C.A.R. released this information on May 14th

CRMLS Update Regarding Paragon

CRMLS Update Regarding Matrix

C.A.R. released this information on May 14th

On Wednesday, the California Dept. of Public Health updated its guidance on open houses and stated further updates were pending. C.A.R. is pleased to provide the following changes to open house protocols. Please remember to adhere to local guidelines which may be more strict in certain areas. Check with your broker for guidance. 

• Open Houses: Advertising open houses, without qualifiers, is allowed and appointments for open houses are no longer required.
• Social Distancing: Showings, including open houses, are somewhat relaxed under the new social gatherings guidelines but still include social distancing between members of different households while attending an open house, and are subject to capacity issues depending on the tier of the county where the house is located. Please refer to local guidelines for this information.
• Signing In: There will still be a sign-in requirement on site. The new Property Sign-In (PSI) form can be used for this purpose. However, you can still use a PEAD instead of the on-site sign-in if you prefer. See the new Quick Guide for more details.
• Forms: C.A.R. has simplified and shortened the Rules of Entry (PRE), Prevention Plan (BPPP), and the Property Sign-in (PSI) form as an alternative to PEADS. There also is an addendum to the listing agreement LOHA reflecting the changed protocols. This form is necessary if the parties had previously signed the RLA-CAA, which did not allow for open houses. New listings should also include this addendum if the listing broker wants to hold open houses.
• PEADS: The PEADS have been combined and simplified into one shorter PEAD-ALL form that is available if members prefer to use it instead of on-site sign-in protocols.
• The newly revised forms PRE, BPPP, PEAD, as well as the new Property Sign-in PSI form and new Listing Addendum LOHA form will all be available on zipForm as soon as possible. In the interim, a PDF of each of these is available here. Members may still use the current forms that are on zipForm if they choose until the new ones are released. 

These changes represent a step in the right direction, and we are hopeful that they will make it easier for REALTORS® to comply with laws that are consistent with other businesses while remaining in accordance with health guidelines.

The newly revised forms PRE, BPPP, PEAD, as well as the new Property Sign-in PSI form and new Listing Addendum LOHA form will all be available on zipForm as soon as possible. In the interim, a PDF of each of these is available here.

CRMLS Update Regarding Paragon

In response to new guidance from the California Department of Public Health (CDPH), CRMLS is re-enabling in-person open houses in its MLS systems, effective now.

This change will alter your workflow when inputting an open house, whether in-person or virtual.

While the state has recently revised its guidance on open houses, local jurisdictions are still in the process of reviewing the state's guidelines. Many have yet to determine whether they will allow in-person open houses. At this time, several major jurisdictions have not updated their guidance to allow in-person open houses.

C.A.R. released information on this subject to REALTORS® on May 12th. C.A.R. attorneys are looking into what it means when it comes to hosting open houses. The links in their email raise questions, including how these changes apply to local jurisdictions, the use of the PEAD, registrations, maintaining physical distance, and much more.

We encourage you to contact your brokerage and your local jurisdiction before scheduling any open houses. Attorneys and brokers will need time to interpret these new guidelines.

Here is what is changing in CRMLS Paragon:

Before – Live Stream checkbox checked by default, with no option to turn off

After – Live Stream checkbox ­unchecked by default, with the option to turn on

After – Live Stream checkbox ¬unchecked by default, with the option to turn on
To enter an in-person open house, keep the Live Stream checkbox unchecked.
To enter a virtual open house, check the Live Stream checkbox and add the URL for your virtual open house.

From CRMLS Regarding Matrix Update

We encourage you to contact your brokerage and your local jurisdiction before scheduling any open houses. Attorneys and brokers will need time to interpret these new guidelines.

Here is how the change will look in Matrix:

Fierce competition in the California housing market in March drove the state’s median home price to a new record high while sales remained solid heading into the spring homebuying season, according to the monthly home sales and price report from the California Association of REALTORS® (C.A.R.).

The statewide median home price in March reached a new all-time high of $758,990.

Similarly, the median home price in San Diego in March rose to a new record of $800,000.

In addition, nearly two-thirds or 63 percent of homes sold above the asking price in March 2021, reflecting the combination of intense demand and short supply. California already had set a record for share of home selling over listing price at 56 percent in February 2021.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 446,410 in March 2021, down 3.5 percent from 462,720 in February 2021 but were up 19.7 percent from March 2020, when 373,070 homes were sold. The annualized sales figure represents what would be the total number of homes sold during 2021 if sales maintained the March pace throughout the year.

The monthly sales decline was the third in a row, and the sales pace was the lowest since last July. The nearly 20 percent sales gain was attributed to weak home sales a year ago as the coronavirus outbreak abruptly halted the real estate market and economy, CAR said.  

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

Meanwhile, California’s median home price set another new record high in March 2021 as the statewide median price surged nearly 24 percent from a year ago. The statewide median home price in March 2021 climbed 8.6 percent on a month-to-month basis to $758,990, up from $699,000 in February 2021 and up 23.9 percent from the $612,440 recorded in March 2020. 

The year-over-year statewide gain, from March 2020 to March 2021, was the highest since October 2013 and it was the eighth straight month that California’s median price registered a double-digit gain.

