San Diego County’s housing market in August 2019 saw a 2.2 percent decrease in sales in a month-to-month comparison with July 2019, but a 2.3 percent increase in sales in a year-over-year comparison with August 2018, according to a recent report from California Association of REALTORS® (C.A.R.).

Meanwhile, the median price of $650,000 for an existing, single-family home in San Diego County in August 2019 was the same amount for both July 2019 and July 2018. The median price a year ago in August 2018 was slightly higher at $660,000.

On a statewide basis in August mortgage interest rates at near-three-year lows contributed to a small year-over-year sales increase while the median home price reached a new high.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 406,100 units in August, according to information collected from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2019 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Statewide home sales in August of 406,100 were down 1.3 percent from the 411,630 level in July 2019 and up 1.6 percent from the 399,600 home sales in August 2018. While cumulative sales through the first eight months of the year were down from last year, the pace of decline has improved significantly at -4.1 percent since the -12.5 percent recorded in January.

After a pullback in July, the statewide median price rose in August compared to the previous month and year. The median price in August was $617,410, up 1.5 percent from July and up 3.6 percent from $595,920 in August 2018, marking the fifth straight month that the median price remained above $600,000. The annual sales gain was the highest in the last 10 months.“Housing demand has exhibited signs of improvement in recent months as lower rates continued to reduce the cost of borrowing for home buyers,” said C.A.R. President Jared Martin. “However, buyers remain cautious, and many are reluctant to jump in because of the economic and market uncertainty that continue to linger, and that is keeping growth subdued despite significantly lower rates.” 

 “Low interest rates, which helped to reduce monthly mortgage payments, have provided much-needed support to improve housing affordability and elevate home sales over the past few months,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “While lower rates have no doubt boosted buyers’ purchasing power, they have also been a contributing factor to higher home prices this year.”

Other key points from the August 2019 resale housing report included:

-- At the regional level, non-seasonally adjusted sales fell on both a monthly and an annual basis from a year ago in all major regions.

-- At the regional level, median home prices in Southern California, the Central Valley and Central Coast regions continued to inch up, while prices in the Bay Area declined slightly from a year ago. In Southern California, median home prices grew in every county except Orange County and San Diego, while six of nine Bay Area counties experienced year-over-year price growth.

-- After 15 straight months of year-over-year increases, active listing fell 8.9 percent from year ago, marking the first back-to-back decline since March 2018 and the largest since December 2017.

-- The Unsold Inventory Index (UII), which is a ratio of inventory over sales, was 3.2 months in August, unchanged from July and down from 3.3 months in August 2018. The index measures the number of months it would take to sell the supply of homes on the market at the current sales rate. 

-- Statewide, the median number of days it took to sell a California single-family home increased to 23 days in August 2019, compared with 21 days in July 2019 and August 2018 and 18 days in July 2018.

-- In San Diego County, it took over two weeks to sell an existing single-family home in August 2019. The median number of days a home remained unsold on the market stood at 17 days in August 2019, compared with 15 days in July 2019, 13 days in June 2019, 14 days in May 2019, 17 days in April 2019, 19 days in March 2019, 22 days in February 2019 and 18 days in August 2018.

-- The statewide sales-price-to-list-price ratio was 98.7 percent in August 2019, compared to 99.0 percent in August 2018. It was 99.0 percent in July 2019 and 99.6 percent in July 2018. Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

-- The 30-year, fixed-mortgage interest rate averaged 3.62 percent in August, down from 4.55 percent in August 2018, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 3.36 percent, compared to 3.47 percent in August 2018.

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

-- According to real estate tracker Core Logic, San Diego County’s median home price in August was down annually for the first time in seven years, albeit a small reduction. The median price of $584,000 was down 0.1 percent from the same time last year at $584,500. The last time prices were down year-over-year was March 2012.

-- The latest S&P Case-Shiller report shows home price increases continued to slow across much of the nation. The price index reported a 3.2 percent annual gain in July, but the index remained the same from June. The index's 20-city composite posted a 2.0 percent year-over-year gain, which matched San Diego's level.

The 10-city composite's annual increase came in at 1.6 percent in July, down from 1.9 percent the previous month.

-- According to Redfin, people who purchased homes in 2012 have earned a total of $203 billion in home equity nationally. San Diego, despite being outpaced by numerous metros, has seen an exponential growth in home value and equity, as well. San Diego County has experienced a total of $6.14 billion in home equity value since 2012, said Redfin. The median home equity growth here amounted to a 277 percent increase, or $283,000, during the seven-year period. The median home value percent growth since 2012 was 60 percent, and the actual median home value dollar growth in San Diego during the period was $232,000.

