Low mortgage interest rates will support California’s housing market next year but economic uncertainty and affordability issues will mute sales growth, according to a recently released 2020 housing market forecast from the California Association of REALTORS® (C.A.R.).

In 2020, the state’s housing market will see a small uptick in existing single-family home sales of 0.8 percent next year to reach 393,500 units, up from the projected 2019 sales figure of 390,200. The 2019 figure is 3.1 percent lower compared to the pace of 402,800 homes sold in 2018.

In addition, the statewide median home price is forecast to increase 2.5 percent to $607,900 in 2020, following a projected 4.1 percent increase from last year to $593,200 in 2019.

“With interest rates expected to remain near three-year lows, buyers will have more purchasing power than in years past, but they may be reluctant to get off the sidelines because of economic and market uncertainties,” said C.A.R. President Jared Martin. “Additionally, an affordability crunch will cut into demand in some regions. These factors together will subdue sales growth next year.”

“California’s housing market will be challenged by changing migration patterns as buyers search for more affordable housing markets, particularly first-time buyers, who are the hardest hit, moving out of state,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “With California’s job and population growth rates tapering, the state’s affordability crisis is having a negative impact on the state economically as we lose the workers we need most such as service, construction workers, and teachers.”

A 2019 C.A.R. study revealed that 30 percent of sellers who planned on repurchasing said that they will buy their next home a state other than California, which is the highest percentage level since 2005. Older generations were more likely to buy outside of California as well as 37 percent of baby boomers and silent generation.  But only 30 percent of millennial sellers planned to do the same. 

Additional recent 2020 housing market forecasts, according to news reports, include the following:

-- Home prices in San Diego will continue to rise in most neighborhoods but at a far slower rate than previously years, according to John Burns Real Estate Consulting in La Jolla. By year’s end, housing price will have dropped by 1 percent countywide, the firm said.

-- Redfin said the next recession, whenever it happens, is unlikely to have a large negative impact on the real estate market. However, Redfin said San Diego County has the fourth highest risk in the nation for a residential downturn in the event of a recession. San Diego has a 68.2 percent risk of a housing downturn if, or when, a recession happens. The three other metropolitan areas with higher risks include Riverside (72.8 percent probability of a housing downturn), followed by Phoenix (69.8 percent) and Miami (69.5 percent). Rochester, N.Y., Buffalo, NY, and Hartford, Conn. have the lowest risk of a housing downturn. Redfin measured a wide range of factors, including average home loan-to-value ratios, home price volatility, home price-to-income ratio, and the share of homeowners older than 65.

-- Economic expansion, already the longest on record, is expected to continue in 2020. The U.S. gross domestic product will grow by 1.6 percent in 2020, after a projected gain of 2.2 percent in 2019, according to C.A.R.

-- The state’s unemployment rate will tick up to 4.5 percent in 2020 from 2019’s 4.3 percent projected figure. A tight labor market will continue to make it hard to find skilled workers.

-- The average for 30-year, fixed mortgage interest rates will dip to 3.7 percent in 2020, down from 3.9 percent in 2019 and 4.5 percent in 2018 and will remain low by historical standards, said C.A.R.

-- The UCLA Anderson Forecast is predicting an economic slowdown nationwide in the second half of 2020, though not to recession levels. The report said the national economy will slow to 0.4 percent growth in the second half of 2020 due to trade tensions lowering corporate investments, but it should rebound to about 2.1 percent growth in 2021. San Diego and California will fare better than the rest of the nation because of job creation and diversity in the local economy.

-- CalMatters, a nonprofit, nonpartisan media venture, recently reported that California is home to roughly a quarter of the nation’s immigrants, 11 million, which is more than the entire population of Georgia. Half of the state’s immigrants were born in Latin America and four out of 10 are from Asia. The leading countries of origin: Mexico (4.1 million), China (969,000), the Philippines (857,000), Vietnam (524,000) and India (507,000). Among recent immigrants, Asia has surpassed Latin America. The future California will be a minority-majority state with a rising population of multi-racial people who are two races or more.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

I admit it. I was somewhat disappointed with the recent approval by Sacramento lawmakers of statewide rent control legislation. AB 1482 will limit yearly rent increases to 5 percent, plus inflation, beginning Jan. 1, 2020. The new law will effectively limit rent increases to around 7 to 8 percent a year in San Diego County, based on our local inflation rate. The new law is not only rent control, but it’s also anti-rent gouging.

Fortunately, single-family homes and condominiums will be exempted from the new law, but our state's housing affordability and availability crisis deserves a comprehensive approach that prioritizes building more homes for rent and ownership. This new law offers nothing in support of production or protection.

