SAN DIEGO HOME PRICES DROP TO $860K IN OCT., $899K IN SEPT.

Posted by Rick Griffin on Nov 18, 2022 5:20:00 PM

RISING INTEREST RATES DEPRESS HOME SALES, PRICES

Higher interest rates led to further decline in the California housing market in October 2022 as home sales hit their lowest level since February 2008 with the largest year-over-year decline since December 2007, outside the pandemic.

According to the latest home sales and price report from the California Association of REALTORS® (C.A.R.), year-to-date statewide home sales were down 18.5 percent in October 2022.

Also in October 2022, sales were down 10.4 percent on a monthly basis from 305,680 units sold in September 2022 and down 36.9 percent from a year ago in October 2021, when 434,170 homes were sold on an annualized basis.

Overall, statewide home sales have been on a downward trend for 16 straight months on a year-over-year basis. October 2022 was the third time in the last four months that sales dropped more than 30 percent from a year-ago level.

The monthly 10.4 percent sales decline in October 2022 was worse than the long-run average of +0.5 percent change recorded between September and October in the past 43 years.

Sales in all price segments continued to drop by 30 percent or more year-over-year, with the $750,000-$999,000 price segment declining the most at 40.8 percent. The high-end market ($1 million-$1,999,000) experienced the smallest sales drop at 34.1 percent.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 274,040 in October, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the October pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

In San Diego County, home sales dropped 40.7 percent in October 2022,  compared to a year ago in October 2021, and 15.6 percent lower in a month-over-month comparison with September 2022.

San Diego’s October 2022 year-over-year drop of 40.7 percent compares to September 2022’s year-over-year drop of 33.2 percent.

Home prices also continued declining statewide and locally.

California’s median home price declined 2.5 percent in October 2022 to $801,190 from the $821,680 price recorded in September 2022. The October 2022 price was a mere 0.3 percent higher than the $798,440 price recorded a year ago in October 2021 and was the smallest year-over-year price gain in 29 months. October 2022 marked the fifth consecutive month with a single-digit annual price increase.

With the average 30-year fixed mortgage rate expected to remain above 6.5 percent for the rest of the year, home prices are expected to moderate even further in the coming months as affordability will remain challenging.

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

October 2022 County Sales and Price Activity

In San Diego, the median sales price for an existing, single-family detached home in San Diego County declined 4.3 percent to $860,000 in October 2022, compared to $899,000 in September 2022. The October 2022 median price was 1.2 percent higher than the year-ago price of $850,000 in October 2021. The median is the price at which half of the homes sell for more and half for less.

“While October’s sales and price results were weaker than what we’ve experienced in the past couple of years and could slow further in the upcoming off-season, the market bottom could be in sight,” said 2023 C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “Homes are still selling relatively quickly at 23 days on the market, one in four homes is selling above list price due to limited inventory, and with median price growth remaining positive in four of the five price segments, home prices are holding up reasonably well.”

“Excluding the three-month pandemic lockdown period in spring 2020, October’s sales level was the lowest since February 2008. With pending sales showing a 50 percent drop from a year ago, we can expect additional tempering in housing demand in the coming months, as we previously forecasted,” said C.A.R. Vice President and Chief Economist Jordan Levine. “Home prices will also moderate further over the next several months as interest rates remain elevated in the near term and seasonal factors come into play.”

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

-- At the regional level, home sales continued to fall sharply from last year, with four of the five major regions falling more than 35 percent from last year. Southern California had the biggest annual drop in sales at 40.8 percent, as every county within the region experienced a sales decline of more than 30 percent in October.

-- At the county level, all but one California county recorded a year-over-year home sales decline in October, with 41 of them plunging more than 20 percent from the same period a year ago.

-- At the county level for home prices, more than half of all counties in California maintained positive year-over-year median-price growth in October 2022. Prices were up from last year by double-digits in eight counties in October 2022 compared to five counties in the prior month.

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

October 2022 County Unsold Inventory and Days on Market

-- Housing inventory in October 2022 in California rose on a month-to-month basis and year-to-year basis at the beginning of the fourth quarter. Many potential buyers continued to put their home-buying plans on hold. The statewide unsold inventory index increased to 3.3 months in October 2022 from 2.9 months recorded in September 2022 and from 1.8 months recorded a year ago in October 2021.

-- Housing supply in California increased in October 2022 in all price ranges by 75 percent or more overall from a year ago in October 2021. Inventory improved the most (88.2 percent) for homes priced from $500,000 to $749,000. Other inventory increases in percentages included 83.3 percent for homes priced from $750,000 to $999,000, 82.4 percent in the $1 million and up price range, and 75 percent in the sub-$500,000 price range.

-- In San Diego, the inventory of available homes for sale in October 2022 increased to 3.0 months, compared to 2.7 months in September 2022, and 1.5 months a year ago in October 2021. Other inventory figures in 2022 include 2.5 months in August, 3.1 months in July, 2.4 months in June, 1.9 months in May, 1.6 months in April and 1.4 months in March. 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 a California single-family home was 23 days in October 2022, compared to 22 days in September 2022, 19 days in August 2022 and 11 days in October 2021.

-- In San Diego, the median number of days it took to sell an existing, single-family home was 18 days in October 2022, compared to 19 days in September 2022 and nine days in October 2021. Other days-on-market figures in 2022 include 15 days in August, 10 days in July, eight days in June and seven days in May and April. The median represents a time when half the homes sell above it and half below it.

-- Once again, the statewide, sales-price-to-list-price ratio remained at below 100 percent. It was 97.3 percent in October 2022, compared to 97.7 percent in September 2022 and 98.4 percent in August 2022. A year ago in 2021, it was 101.5 percent in October, 101.9 percent in September and 102.8 percent in August. The sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its 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 6.90 percent in October, up from 3.07 percent in October 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 5.71 percent, compared to 2.54 percent in October 2021.

