DRE ANNOUNCES PUBLICATION OF REVISED LANDLORD/TENANT GUIDEBOOK

SACRAMENTO – The California Department of Real Estate (DRE) announced today that it has completed a major revision to the widely used resource guidebook titled, California Tenants – A Guide To Residential Tenants' and landlords' Rights and Responsibilities.

The Department of Consumer Affairs last published the guidebook in 2012. Since then, the Legislature passed, and the Governor signed, many new laws addressing landlords and tenants. Recognizing the need to update this guidebook, DRE revised it to reflect the addition of new laws, including the Tenant Protection Act of 2019 (AB 1482) and the
Tenant, Homeowner and Small Landlord Relief and Stabilization Act (AB 3088), which includes the COVID-19 Tenant Relief Act of 2020. These updates are critically important to landlords and tenants, especially during this time of economic uncertainty.  “Equipping tenants and landlords with detailed and timely information to help them make
informed decisions was DRE’s main focus with this project,” Real Estate Commissioner Doug McCauley said. “Keeping Californians housed is crucial in the public health climate and this resource will provide much-needed clarity on key rental issues.”

Relevant and detailed revised chapters in the guidebook include but are not limited to: Before You Agree to Rent, Dealing with Problems, Terminations and Evictions, Tenant Protection Act of 2019, Resolving Problems, Getting Help from a Third Party, and a Glossary.

This guidebook and other useful information for landlords and tenants can be found at the DRE-created website HousingisKey.com. The online version of the guidebook can be easily translated into other languages using the google translate function on the website.

Printed copies will be available later this year.  Here is a link to the downloadable PDF version of the document.

The DRE released is fall bulletin.  In it see  articles including:

• Commissioner’s Message
• Licensing: Speed and Simplicity
• Loan Modifications and Advance Fees
• Lesser-Known Mortgage Loan Related Violations
• Helpful or Illegal? When helping clients crosses the line
• Compensating Balances and Other Considerations Received in Trust Accounts

The Covid-19 pandemic that depressed California’s housing market earlier this year seems like a distant memory after the release of the most recent monthly home sales and price report from the California Association of REALTORS®.

In August 2020, California’s housing market continued to improve as statewide home sales climbed to their highest level in more than a decade and median home prices set another high, breaking July’s record.

The August numbers are the latest evidence that buyers and sellers have brushed off economic uncertainty in the reality of a post-Covid-19, housing market rebound.

Existing, single-family home sales in California totaled 465,400 in August 2020 on a seasonally adjusted annualized rate, up 6.3 percent from July 2020’s sales of 437,890, and 14.6 percent higher from August 2019, when 406,100 homes were sold on an annualized basis.

It was noteworthy that August’s sales total climbed above the 400,000 level for the second straight month since the Covid-19 crisis depressed the housing market earlier this year. It was the first time since the summer of 2016 that sales increased from the previous month three months in a row.

In San Diego County, August 2020 homes sales were down 2.2 percent from July 2020, but 10.2 percent higher than August 2019.

In addition to home sales records, home prices also set a record in August 2020. The statewide median price hit another new high after setting records in June and July.

California’s median home price broke the $700,000 mark, reaching $706,900 in August 2020, a 6.1 percent jump from July 2020’s $666,320 and reflecting a year-over-year rise of 14.5 percent compared to the $617,410 price set in August 2019.

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

Sales of higher-priced properties are recovering faster than the rest of the market, pushing upward the statewide median home price. The median price represents the point at which half of the homes sell above a price and the other half below it.

The yearly price increase was the highest recorded since March 2014 and larger than the six-month average of 4.3 percent observed between February 2020 to July 2020.

In San Diego County, the median price for a single-family home in August 2020 was $732,560, a figure which was 1.9 percent higher than the $719,000 price tag in July 2020 and 12.7 percent higher than the $650,000 amount for August 2019.

“California’s strong housing recovery in terms of sales and price over the past few months is encouraging as motivated buyers are eager to purchase homes amid the lowest interest rates ever, which led to the fastest sales growth in a decade,” said 2020 C.A.R. President Jeanne Radsick, a second-generation REALTOR® from Bakersfield, Calif. “However, persistently low housing inventory will continue to push up home prices due to heavy buyer competition, which is starting to outweigh the benefits of record low interest rates and hamper housing affordability.”