Throughout the debate, the California Association of REALTORS® (C.A.R.) advocated for a balanced solution that protected renters and respected the rights of property owners. While several of C.A.R.’s recommendations were included in AB 1482, the final bill did not do enough to support the increase of supply of affordable rental housing. Even legislators who voted yes did so acknowledging its shortcomings.

With its restrictive rent cap, AB 1482 will not incentivize production of rental housing or help more people find an affordable place to live. It will actually discourage new rental housing and make it more difficult for hard-working Californians to find an affordable place to live.

In a statement after the bill passed earlier this month, a C.A.R. representative said, “It was disappointing that the California Apartment Association and the California Business Roundtable did not stand with us. In fact, the Apartment Association opposed an earlier version of the bill with a higher rent cap and a shorter sunset date and then withdrew their opposition when the bill was amended to lower the rent cap and extend the sunset date, contrary to the interest of their members. Only C.A.R. advocated for small mom-and-pop investors by successfully obtaining an exemption for single-family homes and condominiums.”

Just last year, when more Californians than ever voted in a midterm election, their message was clear. They wanted a balanced solution to our affordability crisis. Voters in 56 of California's 58 counties rejected a statewide ballot measure that would have dramatically expanded rent control without respecting property rights. Clearly, AB 1482 is an end-run after the failure of last year’s statewide proposition for rent control.  

Still today, headline after headline remind us of the immediate need for more housing. In recent weeks, we learned the state has issued just 111,000 permits for new homes in 2019, 12 percent less than a year before. Even worse, apartment development is down 42 percent from last year. Today’s real estate market is complex and interconnected. Home ownership is on the decline and rents are ever increasing.

Californians are being forced to make tough decisions because of the housing crisis. In a recent survey, 53 percent said they were considering leaving the state due to high housing costs and an even greater share of young people said the same. That number bears repeating: more than half of Californians think leaving the state may be the best option for them if they want to find more affordable housing.

Rent should be only about 25 to 30 percent of a person's income, but for more than 30 percent of Californians it is approaching 40 to 50 percent of their income. California needs to remove barriers to additional housing, not create them. Unfortunately, that’s exactly what AB 1482 has done.

Now, with AB 1482 becoming law, our PSAR members are facing a new reality. Perhaps REALTORS® should consider focusing on identifying more investor-owned properties. In some cases, rent-controlled properties can still be a valuable addition to an investor’s portfolio.

For example, rent-controlled units can offer lower acquisition costs. After capital improvements, there can be potential for substantial upside. Rent-controlled properties can provide a consistent stream of revenue and be a great investment for those with a long-term, buy and hold strategy.

I don’t blame you for being skittish about rent-controlled properties. But, perhaps investors who want to sell might have a broker manage their properties for them. It’s an idea that might help both tenants and landlords, including the economically disadvantaged and most vulnerable who generally get hit the hardest by rent control.

Although we did not prevail, PSAR remains steadfast in its commitment to overcome California’s historic housing supply and affordability crisis.

The right response is a dramatic increase in the number of homes, especially apartments, across California. That’s the only way to close California’s chronic jobs-to-homes imbalance and keep the state economically viable. If we don’t build the homes that working families need, employers will pack up and take their jobs to states that will.

By Sam Calvano

I’ve worked in real estate for a long time, since 1976. I began my career as a real estate sales agent and then I switched to real estate lending in 1983. I’ve learned a lot and seen a lot of changes over the years. However, one constant, key factor in our business has been the importance of our Association. The influence and inspiration that our Association has in the local real estate market cannot be understated.

Real estate has been very good to me in my life. So, one of the reasons I serve with PSAR is because I want to give back to our industry. Giving creates community and camaraderie. I am encouraged when I see other PSAR members actively looking for ways to invest their time, treasures and talents. In a time where we are all so busy and everyone seems to be doing more with less, PSAR has some great people who are willing to contribute in various ways to improve and enhance our industry. We couldn’t possibly do all the things we do at PSAR without the spirit of giving back that so many members demonstrate. 

I believe in PSAR because PSAR is focused on its members. Decisions are made based on what will benefit REALTORS® and all other industry professionals.

I am honored to share with you the reasons why I’m involved as an active volunteer with PSAR. First, a higher level of involvement in PSAR has meant a number of personal benefits. I have found that my involvement in PSAR is good for my business. I take the opportunity at various meetings and events to meet fellow REALTORS® and industry professionals and we share ideas and information.

Also, involvement in PSAR is good for our industry. When REALTORS® speak individually and collectively, people listen, including government bodies and elected officials. When we listen to each other, it creates understanding and connection. One of the greatest gifts you can give people is an attentive ear. When you listen, you’re saying, “You matter, I value what you have to say, I value who you are.” 