-- In rental housing news, San Diego's apartment rents, which had been on an upward trajectory for many years, actually dipped somewhat in September, according to a report from Zumper. The rent for a one-bedroom unit in San Diego experienced a 2.2 percent year-over-year decline in September to about $1,800 a month. The region's rent for a two-bedroom unit declined about 4 percent year-over-year to $2,400 a month in September. Zumper said San Diego is the 9th most expensive city in the U.S. for apartment rentals. Meanwhile, CoStar reports the monthly average rent in the third quarter was $1,860 countywide, and rents are rising most rapidly in the East County.

-- According to the Bloomberg Economic Index, U.S. economic data is beating economists’ expectations, offering a rebuttal to recession fears fueled by the trade war and a manufacturing slump. Bloomberg’s index recently reached an 11-month high based on several indicators, including existing home sales and jobless claims.

-- CNBC reports that more than two-thirds of chief financial officers in North America expect President Trump will be reelected in 2020. About 65 percent of the CFOs surveyed said the economy will not experience a recession in 2020. And a majority of them said current interest rate levels are “appropriate.”

CRIME PREVENTION FOR REALTORS® - Learn the strategies and
techniques that will help keep you safe.

Tuesday | September 17
South PSAR | 1:00pm - 3:00pm

Crime Prevention Specialist Angela Gaines has two decades of working in law Enforcement, first with the Lemon Grove Sheriff station , and for the last 13 years with the Chula Vista Police Department. Training will be fun and interactive.

Free Workshop Will Cover

Parking lot & vehicle safety tips
Safety strategies
Tricks to remain aware 
Learn to trust your gut Instinct
Personal security devices

REALTORS®, please check your email for a RedAlert from C.A.R. Government Affairs. We’re OPPOSING AB1482, a bill that creates restrictive rent caps and “just cause” evictions, because it discourages the creation of rental housing. Fewer housing units will result in higher rent. #AB1482, #caleg, @CAREALTORS

FOR MORE INFORMATION: Contact DeAnn Kerr for more information at deannk@car.org.

Here’s news about another recent PSAR success: Once again, PSAR leadership has made a significant contribution that will result in additional housing availability and improved affordability for the San Diego real estate market.

Over the past two years, PSAR has been working closely with the City of San Diego on rules and regulations relating to what’s called “Companion Units.” While other governmental agencies call them “granny flats” or “accessory dwelling units” (ADUs), the City of San Diego calls them companion units.

Companion units, typically smaller than standard homes, are second units built on the same lot as an existing single-family home. Often, these secondary units are constructed in backyards or above garages of single-family residences. They can be used by family members or rented to seniors, students or others and can provide a source of income for homeowners. PSAR is in support of property owners expanding the use of their property as a way to address the region’s housing supply and affordability crisis.

PSAR’s participation with the City of San Diego recently culminated with the city's publication of the “Companion Unit Handbook,” a 38-page booklet that serves as a helpful guide to homeowners seeking to construct a companion unit on their property.  The handbook can be accessed here, CLICK HERE.

The handbook includes information on zoning, including setbacks and parking, companion unit design and construction, permitting requirements, funding options and additional resources. The handbook answers many popular questions relating to companion units, including: what is a companion unit and where is it allowed; what are the best sources for design of a companion unit; how does one make sure they’re well prepared; ideas and inspiration for the design of a companion unit; the construction and budgeting process; costs, timing and financial sources; impact on your property taxes; what is needed for permitting and occupancy.  

“It hasn’t been easy to make progress over the past two years, but it’s been very rewarding,” said Rafael Perez, PSAR REALTOR® member who has been leading the PSAR efforts with the City of San Diego.

“From the beginning, we brought a REALTORS® perspective to the table,” Perez said. “At first, some of the people at the city had not considered how companion units could change how homebuyers view their future purchase or how existing homeowners could increase their equity. So, we were able to help shape the regulations to benefit the city and homeowners and buyers.”

PSAR’s name appears on the cover of the city’s “Companion Unit Handbook” as a contributor to the publication, along with the San Diego Housing Federation and Local Initiatives Support Corporation (LISC). PSAR’s name also is appearing in a press release announcing the availability of the handbook that is being distributed by San Diego City Council member Scott Sherman.

“Personally speaking, I have been very grateful to receive input from PSAR,” said Sherman. “PSAR members have direct experience at helping their clients with companion units. So, it made sense to follow their advice in the writing of the handbook as we continue to seek workable, common sense solutions to fixing the housing crisis.”