In San Diego County, the number of home sales in March 2021 was 29.3 percent higher compared to February 2021 and 18.1 percent higher compared to March 2020.

San Diego’s median price for a single-family detached home in March 2021 was a record high of $800,000, which was $35,000 or 4.6 percent higher than the median home price of $765,000 in February 2021 and 18.5 percent higher compared to $675,000 in March 2020.

The median price represents the point at which half of homes sell above a price, and the other half below it.

“While intense homebuying interest is the engine that continues to drive housing demand, a shortage of homes for sales is the rocket fuel pushing prices higher across the state. A lack of homes for sale is creating unprecedented market competition, leading to a record share of homes selling above asking price in March,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “With more of the state’s COVID-19 restrictions being lifted in the coming months as we move into the spring home buying season, we should see home sales improve as more prospective home sellers feel comfortable listing their homes for sale.” 

“The market sentiment is drastically different today compared to a year ago at the onset of the pandemic,” said C.A.R. Vice President and Chief Economist Jordan Levine. “With the U.S. economy positioned to grow at the fastest pace since the early 1980s and mortgage rates trending down again in the past week, consumer confidence will improve further, so in the coming months, we should continue to see a solid bounce-back from last year as the market maintains its momentum.”

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

-- Home sales in March from a regional perspective experienced a double-digit sales surge compared to a year ago. The San Francisco Bay Area had the highest year-over-year gain, at a growth rate of 35.0 percent from March 2020. The Central Coast (31.8 percent), Far North (26.1 percent), and Southern California regions (23.3 percent) experienced a sales increase of more than 20 percent from last year.

-- Home sales in resort markets remained robust in March, with Big Bear, Lake Arrowhead and South Lake Tahoe all increasing more than 50 percent from a year ago. South Lake Tahoe was particularly strong in March 2021 with sales rising 128.1 percent compared to March 2020. Lake Arrowhead also had a strong month of March with sales growing near triple-digits year-over-year, while Big Bear increased by 54.8 percent and Mammoth Lakes jumped by 16.7 percent.

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

-- All major regions recorded double-digit increases in the median price increases from last year. The Central Coast region posted the highest year-over-year growth rate of 26.4 percent, followed by the San Francisco Bay Area (21.3 percent), Southern California (20.5 percent), the Central Valley (18.6 percent) and the Far North (12.4 percent).

-- All 51 counties tracked by C.A.R. reported a gain in median price on a year-over-year basis, with 45 of them increasing more than 10 percent.

-- Active listings statewide fell 51.1 percent in a comparison between March 2021 and March 2020. It was the third consecutive month that listings declined more than 50 percent. On a month-to-month basis, for-sale properties inched up by 5.3 percent in March.

-- The available supply of homes for sale continued to tighten up across the state, with all major regions near record low levels. Forty-nine of the 51 counties covered by C.A.R. recorded a decline in active listings on a year-over-year basis in March, and 30 of them dropped more than half from levels a year ago.

-- Statewide, the unsold inventory of available homes for sale dropped to 1.6 months in March from 2.0 months in February and was down sharply from a year ago, when there was 2.7 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.

-- In San Diego County, the inventory of available homes for sales in March 2021 dropped to 1.5 months, compared to 1.8 months in both February 2021 and January 2021 and 2.4 months in March 2020.

-- The median number of days it took to sell a California single-family home in March 2021 hit a record of eight days, the lowest every 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 March 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 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 March 2020 was 10 days.

-- The 30-year, fixed-mortgage interest rate averaged 3.08 percent in March, down from 3.45 percent in March 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.78 percent, compared to 3.16 percent in March 2020.

California’s home sales and prices eased in February as mortgage rates spiked, while strong buying interest continued and tight housing supply restrained demand, especially in more affordable markets.

According to its monthly home sales and price report released this week by the California Association of REALTORS® (C.A.R.), the state’s housing market has recently encountered some speed-bumps due to rising mortgage interest rates.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 462,720 in February 2021, which was down 4.5 percent from 484,760 in January 2021, but 9.7 percent higher from February 2020, when 421,670 homes were sold on an annualized basis.

It was the eighth straight month for year-over-year gain in home sales. However, February’s nearly 10 percent home sales increase from a year ago was the smallest gain in the past seven months. Year-to-date statewide home sales were up 15.9 percent in February.

The statewide annualized sales figure represents what would be the total number of homes sold during 2021 if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Meanwhile, California’s median home price in February 2021 was essentially unchanged from January 2021, but was 20.6 percent higher than in the $579,770 figure for February 2020, recording the first back-to-back 20 percent yearly increase since February 2014. The statewide median home price dipped 0.1 percent on a month-to-month basis to $699,000 in February 2021, down from $699,920 in January 2021.

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

The double-digit statewide increase from last year was the seventh in a row and the second largest since February 2014.

In San Diego County, February 2021 home sales were 6.1 percent higher, compared to January 2021, and 12.8 percent higher compared to February 2020.

San Diego’s median price for a single-family detached home was $765,000 in February 2021, a 4.8 percent increase from $730,000 in January 2021, and a 14.2 percent increase from $670,000 in February 2020.

