Real Estate News

National, California, and Local Ventura County Real Estate News and other real estate related tidbits from around the web.

Help C.A.R. DEFEAT SB 1105 and SB 679

As the California legislature closes out the 2020-2022 legislative session, which concludes at the end of this month, C.A.R. is strongly opposing two bills currently before the legislature — SB 1105 (Hueso) and SB 679 (Kamlager). Both bills create housing agencies with the power to impose a range of new property taxes on homeowners. SB 1105 is particularly concerning as it grants an unelected six-member body broad power to unilaterally raise a very wide range of taxes on homeowners and real property generally.

C.A.R. obviously does not oppose the creation of housing, but local government can already pursue projects to build and promote housing and even raise taxes, so these unelected agencies are duplicative, costly, and harmful to property owners. The taxes that the agencies could impose would make owning a home more expensive in a time of serious economic stress and rising prices and would also put homeownership further out of reach for California’s working families.

C.A.R. members can take action to help defeat these bills by sharing this link with their clients and asking them to use the website to tell their legislators they oppose new housing taxes. They can also ask their clients, friends, and family to TAKE ACTION and continue posting on social media using the sample posts available here under Action Center.

Source: https://www.car.org/aboutus/mediacenter/news/SB1109

June Home Sales and Price Report

California home sales and price curb in June as housing demand cools, C.A.R. reports

2022 Housing market forecast revised to 380,630 units sold
and a statewide median price of $863,390.

  • Existing, single-family home sales totaled 344,970 in June on a seasonally adjusted annualized rate, down 8.4 percent from May and down 20.9 percent from June 2021.
  • June’s statewide median home price was, $863,790 down 4.0% percent from May and up 5.4% percent from June 2021.
  • Year-to-date statewide home sales were down 10.9 percent in June.

LOS ANGELES (July 18) – California’s housing market continued to downshift in June as housing demand cooled further to levels not seen in the past two years and logged its biggest dip since May 2020, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Infographic: https://www.car.org/Global/Infographics/2022-06-Sales-and-Price

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 344,970 in June, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. June’s sales pace was down 8.4 percent on a monthly basis from 376,560 in May and down 20.9 percent from a year ago, when 436,020 homes were sold on an annualized basis.

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

California’s median home price declined 4.0 percent in June to $863,790 from the revised record-high of $900,170 recorded in May. The June price was 5.4 percent higher than the $819,630 recorded last June. The moderation in the median home price was due partly to a change in the mix of sales in June, as the high-end market started pulling back.

After increasing for four consecutive months, the share of million-dollar home sales dipped as sales in the higher-price segment dropped 8.3 percent from the prior month. Sales of homes priced $2 million and up, in fact, plummeted 17.9 percent from May 2022. The sub-$500,000 market, on the other hand, increased 2.1 percent on a month-to-month basis in June. More moderation will likely come in July as sharp declines in pending sales in the upper-price segments suggest a drag on the statewide median price in the upcoming months.“Excluding the three-month pandemic lockdown period in 2020, June’s sales level was the lowest since April 2008. Pending sales data also suggests we can expect additional retreating in the coming months,” said C.A.R. Vice President and Chief Economist Jordan Levine. “With inflation remaining high and interest rates expected to climb further in the coming months, the market will normalize further in the second half of the year with softer sales and more moderate price growth.”

As such, C.A.R. has revised its 2022 housing forecast and projects existing single-family home sales to reach 380,630 units in 2022, a decline of 14.4 percent from the 444,520 units sold in 2021. The latest estimate is a revision from the projection of 416,810 units sold released in October 2021. Despite a more moderate growth rate in the second half of the year, the California median home price is projected to increase 9.7 percent to $863,390 in 2022, a solid gain from the annual median of $786,750 in 2021. The updated projection on the statewide median price is an increase from the estimate of $834,440 forecast last October. C.A.R. also projects the average 30-year fixed mortgage interest rate to rise to the range between 6.25 percent to 6.5 percent by the end of 2022 and averaging 5.2 percent for the year.
With the market shifting, consumers were less positive in June about the state’s housing market conditions, according to C.A.R.’s monthly Consumer Housing Sentiment Index. Conducted in June, 79 percent of respondents believed that the overall economic conditions in California will not improve in the next 12 months, while 85 percent believed that interest rates will not fall within a year. Only 14 percent of the respondents thought it was a good time to buy a home, a slight increase from the record low reached in May, but still a sizeable decline from last June’s 19 percent. While those who believed it was a good time to sell a home remained above pre-pandemic levels, the sharp monthly decline of 7 percentage points from 68 percent in May dragged the index down to the lowest level in 16 months.