Topics: Brokers/Managers, Market Information

RISING INTEREST RATES DEPRESS HOME SALES, PRICES

Posted by Rick Griffin on Oct 20, 2022 9:29:00 AM

RISING INTEREST RATES DEPRESS HOME SALES, PRICES

Rapidly rising mortgage rates slowed home sales in September 2022 and continued the month-to-month declining trend that began in the spring, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.).

The question up for debate: How low will prices go while mortgage rates soar and demand wanes? Volatile mortgage rates, along with economic uneasiness and inflation, may prompt house hunters to rethink what they’re willing to pay here in the fall.

With mortgage rates rising and the average 30-year fixed-rate mortgage approaching 7 percent, home prices and sales are expected to continue dropping in the coming months as affordability remains a challenge.

The continuing price drop is a reversal from the pandemic era’s price boom. And keep in mind, the statewide median price is still up 42 percent from February 2020, which was the last month before COVID-19 upended the economy.

The September 2022 sales pace was down 2.5 percent on a monthly basis from 313,540 in August 2022 and down 30.2 percent from September 2021, when 438,190 homes were sold on an annualized basis.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 305,680 in September 2022, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the September 2022 pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Home sales have dipped for 15 straight months on a year-over-year basis. September 2022 was the second time in the last three months that sales have exceeded 30 percent from a year ago.

The monthly 2.5 percent sales decrease was worse than the long-run average of zero percent change recorded between an August and a September in the past 43 years.

September statewide sales in all price segments continued to drop by 25 percent or more year-over-year, with the sub-$300k price range falling the most at 36.7 percent. Sales of million-dollar homes fell by double-digits again for the fourth consecutive month, with the high-end market segment dipping 25.6 percent from the same month last year. 

In San Diego County, home sales dropped 33.2 percent in September 2022, compared to a year ago in September 2021, and 9.5 percent lower in a month-over-month comparison with August 2022. 

Statewide, the median single-family home price fell to $821,680 in September 2022, off 2.1 percent from the $839,460 price in August 2022, up 1.6 percent from the $808,890 price in September 2021, and down 8.7 percent from the $900,000 all-time high set in May 2022.

The statewide median home price continued to increase on a year-over-year basis in September, but the growth rate remained very mild compared to those observed earlier this year.

At an increase of 1.6 percent year-over-year, September 2022 marked the fourth consecutive month with a single-digit annual increase. The less-than-2-percent growth rate in the statewide median price was much lower than the 6-month average growth rate of 6.7 percent recorded between March 2022 and August 2022.

The 2.1 percent, the month-to-month decline in September 2022 was slightly lower than the long-run average of 1.8 percent decrease recorded between an August and a September over the past 43 years.

Locally, the median sales price for an existing, single-family detached home in San Diego County increased 1.6 percent to $899,000 in September 2022, compared to $885,000 in August 2021. The September 2022 median price was 5.8 percent higher than the year-ago price of $850,000 in September 2021. The median is the price at which half of the homes sell for more and half for less.

“With interest rates rising rapidly since the beginning of the year, buyers and sellers are having difficulties adapting to the market’s new normal,” said C.A.R. President Otto Catrina, a Bay Area real estate broker and REALTOR®. “As the market continues to evolve in the next 12-to-18 months, REALTORS® will be playing an ever-more important role as trusted advisors to guide their clients through the complicated buying and selling process and help them overcome their obstacles during these challenging times.”

“September’s sales and price declines reaffirm our forecast for next year,” said C.A.R. Vice President and Chief Economist Jordan Levine. “High inflationary pressures will keep mortgage rates elevated, which will reduce homebuyers’ purchasing power and depress housing affordability in the upcoming year. With borrowing costs remaining high in the next 12 months, a pull-back in sales and a downward adjustment in home prices are expected in 2023.” 

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

-- At the regional level, sales continued to fall sharply from last year, with four of the five major regions falling more than 25 percent from last year. Southern California had the biggest annual drop in sales at 32.6 percent, as every county within the region experienced a sales decline of more than 30 percent in September 2022.

-- All but three counties tracked by C.A.R. posted sales drops from a year ago. Of the counties that recorded sales drops from last September 2021, 45 of them fell more than 10 percent, and 36 counties plunged more than 20 percent from the same month last year.

-- Nearly two-thirds of all California counties experienced an increase in their median prices. Prices were up from last year by double-digits in five counties in September 2022, as compared to seven counties in the prior month.

-- Housing supply in California improved from a year ago and was unchanged in September 2022, compared to August 2022, despite a decline in housing demand. The statewide unsold inventory index was 2.9 months in both September 2022 and August 2022, while the figure was 1.9 months in September 2021.

-- In San Diego, the inventory of available homes for sale increased to 2.7 months in September 2022, compared to 2.5 months in August 2022, and 1.6 months a year ago in September 2021. Other inventory figures in 2022 include 3.1 months in July, 2.4 months in June, 1.9 months in May, 1.6 months in April, and 1.4 months in March. 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.

-- With closed sales dropping more than 25 percent and pending sales falling more than 40 percent, active listings have been staying on the market significantly longer, which contributed to a surge in for-sale properties by 51.5 percent in September 2022.

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

September 2022 County Sales and Price Activity
-- The median number of days it took to sell a California single-family home was 22 days in September 2022, 19 days in August 2022, and 10 days a year ago in September 2021.

-- In San Diego, the median number of days it took to sell an existing, single-family home was 19 days in September 2022, compared to 15 days in August 2022, 10 days in July 2022, 8 days in June 2022 and 7 days in May 2022 and April 2022.  A year ago, in September 2021, the figure was 9 days. The median represents a time when half the homes sell above it and half below it.