The median price represents the point at which half of homes sell above a price, and the other half below it.

“The housing market has been cruising at a robust pace since the second half of 2020 but has encountered some speed-bumps recently as rates began to rise,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “While higher rates may slow growth in home sales temporarily, the major roadblock in the long run is a shortage of homes for sale. With inventory dropping more than a half from a year ago, the market will soften in the second half of 2021 if we don’t see enough homes come on the market to meet demand.”   

“The upward movement in rates has called into question whether the market will sustain its momentum going into the spring homebuying season,” said C.A.R. Vice President and Chief Economist Jordan Levine. “While rates are off their record lows, they are still relatively low by historical standards. Recent increases in mortgage rates will likely slow the pace of price growth in the coming months but will also motivate those who truly want to buy to enter the market before rates start moving further up.”

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

-- Home sales from a regional perspective surged in February, compared to a year ago. The Central Coast region posted the highest year-over-year sales gain, with a growth rate of 22.4 percent. The Far North (17.3 percent), the San Francisco Bay Area (16.1 percent), and Southern California (10.5 percent) regions also experienced double-digit year-over-year increases in sales from a year ago.

-- Resort marks continued to perform well in February. Sales growth in the resort markets was relatively strong when compared to the rest of California. South Lake Tahoe (56.7 percent), Lake Arrowhead (44.1 percent), and Big Bear (36.1 percent) all experienced sales increases of more than 35 percent from a year ago. The exception was Mammoth Lakes were sales were flat in February 2021. However, aggregated sales for the first two months of 2021 in mountain resort communities are up 40 percent from the same period last year.

-- All major regions recorded double-digit increases in the median price increased from last year with the San Francisco Bay Area growing the strongest at 26.5 percent. The year-over-year increase in the Bay Area’s median price was the largest since September 2013, and it helped to set a new record high in the median price for the Bay Area. The Central Valley region had the second highest price growth rate of all regions with its median price increasing 19.1 percent year-over-year in February, followed by Southern California (16.4 percent), the Central Coast (15.9 percent) and the Far North (11.7 percent).

-- Active listings statewide fell 52.5 percent in February 2021, compared to February 2021. It was a decline of more than 40 percent on a year-over-year basis for the eighth consecutive month. On a month-to-month basis, for-sale properties inched up slightly by 0.4 percent in February 2021 and should climb further in the coming months as the market prepares for the spring homebuying season and the pandemic situation continues to improve.

-- The unsold inventory of available homes for sale inched higher to 2.0 months in February 2021, from 1.9 months in January 2021. However, inventory levels in February 2021 were sharply lower than in February 2020, when there was 3.6 months of housing inventory. Inventory levels measured in months refers to the number it would take for the current supply of available homes on the market to sell-out given the current rate of sales.

February 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 remained at 1.8 months for February 2021, which was the same figure for January 2021. That compares to 1.2 months in December 2020, 1.6 months in November 2020, 1.8 months in October 2020 and 3.0 months in February 2020.

-- The median number of days it took to sell a California single-family home was 10 days in February 2021, compared to a revised 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 23 days in February 2020. The nine-day November 2020 statewide figure was the lowest ever recorded.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was seven days in February 2021, which was the same figure for January 2021. That compares to eight days in December 2020, seven days in November, October and September 2020. The timeframe a year ago in February 2021 was 12 days.

-- The 30-year, fixed-mortgage interest rate averaged 2.81 percent in February, down from 3.47 percent in February 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.83 percent, compared to 3.26 percent in February 2020.

California’s housing market kicked off the New Year on a positive note in January 2021 with double-digit price and sales growth in year-over-year comparisons.

According to its monthly home sales and price report released Friday, February 19th, by the California Association of REALTORS® (C.A.R.), the momentum from 2020 is continuing into 2021.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 484,730 units in January 2021, which was down 4.9 percent from 509,750 units in December 2020 but up 22.5 percent from 395,700 units in January 2020.

The year-over-year, statewide double-digit sales gain posted in January 2021 was the sixth consecutive month in a row and the third straight month for an increase in sales of more than 20 percent from a year ago.

Meanwhile, California’s median home price in January 2021 dipped below the $700,000 benchmark after hitting a record high in December 2020. The statewide median home price declined 2.5 percent on a month-to-month basis to $699,890 in January 2021, down from $717,930 in December 2020. In contrast, the median home price in January 2021 was 21.7 percent higher compared to the $575,160 priced recorded in January 2020.

The double-digit median price increase from last year was the sixth month in a row and the largest since February 2014. Low rates and tight supply are continuing to push up home prices, said C.A.R.

In San Diego County, January 2021 home sales were 31.7 percent lower, compared to December 2020, but 9.9 percent higher compared to January 2020.

San Diego’s median price for a single-family detached home was the same amount, $730,000, for both January 2021 and December 2020. Mirroring the statewide double-digit trend, the January 2021 price in San Diego County was 10.06 percent higher than the January 2020 price of $660,000.

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

“Despite an economy that’s slow to recover, the momentum from late last year continued into January, driven by strong growth in California’s core housing markets, especially in the San Francisco Bay Area, where the higher cost areas experienced the most sales growth,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “Home prices continued to power through the traditional slow season in January with the largest annual price gain in nearly seven years.”