In addition, being involved in PSAR helps our Association to become more inclusive. I love that we include everyone at PSAR. There is no need for special or separate interest groups in our organization. Everyone is invited and diversity of opinion is welcomed. Cultivating inclusion is not just the right thing to do, but also the smart thing. At PSAR, we actively work to make our culture more inclusive. As a result, our members are empowered and better positioned to achieve greater levels of loyalty, engagement and productivity through skill-set growth and career progression.

Finally, getting involved at PSAR at a greater level has given me the opportunity to encourage our younger and newer members. Encouragement is so difficult to find today. We live in a deeply negative culture, where put-downs seem to be the favorite form of humor. People are constantly demeaned and degraded. They’re criticized and maligned. However, in contrast, when somebody comes along and says, “Good job!” it can make a tremendous difference.

So, I’m urging you to join me and decide today to get more involved at PSAR. Do something more than you’re doing now. Join a committee or volunteer for an event. Look for ways to give back to the industry and the Association that we love.  Make a connection, make a commitment. If you want to get beyond shallow, superficial relationships, you’ve got to be willing to stick with it. Getting involved will give you the chance to gain new skills to further your goals and pursuits. You will get better at learning more about yourself and how to better achieve success.

San Diego County’s housing market in July 2019 saw an 8.9 percent increase in sales from the previous month, and a 3.4 percent sales increase compared to July 2018, according to the latest housing market report from the California Association of REALTORS® (C.A.R.).

In addition, the median price of an existing single-family home in San Diego County of $650,000 in July 2019 was 2.3 percent lower from the previous month of $665,000 in June 2019. The local median price of $650,000 in July 2019 was the same as July 2018.

The lowest interest rates in nearly three years helped jump-start California’s housing market to post the first year-over-year sales gain and the highest sales level in 15 months.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 411,630 units in July, according to information collected from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents the total number of homes sold during 2019 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

July’s sales figure was up 5.6 percent from the 389,730 level in June 2019 and up 1.1 percent from home sales in July 2018 of 407,030.

“Mortgage rates that dipped to the lowest level in nearly three years have helped reduce monthly mortgage payments for the past five consecutive months, giving buyers more purchasing power,” said C.A.R. President Jared Martin. “The boost in demand gave the housing market its first yearly gain since April 2018.”

After setting record prices for the past three months in a row, the statewide median price of $607,990 in July 2019 pulled back by 0.4 percent from June 2019’s $610,720 figure, but it still registered higher by 2.8 percent than the $591,230 price set for July 2018.

It was the fourth straight month that the median price remained above $600,000.

“While it's encouraging that home sales crept higher in July, the market will continue to be challenged by an overarching affordability issue, especially in high cost areas such as the Bay Area, which requires a minimum annual income well into the six figures to purchase a home,” said C.A.R. Senior VP and Chief Economist Leslie Appleton-Young.

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

-- At the regional level, non-seasonally adjusted sales increased from a year ago in all major regions, except San Francisco, which experienced a 0.6 percent decline. The Los Angeles Metro region posted a 4.0 percent increase, and sales in the Inland Empire improved by 2.4 percent.-- Non-seasonally adjusted sales rose in every county in Southern California, with Orange County rising the most at 6.7 percent, followed by San Bernardino (5.0 percent), Los Angeles County (4.7 percent), San Diego (3.4 percent), Ventura (2.1 percent) and Riverside (0.8 percent).

-- Median home prices at the regional level continued to inch up in Southern California and the Central Valley regions, while the Central Coast and Bay Area declined slightly from a year ago. In the Southern California region, median home prices grew in every county, while most Bay Area region counties continued to experience price softening on a year-over-year basis.

-- Active listings, which had been increasing year-over-year for the past 15 months, fell 2.1 percent from a year ago.

-- The decrease in active listings and an increase in home sales contributed to a year-over-year decline in unsold inventory for the first time in 15 months. The Unsold Inventory Index (UII), which is a ratio of inventory over sales, stood at 3.2 months in July, down from 3.4 months in June and down from 3.3 months in July 2018. The index measures the number of months it would take to sell the supply of homes on the market at the current sales rate. 

Statewide, the median number of days it took to sell a single-family home increased to 21 days in July 2019, compared to 19 days in June 2019 and 18 days in July 2018.

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

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

-- The 30-year, fixed-mortgage interest rate averaged 3.77 percent in July, down from 4.53 percent in July 2018, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 3.47 percent, compared to 3.84 percent in July 2018.

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

-- According to CoreLogic, home sales in July rose 10.1 percent from a year ago, as the median home price stayed flat. The $580,000 median home price in July, showing no gain from the year before, was down from the all-time high of $590,000 the previous month.