“Low rates and tight housing inventory are contributing factors to the statewide median price setting a new record high three months in a row from June to August, said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “A change in the mix of sales is another variable that keeps pushing median prices higher, as sales growth of higher-priced properties continued to outpace their more affordable counterparts.”

Reflecting the rise in home prices, consumers continue to say it is a good time to sell, according to C.A.R.’s monthly Consumer Housing Sentiment Index. Conducted in early September, the poll found that 58 percent of consumers said it is a good time to sell, up from 54 percent a month ago, and up from 46 percent a year ago. Meanwhile, low interest rates continue to fuel the optimism for homebuying; 34 percent of the consumers who responded to the poll believed that now is a good time to buy a home, sharply higher than last year, when 22 percent said it was a good time to buy a home.

Other key points from the August 2020 resale housing report included:

-- Home sales at the regional level increased in all major regions from last year. The Central Coast and the San Francisco Bay Area had the strongest sales growth in August with both regions surging more than 10 percent in sales from last year. The Far North and Southern California regions increased more modestly in sales with a gain of 8.6 percent and 5.5 percent, respectively.

-- Home prices at the regional level posted double-digit price increases from last year in nearly all major regions. San Francisco Bay Area had the highest median price increase, rising 18.7 percent from last year, followed by the Central Coast (16.4%), Southern California (12.9%), and Central Valley (12.2%).

-- All but two counties reported a year-over-year gain in price, with 33 of the counties growing more than 10 percent. Santa Barbara had the highest price increase, gaining 41.7 percent year-over-year.

-- With fewer for-sale properties being added to the market, housing supply remained significantly below last year’s level. The 50.3 percent drop from a year ago was the biggest decline in active listings since at least January 2008. It was also the ninth consecutive month with active listings falling more than 25 percent from the prior year. 

-- With higher-than-normal housing demand and supply not being replenished as fast as prior to the pandemic, the Unsold Inventory index (UII) remained at the lowest level in the last 15 years. The UII fell sharply from 3.2 months in August 2019 to 2.1 months this August.

-- Housing supply tightened up in all price segments, but the housing shortage is especially pronounced in more affordable markets. While active listings in every price range declined by double-digits on a year-over-year basis, for-sale properties priced below $1 million fell 58 percent from last year. Compared to a year ago, the supply of homes priced between $1 million to $3 million declined 33.1 percent, and homes priced at or above the $3 million benchmark declined 17.2 percent.

-- The median number of days it took to sell a California single-family home was 13 days in August 2020, down from 23 days in August 2019. The August 2020 timeframe compares to 17 days in July 2020, 19 days in June 2020, 17 days in May 2020, 13 days in April 2020, 15 days in March 2020 and 23 days in February 2020.

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

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was eight days in August 2020, compared to 17 days in August 2019. The August 2020 timeframe compares to 10 days in July 2020, 12 days in June 2020, 11 days in May 2020, eight days in April 2020, 10 days in March 2020, 12 days in February 2020 and 23 days in January 2020.

-- The 30-year, fixed-mortgage interest rate averaged 2.94 percent in August 2020, down from 3.62 percent in August 2019, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.91 percent, compared to 3.36 percent in August 2019.

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

-- Realtor.com said the number of listings in San Diego County is 43 percent lower than a year ago, according to its report for the week ending Sept. 12. Also, the median listing price is 8.8 percent higher in a year-over-year comparison.

-- CoreLogic said San Diego County’s median home price in August 2020 hit another all-time high of $640,000, up from the previous peak of $634,000 in July 2020. The real estate data reporting firm also said home prices in the county have risen more than 8 percent since March, when the Covid-19 pandemic began, and 9.4 percent since this same time last year.

-- More than 20 percent of Californians say they are bored of where they live and want to move somewhere else, according to a recent survey by Unclutterer.com, a website for home and office organization. The survey also revealed that 36 percent of city dwellers in California now want to move out to the suburbs or the country.