“With the COVID-19 vaccine continuing to roll out, another fiscal stimulus relief package likely on the way and historically low interest rates, the housing market will continue to thrive,” said C.A.R. Vice President and Chief Economist Jordan Levine. “The market outlook is stronger than previously projected as buyer demand continues to outstrip supply, but we do expect the current robust market growth to decelerate later this year as the housing shortage intensifies.”

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

-- Home sales from a regional perspective continued to record healthy year-over-year gains in nearly all major regions. The San Francisco Bay Area had the highest year-over-year growth rate at a gain of 31.8 percent over last January. The Central Coast (19.9 percent) and Southern California (13.5 percent) regions also remained strong and experienced double-digit, year-over-year sales increases.

-- More than 80 percent of all counties, 42 of 51 that are tracked by C.A.R., recorded a year-over-year increase in closed sales, with both Calaveras and Mariposa gaining the most from last year at 69.2 percent, followed by Alameda (53.6 percent), and San Benito (50 percent). Counties with an increase from last year averaged a gain of 22.7 percent in January, compared to 36.1 percent in December.

-- Median home prices from a regional perspective also posted double-digit increases in January 2021, with the San Francisco Bay Area growing the fastest at 20.2 percent. The Central Coast region had another strong month, increasing18.6 percent from January 2020, followed by Southern California (15.0 percent), the Central Valley (14.5 percent), and the Far North (10.5 percent).

-- Forty-seven of the 51 counties tracked by C.A.R. reported a gain in price on a year-over-year basis, with 40 of them increasing more than 10 percent.

-- Active listings fell 53.4 percent in January 2021, compared to January 2020. It was the eighth straight month for a decline and more than 40 percent decrease on a year-to-year basis. On a month-to-month basis, for-sale properties dropped 10.7 percent in January 2021.

-- Homeowners reluctant to list their homes for sale during the pandemic contributed to a shortage of active listings. The unsold inventory of available homes for sale remained extremely low at 1.5 months in January 2021, compared to 1.3 months in December 2020 and 3.4 months in January 2020. Inventory levels measured in months refers to the number it would take for the current supply of available 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 January 2021 was 1.8 months, compared to 1.2 months in December 2020, 1.6 months in November 2020, 1.8 months in October 2020 and 3.0 months in January 2020.

-- The median number of days it took to sell a California single-family home was 12 days in January 2021, compared to 11 days in December 2020, nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 31 days in January 2020. The nine-day November 2020 figure was the lowest ever recorded.

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

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was seven days in January 2021, compared to eight days in December 2020, seven days in November, October and September 2020. The timeframe a year ago in January 2020 was 23 days. The January 2021 seven-day figure also compares to eight days in August 2020, 10 days in July 2020, 12 days in June 2020, 11 days in May 2020, eight days in April 2020, 10 days in March 2020 and 12 days in February 2020.

-- Resort communities sustained their momentum going into 2021, as sales continue to outpace the rest of state. Big Bear and Mammoth Lakes experienced year-over-year, triple-digit gains of 176.2 percent and 150 percent, respectively, while South Lake Tahoe and Mammoth Lake both had sales growth rates of more than 30 percent.

-- The 30-year, fixed-mortgage interest rate averaged 2.74 percent in January 2021, down from 3.62 percent in January 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.87 percent, compared to 3.33 percent in January 2020.

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

-- CoreLogic is forecasting home prices in San Diego will increase by 8.3 percent in 2021, which will be among the highest in the nation. Among the reasons: Record low mortgage rates and demand from stay-at-home workers who have been priced out in other areas, including San Francisco and Los Angeles, who are moving to San Diego for a better deal.

-- Realtor.com reports the number of homes for sale in San Diego in January 2021 was down by 21.1 percent compared to January 2020. Nationwide, inventory plunged 42.6 percent from a year ago. Realtor.com also said San Diego’s median home price was $850,000 in January 2021, representing a 15.7 percent over-over-year increase. If January is any indication, home shoppers are in for another fiercely competitive season this spring with record low inventory pushing prices higher and homes selling more quickly.

-- Sales of previously occupied U.S. homes rose again last month, a sign that the housing market’s strong momentum from 2020 may be carrying over into this year. Existing U.S. home sales rose 0.6 percent in January from the previous month to a seasonally-adjusted rate of 6.69 million annualized units, the National Association of Realtors (NAR) said Friday. Sales jumped 23.7 percent from a year earlier. It was the strongest sales pace since October and the second highest since 2006, the NAR said.

-- The value of a typical single-family home in San Diego has jumped 12.5 percent in a year, according to a recent Zillow report. Zillow’s median price in December 2020 of $678,665 for a San Diego home was 12.5 percent higher in a year-over-year comparison, as well as 1.7 percent higher than November 2020 and 5.1 percent higher than the 2020 third quarter. Nationwide, home value growth was 3.2 percent in the 2020 fourth quarter, which was the highest since Zillow began its Home Value Index in 1996.

