California’s housing market continued to maintain a healthy sales pace in October 2021, above pre-pandemic levels and even as sales dipped from 2020. While prices leveled off, low mortgage rates are continuing to provide support, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.).

Closed escrow sales of existing, single-family detached homes statewide on a seasonally adjusted annualized rate dipped 0.9 percent on a monthly basis in October 2021 to 434,170, compared to 438,190 in September 2021, and down 10.4 percent from a year ago in October 2020, when 484,510 homes were sold on an annualized basis. The statewide annualized sales figure, collected from more than 90 local REALTOR® associations and MLSs statewide, represents what would be the total number of homes sold during 2021 if sales maintained the October pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

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

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

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

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

It was the second consecutive month for a statewide, month-to-month price decline. However, the price drop between September and October 2021 was on par with the 1.5 percent average decline over the past 42 years.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The 15 members include:

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

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

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

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

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

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

_______________________________________

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

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

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

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

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

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

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

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

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

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

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

_______________________________________

The California housing market’s home sales activity rebounded in September 2021, reversing a four-month decline. It was the state’s largest monthly increase in more than a year, according to the latest home sales and price report from the California Association of REALTORS^® (C.A.R.).

Closed escrow sales of existing, single-family detached homes statewide on a seasonally adjusted annualized rate were up 5.6 percent to 438,190 in September 2021, compared to 414,860 in August 2021 and down 10.5 percent from a year ago in September 2020, when 489,590 homes were sold on an annualized basis. The statewide annualized sales figure, collected from more than 90 local REALTOR^® associations and MLSs statewide, represents what would be the total number of homes sold during 2021 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The month-to-month increase from August to September 2021 was the largest since August 2020. In addition, statewide sales maintained a 16.8 percent increase on a year-to-date basis.

In San Diego, home sales in September 2021 declined 2.1 percent, compared to August 2021, and were 10.4 percent lower than September 2020.

Meanwhile, California’s median home price declined to $808,890, down 2.3 percent from $827,940 in August, when a record price was set. The September price was 13.5 percent higher than the $712,430 recorded last September. The median price in California remained above the $800,000 benchmark for the sixth consecutive month but the double-digit, year-over-year price gain was the smallest in 14 months.

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

A change in the mix of sales, once again, played a role in the change in the statewide median price, as the sales share of million-dollar continued to shrink on a month-to-month basis, and prices in the high-end market increased at a slower pace than the low-end market over the past two months.

In San Diego, home prices continued to soar with the median price for a single-family detached home in September 20201 was $850,000, which was 1.8 percent higher than the August 2021 price of $835,000, and 15.6 percent higher than a year ago when the price in September 2020 was $735,000.

“As we move into the off-homebuying season, we should see market competition easing and home prices moderating, giving those who waited out the highly competitive market earlier this year an opportunity to revisit buying,” said C.A.R. President Dave Walsh. “Interest rates are expected to remain low and the availability of homes for sale should improve, which should boost homebuying interest and spur sales.”

“With the economic recovery remaining on course but progressing at a pace slower than anticipated, rates are expected to rise modestly in the next few months but will remain low,” said C.A.R. Vice President and Chief Economist Jordan Levine. “While statewide home sales are expected to dip slightly next year according to our latest forecast, housing demand will remain solid and post the second-highest level of sales in the past five years. The market will stay competitive in 2022 as the normalization continues, and home prices will remain elevated.”

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

-- At the regional level, sales in all five major regions dipped on a year-over-year basis in September. All but 10 of 51 counties posted a year-over-year decrease in closed sales in September.

-- Median prices in all major regions continued to grow on a year-over-year basis. The San Francisco Bay Area had the largest jump (21.7 percent) of all regions, followed by the Central Valley (15.4 percent), Southern California (15.0 percent), the Central Coast (5.8 percent), and the Far North (5.7 percent).

-- Home prices continued to exhibit strong growth from last year, with 44 out of 51 counties showing a year-over-year gain from 12 months ago, and 38 of them increased more than 10 percent from last September.

-- California’s housing supply leveled off in September as the market transitioned into the off-season. Orange County had a 46.3 decline in active listings. The dip in new active listings could be due to seasonality.

-- Market competitiveness cooled slightly in September. Six out of 10 homes (62.2 percent) sold above asking price, but it was the lowest level since February 2021. Still, September was the 12th consecutive month since September 2020 that more than half of the homes sold above asking price. In August 2021, 67 percent of homes sold above asking price. In July 2021, 70 percent of homes sold above their asking price.