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

September 2022 County Unsold Inventory and Days on Market

-- The statewide, sales-price-to-list-price ratio was 97.7 percent in September 2022, similar to 98.4 percent in August 2022, which was below 100 percent for the second time since June 2022. The statewide sales-price-to-list-price ratio was 101.9 percent in September 2021 and 102.8 percent in August 2021. The sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio of 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 6.11 percent in September, up from 2.90 percent in September 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 4.87 percent, compared to 2.45 percent in September 2021.

Topics: Brokers/Managers, Market Information

HOME PRICES STABILIZING, SALES HIGHER

Posted by Rick Griffin on Sep 29, 2022 1:53:47 PM

HOME PRICES STABILIZING, SALES HIGHER

California’s housing market in August sees a notable increase in sales - a first in five months. Sales rebounded as home prices are stabilizing. 

For the first time in five months, California home sales increased in August 2022, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.). The increase in home sales in August was attributed to a brief retreat in mortgage rates that created a slightly more favorable lending environment.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 313,540 in August, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Statewide, the rate of home sales in August 2022 was up 6.1 percent in a monthly comparison with July 2022, when 295,460 homes were sold, and down 24.4 percent from a year ago in August 2021, when 414,860 homes were sold on an annualized basis.

The monthly sales increase for August 2022 was higher than the long-run average of 0.4 percent for July-August in the past 43 years and marked the first monthly sales increase in five months.

In San Diego County, home sales dropped 27.7 percent in August 2022, compared to a year ago in August 2021, but were up 16.3 percent in a month-over-month comparison from July 2022.

Statewide, home prices stabilized in August 2022 as the statewide median price increased on both a monthly and yearly basis, but at a less-than-2-percent growth pace.

The statewide median price edged up 0.7 percent in August 2022 to $839,460 from the $833,910 recorded in July 2022 and was up 1.4 percent from the $827,940 recorded a year ago in August 2021.

The year-over-year price gain was the smallest in more than two years. The nominal price increase was attributed partly to a change in the mix of sales in August. With sales in the million-dollar segment rising 6.8 percent from the prior month, the August 2022 statewide median price also pushed slightly by 0.7 percent from July 2022.

Locally, the median sales price for an existing, single-family detached home in San Diego County dropped in August 2022 to $885,000, a 4.8 percent decline from the $930,000 median price in July 2022. The August 2022 median price was still 6.0 percent higher than the year-ago price of $835,000 in August 2021. The median is the price at which half of the homes sell for more and half for less.

“California’s housing market stabilized briefly as a reprieve on mortgage rates in July and early August brought buyers into the market,” said C.A.R. President Otto Catrina, a Bay Area real estate broker, and REALTOR®. “Active listings have passed their annual peak, and while homes are taking slightly longer to sell, the share of homes seeing price reductions has also stabilized to near pre-pandemic levels. Price growth in August picked up on both a monthly and annual basis, and pending sales suggest a bounce-back for homes priced $2 million and above.”

“It’s encouraging to see that August’s sales pace rebounded above an annualized 300,000 units sold,” said C.A.R. Vice President and Chief Economist Jordan Levine. “Although we do not expect a rapid bounce-back because the Fed is expected to continue raising interest rates to get inflation under control, the monthly increase in closed and pending sales suggests that the market may have already priced in most of the rate increases to date. Still, buyers will continue to grapple with rising costs of borrowing, which will keep home sales below the 350,000 annualized pace for the remainder of the year.”

Other key points from C.A.R.’s August 2022 resale housing report included:

-- At the regional level, sales continued to fall sharply from last year, but the declines in August 2022 moderated slightly from the prior month. Southern California dropped 28.8 percent in a year-over-year comparison.

-- Forty-seven California counties experienced a year-over-year sales decline in August 2022, and 30 of them plunged more than 20 percent.

-- More than two-thirds of all California counties experienced a year-over-year increase in their median prices in August 2022, but their growth rates have been decelerating in the past three months.

-- Housing supply in California improved in August 2022 from a year ago but tightened slightly from July 2022, as housing demand rose in August. The statewide unsold inventory index decreased to 2.9 months in August 2022, compared to 3.2 months in July, but the figure was higher than 1.9 months a year ago in July 2022. Weaker demand continued to be the primary factor for the improvement in the index.

-- With both closed sales and pending sales slowing by more than 20 percent, active listings have been staying on the market longer, resulting in a year-over-year surge of 57.1 percent in homes for sale in August 202.

-- In San Diego, the inventory of available homes for sale dropped to 2.5 months in August 2022, compared to 3.1 months in July 2022, 2.4 months in June 2022, 1.9 months in May 2022, 1.6 months in April 2022, 1.4 months in March 2022 and 1.7 months in August 2021. 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.


-- Forty-seven of the 51 counties tracked by C.A.R. recorded an increase in active listings on a year-over-year basis in August 2022, a slight increase from July 2022’s 46 counties.

-- The median number of days it took to sell a California single-family home was 19 days in August 2022, 14 days in July 2022, and 9 days in August 2021.

-- In San Diego, the median number of days it took to sell an existing, single-family home was 15 days in August 2022, compared to 10 days in July 2022, 8 days in June 2022, 7 days in May 2022, and April 2022. A year ago, in August 2021, the figure was 8 days. The median represents a time when half the homes sell above it and half below it.

August 2022 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
blog_220923_chart1


-- The statewide sales-price-to-list-price ratio was 98.4 percent in August 2022, which was below 100 percent for the first time since June 2020. The statewide sales-price-to-list-price ratio was 102.8 percent in August 2021. The sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio of 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 is below the asking price.

-- The 30-year, fixed-mortgage interest rate averaged 5.22 percent in August, up from 2.84 percent in August 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 4.36 percent, compared to 2.42 percent in August 2021.