-- According to the S&P CoreLogic Case-Shiller Indices for November 2020, the most recent statistics available, home prices in the San Diego metropolitan area were up 12.3 percent in a year, which was the third highest percentage in the nation behind Phoenix at 13.8 percent and Seattle at 12.7 percent. All 19 cities in the index were up significantly year-over-year, with analysts pointing to demand outstripping supply and record low interest rates as key drivers pushing up prices.

-- Redfin reports that San Diego had the second highest number of multiple offers on homes for sale in the U.S. in January 2021, with 77.1 of Redfin homes in a bidding war, second only to Salt Lake City’s 90 percent. Behind San Diego in Redfin transactions with multiple bidders included the Bay Area (77.1 percent with multiple bidders), Denver (73.9 percent) and Seattle (73.8 percent). Nationwide, 55.9 percent of Redfin offers for homes faced competition from at least two prospective buyers, up from a revised rate of 52.5 percent in December. January marked the ninth consecutive month in which more than half of home offers written by Redfin agents faced competition.

-- One quarter (26 percent) of San Diegans who visited Redfin.com in the 2020 fourth quarter to shop for new homes were looking for properties in another city, Redfin reports. That’s the ninth highest percentage in the U.S., with New York City as the top outflow market. For those local residents wishing to leave San Diego, Los Angeles was the most popular destination while the top out-of-state destination was Phoenix. Redfin said the largest net inflow of new residents in the fourth quarter among U.S. cities included Austin, Texas, Las Vegas, Phoenix, Sacramento and Dallas.

-- The Mortgage Bankers Association reports that 5 million households nationwide failed to make their rent or mortgage payments in December 2020, indicating the economic recovery is sluggish. Rental property owners lost as much as $7.2 billion in revenue from missed payments in the 2020 fourth quarter, which was less than the $9.1 billion lost during the previous quarter.

-- The San Diego County Board of Supervisors recently approved the use of $52.2 million in state funding for emergency rental assistance in the wake of COVID-19. The latest round of funds is in addition to the $48.8 million in federal funds the board approved receipt of in January 2021. The county now will have more than $100 million in regional emergency rental assistance money available to help people struggling to pay their rent. The funds will be available only to county residents who don’t live in the cities of San Diego and Chula Vista because those jurisdictions have their own allocations.

Although 2020 will be remembered as a surreal year of setbacks and hardships when a brutal pandemic changed the world amid government-imposed lockdowns, it was a terrific final month on the calendar for California’s housing market.

According to the most recent monthly home sales and price report from the California Association of REALTORS^® (C.A.R.), released Friday, the state’s housing market closed out 2020 on a high note with solid home sales in December, plus a record-high median home price for the fifth time in the year.

December 2020’s statewide sales total exceeded the 500,000-units benchmark for the second month in a row. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 509,750 units in December 2020. It was an increase of 0.2 percent from 508,820 in November 2020, and 28 percent higher from December 2019, when 393,370 homes were sold on an annualized basis.

The year-over-year, double-digit sales gain marked the fifth consecutive month and the largest yearly gain since May 2009.

For the 2020 year, annual home sales rose to a preliminary 411,870 closed escrow sales in California, up 3.5 percent from 2019’s pace of 397,960.

Meanwhile, California’s median home price set another record in December 2020, after dipping below the $700,000 benchmark the previous month. The statewide median home price rose 2.7 percent on a month-to-month basis to $717,930 in December 2020, up from $698,890 in November 2020. Home prices continued to gain on a year-over-year basis with the statewide median price surging 16.8 percent from $614,880 recorded in December 2019.

The double-digit increase in a year-over-year comparison was the fifth in a row, and the month-to-month gain was higher than the long-run average of 0.8 percent observed between 1979 and 2019.

For the 2020 year, the statewide median home price was $659,380, an increase of 11.3 percent from a revised $592,230 in 2019.

In San Diego County, December 2020 home sales were 4.4 percent higher compared to November 2020 and 30.3 percent higher than in December 2019.

The median home price for a single-family detached home in San Diego County dropped slightly in December 2020 to $730,000, compared to $740,000 in November 2020, a 1.4 percent decrease, but a 11.5 percent increase from December 2019’s figure of $655,000.

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

“It’s a testament to the strength of the market that even after the pandemic effectively shut down the spring home-buying season in 2020, the market still was able to recover the substantial sales lost in the first half of the year and even top 2019’s levels,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “With mortgage rates expected to stay near the lowest in history, demand for homeownership will continue to be strong, so home sales should remain elevated into the first half of 2021, as motivated buyers take advantage of the increased purchasing power.”

“Home prices, which usually peak during the summer, were unseasonably strong in December,” said C.A.R. Vice President and Chief Economist Jordan Levine. “The imbalance between supply and demand continues to fuel home price gains as would-be home sellers remain reluctant to list their homes during the pandemic, contributing to a more-than-40-percent year-over-year decline in active listings for the seventh straight month.”

Perhaps due to increasing home prices, more consumers said it is a good time to sell, according to C.A.R.’s monthly Consumer Housing Sentiment Index. Conducted in early January, the poll found that 59 percent of consumers said it is a good time to sell, up from 55 percent a month ago, and up from 56 percent a year ago. Meanwhile, low interest rates continue to fuel the optimism for homebuying; one-fourth of the consumers who responded to the poll believed that now is a good time to buy a home, unchanged from last year.

