MARCH MEDIAN HOME PRICE HITS $950K, A 1-YEAR JUMP OF $150K

Posted by Rick Griffin on Apr 12, 2022 10:00:00 AM

MARCH MEDIAN HOME PRICE HITS $950K, A 1-YEAR JUMP OF $150K

Housing demand in California remained strong in March 2022 as home sales ticked higher and the statewide median price set another all-time high, primarily due to a surge in sales of higher-priced homes. However, the effects of rising interest rates have yet to be borne out, according to the latest home sales and price report released on April 19 by the California Association of REALTORS® (C.A.R.).

The number of closed escrow sales of existing, single-family detached homes statewide on a seasonally adjusted annualized rate totaled 426,970 in March 2022, which was up 0.5 percent from the February 2022 total of 424,460, and down 4.4 percent from March 2021, when 446,410 homes were sold on an annualized basis.

March 2022’s statewide year-over-year sales decrease was the ninth straight decline and the smallest in eight months. Year-to-date statewide home sales were down 7.0 percent in March.

The statewide annualized sales figures, collected from more than 90 local REALTOR® associations and MLSs statewide, represent what would be the total number of homes sold during 2022 if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

In San Diego, home sales in March 2022 were higher in a month-over-month comparison and lower in a year-over-year comparison. San Diego home sales in March 2022 were up 34 percent, compared to February 2022, but were down 2.2 percent compared to March 2021.

March 2022 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
March 2022 County Sales and Price Activity

Meanwhile, the California median home price rose above the $800,000 benchmark for the first time in six months. California’s median home price reached a new record high in March 2022 at $849,080, surpassing the previous record of $827,940 set in August 2021.

The March 2022 price was 11.9 percent higher than the $758,990 posted in March 2021. The month-to-month percent change in median price was the highest pace since March 2013. The 10.1 percent month-to-month increase in March 2022 from the February 2022 price of $771,270 was the first time in nine years that the monthly price increase reached double-digits.

A surge in sales at the top end of the market was the primary factor for the jump in the statewide median price at the end of the 2022 first quarter. The share of million-dollar home sales increased for the second consecutive month, surging to 32.9 percent in March 2022, the highest level on record.

Additionally, strong month-to-month sales growth in the San Francisco Bay area contributed to the jump in sales of million-dollar homes statewide, as 70 percent of the region’s sales were priced above $1 million, and sales in the region increased 70.5 percent from February 2022. 

Home prices are expected to edge higher as the market continues in the spring homebuying season over the next few months.

In San Diego in March 2022, the median sales price for an existing, single-family detached home was $950,000, a 7.0 percent increase from the $888,000 price in February 2022. The March 2022 median price also was 18.8 percent higher than a year ago at $800,000 in March 2021, marking an increase of $150,000 in one year.

“With homes still selling at a rapid clip and more homes selling above asking price than last summer when prices were at record highs, California’s housing market continues to perform remarkably well as buyers enter the market to get ahead of rising mortgage interest rates,” said C.A.R. President Otto Catrina, a Bay Area real estate broker, and REALTOR®. “An increase in active listings for the first time since prior to the pandemic should give consumers more options and alleviate some of the upward pressure on home prices, which bodes well for prospective buyers.”

“March sales data continues to suggest strong buying interest and a solid housing market, as the effects of higher mortgage interest rates won’t be realized for a few more months,” said C.A.R. Vice President and Chief Economist Jordan Levine. “With the Federal Reserve expected to announce two back-to-back half-point interest rate hikes in May and June to combat inflation, interest rates will be elevated for the foreseeable future, adversely affecting housing demand and lowering housing affordability in the coming months, but the effects may not be visible until the second half of the year as many of the homes that are, or will be, the closing was negotiated before the sharp increase in rates.”

Other key points from C.A.R.’s March 2022 resale housing report include:

-- At the regional level, all major regions except the Central Valley recorded a decrease in sales on a year-over-year basis. The Central Coast region recorded the sharpest sales decline of all regions again, dropping 20.1 percent from a year ago. The Far North had the second-largest sales decline at 7.7 percent, followed by Southern California (-7.5 percent) and the San Francisco Bay Area (-2.7 percent). Sales in the Central Valley increased for the second straight month with a year-over-year increase of 2.8 percent.

-- Home prices in all major regions in the state continued to surge from last year by double-digits, with four of them reaching a new record high in March. The Central Coast region recorded the highest year-over-year price growth with a 20.4 percent increase, followed by the Central Valley (19.3 percent), the San Francisco Bay Area (17.9 percent), and Southern California (13.8 percent), and the Far North (12.9 percent).

-- At the county level, home prices continued to increase across the state, with 25 counties setting new record highs in March. Forty-six out of fifty-one counties tracked by C.A.R. experienced increases in their median prices in March, with 38 of them rising more than 10 percent from a year ago.

-- California’s unsold inventory of homes in March 2022 remained unchanged from a year ago at 1.7 months, marking the first time in nearly two years the index did not decline on a year-over-year basis.  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.

March 2022 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)
March 2022 County Unsold Inventory and Days on Market

-- In San Diego, the inventory of available homes for sales in March 2022 was 1.4 months, compared to 1.5 months in February 2022, January 2022, and March 2021. Inventory levels from previous months in 2021 included: December, 1.0; November, 1.3; October, 1.5; September, 1.6; August, 1.7; July, 1.7.