-- Home sales nationwide exceeded 1 million in August 2020, according to the U.S. Census Bureau and Department of Housing and Urban Development. Sales totaled 1,011,000, a 43.2 percent increase since August 2019, 4.8 percent compared to July 2020 and a record high not seen since 2006.

-- The Covid-19 pandemic has aggravated the housing’s market longstanding lack of supply, creating a historic shortage of homes for sale, reports The Wall Street Journal. Many potential home sellers are keeping their homes off the market for pandemic-related reasons. Meanwhile, buyers are accelerating purchase plans or considering homeownership for the first time to get more living space as many Americans anticipate working from home for the long term. The National Association of REALTORS® said there were 1.3 million existing single-family homes for sale at the end of July, the lowest count for any July going back to 1982. For the week ending Sept. 12, Zillow Group Inc. reports the nationwide inventory was down 29.4 percent from a year ago and the lowest level since late 2017.  

California’s housing market recovery from the coronavirus pandemic nosedive is continuing in high gear as buyers and sellers apparently have brushed off economic uncertainty, according to the most recent monthly home sales and price report from the California Association of REALTORS® (C.A.R.).

In July, home sales climbed to their highest level in more than two-and-a-half years, while median home prices set another record high. The July numbers are the latest evidence of a housing market rebound from spring, when stay-at-home orders and fears over the coronavirus slowed activity.

The state’s existing, single-family home sales totaled 437,890 in July 2020 on a seasonally adjusted annualized rate, up 28.8 percent from June 2020’s sales of 339,910, and 6.4 percent higher from July 2019, when 411,630 homes were sold.

The July sales total climbed above the 400,000 level for the first time since February, before the COVID-19 effect depressed the housing market. July 2020 also was the first time in five months that home sales posted an annual gain. Year-to-date statewide home sales were down 10 percent in July, however.

In San Diego County, July 2020 home sales were 18.1 percent higher, compared to that of June 2020, with a 10.2 percent increase since July 2019.

“A housing market trifecta of strong pent-up demand, record-low interest rates and a renewed interest in the value of homeownership bolstered July’s home sales,” said 2020 C.A.R. President Jeanne Radsick, a second-generation REALTOR® from Bakersfield, Calif. “With this year’s delayed start of the homebuying season due to the pandemic, we expect home sales to remain robust in August and September, extending the season later than what’s typical.”

The median price for a single-family home in California was $666,320 for July 2020, up 6.4 percent from June 2020’s price of $626,170, and up 9.6 percent from July 2019’s price of $607,990.

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

In San Diego, the median price for a single-family home in San Diego County in July 2020 was $719,000, 6 percent higher than the $678,000 figure in June 2020 and 10.6 percent higher than the $650,000 figure for July 2019.

Sales of higher-priced properties contributed to a new high for the statewide median price in July 2020, after setting a previous record in June 2020. The monthly price increase was higher than the historical average change from June to July and was the highest ever recorded June-to-July change.

Sales of higher-priced properties continued to outpace sales of lower-priced homes. Homes priced below $500,000, which made up 44 percent of total sales in the California market in June 2020, only comprised 40 percent of all sales in July 2020.

Homes priced below $500,000 made up 40 percent of total sales in the state in July 2020, compared to 44 percent in June 2020. Sales of million-dollar properties increased in market share to 20.4 percent in July 2020, compared with 18.1 percent in June 2020. 

“Stronger sales of higher-priced properties continue to propel the statewide median home price, as those who tend to purchase more expensive homes are less impacted by the economic recession,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “High demand in resort communities is another variable that’s fueling the increase in home prices, as a new wave of remote workers are leaving cities in search of more space and a healthier lifestyle in what used to be the second/vacation home market.”

Reflecting the rise in home prices, a monthly Google poll conducted by C.A.R. in early August found that 54 percent of consumers said it is a good time to sell, up from 44 percent a month ago, and up from 52 percent a year ago. Meanwhile, low interest rates continue to fuel the optimism for homebuying; 33 percent of the consumers who responded to the poll believed that now is a good time to buy a home, sharply higher than last year, when 23 percent said it was a good time to buy a home.