Other key points from C.A.R.’s December 2020 resale housing report included:

-- Home sales from a regional perspective increased by double-digits in all major regions in December 2020, with a year-over-year gain of at least 20 percent in nearly every region. The San Francisco Bay Area remained on top with the highest gain of 40.2 percent over last year, followed by Southern California (31.4 percent), the Far North (30.8 percent) and the Central Valley (22.2 percent).

-- Median home prices from a regional perspective also posted increases in December 2020 by more than 10 percent in year-over-year comparisons. The Central Coast region had the largest year-over-year price increase, gaining 17.9 percent from a year ago. The San Francisco Bay Area had the second largest increase of 16.4 percent, followed by the Central Valley (15.5 percent), the Far North (15.2 percent) and Southern California (13.0 percent).

-- Active listings declined in December 2020 as expected during the holiday season. Active listings fell 47.1 percent in December 2020, compared to December 2019 from last year and continued to drop more than 40 percent on a year-over-year basis for the seventh straight month. On a month-to-month basis, for-sale properties dropped 18.6 percent in December 2020, higher than the five-year average of -14.0 percent, observed between 2015 and 2019.

-- The unsold inventory of available homes for sale dropped to 1.3 months in December 2020, matching the record-low set in 2004. Statewide inventory in November 2020 was 1.9 months. Inventory levels measured in months refers to the number it would take for the current supply of available homes on the market to sell-out given the current rate of sales. C.A.R. said the surge in the coronavirus cases played a role in the decrease in active listings as homeowners remain concerned about the worsening coronavirus pandemic situation.

December 2020 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 December 2020 was 1.2 months, compared to 1.6 months in November 2020, 1.8 months in October 2020 and 2.2 months in December 2019.

-- The median number of days it took to sell a California single-family home was 11 days in December 2020, compared to nine days in November 2020, 10 days in October 2020, 11 days in September 2020 and 28 days in December 2019. The nine-day November 2020 figure was the lowest ever recorded.

-- In San Diego County, the median number of days an existing, single-family home remained unsold on the market was eight days in December 2020, compared to seven days in November, October and September 2020. The timeframe a year ago in December 2019 was 20 days. The December 2020 eight-day figure also compares to eight days in August 2020, 10 days in July 2020, 12 days in June 2020, 11 days in May 2020, eight days in April 2020, 10 days in March 2020, 12 days in February 2020 and 23 days in January 2020.

-- With homebuying interest remaining high, the housing market in Californian’s mountain resort areas in December 2020 continued to exhibit strong gains compared to December 2019. Mammoth Lakes saw the biggest year-over-year sales increase in December 2020, surging 116.7 percent from the same month a year ago, followed by Lake Arrowhead (78.6 percent), Big Bear (54.1 percent) and South Lake Tahoe (31.7 percent).

-- Overall for the year 2020, home sales in mountain resort communities increased 92.7 percent in Big Bear, 51 percent in Lake Arrowhead, 49.5 percent in South Lake Tahoe and 37.5 percent in Mammoth Lake.

-- The 30-year, fixed-mortgage interest rate averaged 2.68 percent in December, down from 3.72 percent in December 2019, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.79 percent, compared to 3.39 percent in December 2019.

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

-- If a COVID-19 vaccine distribution proves successful, Fannie Mae economists are expecting the U.S. economy is poised for a strong year in 2021. Consumer spending is expected to accelerate during the spring, ultimately driving a considerably faster pace of growth in the second half of 2021.

-- The number of active listings in San Diego declined 20.6 percent in December 2020 in a year-over-year comparison, according to Realtor.com. Nationwide, the percentage decline for housing inventory in December was 39.6 percent year-over-year. The number of new listings can vary greatly from market to market. In December, San Jose, Calif. saw its new listing count climb by 123.8 percent and San Francisco-Oakland’s market increased by 98.9 percent.

-- The median monthly rent in San Diego was $2,355 in November 2020, which was a 3.8 percent year-over-year increase, according to Zillow. San Diego is the 8th most expensive city to rent an apartment, according to Zumper. Zumper’s report said the rental rate for a one-bedroom unit in San Diego grew 0.6 percent to $1,800 a month in December, while a two-bedroom's monthly rate increased 2.6 percent to $2,400.

-- Home prices continue to rise faster than wages across the nation, according to Attom Data Solutions. In the 2020 fourth quarter, home-ownership expenses consumed 29.6 percent of the average wages, compared to 26.4 percent in 4Q 2019. For the 4Q 2020 timeframe, homeownership costs exceeded an industry standard of 28 percent in 55 percent of U.S. counties, up from 43 percent in 2019 and 33 percent three years ago.

-- San Diego home prices are expected to rise by 8.3 percent in 2021, according to CoreLogic. The increase is the most of any other U.S. major city. The main reason is the lack of homes for sale will continue to push up prices. A secondary reason is income inequality. The pandemic has benefited high-wage workers who have been able to work from home, while low-wage workers lost income because their jobs were among the first shuttered during government-imposed shutdowns. Other cities with expected home price increases in 2021 include Miami (3.2 percent), Los Angeles (3.2 percent) and Washington, D.C. (2.9 percent), while the national average is expected to be around 2.5 percent. In contrast, Houston, hit hard by declines in the oil industry and the recent hurricane season, will see prices decrease 1.4 percent.