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

-- Statewide, the unsold inventory of available homes for sale was unchanged at 1.9 months for September, August, and July, and slightly below the September 2020 level of 2.0 months. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell out given the current rate of sales.

-- In San Diego County, the inventory of available homes for sale in September 2021 was 1.6 months, compared to 1.7 months in August 2021 and July 2021, as well as September 2020.

-- The median number of days it took to sell a California single-family home in September 2021 was 10 days, which compares to nine days in August 2021 and 11 days in September 2020. The 10-day figure compares to eight days in July and June and seven days in May and April. Before setting record low numbers this year, the previous statewide record was nine days in November 2020.

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

-- The 30-year, fixed-mortgage interest rate averaged 2.90 percent in September, up from 2.89 percent in September 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.45 percent, compared to 2.98 percent in September 2020.

Housing demand tempered for the fourth consecutive month in August, even while the statewide median home price set another record high.

The California real estate market continued its return to more normal conditions, prior to COVID-19, according to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.).

Closed escrow sales of existing, single-family detached homes statewide on a seasonally adjusted annualized rate were down 3.3 percent on a monthly basis from 414,860 in August to 428,980 in July, and down 10.9 percent from a year ago, when 465,400 homes were sold on an annualized basis. The statewide annualized sales figure, collected from more than 90 local REALTOR® associations and MLSs statewide, represents what would be the total number of homes sold during 2021 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

August’s statewide sales level was the lowest in 14 months. Despite the monthly and annual sales drop, California home sales remained strong by pre-pandemic standards, maintaining a solid year-to-date increase of 21.3 percent statewide.

In San Diego, home sales in August 2021 declined 5.1 percent compared to July 2021, and 1.6 percent lower than August 2020.

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

After taking a breather in July, California’s median home price set a new record in August 2021 at $827,940 which was the fifth record set in the past six months. The August 2021 price was 2.1 percent higher than the $811,170 recorded in July 2021 and 17.1 percent higher than the $706,900 recorded in August 2020. The median price in California remained above the $800,000 benchmark for the fifth consecutive month.

In San Diego, the median price for a single-family detached home in August 2021 was $835,000, which was 2.9 percent lower than the July 2021 price of $860,000, but 14 percent higher compared to the August 2021 price of $732,560.

“The normalizing market and modestly improving housing inventory in the past few months have created an opportunity for homebuyers who sat out the highly competitive housing market seen over much of the past year,” said C.A.R. President Dave Walsh. “With the highest level of active listings in nearly a year, interest rates expected to stay consistently low, and a dip in multiple offers, now is a good time for discouraged buyers to get back into the game.”

 “While home sales at the lower end of the market are underperforming due to a lack of supply and the economic uncertainty induced by the COVID resurgence, the higher-priced segments continue to see double-digit sales growth that’s keeping the overall market from moderating too fast,” said C.A.R. Vice President and Chief Economist Jordan Levine. “With interest rates expected to stay low for the rest of the year, sales in California will remain solid by pre-pandemic standards while price growth will likely ease further in the coming months.”

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

-- At the regional level, sales in three of the five major regions dipped a year ago. Southern California (-4.1 percent) and Central Valley (-2.0 percent) experienced a sales drop from last year. Riverside (-13.6 percent), San Bernardino (-15.6 percent), Madera (-32.7 percent), and Placer (-13.5 percent) are a few counties that fell by double-digits in August. 

-- Nearly three-quarters of all counties, 37 of 51, posted year-over-year decreases in closed sales in August, with 23 counties declining by more than 10 percent from last year. 

-- Median prices in all major regions continued to increase by double-digits. The Far North had the largest jump (19.1 percent) year-over-year, followed by Southern California (18.8 percent), San Francisco Bay area (18.4 percent), Central Valley (16.9 percent), and Central Coast (11.4 percent). Despite the strong price growth rates, all regions decelerated from a few months ago, when regional median prices surged by more than 20 percent year-over-year.

-- After increasing for the past six consecutive months, California’s housing supply leveled off in August as the market transitioned into the off-season. The number of for-sale properties dipped slightly by 2.6 percent between August and July of this year and a 10.9 percent decline from August 2020. The year-over-year decline was the smallest in two years.

-- New active listings in August 2021 dipped from a year ago for the second straight month after increasing for four straight months from March through June. The dip in new active listings could be due to seasonality but the surge in COVID cases also may have played a role.

-- The imbalance between supply and demand continued to heat up the market, with many buyers offering sales bids over the asking price. In August 2021, 67 percent of homes sold above their asking price, making it the 11th consecutive month since September 2020 that more than half of homes sold above their asking price. In July 2021, 70 percent of homes sold above their asking price.