Sherman agreed the handbook will serve as a helpful guide to help homeowners better navigate the process of construction a companion unit on their property.

“The design and construction of a companion unit is a step-by-step process. And, success often depends on preparation and a solid understanding of the process,” said Sherman. “For anyone who is considering building or adding a companion unit on a property, this handbook will be very helpful.”

Sherman added, “In a region where average rent is nearly $1,800 a month and the median price of a home is over $500,000, renters are actively seeking alternative options for affordable rent. In addition, homeowners are seeking alternative options in order to offset the cost of a home mortgage. Companion units can provide an immediate solution to the region’s housing supply crisis.”

Perez said, “Unfortunately, limited housing supply paired with limited construction of affordable for-sale housing units has put a severe strain on lower and middle class families. The ‘missing-middle’ forces families seeking the American Dream to make tough decisions to live on tight budgets or move out of the region. Making it easier to build companion units will help create options for more affordable homeownership as well as increase the supply of affordable housing units in our region.”

Granny flats, or companion units, represent perhaps the easiest and quickest way to provide additional affordable housing options to local residents. When it comes to housing that will help all of San Diego, PSAR is in favor of making the rules more streamlined and cutting through the thick red tape of processing the construction of new smaller rental units.

Current state regulations allow granny flats up to 1,200 square feet in size. They can be attached to, or built separate from, full-sized homes on the same parcel, and include kitchens, bathrooms, living areas and private entrances. They cannot be sold as individual homes, but they can be rented out by homeowners or used to provide additional living space for family members, friends, students, the elderly, the disabled, or in-home health care providers. Properties must meet all zoning requirements, such as setbacks that meet fire safety and building codes.

PSAR previously assisted the County of San Diego and the cities of Chula Vista and La Mesa with the creation and formation of ADU regulations.

PSAR members worked closely with the City of Chula Vista to reduce ADU fees and streamline their regulations. In the East County, following input from PSAR, La Mesa’s set of regulations for granny flats will, in some cases, enable the city to provide more options than do state requirements.

Meanwhile, at a County Board of Supervisors meeting held earlier this year, the Supervisors were considering a modification to their ADU code to require owner occupancy for an additional building on a lot, which PSAR recommended against. Fortunately, the Supervisors decided to remove the owner-occupancy requirement following PSAR testimony from Tracy Morgan Hollingworth, PSAR’s Government Affairs Director.

“I don’t know of any other local real estate organization that has given their support to these local jurisdictions like PSAR has,” said Robert Calloway, 2019 PSAR President. ”I’m very proud that these government bodies have turned to PSAR for assistance and agreed with our recommendations.”

San Diego County’s housing prices in May were relatively flat in a year-over-year comparison, as were home sales and prices, according to the latest housing market report from the California Association of REALTORS® (C.A.R).

The median price of an existing single-family home in San Diego was $650,000 in May 2019, compared with $649,000 in April 2019, a difference of only 0.2 percent, and higher by 1.6 percent in a year-over-year comparison with the $640,000 figure from May 2018.

The San Diego County home sales total in May 2019 was 7.9 percent higher from April 2019, but only 0.2 percent higher than May 2018.

Statewide in May 2019, California’s median home price edged higher to another peak for the second straight month as lower interest rates helped bolster home sales. The statewide median home price reached another all-time high in May, hitting $611,190. It was a 1.4 percent increase from the $602,920 median price registered in April 2019, and a 1.7 percent rise from the $600,860 price in May 2018.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 406,960 units in May 2019, according to information collected from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2019 if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

May’s statewide sales figure of 406,960 represented a 2.6 percent increase from the 396,780 level in April 2019 and a 0.6 percent decrease from home sales in May 2018 of 409,270. Sales rose above the 400,000 benchmark for the first time since July 2018 and reached the highest level in 11 months, while the year-to-year sales dip was the smallest in 13 months.

“The lowest interest rates in nearly a year and a half, no doubt, have elevated housing demand as monthly mortgage payments have become more manageable to home buyers in general,” said C.A.R. President Jared Martin. “The state’s housing market remains soft, however, as home sales continue to lag behind last year’s level for more than a year now.” 

“While lower interest rates have spurred buyer demand in recent months, they also have played a role in ongoing price hikes,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “Buyers could offer higher prices without hurting their bottom lines and maintain the same level of affordability, as rates remain on a downward trend. With mortgage rates expected to stay low in the upcoming months, home prices may inch up further for another month or two before cooling off.” 

Other key points from the May 2019 resale housing report included:

-- Home prices increased in all counties in Southern California, except for Ventura, which dipped 1.6 percent.