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

  • At the regional level, all major regions experienced double-digit sales declines from last year, with three of the five regions falling by more than 25 percent on a year-over-year basis. Southern California had the biggest drop of all regions, with sales plunging 27.1 percent from a year ago. All six counties within the region dipped more than 20 percent year-over-year, with Orange County declining the most at 36.1 percent. The San Francisco Bay Area (-26.8 percent) had the second largest drop of all regions, followed by the Central Coast (-26.3 percent), the Central Valley (-19.6 percent), and the Far North (-18.5 percent).
  • All but two counties tracked by C.A.R. posted sales drops in June from a year ago. Of the 49 counties that experienced a sales decline, 48 of them fell by double-digits from last year, and 36 California counties had a year-over-year sales plunge of more than 20 percent. San Benito had the biggest sales drop from last June at -48.6 percent, followed by Siskiyou (-45.2 percent), Orange (-36.1 percent), and Santa Cruz (-36.1 percent). Counties with a sales decline decreased an average of -23.9 percent in June. Only two counties recorded a year-over-year sales increase in June, compared to 12 counties in May. Glenn (22.2 percent) and Mendocino (17.2 percent) were the only counties with a sales gain from last year. For the first six months of 2022, Plumas had the largest sales decline of -31.2 percent, while Yuba (+26.5 percent) continued to have the best sales performance of all counties.
  • At the regional level, home prices in all major California regions increased in price from last year, with the Central Coast leading the way at a 10.1 percent increase, followed by Central Valley (10.0 percent) and Southern California at 8.4 percent.
  • At the county level, while median prices in most counties may have already hit their peak for the year, nearly nine out of 10 California counties continued to record an increase in their median price from a year ago. Santa Barbara had the largest year-over-year gain in its median price at 33.7 percent, followed by Siskiyou (30.2 percent) and Madera (17.8 percent). Seven counties posted a dip in median price from last year, with Amador leading the pack (-7.9 percent), followed by San Mateo (-5.3 percent) and Mono (-4.1 percent).

 

  • The overall supply conditions in California improved again in June, with the statewide unsold inventory index (UII) rising to the highest level in two years. The improvement in the index was partly due to an increase in supply and partly due to a pullback in demand. With both closed sales and pending sales slowing by more than 20 percent, total active listings surged 64.4 percent in June, the largest year-over-year growth in more than seven years. Active listings in June also climbed to the highest level since November 2019, with a month-to-month increase of 28.8 percent from May.
  • Forty-six of the 51 counties tracked by C.A.R. registered a year-over-year increase in active listings in June, compared to 44 counties in May. Nine counties had triple-digit gains in properties for sale from last year, with Yolo leading the pack at 126.8 percent year-over-year, followed by Solano (122.3 percent) and Merced (112.5 percent). Only five counties experienced a decline in active listings from last year, with Del Norte dropping the most at -29.3 percent, followed by Plumas (-11.9 percent) and Lassen (-10.9 percent).
  • The median number of days it took to sell a California single-family home was 11 days in June and 8 days in June 2021.
  • C.A.R.’s statewide sales-price-to-list-price ratio* was 101.3 percent in June 2022 and 104.1 percent in June 2021.
  • The statewide average price per square foot** for an existing single-family home was $424, up from $391 in June a year ago.
  • The 30-year, fixed-mortgage interest rate averaged 5.52 percent in June, up from 2.98 percent in June 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 4.28 percent, compared to 2.56 percent in June 2021.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state and represent statistics of existing single-family detached homes only. County sales data is not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*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.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 50 counties.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 217,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Article source: CAR.org / https://www.car.org/aboutus/mediacenter/newsreleases/2022releases/june2022sales