-- Statewide, the unsold inventory of available homes for sale was unchanged at 1.9 months for both August and July, and slightly below the August 2020 level of 2.1 months. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell out given the current rate of sales.

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

-- In San Diego County, the inventory of available homes for sale in August 2021 was unchanged from July 2021 at 1.7 months for both months, but slightly below the August 2020 level of 1.9 months.

-- The median number of days it took to sell a California single-family home inched up from eight days in July to nine days in August but was lower from 13 days in August 2020. The nine-day figure compares to eight days in June and seven days in May and April. Prior to setting record low numbers this year, the previous statewide record was nine days in November 2020.

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

-- The 30-year, fixed-mortgage interest rate averaged 2.84 percent in August, down from 2.94 percent in August 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.42 percent, compared to 2.91 percent in August 2020.

As a follow-up from white-hot conditions in both home sales and prices, the California housing market moderated for the third straight month in July.

Both home sales and prices have tempered from the heated market conditions seen over the past year, according to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.).

Closed escrow sales of existing, single-family detached homes statewide on a seasonally adjusted annualized rate were dipped 1.6 percent in July 2021, when 428,980 homes were sold, compared to the previous month of June 2021 when 436,020 homes were sold. July 2021 statewide home sales also were down 2 percent from July 2020, when 437,890 homes were sold on an annualized basis. The statewide annualized sales figure, collected from more than 90 local REALTOR® associations and MLSs statewide, represents what would be the total number of homes sold during 2021 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Despite the slight decline, July’s statewide sale total was the second highest for a July in the past six years. Also, the state’s home sales pace maintained a solid year-to-date increase of 27.3 percent.

In San Diego, home sales in July 2021 were 7.4 percent lower compared to June 2021, but 1.4 percent higher than July 2020.

Home prices also remained at moderate levels in July 2021.

After setting record highs for the past four consecutive months, California’s median home price slipped 1 percent on a month-to-month basis to $811,170 in July 2021, down from June 2021’s $819,630 and up 21.7 percent from the $666,320 recorded last July 2020. The median price in California remained above the $800,000 benchmark for the fourth consecutive month.

In San Diego, the median price for a single-family detached home in July 2021 was $860,000, which was $5,000 or 0.6 percent lower than the June 2021 price of $865,000, but 19.6 percent higher compared to the July 2020 price of $719,000.

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

“The California housing market continues to normalize from the white-hot conditions we experienced at the height of the pandemic with both sales and prices moderating as we slowly transition from the peak home-buying season into the fall,” said C.A.R. President Dave Walsh. “The market remains solid, however, as sales were still the second highest level for a July in the last six years, and the statewide median price continues to perform above last year’s level by double-digits. Housing supply, while improved, remains tight and market competition is still heated with homes flying off the market in record time.”

“Despite dipping slightly from its record peak set in June, California’s median price remains elevated as supply constraints continue to provide upward pressure to support home prices,” said Jordan Levine, C.A.R. Vice President and Chief Economist. “However, home prices should ease as housing inventory improves in the third quarter and the market continues to normalize during the traditional off-season.”

Other key points from C.A.R.’s July 2021 resale housing report included:

-- At the regional level, all major regions posted a dip in sales from a year ago, when home sales began to surge as mortgage rates continued their downward trend. San Francisco Bay Area (-1.4 percent) and Southern California (-1.4 percent) held up relatively well, but more affordable counties within the regions such as Napa (-36.9 percent), Solano (-14.7 percent) and San Bernardino (-13.2 percent) also recorded sharp declines from a year ago.

-- Active listings in California in July 2021 reached the highest level since last October 2020, signaling continuous improvement in the state’s housing supply condition. The number of for-sale properties increased 15.4 percent in July 2021 from June 2021 as more homes were being listed on the market. Despite an increase in total active listings in July, new listings added in the month dipped slightly for the first time after gaining year-over-year for four straight months. New active listings inched up by 0.7 percent from June 2021 to July 2021 percent but dipped on a year-over-year basis from July 2020 by 0.9 percent. Housing supply typically climbs during this time of the year and remains on an upward trend until late July-to-early August.

-- The imbalance between supply and demand continued to heat up the market, with many buyers offering sales bids over the asking price. In July, more than 70 percent of homes sold above their asking price, making it the tenth consecutive month since September 2020 that more than half of homes sold above their asking price.

-- Statewide, the unsold inventory of available homes for sale improved slightly from 1.7 months in June 2021 to 1.9 months in July 2021, but remained sharply below last year’s level of 2.1 months for July 2020. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell-out given the current rate of sales.