-- Active listings in May 2019, which have been decelerating since December 2018, continued to climb from the prior year, increasing 7.4 percent from a year ago. It was the 14th consecutive year-over-year increase but also the first single-digit gain since last June.

-- The Unsold Inventory Index (UII), which is a ratio of inventory over sales, was lower in May than April’s level, suggesting that the typical seasonal pattern of rising home sales are beginning to play out this year. The UII was 3.2 months in May 2019, down from 3.4 months in April 2019 but up from 3.0 months in May 2018. The index measures the number of months it would take to sell the supply of homes on the market at the current sales rate. The jump in the UII from a year ago can be attributed to the mild sales decline and the sharp increase in active listings.

-- The median number of days it took to sell a California single-family home is increasing. Time on market fell from 21 days in April 2019 to 18 days in May 2019 as the homebuying season got underway. It took a median number of 15 days to sell a home in May 2018. Meanwhile, in San Diego County, it took only two weeks to sell an existing single-family home in May 2019. The median number of days a home remaining unsold on the market stood at 14 days in May, compared with 17 days in April, 19 days in March, 22 days in February and 13 days in May 2018.

-- The statewide sales-price-to-list-price ratio was 99.3 percent in May 2019, compared to 100 percent in May 2018. Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

-- The statewide price-per-square-foot average for an existing, single-family home statewide reached $292 in May 2019, up from $286 in May 2018. The May 2019 figure was the highest level since late 2007.

-- The 30-year, fixed-mortgage interest rate averaged 4.07 percent in May, down from 4.59 percent in May 2018, according to Freddie Mac. The five-year, adjustable mortgage interest rate increased in May to an average of 3.65 percent from 3.79 in May 2018.

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

-- According to real estate tracker CoreLogic, the San Diego County median home price stayed at $570,000 in May, the same as it was last May. Home prices reached a peak in August 2018 of $584,750, but prices have mostly leveled off as sales have started to decline.

-- According to the most recent S&P CoreLogic Case-Shiller Indices, home prices in San Diego County rose 0.5 percent in April, after a 1.1 percent increase in March and 1.0 percent rise in February. Prior to February, local home prices had declined for six straight months. It was the first time since 2012 for annual home price gains in San Diego to be below 1 percent. Because of the six-month downward trend, San Diego home prices are up only 0.8 percent over the past year, compared to the national average of 3.5 percent. The nationwide 20-city composite posted a 2.5 percent year-over-year gain in April.

-- According to Redfin, San Diego County had the third lowest homeownership rate for single mothers in the U.S. in 2017. In the latest figures available, only 22.4 percent of single mothers owned a home in San Diego County in 2017, according to the report. This is compared to an overall San Diego homeownership rate of 53 percent.

-- According to ClosingCorp., a San Diego-based provider of residential real estate closing cost data, the average closing costs on a home purchase in California last year was $6,765, nearly $1,000 more than the national average. The report assumed an average single-family home sales price between $600,000 and $700,000 and included taxes. The average closing cost without taxes was $5,284. The national average home closing cost in 2018 was $5,779 including taxes, and $3,344 excluding taxes. The average closing costs with taxes works out to slightly more than 1 percent of the sales price.

-- According to the 2019 Home Affordability Report, on a nationwide basis, it takes 14 years to save for a 20 percent down payment on a median price home for those earning the median income. In San Diego, it takes 31 years. The least affordable cities with rankings of 30 years or longer include Boston (30 years), San Jose and San Diego (31 years), Miami and Manhattan (36 years), Honolulu and San Francisco (40 years) and Los Angeles (43 years).

-- According to Zumper, an online rental company, San Diego was the 11th most expensive U.S. city for renters in June, with a typical one-bedroom apartment going for $1,710 per month. The monthly payment figure for June was actually 7.7 percent lower than the same month a year ago.

-- According to Qualify of Life Dashboard, a research company, the quality of life in San Diego is improving in six areas, but declining in four. The six areas of improvement include air quality, electricity use, electric vehicles, employment, entrepreneurship and renewable energy. The four areas of decline include housing, traffic congestion, waste and water use.

-- First American Financial Corp.’s national mortgage loan application defect index declined for the first time in eight months in April. The report still found the defect index was up by 11 percent year-over-year, however, indicating there is plenty of room for improvement. In contrast to the national statistics, San Diego saw its mortgage defects decline by 4.3 percent in a year-over-year comparison.