-- According to the most recent S&P CoreLogic Case-Shiller Indices report, the rate of home price increases is continuing to slow in San Diego and across the nation in June. The survey found that in 20 major cities it tracked across the U.S., there was a year-over-year price gain of 2.1 percent. For San Diego County, the year-over-year increase was just 1.3 percent in June, down from 6.9 percent at the same time last year. It was the fifth monthly increase in a row for San Diego.

-- According to Zillow, home value growth continued to slow in July, indicated a slowdown. The rate of U.S. home value appreciation decreased for the seventh straight month in July. The typical U.S. home was worth $229,000 in July, an increase of 5.2 percent from a year ago but the smallest annual appreciation since October 2015. The median price of a single-family home in San Diego County was $591,500 in July, Zillow said. San Diego County’s year-over-year home price climbed by just 1.1 percent in July, compared to a 6.1 percent year-over-year increase in July 2018.

-- According to Redfin, a typical family in San Diego would need to earn 156 percent of the median household income in order to afford the $650,000 median-priced, single-family home. The Redfin survey is based on the assumption that a home is only affordable if the would-be buyer pays no more than 30 percent of his/her household income on the purchase.

-- San Diego ranked as the 10th-most coveted moving destination in the second quarter, according to a report from Redfin. There were 3,013 more Redfin users looking to move here than leave, marking a year-over-year increase of 465 users, the company reported. The largest percentage of San Diego searches came from residents of Los Angeles. The top out-of-state origin for San Diego searches came from Seattle.

-- San Diego County had the nation's fifth most expensive single-family housing market in the second quarter, according to the National Association of REALTORS® (NAR). NAR found four housing markets that were more expensive than San Diego’s. The Sunnyvale-Santa Clara area was the most expensive market at $1.33 million at mid-year, followed by the San Francisco Bay area ($1.05 million), the Anaheim-Santa Ana-Irvine market ($835,000) and Urban Honolulu ($785,500).

-- San Diego was the third most expensive home resale market in the nation during the first half of the year, according to an HSH.com report. The report, covering the top 50 metropolitan areas, incorporated local property tax and homeowner's insurance costs and calculated the income needed to qualify for a median-priced home in each market.

-- More than 20 percent of homes for sale in the San Diego metropolitan area had a price decrease in June. Of the 20 biggest metro areas in the nation, San Diego had the sixth most price reductions, according to Zillow. Chicago had the most reductions at 22 percent. The numbers are down from the end of last year in San Diego metro. In October 2018, 27 percent of home listings had price reductions. Still, recent numbers are a far cry from the start of 2017 when less than  9 percent of listings had a price reduction.

-- San Diego County had the biggest drop in homebuilding in Southern California in the first six months of 2019. According to the Real Estate Research Council of Southern California, 43 percent fewer homes were constructed in the six-month period compared to the same timeframe last year. The slowdown comes at a time when city and state leaders are offering several legislative measures to spur housing.

-- Mortgage problems, including defects, fraudulence and misrepresentation, are declining, according to First American Financial Corp. The top markets with a year-over-year decrease in July included Houston (minus-19.1 percent), Jacksonville, Fla. (minus 17.0 %), Orlando, Fla. (minus 16.5 %), San Diego (minus 16.5 %), and Tampa, Fla. (minus 14.0 %).

-- New, entry-level teachers will need to spend more than half of their salaries on rent in 19 of the nation’s 50 largest metropolitan areas this school year, according to Zillow. New educators in San Diego County will need to spend almost their entire salary in order to afford a local apartment. Zillow found that an entry-level teacher in San Diego will be required to spend 97.2 percent of their income to live in an apartment with a median monthly rent of $2,673.

-- The unemployment rate in the San Diego County was 3.6 percent in July, up from a revised 3.3 percent in June 2019, and unchanged compared with the year-ago estimate of 3.6 percent, the state Employment Development Department reported. This compares with an unadjusted unemployment rate of 4.4 percent for California and 4.0 percent for the nation during the same period.

-- U.S. employers hired 164,000 workers in July as the labor force hit a record high. Government data indicates that hiring in the U.S. remained at a healthy pace in July despite a cooling economy. The 164,000 non-farm payrolls last month increased the size of the labor force to its largest ever. The labor market has added jobs for a record 106 straight months. On average, the U.S. added a solid 140,000 jobs a month between May and July.

Salute to Service

By Mike White

I have never been the kind of person who has been content just sitting on the sidelines. Instead, I prefer to get involved. That’s why I decided to participate in a leadership role at PSAR as a board member. And, since this year’s PSAR theme is “Salute to Service,” I want to encourage all of you to also decide to personally participate at a greater level at PSAR.