More than 100 PSAR members learned more about property tax benefits available to clients of REALTORS^® from Proposition 19 during a Zoom meeting earlier this week with Taxpayer Advocate Jordan Marks of the San Diego County Accessor-Recorder-County Clerk (ARCC) Office.

Recorded Video of the Presentation

Attachments from the presentation:

• Jordan Marks Presentation Slides
• Assessor Homeowners Exemption Form
• Assessor Senior Exclusion Form
• Prop 58 Parent to Child Exclusion Form

Prop. 19, approved by California voters in the recent November general election, offers significant benefits to homeowners and sellers. The ballot measure was endorsed by the California Association of REALTORS^® (C.A.R.) and other business and community organizations because it will spur housing economic recovery.

Simply put, Prop. 19 expands the affordable housing tools by allowing senior homeowners over 55 years old, people with severe disabilities and victims of natural disasters or wildfires to keep their low tax base and move or rebuild anywhere statewide.

In addition, Prop. 19 addressed a tax loophole allowing families to pass their homes and affordable tax bases to their children, but no longer allowing them to be used for a commercial purpose.

However, Marks told PSAR members that it’s important to remember that some rules relating to Prop. 19 will change on Feb. 15 and April 1.

Before Feb. 15, in the case of transferring home ownership from parent to child or grandparent to grandchild, the law allows for unlimited transfer of assessed value on a primary resident with no requirement to live in the property and up to $1 million of assessed value on all non-primary residential properties.

After Feb. 15, the law changes with a limit of $1 million transfer of assessed value on a primary resident, plus a requirement to live in the property and no transfer of assessed value on any property not a primary resident.

Before April 1, for relocating homeowners over 55 years old, the current rules limit the senior exclusion from property tax reassessment to one time plus a requirement to live in the property.

After April 1, the senior exclusion from property tax assessment can be claimed for three times for any property in the state (but unlimited times for those whose homes were destroyed or substantially damaged by a wildfire or natural disaster). Filing for the exclusion must occur within two years from the date of the sale or purchase.

It’s no surprise that Merriam-Webster, the dictionary publisher, selected “pandemic” as its 2020 Word of the Year. The COVID-19 coronavirus pandemic changed life in ways that none of us could have imagined in 2019. It was on every TV channel, every news website and part of every conversation. Everyone was impacted, including homebuyers and sellers.

Indeed, the pandemic even changed homebuyers’ housing preferences, according to the California Association of REALTORS’® (C.A.R.) Annual Housing Market Survey, which reveals homebuyers’ behavior throughout the 2020 year.

The recently-released survey found that more than two in five California REALTORS® (43 percent) saw a pandemic-related change in their buyers’ preferences in the property type they wanted to purchase in 2020.

In response to pandemic-related, government-imposed prolonged lockdowns and quarantines that forced homebound distance learning for school and working remotely for the job, the most frequent homebuyer requests included a bigger home (39 percent), a home with more rooms (35 percent), a home in a suburb rather than in an urban area (37 percent) and a home in a rural area rather than a city or suburb (26 percent). Not surprisingly, the survey also found 37 percent of homebuyers in 2020 were less concerned about the commute time to work.

The survey also showed a variety of interesting aspects of homebuyers’ behavior statewide in 2020.
For example:

-- The top three reasons homebuyers purchased a home in 2020 included tired of renting (25 percent), desire for a larger home (20 percent) and desire for a better location (19 percent). For first-time homebuyers, tired of renting was the most popular reason at 54 percent. For repeat homebuyers, 25 percent said their primary reason for buying in 2020 was a desire for a larger home, an increase from 21 percent in 2019. Respondents agreed that low mortgage rates made buying a home makes more sense than renting for many first-timers.

-- The average number of multiple offers made on available homes for sale in 2020 reached its highest level since 2013. Nearly two-thirds (59.2 percent) of homes sold in 2020 received multiple offers at an average of 4.8 offers per home. In 2019, less than half (47.7 percent) of homes sold received multiple offers with an average of 3.9 offers on each home. Homes priced between $500,000 and $1 million received the most multiple offers in 2020 with 67.3 percent receiving an average of six offers.

-- The real estate housing market in 2020 was one of the most competitive markets in decades. A large share of properties sold above their asking price in 2020. Approximately 35 percent of homebuyers paid more than what home sellers asked for in 2020, compared to a quarter (26.7 percent) in 2019. The 2020 figure was the highest in seven years and is 16 percent higher than the long-run average. Homes in the $500,000-to-$1 million price range sold the fastest with an average of 10 days.

-- More people purchased vacation and second homes in 2020, the highest percentage since 2016. Vacation homes represented 6 percent share of total sales, compared to 4 percent in 2019. The flexibility to work from home, plus a desire to move away from metropolitan areas, resulted in higher housing demand in resort areas. Overall, home sales in California resort areas outperformed other housing sectors in the state in 2020. In addition, the share of investor buyers of rental properties was 8.1 percent, the lowest since 2001, due to uncertainty over eviction moratoriums.