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

-- Sales increased in all major regions over last year and were particularly strong in the Central Coast region, which posted a 21.9 percent gain. Sales increased 14.8 percent in the San Francisco Bay Region, 6.6 percent in the Central Valley and 5.4 percent in Southern California. 

-- Nearly nine of ten of counties, 44 of 51 overall, experienced a year-over-year gain in closed sales in July 2020.

-- Median home prices increased in all regions in July, with both the Central Coast and San Francisco Bay Area climbing more than 10 percent from last year. The Central Valley and Southern California also grew solidly with high-single-digit increases.

-- Housing inventory continued to trend downward on a year-over-year basis, with active listings falling more than 25 percent for the eighth consecutive month. The year-over-year 48 percent decline was the biggest drop in active listings since January 2013.

-- The continued recovery in closed escrow sales, combined with a sharp drop in active listings, led to a plunge in the Unsold Inventory Index (UII) to 2.1 months in July, down from 3.2 months a year ago. The index indicates the number of months it would take to sell the supply of homes on the market at the current rate of sales. The July UII was the lowest level since November 2004.

-- The supply of homes for sale continued to decline significantly across the state, with all regions falling more than 30 percent in active listings from last year. Southern California had the biggest annual drop in inventory in July at 50.7 percent, which was less than half the number of sale properties from a year ago. 

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

-- The median number of days it took to sell a California single-family home was 17 days in July 2020. July’s time-frame compares to 19 days in June 2020, 17 days in May 2020, 13 days in April 2020, 15 days in March 2020, 23 days in February 2020 and 21 days in July 2019.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was 10 days in July 2020, which compares to 12 days in June 2020, 11 days in May 2020, eight days in April 2020, 10 days in March 2020, 12 days in February 2020, 23 days in January 2020 and 15 days in July 2019.

-- The 30-year, fixed-mortgage interest rate averaged 3.02 percent in July, down from 3.77 percent in July 2019, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 3.02 percent, compared to 3.47 percent in July 2019.

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

-- Median home prices in San Diego hit a record high of $634,000 in July 2020, according to CoreLogic. That median price is 9.3 percent higher from same time a year ago. In June 2020, the figure hovered just over $600,000. Los Angeles, Orange and Ventura counties all saw home selling prices touch record levels. The median price of a home in the region was $585,000 in July, up 8.5 percent year-over-year and up almost $30,000 from June’s record high. It was the largest one-month price hike in CoreLogic’s 32-year-old history of tracking.

-- According to Redfin, San Diego County had the third-highest rate of competitive bids for homes in the country, trailing only Salt Lake City and San Francisco. San Diego home buyers faced competitive bids in 65 percent of the cases in July, which was down somewhat from 70 percent in June.

-- According to Zillow, San Diego County’s home inventory is down 28.4 percent year-over-year, as of the week ending Aug. 15, meaning there are more than 400,000 fewer homes listed on the market than there were a year ago. Inventory also is down in each of the 50 largest metros surveyed by Zillow from a year ago. Inventory decreased the most in Riverside (minus-46.5 percent), Baltimore (minus-43.8 percent), and Hartford, Conn. (minus-43.1 percent).

-- The median list price of a single-family home in the U.S. grew 10.1 percent year-over-year, the fastest pace of growth since January 2018, according to Realtor.com’s weekly recovery report for the week ending Aug. 15. Realtor.com also reported the price in San Diego is up about 11 percent year-over-year, while the number of active listings is down by 44 percent since last year.

-- The National Association of REALTORS® reports that 96 percent of the nation’s metropolitan areas experienced an increase in home prices in the second quarter of 2020, even in the midst of the pandemic. San Diego was the fifth most expensive metro area for housing. San Jose maintained its place as the most expensive area in the nation during the second quarter as its median price for an existing, single-family home rose 3.8 percent year-over-year to $1.38 million. Others median prices among the top five included San Francisco ($1.05 million), Anaheim ($859,000), urban Honolulu ($815,700) and San Diego ($670,000).

-- San Diego was the nation’s second least affordable housing market in June, according to First American Financial Corp.’s Real House Price Index (RHPI). The higher the RHPI score, the less affordable the home. New York City had the highest RHPI at 29.3 percent, followed by San Diego at 19.4 percent, and Pittsburgh at 15 percent.