(Regional and condo sales data not seasonally adjusted)blog_220923_chart2

-- The statewide median sales-price-to-list-price ratio remained above 100 percent at 101.3 percent in Jun 2022, compared to 103.4 percent in May 2022, 104.2 percent in April 2022, 103.3 percent in March 2022, and 104.1 percent in June 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 5.52 percent in June, up from 2.98 percent in June 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 4.28 percent, compared to 2.56 percent in June 2021.

Topics: Brokers/Managers, Market Information

San Diego Home Sales Down 31% in July

Posted by Rick Griffin on Aug 3, 2022 10:00:00 AM

San Diego Home Sales Down 31% in July

Housing demand in California’s housing market cooled even further in July 2022, as the effects of rising interest rates and high home prices dragged down the efforts of would-be homebuyers, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.). Statewide home sales dropped below the annualized 300,000 benchmark for the first time since May 2020.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 295,460 in July, 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 2022 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Statewide, the rate of homes sales in July 2022 was down 14.4 percent on a monthly comparison with June 2022, when 344,970 homes were sold, and down 31.1 percent from a year ago in July 2021, when 428,980 homes were sold on an annualized basis.

July 2022 marked the fourth consecutive monthly decline and the 13th straight annual decline.

In San Diego County, home sales dropped 41.1 percent in July 2022, compared to a year ago in July 2021, and 21.4 percent decline in a month-over-month comparison from June 2022. July’s 41 percent year-over-year drop follows a 30.5 percent drop in June 2022, compared to June 2021.

Statewide, the median home price in July 2022 declined 3.5 percent to $833,910 from the $863,790 price recorded in June 2022. The July 2022 price was 2.8 percent higher than the $811,170 recorded in July 2021. The July 2022 price was the smallest year-over-year price gain in more than two years.

The price moderation is largely attributed to a change in the mix of sales in July, as million-dollar home sales plummeted nearly 25 percent from June.

In San Diego County, the median sales price for an existing, single-family detached home in San Diego County declined in July 2022 by $20,000, or 2.1 percent, to $930,000, compared to $950,000 in June 2022. The July 2022 median price was still 8.1 percent higher from the year-ago price of $860,000 in July 2021. The median is the price at which half of the homes sell for more and half for less.

“In the midst of the peak home-buying season, high home prices and rising interest rates depressed housing affordability to the lowest level in nearly 15 years, which in turn dampened home sales,” said C.A.R. President Otto Catrina, a Bay Area real estate broker and REALTOR®. “However, buying opportunities remain in the coming months for those who have been waiting on the sideline as more listings become available, competition continues to cool off and rates begin to stabilize.”

“Home sales have taken a trouncing as the market has shifted in response to the recent surge in interest rates, and pending sales suggest that the market could remain soft in August,” said C.A.R. Vice President and Chief Economist Jordan Levine. “The pace of sales declines is expected to slow in the coming months, however, as rates continue to stabilize, market volatility begins to subside and supply conditions further normalize.”

Other key points from C.A.R.’s July 2022 resale housing report included:

-- At the regional level, sales continued to decline sharply with three of the five major regions dropping more than 30 percent from last year. The Central Coast region experienced the biggest drop of all regions, with sales plummeting 37.3 percent from a year ago. The San Francisco Bay Area followed closely with the second-largest decline (-37.2 percent). Southern California also recorded a 36.9 percent drop from July 2021.

-- Nearly 80 percent of all California counties continued to record an increase in their median prices on a year-over-year basis. Price growth rates, however, were more moderate compared to a couple of months ago when the state set its new record high.

-- The overall supply conditions in California loosened again, with the statewide unsold inventory index rising from 1.9 months in July 2021 to 3.2 months in July 2022, the highest level since May 2020. The improvement in the index was primarily due to a pullback in demand.

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

July 2022 County Sales and Price Activity

-- In San Diego, the inventory of available homes for sale in July 2022 was 3.1 months, compared to 2.4 months in June 2022, 1.9 months in May 2022, 1.6 months in April 2022, and 1.4 months in March 2022 and 1.5 months in June 2022. 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.

-- Forty-six of the 51 counties tracked by C.A.R. registered a year-over-year increase in active listings in July, compared to 44 counties in June.

-- The median number of days it took to sell a California single-family home was 14 days in July and 8 days in July 2021.

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

July 2022 County Unsold Inventory and Days on Market

-- In San Diego, the median number of days it took to sell an existing, single-family home in July 2022 was 10 days, compared to 8 days in June 2022, 7 days in May 2022, and April 2022. A year ago, in July 2021, the figure was 7 days. The median represents a time when half the homes sell above it and half below it.

-- The 30-year, fixed-mortgage interest rate averaged 5.41 percent in July, up from 2.87 percent in July 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 4.29 percent, compared to 2.49 percent in July 2021.

Topics: Brokers/Managers, Market Information

MEDIAN HOME PRICES DECLINES $20K IN JUNE TO $950K

Posted by Rick Griffin on Jul 20, 2022 2:00:00 PM

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

California’s housing market in June 2022 continued to downshift as housing demand logged its biggest dip since May 2020, cooling to levels not seen in the past two years.

The latest home sales and price report from the California Association of REALTORS® (C.A.R.) also showed San Diego County’s home sales dropping 30.5 percent in June 2022, compared to June 2021, and a 6.4 percent decline from May 2022.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 344,970 in June 2022, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The sales pace in June 2022 was down 8.4 percent on a monthly comparison with May 2022 when 376,560 homes were sold and down 20.9 percent from a year ago in June 2021, when 436,020 homes were sold on an annualized basis. Home sales again dipped below the 400,000 level for the second time since June 2020.

Year-to-date statewide home sales were down 10.9 percent in June 2022.