-- The median number of days it took to sell an existing, single-family home in San Diego County in March 2022 was 7 days, compared to 7 days in February 2022, 9 days in January 2022, and 6 days in March 2021. Numbers from previous months in 2021 included: December, 8; November, 9; October, 9; September, 9; August, 8; July, 7; June, 6; May, 7; April, 6. The median represents a time when half the homes sell above it and half below it.

-- Statewide, the median number of days it took to sell a California single-family home in March 2022 was 8 days, compared to 9 days in February 2022, 12 days in January 2022, and 8 days in March 2021. Numbers from previous months in 2021 included: December, 12; November, 11; October, 11; September, 10.

-- The statewide median sales-price-to-list-price ratio remained above 100 percent at 103.9 percent in March 2022, 102.6 percent in February 2022, and 102.2 percent in March 2021. Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and sellers under current market conditions. The ratio, expressed as a percentage, is calculated by dividing the final sales price of a property by its last list price. A sales-to-list ratio of 100 percent or above suggests that the property sold for more than the list price, while a ratio below 100 percent indicates that the price sold below the asking price.

-- The 30-year, fixed-mortgage interest rate averaged 4.17 percent in March, up from 3.08 percent in March 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 3.19 percent, compared to 2.78 percent in March 2021.

Topics: Brokers/Managers, Market Information

HOUSING MARKET STILL SOLID DESPITE HIGHER RATES, RUSSIAN-NATO WAR

Posted by Rick Griffin on Mar 15, 2022 12:00:00 PM

Housing Market Still Solid Despite Higher Rates, Russian-NATO War

California’s housing market continued to maintain a solid sales pace in February 2022, despite higher interest rates and geopolitical uncertainty caused by the Russia-NATO conflict in Ukraine, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.).

The number of homes sold statewide in February was lower than last year’s unusually strong market. The number of closed escrow sales of existing, single-family detached homes statewide on a seasonally adjusted annualized rate totaled 424,640 in February 2022, which was down 4.5 percent from January 2022, when 444,540 homes were sold on an annualized basis, and down 8.2 percent from February 2021, when 462,720 homes were sold on an annualized basis.

The year-over-year sales decrease between February 2022 and February 2021 was the eighth straight decline and the smallest in seven months. Year-to-date statewide home sales were down 8.3 percent in February 2022.

The statewide annualized sales figure, collected from more than 90 local REALTOR® associations and MLSs statewide, represents what would be the total number of homes sold during 2022 if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

In San Diego, home sales in February 2022 were higher in a month-over-month comparison and lower in a year-over-year comparison. San Diego home sales in February 2022 were up 7.3 percent, compared to January 2022, but were down 5.6 percent lower compared to February 2021.

February 2022 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
February 2022 County Sales and Price Activity

Meanwhile, the California median home price was below the $800,000 benchmark for the fifth straight month, although home prices are continuing to increase from the prior year and pick up momentum.

The statewide median price inched up to $771,270 in February 2022, up 0.7 percent from $765,610 in January 2022, and up 10.3 percent from the $699,000 recorded in February 2021.

The stronger-than-expected growth in the statewide median price is attributed partly to a change in the mix of sales toward homes in the million-dollar price range, as sales jumped in higher-priced regions, including the Central Coast and the San Francisco Bay Area.

Prices are expected to edge higher as the market moves into the spring homebuying season over the next few months.

In San Diego, the median sales price for an existing, single-family detached home was $888,000 in February 2022, a 1.5 percent increase compared to the $875,000 price in January 2022. The February median price was 16.1 percent higher than a year ago at $765,000 in February 2021, marking an increase of $110,000 in one year.

February 2022 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)
February 2022 County Unsold Inventory and Days on Market

“Despite higher mortgage rates, California’s housing market is holding up remarkably strong, with home prices reaccelerating, market competition growing, and signs that the listings crunch is thawing,” said C.A.R. President Otto Catrina, a Bay Area real estate broker, and REALTOR®. “Prospective buyers are taking advantage of still-low rates before they move higher and getting a jump on the competition before the start of the spring homebuying season.”

“While home sales declined from both the previous month and year, February’s sales pace was still the second-highest sales level for a February in the last 10 years and strong relative to pre-pandemic levels of 2018 and 2019,” said C.A.R. Vice President and Chief Economist Jordan Levine. “However, the invasion of Ukraine has created geopolitical headwinds and pushed up inflation a notch, which may keep mortgage rates elevated and cause the housing market to retreat amid the uncertainty.”

At an index of 67 in February, C.A.R.’s monthly Consumer Housing Sentiment Index dropped 2 points from last month as consumers acknowledged the current market challenges and felt increasingly pessimistic about home-buying opportunities. Consumers who thought it was a “good time to buy” dropped to 16 percent in February from 19 percent last month and from 28 points last year. Still, one in every four consumers is holding out hope that it will be easier to find a home in the next 12 months while nearly two in every three believe that home prices will rise over the same period of time.

Other key points from C.A.R.’s February 2022 resale housing report include:

-- At the regional level, all major regions except the Central Valley recorded a decrease in sales on a year-over-year basis, but lower-priced areas continued to fare better than higher-priced areas in the Golden State. The Central Coast region had the sharpest decline of all regions, with sales in February dropping 16.3 percent from a year ago. However, to put things into perspective, housing demand was abnormally strong early last year with sales in February 2021 surging 22.4 percent from the prior year. The San Francisco Bay Area and Southern California also experienced a double-digit or a near double-digit sales loss of 13.7 percent and 9.9 percent, respectively, in February 2022.