The rebound happened over one month’s time.

In May of this year, the full impact of the coronavirus pandemic nosedived California’s home sales to their lowest level since the 2008 Great Recession.

By contrast, California’s housing market in June regained its footing with the largest month-over-month sales increase in nearly 40 years, according to the most recent monthly home sales and prices report from the California Association of REALTORS® (C.A.R.).

Statewide, June 2020 home sales were up a whopping 42.4 percent compared to May 2020. This month-over-month increase was the largest since C.A.R. began reporting monthly sales in January 1979. Closed escrow sales of existing single-family detached homes in California totaled a seasonally adjusted annualized rate of 339,910 units in June, compared to 238,740 in May. Compared to a year ago, statewide home sales were down 12.8 percent, when 389,730 homes were sold on an annualized basis.

In San Diego County, June 2020 homes sales were 58.1 percent higher when compared to May 2020, when home sales were down 14.6 percent in a comparison to April 2020. There was a nominal increase of 1.7 percent in home sales in June 2020 over June 2019.

Meanwhile, home prices remained strong in June 2020, setting another record high statewide, despite the Covid-impacted sales environment.

After dipping briefly below $600,000 in May, California’s median home price increased to $626,170 in June 2020, an improvement of 6.5 percent from $588,070 in May 2020 and 2.5 percent from $610,720 in June 2019. The monthly price increase was higher than the historical average price change from May to June and, in fact, was the highest ever recorded for a May-to-June comparison. 

A change in the mix of sales was a key factor that pushed the median price higher in June, as sales of higher-priced properties showed stronger than lower-priced homes. Homes priced below $500,000, which made up 48 percent of total sales in the California market in May 2020, only comprised 44 percent of all sales in June 2020. Sales of million-dollar and above properties, on the other hand, increased in market share to 18.1 percent in the most recent month compared with 15.6 percent in May 2020. 

In San Diego, the median price for a single-family home in San Diego County in June 2020 was $678,000, an increase of 3.5 percent from $655,000 in May 2020, and 2.0 percent higher than $665,000 in June 2019.

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

“Home sales bounced back solidly in June after hitting a record bottom in May, as lockdown restrictions loosened and pent up demand driven by record-low interest rates roared back,” said 2020 C.A.R. President Jeanne Radsick, a second-generation REALTOR® from Bakersfield, California.

“A new record high in the statewide median price suggests that there is stronger housing demand from more qualified, affluent buyers in this extremely favorable lending environment,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “It also highlights both the affordability and supply issues created by the uneven impact of the coronavirus pandemic as the more affordable segments of the state’s housing market are recovering at a slower pace.”

Reflecting growing confidence in market conditions, a monthly Google poll conducted by C.A.R. in early July found that 44 percent of consumer respondents stated it is a good time to sell, up from 40 percent a month ago, but down from 49 percent a year ago. Meanwhile, low interest rates continue to fuel the optimism for homebuying. 31 percent of the consumers who responded to the poll believe that now is a good time to buy a home, a sharply higher figure than last year’s 23 percent of respondents.

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

-- Median prices increased in all regions in June, with the more affordable markets increasing year-over-year in the high-single digits. The Bay Area and the Central Coast regions, which experienced dips in price in May, bounced back in June with moderate increases of 4.2 percent and 5.4 percent, respectively. Median prices in the Central Valley and the Southern California continued to rise from last year by 7.4 percent and 3.3 percent, respectively, as pent-up demand returned to the market.

-- Housing supply continued to trend downward on a year-over-year basis, with active listings falling more than 25 percent for the seventh consecutive month. A sizable year-over-year drop in active listings of 43 percent, coupled with a robust gain in closed sales, led to a decline in C.A.R.’s Unsold Inventory Index (UII) in June. The Index dropped to 2.7 months in June from 4.3 months in May and was down from 3.4 months in June 2019. The index indicates the number of months it would take to sell the supply of homes on the market at the current rate of sales.

-- Housing supply continued to decline significantly across the state, with all areas falling more than 30 percent in active listings from last year. Southern California had the biggest drop in supply, with for-sale properties plunging 47.3 percent year-over-year.  While all counties in the region dropped at least 40 percent from a year ago, both Riverside and San Bernardino plummeted more than 50 percent in active listings.

