• Real-estate brokerage: Broker online advertising: Language preference for consumers; certain disclosures

• Renters: Rent caps and anti-demolition protections for specified units in transit-oriented and housing-forward jurisdictions

• Tax credits: Fire Safe Home Tax Credits Act (for home-hardening & vegetation management)

Disclaimer: This blog post provides general information about AB 723 and is not intended as legal advice. For specific legal guidance regarding your obligations under Business and Professions Code Section 10140.8, please consult with your brokerage's legal counsel.

More Information

REALTORS® For questions, visit www.psar.org/grants or email grants@psar.org.
Media inquiries: ceo@psar.org (copy support@psar.org)

Buyers, please ask your REALTOR®

The California Department of Real Estate (DRE) has released its Summer 2025 Bulletin, and it’s packed with updates that every REALTOR® should see firsthand. If you think you can skip it, here are five reasons why opening the Bulletin is worth your time.

1. Mentorship Opportunities That Build Careers

The Bulletin highlights how mentorship is changing the way new agents enter the business. Want to know how a Sacramento mentorship program helps students close their first deal within months? The details are in the Bulletin.

2. Compliance Citations You Can’t Afford to Ignore

Minor mistakes—like a missing license disclosure or failing to report an address change—can now lead to fines of up to $2,500. The Bulletin explains exactly what triggers a citation and how to avoid one.

3. Trust Fund Account Rules Clarified

Who can sign on a trust account? Can property owners be added? The Bulletin clears up common misunderstandings that could expose brokers to liability.

4. Mortgage Loan Reporting Deadlines

If you handle mortgage loans, the DRE has new reminders on how and when to file your Business Activity Report. The Bulletin also explains how to troubleshoot filing issues.

5. A New Voice in Enforcement

Meet Shannan West, the new Assistant Commissioner for Enforcement. She lays out her vision for compliance and what REALTORS® can expect moving forward.

Why You Should Read the Full Bulletin

This blog only scratches the surface. The full Summer 2025 DRE Bulletin includes compliance guidance, reminders, and updates directly from the Commissioner’s desk. Reading it now could help you:

• Avoid costly fines and violations

• Protect your license and your business

• Stay ahead of industry changes that affect REALTORS® every day

Read the full Summer 2025 DRE Bulletin here.

Don’t wait until a citation or compliance issue forces you to catch up. Stay informed, stay compliant, and stay ahead by reading the Bulletin today.

The California Department of Real Estate (DRE) and the Department of Financial Protection & Innovation (DFPI) just issued a joint bulletin warning real estate brokers and escrow companies about improper commission disbursements.

What’s the Issue?
Some brokers are asking escrow companies to pay their personal or business expenses directly out of their commissions. These payments have included credit card bills, tuition, rent, utilities, and even entertainment costs.

Why It’s a Problem
Escrow companies are only allowed to follow written instructions from the principals to the transaction—the buyer and seller. Brokers are not principals in an escrow. Sending commission funds to third parties (even with a CDA) may violate the Real Estate Law, Escrow Law, and federal RESPA rules.

What Brokers Need to Know

• Commission payments should go directly to the broker.

• Brokers must not direct payments to unlicensed individuals or businesses.

• Escrow agents cannot change instructions or include blanks in signed escrow documents.

• Broker-controlled escrows must follow the same rules—trust funds must only be disbursed as directed by the party who deposited them.

What Happens if the Rules Are Broken?
The DRE and DFPI say they will investigate violations and referral fee arrangements that may be unlawful.

To stay compliant and protect your license, ensure that all commission payments follow written instructions from the principals and go to you, not outside vendors or individuals.

Read the Full Bulletin Here

In the aftermath 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.

California’s housing market remained a work in progress with fewer homes sales and lower home prices in San Diego County in November 2024, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

The pace for home sales in San Diego decreased by 13.8% in November 2024 from October 2024, although year-over-year sales between November 2024 and November 2023 were 18.7% higher. November’s decrease was preceded by an increase by 10.5% in October 2024, compared to September 2024.  