-- More than 70 percent of all counties tracked by C.A.R. experienced a dip in existing home sales from a year ago, with 24 counties declining more than 10 percent on a year-over-year basis.

-- Home prices continued to grow in all major regions in the state, with all five posting double-digit year-over-year gains in their median price. The San Francisco Bay Area recorded the highest year-over-year price gain at a 15.9 percent increase, followed by the Central Valley (14.8 percent), Southern California (12.6 percent), the Far North (11.9 percent), and the Central Coast (10.1 percent).

-- Despite slower price growth due to rising mortgage rates, home prices continued to increase across the state, with 24 California counties setting new record high median prices in February 2022.

-- California’s unsold inventory of homes index rose in February 2022 to its highest level in three months. The February 2022 figure was 2.0 months, compared to 1.8 months in January 2022, 1.2 months in December 2021, and 2.1 months in February 2021. The December 2021 figure of 1.2 months was the lowest level on record since CAR began tracking this figure in July 1988. 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.

-- In San Diego, the inventory of available homes for sales in February 2022 was at 1.5 months, the same figure in January 2022 and 1.8 months in February 2021. Inventory levels from previous months in 2021 included: December, 1.0; November, 1.3; October, 1.5; September, 1.6; August, 1.7; July, 1.7.

-- The median number of days it took to sell an existing, single-family home in San Diego County in February 2022 was 7 days, compared to 9 days in January 2022 and 7 days in February 2021. Numbers from previous months in 2021 included: December, 8; November, 9; October, 9; September, 9; August, 8; July, 7; June, 6; May, 7; April, 6. The median represents a time when half the homes sell above it and half below it.

-- Statewide, the median number of days it took to sell a California single-family home in February 2022 was 9 days, compared to 12 days in January 2022 and 10 days in February 2021. Numbers from previous months in 2021 included: December, 12; November, 11; October, 11; September, 10.

-- The statewide median sales-price-to-list-price ratio remained above 100 percent at 102.6 percent in February 2022 and 101.0 percent in February 2021. Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and sellers under current market conditions. The ratio, expressed as a percentage, is calculated by dividing the final sales price of a property by its last list price. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, while a ratio below 100 percent indicates that the price sold below the asking price.

-- The 30-year, fixed-mortgage interest rate averaged 3.76 percent in February, up from 2.81 percent in February 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 2.87 percent, compared to 2.83 percent in February 2021.

Topics: Brokers/Managers, Market Information

Point-of-sale water retrofit requirement eliminated in San Diego

Posted by PSAR Communication on Mar 4, 2022 10:30:00 AM

The City of San Diego No Longer Requires a WATER CONSERVATION CERTIFICATE At the Point of Sale

The City of San Diego no longer requires property owners to file a Water Conservation Certificate when selling their property. The City Council approved the change to the Municipal Code which went into effect on February 27, 2022.

In 1992, the City of San Diego developed several permanent water conservation provisions which were more stringent than industry standards at the time. The provisions were added to the Municipal Code and required property owners to remove non-conserving water devices and install ultra low-flow toilets and other low-flow fixtures in all new construction or permitted remodels. The City also required property owners to submit compliance disclosure information upon the sale of a property. The City determined that review and enforcement of a Water Conservation Certificate are no longer necessary nor legally required.

California approved Senate Bill 407 in 2009 and requires owners of residential single-family, multi-family properties, and commercial properties to replace all non-compliant plumbing fixtures with water-conserving plumbing fixtures. SB 407 requires the disclosure of non-compliant fixtures between the seller and buyer at the time of property transfer. This requirement can typically be disclosed on a Real Estate Transfer Disclosure Statement (TDS.)

Learn more about water conservation laws and disclosure obligations at CAR in the risk management section under legal Q&As and disclosures here. (Log-in required.)

For more information, visit the City’s website.

Point-of-sale Water Retrofit Requirement Eliminated in San Diego

 

Topics: Brokers/Managers, Government Affairs

HOUSING MARKET REMAINS RESILIENT DESPITE RISING INTEREST RATES

Posted by Rick Griffin on Feb 8, 2022 10:00:00 AM

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California’s housing market kicked off the new year in January 2022 with a bounce back from December’s four-month low, as housing demand remained strong, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.).

The number of closed escrow sales of existing, single-family detached homes statewide on a seasonally adjusted annualized rate was up 3.4 percent in January 2022 to 444,450, compared to 429,860 in December. The January 2022 sales pace was down 8.3 percent from a year ago when 484,760 homes were sold on an annualized basis. The year-over-year sales decrease was the seventh straight decline and the smallest in six months.

The statewide annualized sales figure, collected from more than 90 local REALTOR® associations and MLSs statewide, represents what would be the total number of homes sold during 2022 if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

In San Diego, home sales in January 2022 were lower in month-over-month and year-over-year comparisons. San Diego home sales in January 2022 declined 28.2 percent, compared to December 2021, and were 6.7 percent lower than January 2021.

January 2022 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
blog_211210_chart1-1

Meanwhile, the California median home price dipped below the $800,000 benchmark for the fourth straight month as the seasonal slowdown continued. Home prices continued to decelerate as a shift in the mix of sales toward less expensive homes. The statewide median price declined to $765,580 in January, down 3.9 percent from December’s $796,580, and was up 9.4 percent from the $699,920 recorded in January 2021. While January marked the first time since July 2020 that the state did not record a double-digit annual gain in its median price, the statewide median price is expected to edge higher as the market moves into the spring homebuying season in the next few months.