-- San Diego County’s unemployment rate fell to 2.8 percent in May, matching the county’s lowest unemployment rate for any month since at least June 2017, according to the California Employment Development Dept. The county’s unemployment rate fell two-tenths of a percent month-over-month, from a seasonally adjusted 3 percent in April to 2.8 percent last month. At this time last year, the county’s unemployment rate also fell to 2.8 percent before spiking above 3.5 percent in June.

The new SentriKeyTM Real Estate app is now available, and we think you're going to love it!

The app is an updated version of the SentriSmart® mobile app and it features a new look, clearer prompts, and an action-based layout so you can perform key tasks in just seconds. You can download it now at Google Play or the App Store, or just go to the new icon on your phone to get started if your device is set for automatic updates.   Now, with just a few clicks in the app, you can easily: Open the key compartment Remove the shackle Find, sort and review access reports Grant secure temporary access And much more! Android users will be delighted that the app features enhanced Bluetooth® technology to improve Android connectivity. Check out our webinar video that provides a quick overview of the new app and its enhanced features. You can also review our iOS User Guide or Android User Guide for more information. SentriLock just made your job easier with the SentriKey Real Estate app. And we think you’re going to love it!

By Robert D. Calloway
2019 PSAR President

One of the most serious threats to our state’s future is lack of housing supply. This is the root of the housing crisis. With every delay to address the root cause of the crisis, it means the more we deny hard-working Californians the quality of life they deserve. Our state’s legislators have spoken with great passion about solving the housing crisis. They make dramatic-sounding statements about how housing is the most critical issue facing California. Yet, those same lawmakers are missing in action and haven’t been willing to make the tough votes to move forward policies that advance a solution.

Many of us were disappointed at our Sacramento politicians and their recent delay until next year of a Senate bill that would have remade California’s zoning laws to increase the housing and apartment development around major transit hubs and job centers. The Pacific Southwest Association of REALTORS® (PSAR), as well as the California Association of REALTORS® (C.A.R), were proud to support SB 50, which would have required a certain portion of affordable units, ensuring the new housing would help all Californians. But, the bill was stalled in the Senate Appropriations Committee leading to the decision to hold SB 50 until 2020, apparently due to opposition to its provisions that would override local zoning laws.

While Capital politicians display their reluctance to do what we elected them to do, California residents continue to suffer. A recent survey from the Public Policy Institute of California revealed that 52 percent of California adults and 45 percent of likely voters say their housing costs are causing financial strains, particularly 67 percent of renters.

California is at a tipping point of choosing a future that denies our children the same housing opportunities we’ve had. Inactivity by the legislative leadership is pointing to a future that will force the next generation to make the difficult, gut-wrenching decision of whether to stay in California with a poorer quality of life or move out of state to afford a decent place to live. Californians deserve a place to call home without worrying about putting food on the table for their kids. We expected our political leaders would be willing to take bold action to solve this man-made crisis, even at the risk of their political future. But, there has been no discernable progress on eliminating obstacles, including burdensome regulations, which are hindering more housing construction.

Gov. Gavin Newsom spoke to our members at a recent CAR meeting. In his speech, he admitted that we don’t have enough housing supply to meet the demand. He pledged millions of new homes during his campaign for governor last year. Unfortunately, our elected lawmakers in the state houses are not joining the governor in prioritizing action to solve the supply crisis. Time is running out to protect the opportunity for all Californians to continue calling the Golden State home.

You do not need to take any action related to this notice.  There is no class action settlement to opt into at this time.  This communication is to notify you of a court decision that affects the distribution of MLS in San Diego County.

If you paid charges to, subscribed to, or participated in the Sandicor MLS between January 1, 2000 and September 23, 2004, then you may be a member of the Settlement Class Hemphill v. San Diego Association of Realtors, et. al., Case No. 04-cv-1495 BEN (JMA) (S.D. Cal.) (“Hemphill”).  Please refer to the previous notice issued to the Hemphill Settlement class on September 11, 2018, found here: [link].  The information and definitions in that notice are incorporated here.

This communication is to notify the Hemphill Settlement Class that the Court has approved the proposed modification of the permanent injunction in Hemphill, as requested in the parties’ joint motion.  The following provisions are now stricken from the Hemphill injunction to allow for the new distribution structure in the SDAR settlement:

4. Sandicor shall unilaterally determine and advise each of the respective Association Defendants [SDAR, NSDCAR, ESDCAR, PSAR and COAR] of the amount Sandicor will charge that Association Defendant for providing Sandicor MLS Data to that Association Defendant.
5. Each of the Association Defendants shall unilaterally determine the amount it will charge to each user of the Sandicor MLS who has heretofore or who hereafter subscribes to, or participates in, the Sandicor MLS, at or through that given Association Defendant.