-- The median number of days it took to sell a California single-family home was 19 days in June 2020, equal to that of June 2019. June 2020’s 19-day figure compares to 17 days in May 2020, 13 days in April 2020, 15 days in March 2020 and 23 days in February 2020.

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

-- In San Diego County, the median number of days an existing single-family home remained unsold on the market was 12 days in June 2020, which compares to 11 days in May 2020, eight days in April 2020, 10 days in March 2020, 12 days in February 2020, 23 days in January 2020 and 13 days in June 2019.

-- The 30-year, fixed-mortgage interest rate averaged 3.16 percent in June, down from 3.80 percent in June 2019, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 3.09 percent, compared to 3.48 percent in June 2019.

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

-- According to CoreLogic, the median home price in San Diego reached a new high of $600,250 in June, indicating that COVID-19 has not stopped the upward pressure on home prices. San Diego was not alone in this trend, with three of the six Southern California counties reaching record price peaks in June.

-- According to Zillow, the median price of a single-family home in San Diego County rose 5 percent year-over-year in June to $636,815 while inventory experienced a 27.6 percent year-over-year decline. Nationally, home values continued their steady, upward trajectory in June, growing 4.3 percent year-over-year to $252,178. Phoenix is the hottest top-50 market, reported Zillow. Home values in the Arizona city rose 9.6 percent year-over-year in June, followed by Birmingham, Ala. (up 7.6 percent) and Memphis, Tenn. (up 7.5 percent).

-- Home prices are expected to increase through the summer, including in San Diego County, which has the second-highest year-over-year price increase behind New York City, according to First American Financial Corp. The five markets with the greatest year-over-year increase based on First American’s Real House Price Index include New York (14.8 percent), San Diego (10.1 percent), Pittsburgh (8.8 percent), Orlando (6.3 percent), and St. Louis (5.4 percent).

-- The Covid pandemic is not affecting home sales, according to Realtor.com, which said monthly traffic hit an all-time high of 86 million unique users in June, breaking May’s record of 85 million users. Supply still remains the biggest factor slowing the recovery, however, as total listings remain 31 percent lower than last year.

-- Although buyers appeared to regain confidence in June, sellers lagged behind as new listings slumped during the month, according to Realtor.com’s June Monthly Housing Trends report. In the San Diego-Carlsbad market, new listings dropped by 21 percent in June 2020, compared to June 2019, and the year-over-year, “active listing count” decreased by 36.6 percent. Nationally, housing inventory across the U.S. was down 27.4 percent year over year in June. The national volume of new listings was down by 19.3 percent from last year, which actually represented an improvement from declines of 44.1 percent in April and 29.4 percent in May.

-- Bidding wars for homes are increasing in San Diego. According to Redfin, 65.7 percent of home offers in June faced multiple competitive offers. San Diego was the second most competitive market in the country in June, trailing only Boston, which had 72.4 percent of homes fielding multiple bids.

-- The total value of residential real estate in San Diego County is $564 billion, according to a recent LendingTree report. For perspective, this figure is comparable to the value of Warren Buffet’s Berkshire Hathaway firm or the GDP of Poland., San Diego’s total is the 12th highest in the U.S.New York City is top-rated at $2.8 trillion, which is more than the GDP of the United Kingdom in 2019. Los Angeles, with $2.3 trillion, has the second-highest residential real estate value in the U.S. nearly the GDP of Italy and the combined value of Amazon and Google’s parent company Alphabet. San Francisco is third at $1.3 trillion, the equivalent of Mexico’s GDP or the value of Microsoft.  

The Department of Real Estate (DRE) updated a number of its publications.

• Spring Bulletin
• Fraud Warnings
• New License Applicants
• Loan Modifications
• 2020 REAL ESTATE Law Book

Updates from the Spring 2020 Real Estate Bulletin

• Governor Newsom's Real Estate Commissioner appointee Doug McCauley was appointed on April 2nd.

• Learn about the difference between citations and formal discipline and the programs progress after six years.  How do citations work? How can they be contested?  What happens if the citation has not been satisfied?