A higher level of involvement in PSAR has personally meant a ton of benefits for me. PSAR has given me an opportunity to continue my personal and professional growth and career maturity. In the past, I’ve been in several other leadership roles outside of real estate, including as President of Toastmasters Club, PTA and others. But, PSAR has brought me to a whole new higher level.

Involvement in PSAR has meant that I’ve had to “up my game.” I have been pushed to set higher goals for myself. I have learned to be a better listener and make the most out of every situation. I have learned to understand what it means to broaden and expand my horizons, maximize opportunities and stay ahead of the curve.

For example, forming and leading the PSAR Tech Committee as chair has been a great experience. I’ve been able to solidify my public speaking skills as a result of delivering the “Tech Moment” at Rally and Ride pitch sessions. And, it’s been personally gratifying to share what I’ve learned with our members there and at our monthly "Tech Lunch and Learn" workshops.

Also, it’s been a great experience to represent PSAR as a member of several California Association of REALTORS® committees, including Business Tech, MLS, Zipforms and Standard Forms. 

Overall, getting involved at PSAR at a greater level has given me the opportunity to "drive the industry bus", so to speak, rather than just being one of the passengers. You, too, can “drive the bus.” I’m inviting you today to get behind the wheel and buckle-up your seat belt. As a driver, you can make a difference about the speed and direction of the bus as you bring along other PSAR members and help set a destination for success.

Every morning, I need to remind myself that since I’m driving the bus I will do everything I can to make things happen. That’s because attitude, not aptitude, determines altitude. I choose to be optimistic even when it appears the deck is stacked against me. Everybody has the choice in life to be a passenger or a driver. The passengers go along for the ride, leaving decisions and responsibility to somebody else. A passenger does not take personal responsibility for the events in their life. But, to be successful and live a fulfilling life, you need to be the driver.

C’mon, get serious with me: Are you a hammer or a nail? Which one would you rather be? Some people complain about bad luck, but others make their luck.  If it is to be, then it must be up to me. To succeed, you have to try.  Don’t be afraid of failure because the most successful people have failed, but they stuck with it.  

Every successful entrepreneur has always faced challenging odds, but then they have succeeded in spite of them all. Every successful REALTOR® has usually had countless people tell them they were delusional and should give up and “get a real job.” I’ve always felt, as far as my destiny is concerned, that every set-back, when the door has been slammed in my face, has been nothing more than just another bump in the road that is bringing me closer to a “yes.” And, as long as you love what you're doing, you're half-way to your long-term goals.

So, I’m urging you to join me and decide to get more involved at PSAR. Just do something more than you’re doing now. Join a committee or volunteer for an event. Get involved and you will gain new skills that will help you further your goals and pursuits. You will get better at learning more about yourself and how to better succeed. Be that bus driver who takes more control of life and pursues new dreams and goals through the attainment of new skills. The time is now, step up and become a driver.  

By Robert Calloway

The real estate industry is constantly evolving as new products and practices are introduced to the marketplace. On a daily basis, our PSAR members are experiencing new disrupters trying to shake-up the traditional business model of buying and selling with the assistance of an experienced REALTOR®, which remained unchanged for decades. PSAR is active in our efforts to combat this disruption by empowering our REALTOR® members.  

The phenomenon of iBuying is currently one of the most pressing concerns.

The idea behind iBuying is to reduce transactional property costs by utilizing digital tools. This direct-to-consumer, all-cash, online homebuying option is known by many names, including Opendoor, which launched in 2013, and Offerpad, which started purchasing homes directly from homeowners in 2015. Others include Knock, Ribbon, Redfin Direct and Zillow Offers, which launched last year.

The idea of selling and buying homes directly from consumers has grabbed media attention, investor dollars and a certain level of consumer acceptance. What started as a moonshot idea of selling your home with the help of an algorithm has become a homebuying market in its own right.

To some, this method appears to be a modern alternative to the often complicated and complex process of real estate transactions. For example, in theory, once a seller accepts a Zillow Offers price, they are able to pick their own closing date. Also, buyers who purchase a Zillow-owned home will be able to pick a move-in date of their choice.  

I know many PSAR REALTORS® who have justifiable concerns about giving consumers technology tools needed to buy or sell a home without an agent. We all could be impacted by technology that minimizes the role of agents or poses a threat to both homeowners and real estate professionals.

But, the truth is that most homebuyers and sellers need advice on how much to offer, whether to include an inspection, how to arrange financing and a host of other issues related to the real estate transaction process.

In fact, during the past five years, PSAR has worked hard to empower REALTORS® with more data and new technology to help them remain in the center of the transaction. PSAR provides new technology that can be leveraged to provide an experience for the consumer that is second to none. 