Paragraph 6 of the Final Judgment has been amended to read as follows:

6. Each Settling Defendant, and their respective successors-in-interest, is enjoined from acting in concert with any other person or entity, directly or indirectly, to fix, raise, establish, maintain, set or coordinate the price or amount to be charged or terms of service for MLS-related services, data, data access, support services or other goods or services. 

 

MLS users in San Diego County will now have a choice of either subscribing to CRMLS, through NSDCAR or PSAR, or to SDMLS.  This will promote competition in San Diego County, which has had a single MLS (Sandicor) from 1991 to the present.  All parties involved fully support the details of the SDAR settlement.

If you would like to review the Court’s order approving this modification to the Hemphill injunction, or have any other questions, please contact Dan Mogin, dmogin@moginrubin.com, 619-687-6611

Legislative advocacy remains a top priority at PSAR. Association leaders are active in empowering REALTORS® to make a difference by advocating with legislators and government officials in support of private property rights, economic prosperity, property investment and homeownership.

When REALTORS® and affiliates speak in solidarity with one voice and work together with elected officials, then powerful alliances and strong communities can be formed resulting in a vibrant business environment and success in a free enterprise system.

Recently, several PSAR members went to Washington, D.C. to join thousands of other real estate professionals for the National Association of REALTORS® Mid-Year Legislative Meetings and Trade Expo. In his opening address, NAR President John Smaby told attendees that thousands of REALTORS® showing up at the nation’s capital sends a powerful message to politicians. “We mean business,” Smaby said. “Our business is not Republican. It’s not Democrat. My friends, we are the REALTOR® Party,” referring to NAR’s lobbying arm. Attendees cheered and applauded.

NAR is the single largest real estate trade group in the U.S., with nearly 1.3 million members, and widely considered one of the most effective advocacy organizations in the country. It is the second largest organization in terms of lobbying spending, behind the U.S. Chamber of Commerce. During the recent 2018 midterm elections, NAR poured $14.4 million into supporting 10 candidates, including six Republicans and four Democrats.

Among PSAR members who made the trip: Robert Calloway, 2019 President; Robert Cromer, 2019 president-elect; Bob Olivieri past president and Federal Political Coordinator and Nikki Coppa, past president; and, Richard D’Ascoli, CEO. Nikki also serves as a NAR Director appointed by PSAR, as well as 2019 Vice Chair of the NAR Risk Management Issues Committee.

Activities on the trip included meeting with San Diego members of Congress, including Duncan D. Hunter (R-50th,) Juan Vargas (D-51st), Susan Davis (D-53rd), Scott Peters (D-52nd) and Mike Levin (D-49th), as well as listening to President Trump, who became the first sitting U.S. President to speak live at the NAR event since George W. Bush in 2005.

“The congressmen were very open and receptive to the issues we brought to them,” said Robert Calloway. “They were knowledgeable about the things we were talking about. It was good to have a dialogue with them.”

Robert and Nikki also heard Mr. Trump’s speech. “The President is a real estate guy who understands our business,” said Robert. “He knows about over-burdensome regulations that can hinder land development and the bureaucracy that prohibits us from moving forward with addressing the housing shortage.”

“It was incredible to see the change and preparation necessary to have a live event featuring the President of the United States,” said Nikki. “One thing that really stuck with me was his comment about how special REALTORS® are.” Nikki said she was impressed with the President’s comments about the trustworthiness of REALTORS®.

According to a White House transcript of the speech, Mr. Trump said, “In what business do you have where you’re selling your home, and you leave the key under the mat so the broker can take anybody they want, even though you’re going to be away for three weeks, right? How many people trust people? You would only trust a great realtor to do that, right?”

During the roughly one-hour speech, Mr. Trump announced the end of steel and aluminum tariffs imposed on Mexico and Canada and discussed a wide range of issues including tax reform, regulation cuts, opportunity zones and unemployment.

Mr. Trump also said, “I’m honored to be here with the hardworking men and women who help millions of families live the American dream. You have some tremendously talented people in this room. I know this business well. I love this business. It’s in your blood. And, you have people who can do a job that very few people can do.

“When a young family needs to grow, when a new job sparks a new adventure in a brand, new beautiful city, when parents want to find the right neighborhood and schools for their children, Americans put our trust in you, our great REALTORS®. And that’s true.

“Home is where our hearts are. And all of you, as Americans, you find a home for the ones that you love the most. So, today, I want to thank all of you. This is a time of extraordinary opportunity for our country, And, as I said, I think our country is doing better now than we’ve ever done before, as an economy. And I think it’s going to get even better.”