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

-- In San Diego County, the inventory of available homes for sales in July 2021 also improved slightly to 1.7 months, compared to 1.5 months in June 2021, but below last year’s level of 1.9 months in July 2020.

-- The median number of days it took to sell a California single-family home was eight days in July 2021, which was the same number for June 2021, down from 17 days in July 2020. The eight-day figure compares to seven days in May 2021 and April 2021. Prior to setting record low numbers this year, the previous statewide record was nine days in November 2020.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was seven days in July 2021. That number compares to six days in June 2021, seven days in May 2021, six days in April 2021 and March 2021 and seven days in February 2021 and January 2021, as well as eight days in December 2020 and seven days in November, October and September 2020. The timeframe a year ago in July 2020 was 10 days. The median represents a timeframe when half the homes sell above it and half below it.

-- The statewide sales-price-to-list-price radio was 103.8 percent in July 2021 and 100 percent in July 2020. 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 2.87 percent in July, down from 2.98 percent in July 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.49 percent, compared to 3.02 percent in July 2020.

Despite an impressive performance in the first six months of the year, momentum appeared to be slowing for the California housing market with existing home sales in June dipping for the second month in a row.

According to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.), home sales statewide on a seasonally adjusted annualized rate were 2.2 percent lower in June 2021, when 436,020 homes were sold, compared to May 2021, when 445,600 homes were sold. However, home sales increased 28.3 percent in June 2021, compared to June 2020, when 339,910 homes were sold on an annualized basis.

With strong sales growth in June, the state housing market ended the first half of the year with a year-to-date home sales increase of 33.6 percent.

Monthly numbers for closed escrow sales of existing, single-family detached homes in California is based on 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 2021 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

In San Diego, home sales in June 2021 were 16 percent higher compared to May 2021, and 29.2 percent higher than June 2020.

Meanwhile, home prices continued to increase in June 2021.

Statewide, the median price for a single-family detached home in June set a new record high for the fourth straight month. The median price increased slightly by 0.2 percent on a month-to-month basis to $819,630 in June 2021, up from $818,260 in May 2021, and 30.9 percent from the $626,170 price recorded in June 2020.

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

The median price in California remained above the $800,000 benchmark for the third consecutive month. The median represents the point at which half of homes sell above a price, and the other half below it.

The pace of growth in home prices appeared to be decelerating, as the change between May and June remained below one percent, and the increase was the smallest in the past four months. On a month-to-month basis, the statewide median price increase in June 2021 was slightly below the average May-to-June growth rate of 1.0 percent observed between 1979 and 2020.

In San Diego, the median price for a single-family detached home in June 2021 reached a new record of $865,000, which was 1.6 percent higher than the May 2021 price of $851,000 and 27.6 percent higher compared to the June 2020 price of $678,000.

“We’re starting to see what a difference just a slight uptick in inventory and listings can do to help lessen the buying frenzy and create a sense of normalcy,” said C.A.R. President Dave Walsh. “The market is still extremely competitive, with 70 percent of homes selling above list price; however, the number of new listings increased in June, and both the share of listings with a reduced price and median reduction amount increased, giving buyers more opportunities to purchase.”

 “On a year-over-year basis, the statewide median price increased more than 30 percent for the third consecutive month. Tight supply, low rates and the change in the mix of sales continue to be the primary factors pushing up home prices to record levels,” said C.A.R. Vice President and Chief Economist Jordan Levine. "However, we are expecting price growth to slow from this point on as the top end of the market begins moderating. With pending sales down for the first time in 14 months, closed sales – which have been declined 5 out of the last 6 months – will likely remain lackluster as the market enters the second half of the year.”  

Other key points from C.A.R.’s June 2021 resale housing report included:

-- Home sales in June for four of the five major regions in the state set new record-high median prices in June, with each region increasing by more than 20 percent from a year ago. The San Francisco Bay Area continue to grow at the fastest pace with a year-over-year gain of 35.0 percent, followed by Southern California (30.3 percent), the Central Valley (23.8 percent), the Far North (22.0 percent) and the Central Coast (20.8 percent).

-- Sales growth statewide in the higher-priced markets remained strong in June 2021, while the number of sales of lower-priced properties remained below last year’s levels. The million-dollar market increased in demand by triple digits in a year-over-year comparison, with sales of homes priced $2 million and above surging 141 percent from a year ago. In contrast, sales of homes priced below $300,000 continued to fall precipitously with the year-over-year growth rate declining 48 percent in June. Tight housing supply continues to be the primary constraining factor for sales in the lower price segment. More homes were sold in the million-dollar market than the sub-$500k market in the 2021 second quarter of 2021, a condition that has not been observed in California in the past.