Meanwhile, California’s median home price in June 2022 declined 4.0 percent to $863,790 from the revised record-high of $900,170 recorded in May 2022. The June 2022 price was 5.4 percent higher than the $819,630 recorded in June 2021.

In San Diego, the median price of a single-family home in June 2022 declined by $20,000, or 2.1 percent, to $950,000, compared to $970,000 in May 2022. The June 2022 median price was still 9.8 percent higher from the year-ago price of $865,000 in June 2021. The median is the price at which half of the homes sell for more and half for less.

The moderation in the median home price was due partly to a change in the mix of sales in June, as the high-end market started pulling back.

After increasing for four consecutive months, the share of million-dollar home sales dipped as sales in the higher-price segment dropped 8.3 percent from the prior month. Sales of homes priced at $2 million and higher plummeted 17.9 percent from May 2022. On the other hand, the sub-$500,000 market increased 2.1 percent on a month-to-month basis in June 2022.

Price moderation is expected to continue in July as sharp declines in pending sales in the upper-price segments may drag the statewide median price in the upcoming months.

“California’s housing market continues to moderate from the frenzied levels seen in the past two years, which is creating favorable conditions for buyers who lost offers or sat out during the fiercely competitive market,” said C.A.R. President Otto Catrina, a Bay Area real estate broker and REALTOR®. “With interest rates moving sideways in recent weeks and fewer homes now selling above listing price, prospective buyers have the rare opportunity to see more listings coming onto the market and face less competition that could force them to engage in a bidding war.” 

“Excluding the three-month pandemic lockdown period in 2020, June’s sales level was the lowest since April 2008. Pending sales data also suggests we can expect additional retreating in the coming months,” said C.A.R. Vice President and Chief Economist Jordan Levine. “With inflation remaining high and interest rates expected to climb further in the coming months, the market will normalize further in the second half of the year with softer sales and more moderate price growth.”

Other key points from C.A.R.’s June 2022 resale housing report included:

-- At the regional level, all major regions experienced double-digit declines in June 2022, compared to June 2021, with three of the five regions falling by more than 25 percent on a year-over-year basis. Southern California had the biggest drop of all regions, with sales plunging 27.1 percent from a year ago.

-- At the regional level, home prices in all major California regions increased in price from last year with the Central Coast leading the way at 10.1 percent increase, followed by Central Valley (10.0 percent) and Southern California (8.4 percent).

-- The overall supply conditions in California improved again in June 2022, with the statewide unsold inventory index rising to 2.5 months, the highest level in two years. The improvement in the index was partly due to an increase in supply and partly due to a pullback in demand. The June 2022 inventory level compared to 2.1 months in May 2022, 1.8 months in April 2022, 1.7 months in March 2022 and 1.7 months in June 2021.

-- In San Diego, the inventory of available homes for sale in June 2022 was 2.4 months, compared to 1.9 months in May 2022, 1.6 months in April 2022, 1.4 months in March 2022 and 1.5 months in June 2022. 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.

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

June 2022 County Sales and Price Activity

-- With both closed sales and pending sales slowing by more than 20 percent, total active listings surged 64.4 percent in June 2022, the largest year-over-year growth in more than seven years. Active listings in June 2022 also climbed to the highest level since November 2019, with a month-to-month increase of 28.8 percent from May.

-- The median number of days it took to sell a California single-family home was 11 days in June 2022, compared to 9 days in May 2022 and 8 days in June 2022.

-- In San Diego, the median number of days it took to sell an existing, single-family home in June 2022 was 8 days, compared to 7 days in May 2022 and April 2022. A year ago, in June 2021, the figure was 6 days. The median represents a time when half the homes sell above it and half below it.

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

June 2022 County Unsold Inventory and Days on Market

-- The statewide median sales-price-to-list-price ratio remained above 100 percent at 101.3 percent in Jun 2022, compared to 103.4 percent in May 2022, 104.2 percent in April 2022, 103.3 percent in March 2022 and 104.1 percent in June 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 5.52 percent in June, up from 2.98 percent in June 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 4.28 percent, compared to 2.56 percent in June 2021.

Topics: Brokers/Managers, Market Information

PRICES SET ANOTHER RECORD AS RATES CONTINUE RISING

Posted by Rick Griffin on Jun 17, 2022 10:00:00 AM

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

California’s housing market in May 2022 started showing signs of shifting to a more balanced market due to mortgage rates surpassing 5 percent for the first time since April 2010, leading to the lowest sales level since June 2020 and the largest year-over-year decline in five months.

The latest home sales and price report from the California Association of REALTORS® (C.A.R.) also showed San Diego County’s home sales dropping 13.9 percent in May 2022, compared to May 2021, and a 4.6 percent decline from April 2022.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 377,790 in May, according to information collected by C.A.R. from 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Statewide, May 2022’s sales pace was down 9.8 percent on a monthly basis compared to 419,040 in April 2022 and down 15.2 percent from May 2021, when 445,660 homes were sold on an annualized basis. Home sales dipped below the 400,000 level for the first time since June 2020.

While public health concerns and market uncertainty were the triggering factors that resulted in the sales decline two years ago, tight supply and the higher cost of borrowing is believed to be responsible for the near double-digit decline this time around. 

The statewide median home price in May 2022 set another record at $898,980, surpassing the record set in April 2022 of $884,890. The May 2022 price was 1.6 percent higher than the April 2022 median price and 9.9 percent higher than the $818,260 recorded last May 2021.

The higher prices can largely be attributed to the mix of sales with the high-end market, which continues to outperform the more affordable market segments. The share of million-dollar home sales in May 2022 increased for the fourth straight month and reached the highest level on record at 35.3 percent, while home sales priced below $500,000 dipped again in May 2022 and hit the lowest level of all time.