For example, the move to CRMLS has had a major impact on the ability of REALTORS® to compete in today’s market. CRMLS has access to more San Diego County listings than any other MLS. “Cloud Streams” is better than the MLS at sharing listings with clients through texting and an improved user search experience. SavvyCard® is another new tool that is helping agents share their business card and listings through social media and online marketing. Cloud MLX also provides a superior search experience. Agents who use Glide are providing a consumer-friendly tool that helps sellers fill out their disclosures easily on multiple platforms. CRMLS negotiated a special deal with LionDesk® so that agents can have access to a fully functional CRM at no additional cost. Remine takes MLS data and enhances it with consumer data to put marketing power in the hands of the REALTOR®.

These new tools are powerful and, if used, can help a REALTOR® leverage their relationships to provide a superior client experience. To learn more about new technology tools that PSAR is providing to empower the REALTOR®, visit https://info.psar.org/benefits.

So, let’s ask a simple question: Just how many consumers are actually trying to go it alone without an agent? Real estate industry watchers expect the iBuyer market will represent less than 10 percent of the overall market.

Glenn Kelman, CEO of Redfin, has stated publicly that he doesn’t expect the number to go any higher than 10 percent or 20 percent any time soon. Currently, in Boston, which is regarded as a tech-savvy market, Redfin says less that 5 percent of the offers are from unrepresented buyers. Earlier this year, Kelman said a majority of people who receive offers from Redfin’s iBuyer program ultimately reject those offers. “Most customers who get a RedfinNow offer don’t take it,” Kelman told Inman News.

So, who really is using iBuyer tools? It’s a mixture of people who are experienced at homebuying and younger customers who have never bought a home before. Some companies predicted a majority of iBuyers would be people with extensive homebuying experience, but that hasn’t always been the case.

Another slant to the iBuying trend is that selling a home to an iBuyer company could cost the seller tens of thousands of dollars. The iBuyer model may appeal to consumers who are looking for ease and hoping to avoid some parts of the home sales prep work, such as open houses, staging, showings and the like. But, the convenience is likely to come at a considerable price tag.

A recent investigation by MarketWatch of multiple transactions involving iBuyers shows that the offers would net their customers an average of 11 percent less than owners who choose to sell their homes on the open market, when fees and other costs are considered.

Simply put, iBuyer deals are stealing equity from homeowners. Opendoor and Offerpad both charge sellers fees of about 7 percent, in contrast to the average of 5 percent charged by real estate agents, according to REAL Trends.

A recent report said that RedfinNow might save home-sellers some time, but it also is likely to reduce the amount of money homeowners will earn from a purchase. Maybe some people don’t care about losing $5k or $20k on a sale, but this is real money to most working stiffs like us.

Indeed, according to Redfin’s initial public offering filed with the Securities and Exchange Commission, it states: “Customers who sell through RedfinNow will typically get less money for their home than they would listing their home with a real estate agent but get money faster with less risk and fuss.”

Meanwhile, many of us have experience with the shortcomings of Zillow’s Zestimates, which even the company acknowledges are a starting point in determining a home’s value and not an official appraisal. According to Zillow, there are 102.7 million homes with Zestimates on Zillow. Nationally, the Zestimate has a median error rate of 7.9 percent, which means half of the Zestimates are closer than the error percentage and half are farther off. The company admits that in about 20 percent of sales the Zestimate misses the sale price by more than 20 percent.

Even some traditional brokerages, including Keller Williams, are also entering the iBuyer space with Keller Offers, which features a KW agent serving as an advocate during the home selling process. Earlier this week, Offerpad announced it would finance Keller Offers in selected markets, giving KW agents a chance to rep both sides of a sales transaction for the iBuyer.

Finally, my word to you is simply, let’s keep working hard, confidently knowing that our expertise, knowledge and services will be sought-after traits in the marketplace. Life is about relationships, and we were put on earth to make a difference and a contribution. There will always be a need for people with outstanding character, work ethic and professionalism. At PSAR, you will always be highly valued and considered extremely valuable.

Here is the latest in a series of occasional articles on “Best Practices” for PSAR members from 2019 PSAR President Robert Calloway.

By Robert Calloway

      You might have seen news stories that said, in the future, one of the next jobs to be performed by robots instead of humans will be the role of a REALTOR®. These news reports say that artificial intelligence (AI) may one day equip robots to do some of the same jobs as REALTORS®.  For example creating three-dimensional virtual property videos of properties, assisting with office interactions, or communicating various home features in different languages. A 2013 study by Oxford University estimated AI has a 98 percent chance of replacing real estate agents. Some of us may even express concerns over potential layoffs or job loss when automation advocates predict robots will start encroaching on a particular industry.

     Well, it’s true that a wide variety businesses have turned to robots to improve their operations, processes and bottom lines. However, for a number of reasons, it’s my belief that robots will never replace REALTORS®.