-- Active listings in California in June 2021 reached the highest level since last October 2020, signaling an improvement in the state’s housing supply condition. The number of for-sale properties increased 15.4 percent in June 2021, compared to May 2021, as more homes were being listed on the market. New active listings, while still down 12.3 percent from two years ago, increased in both a month-over-month basis and year-over-year basis by around 8 percent for June 2021. Housing supply typically climbs during this time of the year and remains on an upward trend throughout the late July-early August timeframe.

-- Statewide, the unsold inventory of available homes for sale decreased to 1.7 months in June 2021, compared to 1.8 months in May 2021, and below last year’s level of 2.7 months for June 2020. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell-out given the current rate of sales.

-- In San Diego County, the inventory of available homes for sales in June 2021 also decreased to 1.5 months, compared to 1.6 months in May 2021, and below last year’s level of 2.2 months in June 2020.

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

-- The median number of days it took to sell a California single-family home was eight days in June 2021, compared to seven days in May 2021, which was the same number in April 2021, down from 21 days in June 2020. The eight-day figure compares to 10 days in February 2021, 11 days in January 2021, 11 days in December 2020, nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 15 days in March 2020. Prior to setting record low numbers this year, the previous statewide record was nine days in November 2020.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was six days in June 2021. That number compares to seven days in May 2021, six days in April 2021 and March 2021 and seven days in February 2021 and January 2021, as well as eight days in December 2020 and seven days in November, October and September 2020. The timeframe a year ago in June 2020 was 12 days. The median represents a timeframe when half the homes sell above it and half below it.

-- The statewide sales-price-to-list-price radio posted a record high in June 2021 of 104.1 percent, compared to 99.5 percent in June 2020. 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 2.98 percent in June, down from 3.16 percent in June 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.56 percent, compared to 3.09 percent in June 2020.

The Pacific Southwest Association of REALTORS and many of our property managers and owners are financially supporting the Southern California Rental Housing Association's (SCRHA) efforts to seek an injunction preventing the county from implementing and enforcing its rental moratorium. The County has been ineffective at distributing the hundreds of millions of dollars received from the federal government for rent relief programs.  SCRHA is distributing the following press release: 

Court Denies SCRHA’s Legal Challenge to County’s Eviction Moratorium Ordinance; SCRHA Immediately Appeals Decision

Ordinance Threatens Safety, Quality of Life of Tenants; Livelihoods of Thousands of County Property Owners Who Provide Rental Housing.

SAN DIEGO (July 27, 2021) – Over a month after a decision was expected, a federal judge has finally issued a decision denying the Southern California Rental Housing Association’s (SCRHA) request for a preliminary injunction to prevent San Diego County from implementing or enforcing the San Diego County Emergency Eviction Moratorium Ordinance.

U.S. District Court Judge M. James Lorenz denied SCRHA's motion, citing the temporary nature and public interest of the ordinance. In his July 26, 2021 decision, Lorenz stated that it is beyond dispute that owners are impacted by the eviction moratorium, but he said in the ruling: “However, the harm they are suffering in terms of stress and emotional hardship will be short-lived, as the Ordinance is set to expire in the middle of August 2021.”
Within an hour of receiving the ruling on July 27, 2021, SCRHA filed an appeal with the U.S. Court of Appeals for the Ninth Circuit.

“We are greatly disappointed with this ruling, which leaves housing providers with no recourse to deal with renters who cause problems for their neighbors or who otherwise violate their agreements,” said SCRHA Executive Director Alan Pentico. “Bottom line: This is unfair to everyone. That’s why we will continue to challenge this extreme and unconstitutional law.”

“As housing providers, we believe in doing our part and serving our community. We were designated as essential workers during the COVID-19 pandemic – and we have continued to show up to maintain and operate our rental communities,” Pentico added. “Sadly, housing providers’ own rights have been trampled. It’s a shame that this court chose to minimize the real harm that the eviction moratorium is causing to housing providers and rental communities.”

The County’s Emergency Eviction Moratorium Ordinance indefinitely bans nearly all evictions within the County. The ordinance, which affects evictions within both the unincorporated areas of the County and within all local Cities, went into effect on June 3, 2021 – dramatically limiting the rights of property owners who rent out their homes, duplexes, condos, accessory dwelling units, or apartments to tenants.