Home prices could be leveling off as the monthly gain in price appears to be moderating. The month-over-month increase of 1.6 percent for the May 2022 median home price was still higher but only slightly above the long run average of 1.1 percent recorded between April 2022 and May 2022 in the last 43 years.

The median price of a single-family home in San Diego declined a mere $5,000, or 0.5 percent, to $970,000 in May 2022 from $975,000 in April 2022. The May 2022 median price was still 14.0 percent higher from the year-ago price of $851,000 in May 2021, marking an increase of nearly $150,000 in one year. The median represents a price where half of the homes sell above and half below.

“We’re beginning to see signs of a more balanced housing market with fewer homes selling above list price and homes remaining on the market a little longer than in previous months,” said C.A.R. President Otto Catrina, a Bay Area real estate broker, and REALTOR®. “What this tells us is that there is slightly more supply, fewer- and less-intense bidding wars, and those who've experienced ‘buyers' fatigue’ may now have a window of opportunity.” 

“Pending home sales declined 30.6 percent in May, the biggest drop since the first month of the pandemic, likely due to eroding affordability, rising mortgage rates and home prices, and the increased risk of a recession,” said C.A.R. Vice President and Chief Economist Jordan Levine. “The combined effect of the aforementioned factors resulted in a record increase in the average monthly mortgage payment to a typical home by more than 40 percent in May. With the Fed expected to raise rates further in the second half of the year, the 30-year fixed-rate mortgage could surge past 6 percent by year's end and lead to more affordability challenges for potential homebuyers.”

Other key points from C.A.R.’s May 2022 resale housing report included:

-- At the regional level, all major regions declined in sales from last year, with four of the five regions falling by double-digits on a year-over-year basis. Compared to the pre-pandemic average calculated using sales from May 2017, May 2018, and May 2019, the Southern California region’s sales were also down 19.8 percent in May 2022.

-- At the regional level, home prices in all major California regions increased in price from last year by more than 10 percent, with the Far North and Southern California setting new record medians in May. The Far North also had the highest year-over-year growth in price with a surge of 16.4 percent, followed by the Central Valley (12.4 percent), the San Francisco Bay Area (12.3 percent), Southern California (11.9 percent), and the Central Coast (10.6 percent).

-- California’s unsold inventory of homes improved in May 2022 to 2.1 months, compared to 1.8 months in April 2022, 1.7 months in March 2022, and 1.8 months in May 2021.

-- With both closed sales and pending sales slowing by double-digits, total active listings experienced a gain of 46.7 percent in May 2022, the largest year-over-year growth in at least the last 89 months. Active listings in May 2022 also climbed to the highest level since July 2020 and had a month-to-month increase of 26.4 percent from April 2022.

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

-- In San Diego, the inventory of available homes for sale in May 2022 was 1.9 months, compared to 1.6 months in April 2022, 1.4 months in March 2022 and 1.6 months in May 2021. 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 a California single-family home was 9 days in May 2022 and 7 days in May 2021.

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

-- In San Diego, the median number of days it took to sell an existing, single-family home in May 2022 was 7 days, which was the same number in April 2022 and May 2021. The median represents a time when half the homes sell above it and half below it.

-- The statewide median sales-price-to-list-price ratio remained above 100 percent at 103.4 percent in May 2022, compared to 104.2 percent in April 2022, 103.3 percent in March 2022, and 103.8 percent in May 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 5.23 percent in May, up from 2.96 percent in May 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 4.06 percent, compared to 2.62 percent in May 2021.

Topics: Brokers/Managers, Market Information

PSAR Members Made Their Voices Heard

Posted by Communications on May 20, 2022 3:36:05 PM

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Members of the Pacific Southwest Association of REALTORS® (PSAR) made a powerful statement for property rights on behalf of housing providers while attending a recent Chula Vista City Council meeting where the subject of a new rent control ordinance was on the docket.

The City Council was considering an aggressive and overreaching ordinance that imposes additional regulations on housing providers. The controversial proposal, if passed, would negatively impact new housing creation by tightening restrictions on remodeling, owner move-ins and rental unit withdrawals, as well as expanding noticing and relocation assistance requirements.

Following over five hours of public comments, including testimony from many PSAR members, the City Council tabled a vote on the proposed ordinance, titled the “Residential Landlord and Tenant Provisions.” The Council stated that more data on the topic and potential language revisions are needed.

The actions taken by PSAR members were considered invaluable in the successful effort to prevent the Council from implementing an ordinance that would exacerbate the housing crisis. A revised version of the ordinance is expected to be considered by the City Council at a July 12 session.

Among the PSAR members who spoke at the May 17 city council meeting: Pat Russiano, Mike Campbell, Mark Scott, Nikki Coppa, Rich D'Ascoli, Yvonne Cromer, Robert Cromer, Mitch Thompson, George Ching, Eric Sutton, Peter Carlseen, Sam Calvano, Lupe Soto, Earl Jentz, Myllissa McCann and Josh Morales.

Richard D’Ascoli, PSAR CEO, stated in his testimony, “Most housing providers and owners are good people and most renters are good people. This extreme ordinance will punish every homeowner who may want to rent out a home and every renter who can’t find a place to rent.”

D’Ascoli cited a city staff report that included information from the Legal Aid Society of San Diego. According to the data, “no-fault” eviction disputes involve fewer than .27 percent of the 33,000 rental homes in Chula Vista annually, pointing to a much smaller issue.

The number of evictions totaled 13 in March, three in February, and seven in January. “Shouldn’t we help those 13 households rather than impact 33,000 rental units?” D’Ascoli asked. “Most housing providers are good actors, it’s the few we need to address. Let’s focus on them and not punish the entire city.”