      So, don’t be afraid or fearful.  Let not your heart be troubled. Don’t worry about robots showing properties anytime soon. The role of a REALTOR® requires human intuition, reasoning, emotion and empathy -- traits that machines will never be able to duplicate. Human real estate agents are not on the way out. Here are a few of my reasons why.

-- For most people, home buying and selling is the biggest financial transaction they’ll make in their lifetimes. It’s an emotional experience, sometimes gut-wrenching and scary. And, it’s comforting to have a real person guide us through the process and all the paperwork. It comes down to trust. People want to look another human in the eye and judge whether they trust that person to help them make such a big decision.

-- Matching the heart and mind is something that only humans can do. Yes, a robot might be able to match a prospect’s wish list with available inventory.  I think we would all agree that home purchases are driven by human intuition and emotion.  An experienced REALTOR® can notice subtle signs, read body language and facial expressions, realize when it’s not going well and how things can be changed. We all know that no two buyers are alike, just as no two properties are identical. Last time I checked, a robot cannot think outside the box with a gut-check.

- Everything in life is negotiations and robots don’t negotiate. Machines can’t decipher the gray shades in life. They operate best when the outcome is predictable. Machines can collect data, but humans are better at communicating effectively. Negotiating is everywhere, as are give-and-take reasoning and overcoming the obstacles that are in the way. Humans are best at building trust and rapport with empathy and by showing the other party that you actually understand from where they’re coming. There’s no computer code for determining when a client needs to be guided to accept or decline an offer.

     While robots will never replace real estate agents, it’s conceivable that robots may be involved in our future deals. For example, robots may improve the accuracy and quality of information, such as providing precise interior and exterior mapping, home inspection and other functions that would contribute to greater efficiency. AI may help us, with Big Brother-like analytics, to find prospective buyers.

     At a recent open house in Southern California, guests were able to get answers from a robot that had been programmed with detailed answers to over 75 frequently-asked questions about the home. The robot also recorded the answers and fed that information into a potential buyer’s profile. In San Francisco, if you’re looking for a place to rent, you can now get a home tour from a tablet-carrying robot. The robot is controlled remotely by a real estate agent whose beaming face appears on the tablet.

It's a novel use of a robot, but there’s one major hitch: stairs. Robots have a hard time climbing large staircases.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

San Diego County’s housing market in June, 2019 saw a 10.2 percent drop in sales but a 2.3 percent increase in prices, according to the latest housing market report from the California Association of REALTORS® (C.A.R.).

Sales of existing, single-family homes in San Diego was 10.2 percent lower in June in a month-over-month comparison with May 2019, as well as 12.5 percent lower in a year-over-year comparison with June 2018.

Meanwhile, San Diego County’s median, single-family home price of $665,000 in June 2019 was 2.3 percent higher compared to the figures from both May 2019 and June 2018, when the sales price was $650,000 for both prior months.

Statewide, California’s existing home sales fell below the benchmark 400,000 level in June 2019 after rebounding in May.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 389,690 units in, June, according to information collected from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2019 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

June’s sales figure was down 4.2 percent from the 406,960 level in May and down 5.1 percent from home sales in June, 2018 of 410,800. Sales fell below the 400,000 benchmark again after rebounding in May. Sales have been under the benchmark for 10 of the past 11 months.

Home sales in Southern California were down 9.1 percent in June with every county outside of Ventura (up 0.6 percent) posting declines. Los Angeles (minus-12.6 percent), San Diego, Orange (minus-7.6 percent), San Bernardino (minus-7.2 percent), and Riverside (minus-4.0 percent) experienced the biggest declines.

The statewide home price set another record in June 2019. June’s median price was $611,420, essentially unchanged from $611,190 in May 2019 and up 1.4 percent from $602,770 for June 2018.

Regarding regional level, median home prices in Southern California, only Ventura County experienced a year-over-year price decline. Other counties in the region recorded annual price growth ranging from 0.8 percent in Orange County to 5.7 percent in San Bernardino.

“With softer price growth and interest rates at the lowest levels in nearly three years, monthly mortgage payments on a median-priced home have fallen for four straight months,” said C.A.R. President Jared Martin. “This allows homebuyers to save hundreds of dollars a month on the same home or to potentially consider a slightly more expensive home for the same monthly cost. Combined with the long-term benefits of homeownership on personal wealth and quality of life, 2019 is a good time to purchase a home for the long haul.”

C.A.R. Senior VP and Chief Economist Leslie Appleton-Young agreed.

“With low rates supporting sales and elevating home prices in the last few months, the market outlook has shown some improvement since the first quarter,” she said. “As such, we have revised our 2019 forecast upward for (California) home sales to reach 385,460 and for the median price to hit $593,000, from the previous forecast of 375,100 and $568,800, respectively.”