In San Diego, the median sales price for an existing, single-family detached home was $875,000 in January 2022, a 4.6 percent increase compared to the $836,700 price in December 2021. The January median price was 19.9 percent higher than a year ago at $730,000 in January 2021, more than a $100,000 increase in one year.

“The buoyant housing market continues in 2022 as buyers returned from the holiday season to take advantage of the still favorable lending environment before interest rates climb further,” said C.A.R. President Otto Catrina, a Bay Area real estate broker, and REALTOR®. “With prices leveling off, housing supply showing a slight improvement and competition easing during the off-season, buyers who missed the opportunity to buy were eager to get back to the market at the start of the new year.”

“It’s encouraging to see the market momentum from the last two years being carried forward into 2022 and the economy continuing to recover. January’s sales remained above pre-pandemic levels, and new purchase mortgage applications are still registering strong numbers,” said C.A.R. Vice President and Chief Economist Jordan Levine. “However, a surge in interest rates in the past few weeks is concerning and will likely create affordability headwinds for buyers, which may result in housing demand being curtailed in the upcoming months.”

Other key points from C.A.R.’s January 2022 resale housing report include:

-- At the regional level, nearly all major regions in California recorded a decrease in sales on a year-over-year basis. The San Francisco Bay Area had the biggest year-over-year sales decline of all regions at -22.3 percent. Central Coast (-20.7 percent) and Southern California (-10.1 percent) also experienced double-digit sales losses in January.

-- Home prices continued to grow in all five major regions in the state, with all five of them recording double-digit annual price increases in January. The Central Valley region had the highest year-over-year price gain with a 17.5 percent increase, followed by the San Francisco Bay Area (14.3 percent) and Southern California (13.8 percent).

-- Home prices, in general, continue to rise across the state, with 45 counties showing a year-over-year increase in median price in January.

-- Market competitiveness was less heated than a few months ago but remained elevated in January 2022. Nearly three-fifths of homes (57.3 percent) still sold above the asking price in the latest monthly report but was the lowest level in 11 months. January was the 16th consecutive month since September 2020 that more than half of the homes sold above the asking price.

-- While the statewide median sales-price-to-list-price ratio remained above 100 percent, the January 2022 figure was the lowest level since February 2021. The sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and sellers under current market conditions. The ratio, expressed as a percentage, is calculated by dividing the final sales price of a property by its last list price. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, while a ratio below 100 percent indicates that the price sold below the asking price.

-- California’s unsold inventory of homes was 1.8 months in January 2022, compared to 1.2 months in December 2021 and 2.0 months in January 2021. The December 2021 figure of 1.2 months was the lowest level on record since CAR began tracking this figure in July 1988. Active listings statewide were down 24.1 percent from last year. 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.

-- The inventory of available homes for sale in San Diego County in January 2022 was 1.5 months, compared to 1 month in December 2021 and 1.9 months in January 2021. Numbers from previous months in 2021 included: November, 1.3; October, 1.5; September, 1.6; August, 1.7; July, 1.7.

January 2022 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

blog_211210_chart2 (1)

-- The median number of days it took to sell an existing, single-family home in San Diego County in January 2022 was nine days, compared to eight days in December 2021 and nine days in November, October and September 2021. A year ago in January 2021, the number was seven days. Numbers from previous months in 2021 included: August, 8; July, 7; June, 6, May, 7; April, 6. The median represents a time when half the homes sell above it and half below it.

-- Statewide, the median number of days it took to sell a California single-family home in January 2022 was 12 days, the same number in December 2021. Numbers from previous months in 2021 included: November, 11; October, 11; September 10. A year ago in January 2021, the number was seven days.

-- The 30-year, fixed-mortgage interest rate averaged 3.45 percent in January, up from 2.74 percent in January 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 2.57 percent, compared to 2.87 percent in January 2021.

Topics: Brokers/Managers, Market Information

County Policy Eliminates Hope for New Housing

Posted by Communications on Feb 4, 2022 4:00:11 PM

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The Board of Supervisors will meet on Wednesday, February 9th at 9 am to discuss the implementation of a Vehicle Miles Traveled (VMT) Policy which could end hopes that San Diego will meet the housing needs of its residents.  

Please urge the Board of Supervisors to keep housing a top priority in San Diego County.  

You can submit written comments by clicking here: submit comments.

This proposal is item 7 on the Agenda, if you would be willing to testify on this, you can sign up here:  Sign up to speak

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Recently, PSAR sent a three-page letter to the San Diego County Board of Supervisors expressing our opposition to the Vehicle Miles Traveled (VMT) proposal.  See a copy of the letter by following this link.

VMT is a proposal that would slap new fees on housing development in car-centric communities. The fees would be calculated based on the additional “vehicle miles traveled.” Housing developments in rural or suburban areas would face fees that would disincentivize their construction.  Any homes that do get built would need to factor in those additional fees, pushing the dream of homeownership further beyond the reach of most aspiring buyers.  

Under the proposed VMT, to get approval for a project, a housing developer would have to show that their project would generate fewer vehicle miles traveled than the area’s average. 

PSAR’s letter to the Board of Supervisors states: “Homeownership is the bedrock of building strong communities and intergenerational wealth. REALTORS® know firsthand that buyers are moving to Riverside, Imperial Valley, and Mexico to own a property and build a future. They subsequently commute for hours on San Diego freeways, defeating the intent of the VMT policies.