• Developers are required to obtain a public report from the DRE prior to marketing homes in a common interest development (CID). Learn more about  Informing the DRE About Material Changes in Subdivision Public Reports.  

• The California Franchise Tax Board also includes an interesting write up about Property Managers and California Withholding. 

• The DRE may audit continuing education records of licensees. When requested applicants need to submit certificates of attendance or certified copies from sponsors of approved offerings as proof of training.  A licensee who fails to provide DRE with course completion certificates, as required, may be subject to a fine or potential disciplinary action.

DRE Flyer for Consumers: Fraud Warnings for California Homeowners in Financial Distress Provides an overview of home loan modifications and where to find free foreclosure avoidance counseling.

 

Instructions to License Applicants Provides information about how to obtain and maintain a California Real Estate License, a Prepaid Rental Listing Service License, and a Mortgage Loan Originator License Endorsement.

 

Loan Modification Self-Help Guide  The DRE has produced a self help guide for individuals to obtain their own loan modification.  Review this step by step guide to doing your own loan modification. 

The 2020 Real Estate Law Book Statutes and regulations with which real estate practitioners should be familiar. It is divided into four parts by subject matter as follows: Real Estate Law and Subdivided Lands Law, Business and Professions Code Sections 10000 through 11288 Regulations of the Real Estate Commissioner, Title 10 of the California Code of Regulations Administrative Procedure Act, Government Code Sections 11500 through 11528 Pertinent Excerpts from the California Codes, Various other code sections applicable to real estate including additional sections of the Business and Professions Code and Government Code.  Please note, the 2020 Real Estate Law does not contain all laws relevant to real estate. The 29 Codes which comprise California law are available in their entirety at the official website for California legislative information.

Yes, Really!  Marketing Prior to a securing a listing agreement.

The CRMLS Board of Directors made a rules change this week.  The added language is in red below. Read it closely because the change is more significant than it may look at first glance. 

7.9 Mandatory Submission upon Marketing. Within one (1) business day of marketing or advertising a residential property to any member of the public, for sale which contains one to four units, or is a residential vacant land lot which is subject to any exclusive right to sell or seller reserved listing agreement, the Listing Broker must submit the property into the MLS for cooperation with other CRMLS participants. Marketing and advertising includes but is not limited to, any information about the property or its availability for sale displayed on any: signs, websites, social media, brokerage or franchise-operated websites, communications (verbal or written), multi-brokerage or franchise listing sharing networks, flyers or written material, or on any applications available to the public, or by conducting an open house. Any individual or entity that has signed within the previous year a Disclosure Regarding Real Estate Agency Relationship form in compliance with CA Civil Code section 2079.16 that identifies the Listing Broker shall not be considered a “member of the public” under this rule.  

The change is to Rule 7.9, “Mandatory Submission Upon Marketing.” This rule governs listing brokers’ submission of properties into the MLS. The previous version of this rule detailed how within one business day of marketing a property to the public, the listing broker must submit the property into the MLS. 

This new version makes clear that the listing broker must submit a property into the MLS within one day of marketing only if an exclusive listing contract exists.  If there is no contract, agents can talk about the listing that they "may secure."  Agents should use caution when discussing a listing prior to securing a listing contract.  The listing still remains open for a competitor to list with.  

The San Diego Old Paragon doesn't have "Hold" Yet.  Can I market a property when it's "Withdrawn?" 

The answer is YES!  The definition of the Withdrawn status does state that a property cannot be marketed or advertised, while remaining in our "old Paragon" system. But CRMLS will not be enforcing that aspect of the Rule until we actually get the CRMLS "Hold" status that is enjoyed by CRMLS Matrix users. CRMLS will allow marketing and advertising to occur the same as Hold listings in Matrix. A property in the status of "Withdrawn" can be marketed and advertised but cannot be shown.

The Withdrawn status in San Diego Paragon allows you to temporarily remove your listing from an “Active” status, without having to cancel it. This feature will allow you to place your listing in Withdrawn for a specified period of time. Marketing and Advertising as defined in Rule 7.5.1 is permitted. However, no showings are allowed, consistent with Rule 9.8.