NAR's invitation to speak, did not mean the real estate trade group would be endorsing Trump’s re-election. NAR said it does not endorse presidential candidates or donate to presidential campaigns through its Realtors Political Action Committee (RPAC). NAR said it has had a longstanding practice of inviting sitting presidents to speak at its annual conferences and 10 have taken the trade group up on its offer.

Bob Olivieri said he was pleased that Congress extended the Federal Flood Insurance Program (NFIP) until Sept. 30 while he was there in Washington, D.C. While NFIP isn’t a household name, it’s often the only flood insurance available in a given market. That’s important, because if a property is in a 100-year floodplain, lenders will typically require flood insurance as part of the mortgage approval process. This isn’t just an issue for waterfront homes or homes in the direct path of hurricanes. Many homeowners in San Diego County who live near large storm drains or drainage channels are required to have flood insurance. More than 5 million homeowners in 22,000 communities nationwide rely on the NFIP to provide flood insurance.

“The one issue at the top of our list, the State and Local Tax Deduction (SALT), is supported by most of the U.S. representatives who we talked to,” said Bob. “The ideas being tossed around are doubling the present $10,000 deduction limit for married couples, raising it to $15,000, and doubling it for married couples or eliminating it all together, which is not probable. Also, we would like to see the SALT limit and deductible mortgage interest cap indexed to inflation. This has a lot of support and puts those limits in line with other limits in the tax code.”

Also, during the PSAR trip to Washington, D.C., the House passed by a vote of 236-173 the Equality Act, which would broaden the definition of protected classes to include sex, sexual orientation and gender identity to characteristics protected by the 1964 Civil Rights Act. NAR was a strong advocate for this bill which strengthens fair housing.

Sales of existing homes remained muted statewide in April with the start of the spring homebuying season, according to the latest housing market report for home sales and prices from the California Association of REALTORS® (C.A.R).

Existing home sales in California in April 2019 was 4.8 percent lower than in April 2018. By contrast, in San Diego County, our year-over-year existing home sales for April 2019 climbed by 2.4 percent since last year.

April’s statewide seasonally adjusted sales figure of 396,760 units was down 0.1 percent from the 397,210 level in March and down 4.8 percent from home sales in April 2018 of 416,750. Sales remained below the 400,000 level for the ninth consecutive month and have fallen on a year-over-year basis for a full year. The statewide annualized sales figure represents what would be the total number of homes sold during 2109 if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

“Weak buyer demand, largely prompted by elevated home prices, is playing a role in the softening housing market,” said C.A.R. President Jared Martin. “However, with low interest rates, cooling competition and an increase in homes to choose from, buyers can take advantage of a more balanced housing market.”  

Even as demand weakened and home sales stumbled, the statewide median home price set another record high in April, hitting $602,920 and surpassing the previous high of $602,760 set last summer. April’s price was up 6.5 percent from $565,880 in March and up 3.2 percent from a revised $584,460 in April 2018. The year-over-year price growth rate was the strongest since October 2018.

In San Diego County in April 2019, the median single-family home sales price of $649,000 was 4 percent higher than the $623,800 sales price compared to March 2019 and 2.2 percent higher than the $635,000 figure in April 2018.

“While we started off the spring homebuying season on a down note, home sales in the upcoming months may fare better than the top-level numbers suggest,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “The year-over-year sales decrease was the smallest in nine months, and pending home sales increased for the second straight month after declining for more than two years. While we don’t expect a sharp sales rebound, we also don’t expect an acceleration in declines.”

Other key points from the April 2019 resale housing report included:

-- The median number of days it took to sell a California single-family home is increasing. Time on market fell from 25 days in March to 21 days in April as the homebuying season got underway. However, it took a median number of 15 days to sell a home in April 2018. Meanwhile, in San Diego County, the median number of days a home remained unsold on the market stood at 17 days in April 2019, compared to 19 days in March 2019, 22 days in February 2019 and 11 days in April 2018.

-- The median home price increased from a year ago in all regions statewide except the San Francisco Bay Area. Of the entire, nine-county Northern California region, only Napa County posted an increase in April of 3.3 percent, while San Mateo, Santa Clara and Sonoma recorded the largest price declines of 9.5 percent, 7.7 percent and 5.8 percent, respectively.

-- Conversely, home prices rose on a year-to-year basis across Southern California, with the exception of Ventura County, which was down 2.3 percent. Price growth remains strongest in the Inland Empire, where homes are most affordable, with prices in both Riverside and San Bernardino counties increasing more than 5 percent.