“There are numerous economic and regulatory barriers that discourage developers from building both attached and detached “for-purchase” housing for all levels of income. If the County is forced to adopt a Vehicle Miles Traveled (VMT) planning tool that is being considered with a regional planning focus, the cost of new housing in the unincorporated portions of our region will be increased significantly, adding to the current housing shortfall.

“This policy will severely restrict future generations from realizing the dream of homeownership and a better quality of life for themselves and generations to come.”

The letter also states that PSAR is supporting six recommendations from the Building Industry Association (BIA) of San Diego County. BIA’s recommendations include an Infill Area Option, VMT Mitigation Program Options, and a programmatic Environmental Impact Report (EIR) to analyze VMT impacts.

PSAR is opposing VMT implementation because of the potential impacts on historically disadvantaged communities who would find it harder to realize the dream of homeownership.

PSAR’s letter states: “Homeownership is an essential steppingstone for families to build wealth. By adding requirements that will make homeownership opportunities more expensive for working families to purchase, we will be removing a crucial steppingstone for those who have not already had an opportunity to purchase a home. We would essentially be closing the door behind those who have already been fortunate enough to purchase a home.

“Society has been making a lot of strides towards providing historically disadvantaged communities with opportunities that had previously been denied to them. We should not be halting that progress by limiting access to homeownership opportunities. The book `The Color of Law’ by Richard Rothstein provides a very detailed analysis of how unequal access to homeownership due to government policies directly resulted in economic harm that continues to hold back communities of color to this day. Considering the fact that communities of color in San Diego are still suffering from the multigenerational impacts of redlining and segregation, we should not be implementing policies that cement these impacts by stopping the creation of new opportunities for homeownership or confining new housing opportunities for lower-income residents to certain areas.”

At their Jan. 26 meeting, the Board of Supervisors received a report from county planners that laid out ways to implement VMT. The board directed the planners to return on Feb. 9 with additional details on VMT options.

Please urge the Board of Supervisors to keep housing a top priority in San Diego County.  

You can submit written comments by clicking here: submit comments.

This proposal is item 7 on the Agenda, if you would be willing to testify on this, you can sign up here:  Sign up to speak

 

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

STATEWIDE HOUSING MARKET POSTS BEST PERFORMANCE IN DECADE

Posted by Rick Griffin on Jan 16, 2022 10:00:00 AM

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California home sales and prices eased in December as the state’s housing market posted its best performance in more than a decade, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.).

The number of closed escrow sales of existing, single-family detached homes statewide on a seasonally adjusted annualized rate was down 5.4 percent in December 2021 to 429,860, compared to 454,450 in November 2021. The December 2021 sales pace was down 15.7 percent from a year ago in December 2020, when 509,750 homes were sold on an annualized basis.

The statewide annualized sales figure, collected from more than 90 local REALTOR® associations and MLSs statewide, represents what would be the total number of homes sold during 2021 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Despite the sixth straight month for a year-over-year sales decrease for the year as a whole, sales of existing statewide homes maintained a 7.9 percent increase from 2020’s pace on a year-over-year basis.

In San Diego, home sales in December 2021 were lower in month-over-month and year-over-year comparisons. San Diego home sales in December 2021 declined 0.8 percent, compared to November 2021, and were 11.2 percent lower than December 2020.

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

Meanwhile, the California median home price dipped below the $800,000 benchmark for the third straight month as the seasonal slowdown continued. Despite a deceleration in growth at the end of the year, the statewide median price rose to $796,570 in December, up 1.8 percent from November’s $782,480 and up 11.0 percent from the $717,930 recorded in December 2020.

The double-digit annual price gain was the 17th consecutive month with more than a 10 percent increase since the summer of 2020. The annual increase was also the smallest since July 2020 as the share of high-end homes continued to moderate since July 2021. For the year as a whole, California set a new annual record median price of $786,750, improving 19.3 percent from the prior year.

In San Diego, the median sales price for an existing, single-family detached home in San Diego County was $836,700 in December 2021, a drop of 1.3 percent compared to the $847,750 price in November 2021. The December median price was 14.6 percent higher than a year ago at $730,000 in December 2020, roughly a $100,000 increase in one year.

“Despite signs of moderating in the second half of the year, California’s housing market continued to outperform last year’s level and remained competitive even as home prices rose at a double-digit pace — a testament to the imbalance of high demand and not enough homes on the market for sale,” said 2022 C.A.R. President Otto Catrina, a Bay Area real estate broker and REALTOR®. “For the year as a whole, the market turned in its best performance in more than a decade, as buyers took advantage of historically low-interest rates and continued to value the benefits of homeownership amid another year of the pandemic.”

“The state’s housing market is expected to perform solidly this year as the economy recovers further and consumers’ desire to buy remains elevated,” said C.A.R. Vice President and Chief Economist Jordan Levine. “However, with COVID cases surging and inventory constraints remaining an issue, the housing market will see headwinds of ongoing high inflation, which will put pressure on the Fed to raise rates sooner than previously expected. These factors will increase the cost of borrowing and put more affordability burden on potential homebuyers who want to purchase in 2022.”

Other key points from C.A.R.’s December 2021 resale housing report include:

-- At the regional level, all major regions in California recorded a sale decline on a year-over-year basis by more than 10 percent in December 2021. The sales decline for Southern California at the end of 2021 was 10.7 percent on an annual basis.