-- Home sellers in 2020 pocketed a gain of roughly $210,000 from their home sale, which was about 63 percent higher than the price they paid for their home. Not surprisingly, the longer a homeowner lives in their home will increase the profit they can expect when they sell. Sellers who lived in their homes for less than five years earned a 16 percent profit from their sale in 2020, while those who lived in their home five or more years earned a 100 percent profit.

C.A.R. has conducted its Housing Market Survey annually since 1981.

Landlords and tenants alike have been hit hard with economic challenges resulting from the Covid-19 pandemic. Fortunately, several local cities and nonprofits who administer federal government programs on behalf of cities, have made rental assistance resources available to both landlords and tenants who have suffered Coved-related economic losses. PSAR members active in their communities should be aware of these following landlord/tenant resources:-- In San Diego, With funding from the federal government, the San Diego Housing Commission (SDHC) helps more than 16,000 households with low income pay their rent in the City of San Diego. Through this rental assistance program, SDHC made payments totaling more than $166 million to more than 5,800 participating landlords on behalf of low-income families during Fiscal Year 2020 (July 1, 2019 – June 30, 2020).

In 2019, SDHC expanded its focus on landlord outreach and engagement with the creation of the Landlord Services Unit. This unit is composed of seven specialized staff who provide quality customer service to landlords and tenants participating in the Section 8 Housing Choice Voucher rental assistance program. For more details about SDHC rental assistance resources for properties located within the City of San Diego, contact SDHC, www.sdhc.org or call 619-578-7131.

The SDHC Landlord Services Unit manages the agencies Landlord Partnership Program (LPP), which provides financial and support incentives to landlords who rent to families who receive federal rental assistance through the Section 8 Housing Choice Voucher program within the San Diego city limits (92037 and ZIP codes that begin with “921”, except for 92118). Landlords who participate in the LPP may be eligible to receive up to $500 for each rental unit rented to a Section 8 household and up to $3,000 to help cover repair expenses in excess of normal wear and tear and rent due that exceeds the security deposit following tenant move-out. For more information about LPP, please visit https://www.sdhc.org/doing-business-with-us/landlords/landlord-partnership-program/

SDHC’s services to landlords include consistent and on-time rent payment, access to an online landlord portal, and enhanced customer service.

-- In National City, South Bay Community Services (SBCS) launched a tenant-based rental assistance program in National City. The City of National City has reached out to PSAR seeking assistance in contacting property managers and management companies who have tenants with past due rent.

SBCS is now accepting applications for a COVID-19 Tenant Based Rental Assistance Program funded by the City of National City. This program will assist low-income families in who have suffered a loss in income or are unable to pay their past due rent because of Covid-related financial issues. You can help by notifying tenants that this rental assistance is available. Applications can be found at https://southbaycommunityservices.org/national-city-rental-assistance/. Application assistance is available in person at the National City Family Resource Center (304 W. 18th Street, National City), at  rentalassistance@csbcs.org, or by phone: (619) 336-8360
-- In Chula Vista, the city is developing its long-term strategic plan for housing and determining housing dollars usage, according to the city website. Earlier this year, the  Chula Vista City Council enacted a temporary eviction moratorium in response to Covid-19. The city’s moratorium, which provided eviction protection for residents and commercial tenants, was superseded and replaced with AB 3088, known as “The Tenant, Homeowner and Small Landlord Relief and Stabilization Act of 2020.” The law signed by Gov. Newsom on Aug. 31, protects renters, homeowners and small landlords through January 2021.

Chula Vista used a portion of the $3.3 million it received from the CARES Act to lend financial support to South Bay Community Services (SBCS), who assists residents with rent payments. An additional CARES Act allotment arrived Nov. 1, allowing SBCS to accept additional applications for rental assistance from those suffering economically from Covid-19 effects.-- In El Cajon, several nonprofits who have contracts with the city are assisting El Cajon residents with rent payments. The nonprofits include Home Start (619-430-0032), Interfaith Shelter Network (619-702-5399) CSA San Diego County (619-444-5700). Earlier this year, the El Cajon City Council allocated $800,000 in special block grant funding to those impacted financially by the Covid pandemic.-- In La Mesa, Home Start is overseeing a Rental Assistance Program. Applicants may qualify for up to three months of past-due rent assistance for those who have experienced job loss and/or other Covid-related financial challenges. Earlier this year, the La Mesa City Council approved $1.8 million in Coronavirus Aid Relief and Economic Security Act funding to businesses and residents. A portion of that money, roughly $600,000, was allocated to rental assistance to help people avoid eviction and homelessness. 
-- In Lemon Grove, Home Start is supporting the city’s rental assistance efforts. The Lemon Grove City Council allocated $100,000 of $162,371 in Federal Coronavirus Aid, Relief, and Economic Security Act funds to Home Start to help individuals needing hotel vouchers, transportation, reunification efforts and emergency items such as food, blankets and diapers. Funds are also available to those who need rental and utility assistance.

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