Statewide, home sales in November 2024 experienced its largest annual increase since June 2021. California’s sales pace declined by 1.1% in November 2024, compared to October 2024.

However, home sales statewide saw a double-digit growth rate of 19.5% in November 2024, compared to November 2023.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 267,800 in November 2024, which was well below the pre-Covid norm of 400,000 units.

The strong year-over-year gain observed in November 2024 was largely due to low-base effects, as home sales in November 2023 dropped to their lowest level since late 2007. Year-to-date statewide home sales edged up 3.1 percent.

“Mortgage rates continue to remain elevated, leading to challenges for many buyers. However, home prices are growing at a moderate pace and housing supply is increasing, indicating some hope that the market will continue to improve next year,” said 2025 C.A.R. President Heather Ozur, a Palm Springs REALTOR®.

Home prices also dropped in November 2024. The average price for an existing, single-family detached home in San Diego was $975,000 in November 2024, a difference of 3.5% with October 2024’s median price of $1,010,000.

It was the first time in the past eight months the median monthly price for a San Diego County home was below $1 million.

A year ago, in November 2023, the median price for a San Diego home was $952,000, a 2.4% difference with November 2024.

Statewide, the median home sales price was 4% lower in November 2024, when the price was $852,880, compared to $888,740 in October 2024. A year ago, in November 2023, the statewide median price was $821,710, a difference of 3.8% compared to November 2024.

On a month-to-month basis, the statewide November 2024 median price had the largest October-to-November drop since 2008 after recording the biggest September-to-October increase in the prior month.

The statewide year-over-year gain was the 16th straight month of annual price increases. The September-to-October price gain was the largest in 45 years.

The sizable monthly decline in California home prices in November 2024 was due primarily to a change in the mix of sales, as home sales in the higher-price segments pulled back more sharply from the prior month than in the lower-price segments. Home sales in higher-priced market segments continued to have an effect on the overall price growth. 

While the impact on the statewide median price gain had moderated in recent months, a solid increase in high-end home sales in November 2024 was still a contributing factor for the rise in the California median sold price.        

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

“Home prices are expected to moderate further in the next couple of months if they follow the seasonal trend, but should continue to grow in the first quarter of 2025 before the kick-off of the spring homebuying season,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “With mortgage rates expected to moderate in 2025, housing sentiment will continue to improve throughout the next 12 months, and more consumers will get off the sidelines as they acclimate further to the new market environment.”

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

• At the regional level, home sales in Southern California increased 8.7% in November 2024 when compared to last year’s sales level.
  
  
• At the regional level, median home prices in Southern California experienced a 3.1% increase in November 2024, compared to November 2023.
  
  
• Home prices increased on a year-over-year basis in more than two-thirds of the counties in California, with November’s median sold prices rising from their year-ago levels in 38 of the 53 counties monitored by C.A.R.
  
  
• 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 3.3 months in November 2024, up from 3.1 months in October 2024 and up from 2.9 months in November 2023.

November 2024 County Unsold Inventory and Days on Market

• The unsold inventory index of available existing homes for sale in San Diego County was at 2.9 months in November 2024, compared to 2.8 months in October 2024, 3.2 months in September 2024, 2.8 months in August 2024, 2.6 months in July 2024, 2.7 months in June 2024 and 2.5 months in November 2023. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate.
  
  
• With market activity remaining slow during the holiday season and mortgage rates likely to stay elevated, housing supply could inch up further at the start of 2025.
  
  
• The median number of days it took to sell a California single-family home was 26 days in November 2024, up from 25 days in October 2024 and21 days in November 2023
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 20 days in November 2024, compared to 20 days in October 2024, 18 days in September 2024, 17 days in August 2024 and 14 days in 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.
  
  
• The 30-year, fixed-mortgage interest rate averaged 6.81 percent in November 2024, down from 7.44 percent in November 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

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.