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

-- Active listings, which have been decelerating since December 2018, grew 2.4 percent from a year ago, the smallest increase since April 2018.

-- The number of homes available for sale has moderated significantly, suggesting that the market is getting back toward being more balanced between supply and demand, but inventory remains relatively tight from a historical perspective. The Unsold Inventory Index (UII), which is a ratio of inventory over sales, was 3.4 months in June, up from 3.2 months in May and up from 3.0 months in June, 2018. The index measures the number of months it would take to sell the supply of homes on the market at the current sales rate.  

-- The median number of days it took to sell a California single-family home increased in June. Time on the market inched up from 18 days in May to 19 days in June. In June 2018, it took a median number of 15 days to sell a home in the state.

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

-- The statewide sales-price-to-list-price ratio was 99.2 percent in June, 2019, compared to 100 percent in June, 2018. The figures for the previous month were 99.3 percent in May, 2019 and 100 percent in May, 2018. Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the property sold below the asking price.

-- The statewide price-per-square-foot average for an existing, single-family home statewide reached $292 in June, 2019, compared to $290 in June, 2018. The figures for the previous month were $292 in May, 2019, up from $286 in May, 2018. The May, 2019 figure was the highest level since late 2007.

-- The 30-year, fixed-mortgage interest rate averaged 3.8 percent in June, down from 4.57 percent in June, 2018, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 3.48 percent, compared to 3.82 percent in June, 2018.

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

-- San Diego County businesses are maintaining a relative upbeat outlook this summer, according to a recent survey by the San Diego Regional Chamber of Commerce. The survey, which was fielded in late June, shows continued optimism among local businesspeople regarding hiring, hours offered and revenue in the coming months.

-- The San Diego-Carlsbad-San Marcos market had the sixth-highest average mortgage debt in the country among major metro areas in the year’s first quarter, according to Experian. The San Diego region ranked sixth with an average of $386,530 owed per homeowner. That average is a 2 percent increase over the San Diego metro area’s debt last year, which averaged $378,975 per homeowner in 2018’s first quarter. San Diego was one of seven of the top 10 metro areas with the highest debt to show an increase over their 2018 first quarter averages.

-- San Diego rents increased 0.1 percent in June, and have increased marginally by 0.8 percent in comparison to the same time last year, according to the most recent report by Apartment List. Currently, median rents in San Diego stand at $1,570 for a one-bedroom apartment and $2,030 for a two-bedroom. San Diego’s year-over-year rent growth lags the state average of 1.2 percent, as well as the national average of 1.6 percent.

-- San Diego is the fourth-best large city in the country in which to live, according to WalletHub, a personal finance website. WalletHub ranked cities with a population above 300,000 by evaluating their affordability, economic strength, education and health quality, quality of life and safety. A total of 62 cities were sampled for the list, with Virginia Beach, Vir., taking the top spot. San Diego ranked 51st in affordability but ranked among the top-10 cities in education and health, quality of life and safety, and 12th in economic strength. Joining San Diego and Virginia Beach among the top five were Austin, Seattle and Las Vegas in second, third and fifth, respectively.

-- WalletHub also reports that San Diego is among the top 20 best places to raise a family. WalletHub compared the family-friendliness of more than 180 cities across the country based on 47 key metrics. The data set ranged from the cost of housing to the quality of schools. San Diego ranked 18th, as well as fourth for family fun, 18th for education and child care, 21st for health and safety, 59th for socio-economics, and 96th for affordability.
Chula Vista also landed on the list in the 60th spot. The South Bay city ranked eighth for health and safety, 30th for socio-economics, 31st for education and child care, 97th for family fun, and 142nd for affordability.

-- San Diego has the second fastest rate of growth for tech talent in the nation, according to a new report by CBRE Group, Inc. The commercial real estate firm’s tech talent scorecard ranks 50 U.S. and Canadian markets according to their ability to attract and grow tech talent. While the San Diego metro was ranked 18th overall for tech talent, its year-over-year growth rate of 10.2 percent outpaced tech growth in both Los Angeles and Orange County. CBRE also found: San Diego ranks 14th in population growth of people in their 20s (5.6 percent); San Diego is 7th in tech labor market competitiveness; With 73,170 total tech jobs, San Diego has the 20th largest tech talent labor pool; San Diego ranks 7th in highest tech wages with an average salary of $106,047, 10 percent above the national average.

-- The unemployment rate in San Diego County ticked up from 2.7 percent in May to 3.3 percent in June, but year-to-year job growth remained strong, according to the California Employment Development Dept. The rate in San Diego remained well lower than the rate for California and the United States as a whole, which were 4.1 percent and 3.8 percent, respectively.