-- All major regions posted solid home price gains from a year ago, with four of them recording double-digit, year-over-year median price increases. The Far North outpaced the rest of the state with a 16.6 percent year-over-year gain at the end of the year, followed by Southern California (15.4 percent), the Central Valley (13.9 percent), the San Francisco Bay Area (13.4 percent), and the Central Coast (9.1 percent).

-- Market competitiveness was less heated than a few months ago but remained elevated in December. Nearly three-fifths of homes (58 percent) sold above the asking price, but that was the lowest level in 10 months. December was the 15th consecutive month since September 2020 that more than half of the homes sold above the asking price.

-- While the statewide median sales-price-to-list-price ratio remained above 100 percent, the December number was the lowest level since February 2021. The sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and sellers under current market conditions. The ratio, expressed as a percentage, is calculated by dividing the final sales price of a property by its last list price. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, while a ratio below 100 percent indicates that the price sold below the asking price.

-- The inventory of available homes for sale in San Diego County in December 2021 was 1 month, compared to 1.3 months in November 2021 and 1.2 months a year ago in December 2020. Numbers from previous months in 2021 included: October, 1.5; September, 1.6; August, 1.7; July, 1.7.

-- Statewide, the unsold inventory of homes was 1.2 months in December 2021, compared to 1.6 months in November 2021 and 1.4 months in December 2020. The December 2021 figure of 1.2 months was the lowest level on record since CAR began tracking this figure in July 1988. Active listings statewide were down 24.1 percent from last year. 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.

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

-- The median number of days it took to sell an existing, single-family home in San Diego County in December 2021 was eight days, compared to nine days in November, October, and September 2021. The eight-day timeframe compares to eight days in August, seven days in July, six days in June 2021, seven days in May 2021, and six days in April 2021. A year ago in December 2020, the number was eight days. The median represents a time when half the homes sell above it and half below it.

-- Statewide, the median number of days it took to sell a California single-family home in December 2021 was at 12 days, compared to 11 days in November and October and 10 days in September 2021. A year ago, in December 2020, the number was 11 days.

-- The 30-year, fixed-mortgage interest rate averaged 3.10 percent in December, up from 2.68 percent in December 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 2.43 percent, compared to 2.79 percent in December 2020.

Topics: Brokers/Managers, Market Information

STRONG SALES DESPITE TIGHTER INVENTORY, HIGHER INTEREST RATES

Posted by Rick Griffin on Dec 23, 2021 4:45:24 PM

November Housing Market Statistics

Even with low housing inventory and slightly higher interest rates, California’s housing market continued a strong sales pace in November 2021, while remaining above pre-pandemic levels, 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 statewide on a seasonally adjusted annualized rate rose 4.7 percent on a monthly basis in November 2021 to 454,450 units, compared to 434,170 in October 2021. The November 2021 sales pace was down 10.7 percent from a year ago in November 2020, when 508,820 homes were sold on an annualized basis.

The statewide annualized sales figure, collected from more than 90 local REALTOR® associations and MLSs statewide, represents what would be the total number of homes sold during 2021 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Despite the fifth straight month for a year-over-year sales decrease, statewide home sales maintained a 10.6 percent increase on a year-over-year basis.

In San Diego, home sales were lower in November 2021 in month-over-month and year-over-year comparisons. San Diego home sales in November 2021 declined 6.1 percent compared to October 2021, and 6.6 percent lower than November 2020.

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

Meanwhile, the California median home price dipped below the $800,000 benchmark for the second straight month in November 2021 to $782,480, a 2 percent drop from $798,440 in October 2021. The statewide November 2021 median price was 11.9 percent higher than the $698,980 recorded in November 2020. The 2 percent price decline was higher than the 0.1 percent average recorded between October and November in the past 42 years, and it’s consistent with the five-year average logged between 2016 and 2020.

In San Diego, the median sales price for an existing, single-family detached home was $847,750 in November 2021, a 0.3 percent decrease compared to $850,000 in October 2021. The November 2021 median price was 14.6 percent higher than a year ago at $740,000 in November 2020, nearly a $100,000 increase in one year.

“As we move further into the off-peak homebuying season, slowly rising interest rates will motivate savvy buyers to enter the market," said 2022 C.A.R. President Otto Catrina, a Bay Area real estate broker and REALTOR®. “With fewer active buyers in the market during the holidays, prospective buyers who may have taken a breather during the heated peak homebuying months can take advantage of this window of opportunity when there’s less competition and more homes to choose from.”

 “California’s winter housing market remains unseasonably resilient, despite market challenges of a lack of inventory, modest interest rate increases, and ongoing affordability issues,” C.A.R. Vice President and Chief Economist Jordan Levine said. “While we believe the market will continue to do well in 2022 as the economy further recovers, a widening imbalance between supply and demand will put upward pressure on prices and create headwinds for housing affordability that could slow sales in the upcoming year.”

Other key points from C.A.R.’s November 2021 resale housing report include:

-- At the regional level, four of the five major regions recorded a sales decline in a year-over-year comparison in November 2021.

-- Nearly two-thirds of all counties (32 of 51) had a year-over-year decrease in closed sales in November, with 16 counties declining by more than 10 percent from a year ago.

-- All major regions posted solid home price gains from a year ago, with four of them recording double-digit, year-over-year median price increases. The San Francisco Bay Area (18.2 percent) had the largest increase of all regions, followed by Southern California (14.0 percent).