-- Encouragingly, the growth in active listings from the year prior decelerated for the fourth straight month. The number of homes available for sale increased only 10.8 percent from last April, but still enough to provide a much-needed supply of homes for sale. The growth in active listings has fallen from more than 30 percent at the end of 2018 suggesting that the market is becoming more balanced, rather than experiencing a full-scale exodus of sellers in California.

-- The Unsold Inventory Index (UII), which is a ratio of inventory over sales, dipped on a month-to-month basis but edged up on a year-over-year basis. The Unsold Inventory Index was 3.4 months in April, down from 3.6 months in March but up from 3.2 months in April 2018. The index measures the number of months it would take to sell the supply of homes on the market at the current sales rate. The jump in the UII from a year ago can be attributed to the moderate sales decline and the sharp increase in active listings.

-- The 30-year, fixed-mortgage interest rate averaged 4.14 percent in April, down from 4.47 percent in April 2018, according to Freddie Mac. The five-year, adjustable mortgage interest rate increased in April to an average of 3.75 percent from 3.66 in April 2018.

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

-- According to CoreLogic real estate information service, the median price of a San Diego County home held steady in April, compared to the same month a year ago. The median price of a San Diego County home was $570,000 in April, the same as April 2018. In the past 12 months, the median hit a peak of $584,750 in August and a low of $532,000 in January. A total of 3,593 homes were sold in the county, down 3.4 percent from 3,718 during the same month a year ago. Still, that’s up from the past 11 months, which have seen an average drop of 12 percent.

-- A total of 20,074 new and resale houses and condos changed hands in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month, said CoreLogic. That was up 11.6 percent from 17,985 in March, and down 3.3 percent from 20,766 in April 2018.

-- According to the latest S&P CoreLogic Case-Shiller report, existing home price increases continue to slow both nationally and in San Diego County. The 20-city composite index checked in with a year-over-year gain of 2.7 percent in March, down from a year-over-year gain of 3 percent in February. San Diego County’s price increase only climbed 1.3 percent year-over-year in March. San Diego metro prices gains were the lowest in the nation for fourth month in a row on the 20-city index.

-- Nearly half of San Diego County’s largest working group are considering leaving in the next two years. Forty-four percent of the region’s working millennials said they are considering leaving, with the primary reason being housing costs, said a recent survey from the San Diego Regional Chamber Foundation. In partnership with the City of San Diego, Sempra Energy and others, the researchers interviewed 397 San Diego County working millennials for the report. The purpose of the study was to identify millennial working habits, and how employers could make their experience more satisfying. But, the chamber acknowledged the answers about leaving were among the most dramatic findings. Millennials, roughly ages 23 to 38, make up 39.7 percent of San Diego County’s workforce. It is followed by Generation X, 39 to 54 years old, at 31.6 percent, and baby boomers, 55 to 73 years old, at 22.1 percent.

-- San Diego posted the eighth largest population increase between July 1, 2017 and July 1, 2018, among cities with populations of 50,000 or more, according to the U.S. Census Bureau. During the 12-month period, the population of “America’s Finest City” grew by 11,549 people, a near 1 percent increase from the previous year. Phoenix saw the largest population increase in the country during the period, adding 25,288 people. San Diego was the only city in California to make the top 10 for largest population gains in the latest report, while Texas had four cities make the top 10. San Antonio and Fort Worth ranked second and third in population growth, rising by 20,824 and 19,552, respectively.

-- The personal income of residents in the San Diego metropolitan area grew by 2.3 percent, below the national average, from 2016 to 2017, said the Bureau of Economic Analysis. That was below the nationwide increase of 2.6 percent. Real personal income is a catch-all way of looking at how much money Americans earn in a year. Among the largest metro areas with a population of more than 2 million, New York-Newark residents had the biggest increase at 4.3 percent, and Los Angeles-Anaheim had the least at 1.6 percent.

-- San DiegoCounty's unadjusted unemployment rate dropped to an even three percent in April 2019, with both farm and nonfarm industries showing job gains, according to the California Employment Development Department (EDD). The April rate, down from a revised 3.6 percent in March and a tick below the April 2018 rate of 3.1 percent, is at its lowest point since May 2018. The educational and health services industry added 7,600 jobs from April 2018 to last month, the highest year-over-year gain of any industry. Government and manufacturing jobs each increased by more than 3,000 jobs. The trade, transportation and utilities industry showed the largest year-over-year job decrease, losing 2,800 jobs. The information and financial activities industries also lost 500 and 100 jobs, respectively.