D’Ascoli identified the long-term ramifications of the proposed ordinance: “Rent control and similar market restrictions will discourage the creation, maintenance, and upgrade of rental housing stock. This ordinance will discourage additional rehab and negatively impact the low-income renters the provisions were intended to serve. This ordinance also will reduce the value of properties in Chula Vista, compared to similar properties in other cities. Prudent property owners will choose to buy or build in areas with less cost and regulatory risk.

“Chula Vista will stagnate as the incentive to replacing aging, smaller complexes with upgraded, more dense buildings will no longer exist. Owners of single-family rental homes will either sell to national real estate investment trusts or they will sell to new owner-occupants. Available rental stock will decrease. Prices for renters will increase because supply will continue to be highly restricted. Also worrisome is the provision that anyone who violates any part of this law could be charged with a crime and sent to jail for up to six months.”

Other speakers from PSAR made the following points:

-- Burdensome regulations will result in less available housing, not more. This ordinance adds to the regulatory burden.
-- Provisions in the ordinance meant to prevent harassment of tenants would deter property owners from dealing with nuisance tenants.
-- Added renovation regulations would deter owners from upgrading rental properties, thus hurting tenants and surrounding neighborhoods.
-- The ordinance would create new, vague “anti-harassment” rules regulating landlord-tenant interaction, expanded notification requirements of up to 365 days, and higher relocation payments.
-- Landlords would be required to offer evicted renters, even if those renters caused property damage, the first right of refusal to move back in after a renovation.
-- The state of California recently enacted protections for tenants with AB 1482. That law provides sufficient regulation of landlord-tenant relationships.

Coalition partners with PSAR on the proposed Chula Vista ordinance included the Southern California Rental Housing Association (SCRHA) and the San Diego Association of REALTORS® (SDAR).

More Articles and News Coverage

Renters, Landlords at Odds Over Proposed No-Fault Eviction Proposal - Mitch Thompson shows new appliances as part of remodeling efforts. KPBS-TV, 05/17/2022.

Chula Vista City Council Postpones Eviction Moratorium Protection Vote - No decision after more than five hours of public comments and postponement until July 12. KPBS-TV, 05/18/2022.

Chula Vista City Council Considers Controversial Tenant Protection Ordinance - PSAR board member Jason Lopez explains the proposal is a solution looking for a problem. KUSI-TV, 05/18/2022.

Chula Vista Considers Ordinance Strengthening Protections for Tenants - PSAR 2022 President Max Zaker and PSAR member Mitch Thompson tell NBC 7 how the proposal would actually hurt tenants. KNSD-TV NBC 7 San Diego, 05/16/2022.

Chula Vista Council Hears from Over 50 Speakers - The meeting lasted for hours as landlords say the proposed ordinance would force them to sell their propertiesKGTV-TV 10News, 05/17/2022.

Decision Postponed on Controversial Renters' Protections - Quote from PSAR CEO Rich D'Ascoli: "...An ordinance that is overreaching..." KFMB-TV, CBS8, 05/18/2022.

 

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

No Surprise: Rising Interest Rates, Climbing Home Prices

Posted by Rick Griffin on May 18, 2022 10:30:00 AM

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

California home sales retreated slightly in April 2022 even as interest rates rose and the statewide median home price set another record, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.).

The statewide median home price in April 2022 was $884,890, up 4.2 percent from the March 2022 price of $849,080 and up 8.7 percent from the April 2021 price of $814,010. The April 2022 statewide median home price set another record, surpassing the previous record set in March 2022.

The year-over-year increase was the smallest since June 2020, but it was strong enough to establish a new peak price for the state. The month-to-month percent change was higher than the long-run average of 2.3 percent recorded between the months of March and April over the last 43 years. 

In San Diego in April 2022, the median home price approached the $1 million mark. The April 2022 median home price was $975,000, a 2.6 percent increase from the $950,000 price in March 2022 and 8.2 percent higher from the year-ago price of $825,120 in April 2021, marking an increase of about $150,000 in one year. The median represents a price where half the homes sell above and half below.

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

April 2022 County Sales and Price Activity

Home sales in April 2022 on a statewide basis were down 1.9 percent compared to March 2022, when 426,970 homes were sold, and down 8.5 percent from a year ago in April 2021, when 458,170 homes were sold on an annual basis.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally-adjusted annualized rate of 419,040 in April 2022, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The month-to-month April sales decline is in line with the long-run change of minus 1.6 percent recorded between March and April. However, the annual statewide sales drop between April 2022 and April 2021 was the biggest decline in the past four months. On a year-to-date basis, home sales were down 7.4 percent in April 2022.

In San Diego, home sales in April 2022 were lower in month-over-month and year-over-year comparisons. San Diego home sales in April 2022 were down 1.3 percent, compared to March 2022, and down 12.6 percent compared to a year ago in April 2021.

“As rates remain on the rise, the sense of urgency to buy is keeping the market highly competitive, especially since housing inventory continues to stay well below pre-pandemic levels,” said C.A.R. President Otto Catrina, a Bay Area real estate broker and REALTOR®. “While we will likely see more listings come on to the market as we move further into the home-buying season, the housing shortage issue will likely persist throughout the rest of the year in major metropolitan areas, such as the Bay Area and the Southern California region.” 

“California’s housing market is moderating from the 12-year-high levels experienced in 2021, as higher mortgage interest rates and soaring home prices are starting to have an adverse impact on housing demand,” said C.A.R. Vice President and Chief Economist Jordan Levine. “With April pending home sales recording the worst drop in two years, the affordability challenges that buyers have been encountering are materializing in recent sales trends, and further declines in housing demand could continue in the second half of the year.”

A change in the mix of sales continues to play a role in statewide record-setting home prices as sales in high-priced markets remain stronger than their more affordable counterparts. The share of million-dollar home sales increased for the third consecutive month, reaching the highest level on record at 34.7 percent.