To update your listing’s status to Withdrawn, follow the steps below.

Step 1: Navigate to your listings by clicking on the Listings tab and clicking on Maintain Listings.

 

Step 2: Enter the MLS#, then click Go, or, enter the property address, then click Search. In the search results, click on the listing’s MLS# or Select an Action, then click on Maintain Listing.

 

Step 3: Update the status to Withdrawn Then click Save Listing.

 

 

 

The Coming Soon status launches in San Diego Paragon Tuesday, May 19th. From that day forward, when entering listings for sale in San Diego Paragon, you may choose between Active and Coming Soon.

To prepare for this launch, Paragon will undergo scheduled maintenance from 10:00 PM PT Monday, May 18th to 6:00 AM PT on Tuesday, May 19th – a total of eight hours. Paragon will be unavailable during this time.

CRMLS prepared a video to help you understand the details of this status. Click below to watch.

 

 

How does Coming Soon work?

Coming Soon allows listing agents to take up to 21 days to stage the property, take interior photos, prepare it for showings, and so on, without Days on Market accruing.

How is Coming Soon similar to Active?

• Marketing is allowed in both statuses, so long as Coming Soon listings are clearly marked as Coming Soon.
• Both Coming Soon and Active listings are fully displayed to other professional users of MLS systems.
• The listing agent offers a commission on both Coming Soon and Active listings.

How is Coming Soon unique?

• Coming Soon listings have limited distribution: they will not go out from the MLS to portals like Zillow, Trulia, and Realtor.com, or to IDX broker and agent websites.
• Showings are not permitted in Coming Soon.
• Because of these limitations, Days on Market do not count in Coming Soon.
•  

Listing input for Coming Soon in Paragon will look like this:

 

FAQ on Coming Soon Status

1. Will Registered and Coming Soon listings appear in portals like Zillow, Trulia, and Realtor.com? No.
2. Who can see listings in the “Coming Soon” status? All CRMLS users.
3. Why are there no showings while a listing is in Coming Soon status?  There are no showings under Coming Soon status because marketing and showing a property means it is actively on the market, and it is not “coming soon” to the market. Showings are contrary to the stated purpose of Coming Soon, which is to prepare the property for “full marketing.
4. What is the reason for the change in statuses? Registered status has been developed as an alternative to the current exclusion form process. This change simplifies workflow while at the same time satisfying the requirements of the longstanding mandatory delivery rule. Coming Soon is being introduced in response to a demand for time to get a property ready for full marketing while not accruing Days on Market.
5. What does the CRMLS coming soon form look like?  Take a look here:

This new "Coming Soon" status is an important component needed in order to make compliance of NAR's Clear Cooperation Policy.  

 

 

 

Today, May 7th, Governor Newsom released updated industry guidance to begin reopening with modifications that reduce risk and establish a safer environment for workers and customers. This guidance includes, among other things, information pertaining to real estate transactions.  Use these guidelines to responsibly plan and reopen for business.

The California Department of Real Estate advises all licensees to review the newly posted "COVID-19 Industry Guidance for Real Estate Transactions" and "COVID-19 General Checklist for Real Estate Transactions" found in the links below.

The Resilience Roadmap is a plan for modifying the statewide stay at home order to gradually reopen. When modifications are advanced and the state’s six indicators show we’ve made enough progress, we can move to the next stage of the roadmap. We are now moving into Stage 2, where some lower-risk workplaces can gradually open with adaptations.

This Guidance for Real Estate Document  provides guidance for businesses operating in the real estate industry including sales and rentals of single-family, multi-family, apartment, commercial, and industrial properties to support a safe, clean environment for workers.

For workplaces and showing property, it contains:

• Specific plan
• Physical distancing
• Cleaning and disinfecting protocols for workplaces

It also has topics for employee training and individual control measures and screening, 

The COVID-19 General Checklist for Real Estate Transactions
This checklist is intended to help people involved in real estate transactions implement their plan to prevent the spread of COVID-19 in the workplace and is supplemental to the Guidance for Real Estate Transactions. This checklist is a summary and contains shorthand for some parts of the guidance; familiarize yourself with the guidance before using this checklist.