SCRHA filed a lawsuit in U.S. District Court seeking an injunction against the ordinance, saying it threatens the livelihoods of thousands of county property owners – many of them independent, small “mom and pop” landlords – and strips them of their federal constitutional rights to use and control their own properties. Most troublingly, the ordinance fails to protect public safety because it doesn’t allow evictions of violent, lawbreaking or nuisance-creating tenants unless the landlord can prove an “imminent health and safety threat,” and it doesn’t allow financially stressed owners to move into their own homes. For more information, visit http://socalrha.org/evictionban.

The Eviction Moratorium Ordinance would end 60 days after all work-at-home and stay-at-home orders are lifted. The stay-at-home and work-at-home orders expired on June 15, 2021, making the ordinance’s tentative expiration date August 14, 2021, the ruling stated. However, the County’s motion had indicated the ordinance was set to expire on August 10, 2021.  For more information about the lawsuit look here.

PSAR encourages all property managers and housing providers to consider joining the SCRHA.  We partner with SCRHA to help protect private property rights.

C.A.R, COVID LEGAL DOCUMENTS are available for addtional help

The C.A.R. COVID-19 forms are all available in zipForm® Plus in the C.A.R. forms library, and can be easily located by searching the library under the “COVID-19” category. Additionally, you can find the following Quick Guides and Legal Q&A’s on our website here:

• Quick Guide – The COVID-19 Tenant Relief Act—The Statewide Rent Moratorium Law (extended through September 30, 2021) [revised 7/9/21]

• Quick Guide – The Centers for Disease Control Federal Eviction Moratorium Order [revised 7/9/21]
• Quick Guide – Expanded State Rental Assistance Program for Landlords
• Quick Guide – Unpaid Rent Eviction Guide During COVID Protected and Transition Periods [revised 7/9/21]
• Legal Q&A – Eviction Moratorium Extension and State Rental Assistance Program – Senate Bill 91 [revised 7/2/21]
• Legal Q&A – State Rent Moratorium Extension and the COVID Rental Housing Recovery Act (AB 832) [revised 7/9/21]

After months of breakneck market competition, the California housing market experienced a mild case of homebuyer fatigue in May with a slight decrease in home sales from April. However, home prices continued to increase in May, setting another record high.

According to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.), home sales statewide on a seasonally adjusted annualized rate were down 2.7 percent in May 2021, when 445,660 homes were sold, compared to April 2021, when 458,170 homes were sold. However, homes sales increased 86.7 percent in May 2021, compared to May 2020, when 238,740 homes were sold on an annualized basis.

The sharp year-over-year sales jump was expected as the housing market was hit hard by the COVID-19 pandemic shutdown last year, when home sales dropped to their lowest level since the Great Recession.

The monthly number for closed escrow sales of existing, single-family detached homes in California is based on 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 2021 if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

In San Diego, home sales in May 2021 also were down 3.2 percent, compared to April 2021, but up 76.1 percent from May 2020.

May 2021 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
Meanwhile, home prices continued to increase in May 2021. Statewide, the median price for a single-family detached home inched up 0.5 percent from $814,010 in April 2021 to set a new record of $818,260 in May 2021. The figure marked a whopping 39.1 percent year-over-year increase since May 2020, when the statewide median home price was $588,070. The year-over-year price gain was the highest ever recorded, and it was the second straight month that the state recorded an annual increase of over 30 percent. 

Robust demand of higher-priced properties contributed to the record-setting statewide median price. With million-dollar home sales surging more than 200 percent from May 2020, its market share is nearly double what it was a year ago when it was at 15.6 percent. More million-dollar properties were sold in the past couple of months than homes priced below $500,000.          

In San Diego, the median price for a single-family detached home in May 2021 reached $851,000, which was 3.1 percent higher than the April 2021 price of $825,120 and 29.9 percent higher compared to the May 2020 price of $655,000.

“The overheated housing market is showing signs of a much-needed cooling and could be a sign of waning buyer interest as the torrid pace of home price increases and buyer fatigue adversely affected demand,” said C.A.R. President Dave Walsh. “We’re seeing many would-be buyers taking a break and hoping to see more listings as the economy reopens and prospective sellers list their homes for sale.”

“A lack of housing inventory continues to push up prices, and modestly higher interest rates, increased competition, and declining affordability have caused some buyers to become discouraged. Despite strong growth rates, the level of home sales has fallen on a monthly basis in four of the last five months,” said C.A.R. Vice President and Chief Economist Jordan Levine. “Additionally, pending sales data for May, which was virtually unchanged from April, suggests further slowing in coming months. Fortunately, new listings have finally started to rise, which could help to sustain a higher level of home sales deeper into summer by providing much-needed supply.”    