Meanwhile, home sales priced below $500,000 dipped again in April and hit the lowest level ever. Sales dropped by double-digits for price segments $750,000 and below, while sales above $2 million remained on the rise on a year-over-year basis. The shift in the mix of sales toward high-end homes is expected to persist in the upcoming months. 

Other key points from C.A.R.’s April 2022 resale housing report included:

-- At the regional level, home sales in all major California regions declined from a year ago, with three of the five regions falling by double-digits on a year-over-year basis. The San Francisco Bay Area (-18.1 percent) and Southern California (-16.0 percent) were two major regions with sales declines exceeding 10 percent from a year ago.

-- Home prices in all major regions in the state surged from last year by double digits. The San Francisco Bay Area recorded the highest year-over-year price growth with an increase of 15.9 percent, followed by the Central Valley (14.9 percent), the Central Coast (13.4 percent) and Southern California (11.7 percent).

-- At the county level, home prices continued to rise across the state, with 26 counties in California setting new record median highs in April 2022.

-- California’s unsold inventory of homes improved slightly in April 2022 at 1.8 months, compared to 1.7 months in March 2022 and 1.6 months in April 2021. The number of active listings surged more than 20 percent on a year-over-year basis and recorded the highest yearly growth in properties for sale since January 2019. Active listings in April climbed to the highest level in seven months.

-- In San Diego, the inventory of available homes for sales in April 2022 was 1.6 months, compared to 1.4 months in March 2022, 1.5 months in February 2022 and January 2022 and 1.5 months in April 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. 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.

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

April 2022 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 April 2022 was 7 days, compared to 7 days in March and February 2022, 9 days in January 2022 and 6 days in April 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 April 2022 was 8 days, compared to 8 days in March 2022, 9 days in February 2022, 12 days in January 2022 and 7 days in April 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 104.2 percent in April 2022, compared to 103.3 percent in March 2022, 102.6 percent in February 2022 and 103.3 percent in April 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 4.98 percent in April, up from 3.06 percent in April 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 3.70 percent, compared to 2.81 percent in April 2021.

Topics: Brokers/Managers, Market Information

CHULA VISTA ORDINANCE WOULD MAKE THE HOUSING CRISIS WORSE

Posted by Communications on May 16, 2022 1:00:00 PM

There is a critical shortage of housing inventory. An excessive amount of red tape helped cause that shortage. Now, the City of Chula Vista is considering additional regulations on Housing Providers.

The proposed "Residential Landlord and Tenant Provisions" will impose the following:

  • Regulations that make substantial remodels, owner move-ins, and withdrawal from the rental market more difficult by adding stricter noticing requirements and relocation assistance requirements.
  • The creation of laws that allows for civil action and damages of $1,000-5,000 per violation per day.
  • The criminalization of any violation of the ordinance and the creation of fines in the thousands of dollars.

Mayor Mary Salas requested the creation of this ordinance in response to calls from tenant and rent control advocates. Unfortunately, the unintended consequences of this ordinance would end up harming tenants as well.

The unintended consequences of this ordinance will include the following:

  • The added difficulties of being a housing provider in Chula Vista will discourage the creation of much needed additional housing. This will hurt all of us, including those who would have a much harder time finding a place to rent. 
  • The added difficulties of undertaking substantial renovations would deter owners from upgrading unsightly buildings. This hurts the tenants who would live there and the livability of the surrounding communities. 
  • Provisions in the ordinance meant to prevent harassment of tenants would actually deter property owners from dealing with tenants who cause nuisances. This would hurt the tenants and all neighbors who live nearby and would have to deal with the nuisances.


It is well established that when you add regulation to something, you get less of it. We need more housing, not less. The State of California has recently enacted protections for tenants by enacting AB 1482. If there are problems for tenants, the City could focus on finding better ways to enforce existing laws, rather than adding more regulations that will negatively impact our already scarce housing supply.

Please send an eComment to the City stating your opposition to this misguided ordinance by clicking on the button below, and then clicking on the "Leave Comment" button:

TAKE ACTION

 

 

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Not sure which Councilmember represents your neighborhood?  See below.

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

City of San Diego’s ‘No-Fault Eviction' Moratorium.

Posted by Communications on Apr 13, 2022 4:44:00 PM

Questions remain about the City of San Diego’s pending ‘No-Fault Eviction' Moratorium.

On April 4th, after almost six hours of public testimony which included comments from PSAR volunteers and members, the city council passed the ‘No-Fault Eviction' Moratorium ordinance. The ordinance must come back for a second reading a month after the first reading and will go into effect 30 days after final approval.


Thanks to the efforts of PSAR and our colleagues, the original ordinance was amended to include an end date or sunset on September 30, 2022 (or 60 days after the end of the local emergency) whichever is sooner.  Realtors are wondering about how this ordinance will impact property owners who want to sell.

  • No termination of tenancy is allowed for a substantial remodel unless mandated by the government or court order.
  • Owners who wish to move into their homes or move in family members will have to serve a 90-day notice to terminate the tenancy. An immediate family member is limited to a parent, child, grandparent, and grandchild.

Property owners who wish to terminate a tenancy in order to withdraw units from the rental market, this includes selling a home, must provide a 6-month notice.

The ordinance is likely to receive final approval next month and it will cause unintended consequences. Additionally, some of the language is vague and confusing. Once the ordinance is finalized, PSAR will schedule legal counsel to brief our members on its impact. PSAR will continue to review the ordinance and is prepared to challenge it again at the second reading.

Before working with a client to terminate a tenancy, it is important to speak with your broker and legal counsel. This ordinance will put many owners in difficult positions.

A copy of the proposed ordinance may be found here.

This web page item #200 has links to the PowerPoint and backup information for a deeper dive.

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