-- Market competitiveness was less heated than a few months ago but remained elevated in November. Nearly two-thirds of homes (59.2 percent) sold above the asking price, but that was the lowest level in nine months. November was the 14th consecutive month since September 2020 that more than half of the homes sold above the asking price.

-- While the statewide median sales-price-to-list-price ratio remained above 100 percent, November’s number was the lowest level since March 2021. The sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and sellers under current market conditions. The ratio, expressed as a percentage, is calculated by dividing the final sales price of a property by its last list price. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, while a ratio below 100 percent indicates that the price sold below the asking price.

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

-- The inventory of available homes for sale in San Diego County in November 2021 was 1.3 months, compared to 1.5 months in October 2121 and 1.6 months a year ago in November 2020. Numbers from previous months in 2021 included: September, 1.6; August, 1.7; July, 1.7. Statewide, the unsold inventory of homes was 1.6 months in November, compared to 1.8 months in October 2021 and 1.9 months in November 2020. It was the second straight month for a month-to-month drop statewide. Overall for the 2021 year, active listings fell 22.4 percent from 2020. 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.

--The median number of days it took to sell an existing, single-family home in San Diego County in November 2021 was nine days, which was the same number in October and September 2021. A year ago, in November and October 2020, the number was seven days. The nine-day figure compares to seven days in July 2021, six days in June 2021, and seven days in May 2021. The median represents a time when half the homes sell above it and half below it.

-- Statewide, the median number of days it took to sell a California single-family home remained at 11 days in November 2021, unchanged from October 2021. The 11-day figure compares to 10 days in September 2021 and nine days in November 2020.

-- The 30-year, fixed-mortgage interest rate averaged 3.07 percent in November, up from 2.77 percent in November 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 2.51 percent, compared to 3.0 percent in November 2020.

Topics: Brokers/Managers, Market Information

OCTOBER PRICES LEVEL OFF, LOW RATES PROVIDING SUPPORT

Posted by Rick Griffin on Nov 26, 2021 6:00:00 AM

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California’s housing market continued to maintain a healthy sales pace in October 2021, above pre-pandemic levels and even as sales dipped from 2020. While prices leveled off, low mortgage rates are continuing to provide support, 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 statewide on a seasonally adjusted annualized rate dipped 0.9 percent on a monthly basis in October 2021 to 434,170, compared to 438,190 in September 2021, and down 10.4 percent from a year ago in October 2020, when 484,510 homes were sold on an annualized basis. The statewide annualized sales figure, collected from more than 90 local REALTOR® associations and MLSs statewide, represents what would be the total number of homes sold during 2021 if sales maintained the October pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Despite the fourth straight year-over-year sales decrease, statewide home sales maintained a 13.4 percent increase on a year-to-date basis.

In San Diego, home sales declined 4.9 percent between October and September 2021. In a year-over-year comparison, San Diego home sales were off by 8.3 percent.

Meanwhile, California’s median home price continued to level off as the market moved further into the off-season, dipping below the $800,000 benchmark for the first time in seven months. In October 2021, the statewide median price was $798,440, which was down 1.3 percent from the September 2021 price of $808,890 but was up 12.3 percent from the $711,300 recorded in October 2020.

October 2021 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
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It was the second consecutive month for a statewide, month-to-month price decline. However, the price drop between September and October 2021 was on par with the 1.5 percent average decline over the past 42 years.

In San Diego, the price for an existing, single-family detached home remained at $850,000 in October 2021, the same price as of September 2021, but 13.5 percent higher than the October 2020 price of $749,000.

“As the housing market moves from ‘frenzied’ to ‘less frenzied’ and price growth comes back to earth, fewer homes are selling above asking price and bidding wars are less prevalent, so more buyers who pushed pause earlier this year will be able to take advantage of still-cheap financing,” said 2022 C.A.R. President Otto Catrina, a Bay Area real estate broker, and REALTOR®. “With their median price being 30 percent less than that of a single-family home, condominiums and townhomes have been selling particularly well as they are a more affordable option to buyers with a smaller budget.”

“Despite a slowdown in sales from last year’s robust fall season, the California housing market continues to stabilize and is outperforming the pre-pandemic levels observed in 2017, 2018, and 2019,” C.A.R. Vice President and Chief Economist Jordan Levine said. “Slower sales activity suggests that the market is returning to its typical seasonal pattern and further market normalization can be expected in the upcoming months. While the market is showing signs of cooling off in recent months, 2021 continues to outpace last year’s sale level so far and is expected to post a gain at year-end.”

Other key points from C.A.R.’s October 2021 resale housing report include:

-- At the regional level, sales in all five major regions declined in a year-over-year comparison in October. Sales in Southern California also dipped by double-digits in October, with Orange, Riverside, and San Bernardino counties each dropping 10 percent or more.

-- Almost all California counties (49 of 51) have experienced an increase in their median prices since last year and prices in 40 counties have increased by more than 10 percent since last October.

-- Market competitiveness remained elevated in October 2021. Nearly two-thirds of homes (60.2 percent) sold above the asking price. The statewide sales-price-to-list-price ratio was 101.5 percent in October 2021, compared to 100.2 percent in October 2020. The sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and sellers under current market conditions. The ratio, expressed as a percentage, is calculated by dividing the final sales price of a property by its last list price. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, while a ratio below 100 percent indicates that the price sold below the asking price.