Other key points from C.A.R.’s May 2021 resale housing report included:

-- Home sales in May for all major regions in the state experienced at least a 44 percent year-over-year growth in sales in May, with the Central Coast notching the biggest jump at 111.8 percent and sales in all four counties in that region surging by more than 99 percent. The San Francisco Bay Area also increased in sales by triple-digits (104.6 percent) from last year, followed by Southern California (80 percent), the Far North (58.6 percent), and the Central Valley (44 percent).

-- Sales growth statewide in the higher-priced markets remained strong in May 2021, while home sales in the lower-end continued to be lackluster. Demand in the million-dollar segment increased by more than 200 percent year-over-year, with sales of homes priced $2 million and higher surging over 300 percent from a year ago. On the other hand, sales of properties priced below $300,000 continued to fall precipitously, with the year-over-year sales dropping 34 percent in May. Tight housing supply continues to be the primary factor constraining sales in the lower price segment.

-- Three out of five major regions reached new record high median prices in May, with each region growing more than 20 percent from a year ago. The San Francisco Bay Area had the highest year-over-year gain of 38.9 percent, followed by Southern California (33.1 percent), the Central Coast (32.6 percent), the Central Valley (27.1 percent), and the Far North (22.1 percent).

-- Active listings in California reached the highest level in six months after a 6.6 percent monthly increase in May and are expected to continue inching higher, following the seasonal pattern. Housing supply typically climbs during this time of the year and usually remains on an upward trend through late July and early August. The pace of growth on a month-to-month basis is on par with the average growth rate of 6.7 percent from April to May recorded between 2015 and 2019.

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

-- Statewide, the unsold inventory of available homes for sale improved slightly to 1.8 months in May 2021, compared to 1.6 months in April 2021, but remained sharply below last year’s level of 4.3 months for May 2020. The month-over-month rise in inventory is partly due a slight increase in housing supply, but a slowdown in housing demand in May also contributed to a bump in the index. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell-out given the current rate of sales.

-- In San Diego County, the inventory of available homes for sales in May 2021 improved slightly to 1.6 months, compared to 1.5 months in April 2021, but was sharply below the 3.5 months figure posted for May 2020.

-- The median number of days it took to sell a California single-family home hit another record low of seven days in May 2021, which was the same number in April 2021, down from 17 days in May 2020. The seven-day figure is lower than the eight days in March 2021, previously the lowest ever recorded. The eight-day figure compared to 10 days in February 2021, 11 days in January 2021, 11 days in December 2020, nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 15 days in March 2020. Prior to setting record low numbers this year, the previous statewide record was nine days in November 2020.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was seven days in May 2021. That number compares to six days in April 2021 and March 2021 and seven days in February 2021 and January 2021, as well as eight days in December 2020 and seven days in November, October and September 2020. The timeframe a year ago in May 2020 was 11 days.

-- The 30-year, fixed-mortgage interest rate averaged 2.96 percent in May, down from 3.23 percent in May 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.62 percent, compared to 3.16 percent in May 2020.

The California housing market reached a milestone in April that the San Diego market already has experienced.

The state’s median home price for an existing, single-family detached home exceeded the $800,000 benchmark for the first time ever in April 2021, according to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.). The median price represents the point at which half of homes sell above a price, and the other half below it.

Heated market conditions and a shortage of homes for sale continued to put upward pressure on home prices in the state in April, driving California’s median price to $813,980, almost as high as San Diego’s April monthly figure of $825,120.

The statewide median home price set a new record high in April 2021, breaking the previous record set in March 2021. The statewide median home price of $813,980 in April 2021 was 7.2 percent higher compared to $758,990 in March 2021 and 34.2 percent higher when compared to the $606,410 figure for April 2020.

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

The year-over-year price gain was the highest ever recorded, and it was the first time since June 2013 that the state recorded an annual increase of more than 30 percent. 

San Diego’s median price for a single-family detached home of $825,120 in April 2021 was 3.1 percent higher than the median home price of $800,000 in March 2021 and 23 percent higher compared to $671,000 in April 2020.

Meanwhile, California home sales in April 2021 soared from last year’s pandemic-level lows with the start of the spring home buying season.

Home sales in the state increased on a monthly basis for the third consecutive month, rising 2.6 percent to 458,170 homes from 446,410 homes in March 2021 and up 65.1 percent from April 2020, when 277,440 homes were sold on a seasonally adjusted annualized basis. The statewide annualized sales figure represents what would be the total number of homes sold during 2021 if sales maintained the April pace throughout the year.

The sharp sales jump in April 2021 was expected following last year’s pandemic shutdown when home sales dropped more than 30 percent from the previous April.  Year-to-date statewide home sales were up 26.2 percent in April 2021.

In San Diego County, the number of home sales in April 2021 was 10.5 percent higher compared to March 2021, and 55.2 percent higher than April 2020.

“California continues to experience one of the hottest housing markets as homes sell at the fastest pace ever, with the share of homes sold above asking price, the price per square foot and the sales-to-list price all at record highs, while active listings remain at historic lows,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “The high demand and shortage of homes for sale, driven by these market factors, continued to drive up home prices and shatter the record-high set just last month.”

“Not only do skyrocketing home prices threaten already-low homeownership levels and make it harder for those who don’t already have a home to purchase one, it also brings to question the sustainability of this market cycle,” said C.A.R. Vice President and Chief Economist Jordan Levine. “As vaccination rates increase and the state reopens fully, higher home prices will hopefully entice prospective sellers who have held off putting their homes on the market during the pandemic to feel more comfortable listing their homes for sale, which would alleviate pressure on home prices.”   

Other key points from C.A.R.’s April 2021 resale housing report included:

-- Home sales in April from a regional perspective saw sharp gains with each region growing more than 38 percent from last year. The San Francisco Bay Area had the highest year-over-year increase of 101.4 percent, with five of its nine counties growing by triple digits from a year ago. The Central Coast came in second with an increase of 81.7 percent, followed by Southern California (65.5 percent), the Central Valley (39.8 percent), and the Far North (38.8 percent).

-- All but two of the counties tracked by CAR, 49 of 51, recorded a year-over-year sales increase in April, with 31 counties increasing more than 50 percent from a year ago, and 11 counties growing by triple digits. Six of the counties with an annual growth rate of more than 100 percent had a median price above $1 million in April 2021. Counties with an increase from last year had an average gain of 70.7 percent in April 2021, compared to 32.9 percent in March.

-- Sales growth in California in April 2021 remained concentrated in higher-priced markets, while home sales in the lower-end continued a lackluster performance. The million-dollar segment in April increased in demand by more than 200 percent in year-over-year comparisons, with sales of homes priced $2 million and higher surging more than 300 percent from a year ago. Meanwhile, sales of properties priced below $300,000 continued to fall precipitously, with the year-over-year growth rate dropping 34 percent in April 2021, compared to April 2020. Tight housing supply continues to be the primary constraining factor for fewer sales in the lower-price category.

-- New record median prices were set in all major regions in April 2021, with each region growing more than 20 percent from April 2020. The Central Coast region continued to have the highest year-over-year gain of 40.8 percent, followed by the San Francisco Bay Area (35.6 percent), Southern California (28.6 percent), the Central Valley (25.5 percent) and the Far North (22.8 percent).

-- Active listings in California fell more than 50 percent in April 2021 from April 2020, marking four straight months when the housing supply was cut in half from the same month a year ago.. The ongoing decline in inventory is due to the surge in demand over the past 10 months, as well as a lack of new listings. While new active listings in April 2021 experienced robust year-over-year growth compared to April 2020, when the government-imposed pandemic shutdown was underway, the level of newly added supply is still significantly below pre-pandemic levels. On a month-to-month basis, for-sale properties inched up by 7.4 percent in April 2021, compared to March 2021, and should climb further in the coming months if the market follows its typical seasonal pattern.

-- Statewide, the unsold inventory of available homes for sale dropped to 1.6 months in April 2021 from 1.7 months in March 2021 and was down sharply from April 2020, when there was 3.4 months of housing inventory. Inventory levels measured in months indicate the number it would take for the available supply of homes on the market to sell-out given the current rate of sales.

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

-- In San Diego County, the inventory of available homes for sales in April 2021 remained at 1.5 months, the same number for March 2021, compared to 1.8 months in both February 2021 and January 2021 and 2.7 months in April 2020.

-- The median number of days it took to sell a California single-family home hit another record low of seven days in April 2021, down from 13 days in April 2020. The seven-day figure is lower than the eight days in March 2021, previously the lowest ever recorded. The eight-day figure compared to 10 days in February 2021, 11 days in January 2021, 11 days in December 2020, nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 15 days in March 2020. Prior to setting record low numbers in March and April 2021, the previous statewide record was nine days in November 2020.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was six days in April 2021, which was the same number in March 2021. That number compares to seven days in both February 2021 and January 2021, as well as eight days in December 2020 and seven days in November, October and September 2020. The timeframe a year ago in April 2020 was eight days.

-- The 30-year, fixed-mortgage interest rate averaged 3.06 percent in April, down from 3.31 percent in April 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.81 percent, compared to 3.31 percent in April 2020.