-- October 2021 was the 13th consecutive month since September 2020 that more than half of the homes sold above the asking price. In September 2021, six out of 10 homes (62.2 percent) sold above the asking price, compared to 67 percent in August 2021 and 70 percent in July 2021.

-- Statewide, the unsold inventory of available homes for sale was 1.8 months in October 2021, compared to 1.9 months in September, August, and July 2021. In October 2020, the unsold inventory figure statewide was at 2.0 months. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell out given the current rate of sales.

October 2021 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)
blog_211124_chart2

-- In San Diego County, the inventory of available homes for sale in October 2021 was at 1.5 months, compared to 1.6 months in September 2021 and 1.8 months in October 2020. The figure was 1.7 months in August 2021 and July 2021.

-- The median number of days it took to sell a California single-family home inched up to 11 days in October 2021, up from 10 days in September 2021 and 10 days in October 2020. The uptick was the first in more than two years. The 11-day figure compares to nine days in August 2021, eight days in July and July, and seven days in May and April. Prior to setting record low numbers this year, the previous statewide record was nine days in November 2020.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was nine days in October 2021, which was the same number in September 2021. In October 2020 and September 2021, the number was seven days. The nine-day figure compares to seven days in July 2021, six days in June 2021, seven days in May 2021, six days in April 2021 and March 2021, and seven days in February 2021 and January 2021. The median represents a timeframe when half the homes sell above it and half below it.

-- The 30-year, fixed-mortgage interest rate averaged 3.07 percent in October, up from 2.83 percent in October 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.54 percent, compared to 2.89 percent in October 2020.

Topics: Brokers/Managers, Market Information

PSAR MEMBERS HONORED AS C.A.R. LIFE MEMBERS

Posted by Rick Griffin on Nov 12, 2021 8:40:42 AM

CAR_LogoCARHonoraryMembers2


PSAR is proud to announce that 15 PSAR members have been approved by the PSAR board of directors for recognition by the California Association of REALTORS® (C.A.R.) as honorary members for life.

The 15 members include:

• Loretta Beckstrand • Sten Bjernefalt • Dan Brennan
• Grace Brickner • Bette Crowther • Tony Dulawan
• Patricia Egre • Richar Faust • Cynthia Faust
• Margaret Hueppchen • Marilyn McClelland • Patti McKelvey
• Lynette Mejia • Rosina Orozco • Pamela Ratcliffe

Congratulations to each esteemed member for your long-term commitment to professionalism and excellence in the real estate industry.

This latest 2021 group of new C.A.R. life members will receive a waiver of C.A.R. dues beginning in 2022. They will continue to receive a dues waiver for as long as they remain eligible for REALTOR® membership or until retirement from the field.

Requirements to be honored as a C.A.R. life member include remaining as a C.A.R. member in good standing for a minimum of 25 years and attaining the age of 75.

Acceptance as honorary members for life also requires approval of the C.A.R. Membership Committee and the C.A.R. Board of Directors at one of its three annual membership meetings. Applications for the honorary member-for-life designation must be received in advance of the meetings in order for the dues waiver to be effective the following year. Applications will not be processed without the signature of the member’s local association executive.

Applications are available on the C.A.R.website and using THIS FORM

For additional information, send an email to hmfl@car.org.

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PSAR's mission is to empower Realtors.

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

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

PSAR HONORED BY SAN DIEGO PRESS CLUB

Posted by Rick Griffin on Nov 9, 2021 3:00:00 PM

SDPress-club-logo-1

PSAR was recently honored for writing excellence by the San Diego Press Club,

PSAR received an award in the “In-House or Employee Publications” category for recent “Voice of Real Estate” stories, an ongoing series covering the latest real estate industry trends. 

In addition, PSAR was honored in the “General Writing for Internal Publications” category for a series of profile stories about PSAR members.

It was the seventh consecutive year that PSAR has been recognized for writing excellence by the San Diego Press Club.  

The PSAR member profile stories have generated high readership levels and fostered closer bonds among PSAR colleagues. A frequent response to the stories among members who have worked together for years is, “I didn’t know that about you.”

It was the fourth consecutive year that PSAR has received a Press Club writing award for its “Voice of Real Estate” series.

The monthly Voice articles feature updates on local and statewide housing market conditions based on statistics from the California Association of REALTORS®, as well as other recent news about real estate and economic trends, cited from news reports.

SDPressClub-winner-badge-2021

The Voice articles also satisfy a core standard from the National Association of Realtors requiring real estate trade associations to provide realtor members with regularly scheduled information on the housing market, and real estate trends and issues.

The San Diego Press Club’s recent 48th annual Excellence in Journalism Awards drew over 1,100 entries, making it one of the largest journalism competitions in the nation. Judges were press club members in Alaska, California (San Francisco, Orange County), Florida, Louisiana(New Orleans), New York (Rochester), Ohio (Cleveland), and Wisconsin (Milwaukee)

The San Diego Press club presented over 500 awards in 130 categories and 10 divisions. Winners included reporters, writers, artists, photographers, videographers, corporate communicators, and public relations professionals. Top winners included The San Diego Union-Tribune with 42 awards in online, daily newspapers, and photography categories, Ranch and Coast Magazine with 22 awards in magazine and photography categories, and the San Diego Business Journal with 19 awards in non-daily newspaper categories.

The San Diego Press Club is one of the largest clubs of its kind in the nation with 400 members, all in the news communications field. The group offers professional growth activities and promotes integrity and high ethical standards in journalism.

_______________________________________

PSAR's mission is to empower REALTORS®.

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

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