Pending Home Sales Edge Higher 0.7% in May

  • Pending home sales broke a six-month skid with a slight rise of 0.7% from April.
  • Pending sales in the Northeast accelerated 15.4% in May, the largest monthly increase among the four major U.S. regions.
  • Compared to a year ago, three out of four regions – Northeast, South, and West – posted double-digit pending sales declines, while sales dropped by 8.8% in the Midwest.

WASHINGTON (June 27, 2022) – Pending home sales crept higher in May, ending a six-month streak of declines, according to the National Association of Realtors®. Regionally, month-over-month results were mixed as the Northeast and South experienced increases while the Midwest and West posted decreases. Year-over-year contract activity slid in all four major regions.

The Pending Home Sales Index (PHSI),* www.nar.realtor/pending-home-sales, a forward-looking indicator of home sales based on contract signings, inched up 0.7% to 99.9 in May. Year-over-year, transactions dropped 13.6%. An index of 100 is equal to the level of contract activity in 2001.

“Despite the small gain in pending sales from the prior month, the housing market is clearly undergoing a transition,” said NAR Chief Economist Lawrence Yun. “Contract signings are down sizably from a year ago because of much higher mortgage rates.”

According to NAR, at the median single-family home price and with a 10% down payment, the monthly mortgage payment has increased by about $800 since the beginning of the year as mortgage rates have climbed by 2.5 percentage points since January.

“Trying to balance the housing market by choking off demand via higher mortgage rates is damaging to consumers and the economy,” Yun added. “The better way to balance the market is through increased supply, which also helps the broader economy.”

While the housing market remains unbalanced nationwide with demand far outpacing supply, Yun noted variations in home prices and affordability contributed to the regional differences in pending sales activity in May.

“The largest decline in contract activity was observed in the West region, where homes are the most expensive,” he said. “This further indicates the growing need to increase supply to tame home price growth and improve the chances of ownership for potential home buyers.”

May Pending Home Sales Regional Breakdown

The Northeast PHSI jumped 15.4% compared to last month to 86.7, down 11.9% from May 2021. The Midwest index retreated 1.7% to 98.6 in May, a decline of 8.8% from a year ago.

The South PHSI increased 0.2% to 119.0 in May, a 13.8% drop from the previous year. The West index contracted 5.0% in May to 81.6, down 19.8% from May 2021.

The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

Pending contracts are good early indicators of upcoming sales closings. However, the amount of time between pending contracts and completed sales is not identical for all home sales. Variations in the length of the process from pending contract to closed sale can be caused by issues such as buyer difficulties with obtaining mortgage financing, home inspection problems, or appraisal issues.

The index is based on a sample that covers about 40% of multiple listing service data each month. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

NOTE: Existing-Home Sales for June will be reported on July 20. The next Pending Home Sales Index will be on July 27. All release times are 10 a.m. Eastern.

Article Source: NAR.Realtor – https://www.nar.realtor/newsroom/pending-home-sales-edge-higher-0-7-in-may

Coalition Applauds Passage of State Budget That Prioritizes Homeownership

SACRAMENTO (July 6) – The California Homeownership Coalition — which includes the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), the California Building Industry Association (CBIA), Habitat for Humanity California and other leading civic and housing advocacy organizations — commends Gov. Gavin Newsom and the California Legislature for allocating significant funding in the 2022-2023 State Budget to create homeownership opportunities for thousands of working Californians.

This budget, which includes substantial investments in the state’s CalHome program, as well as the innovative state-funded down payment assistance program, California Dream for All, will support desperately needed affordable homeownership housing creation and provide opportunities for working families to purchase their first home.

The Coalition released the following statement:

“The California Homeownership Coalition proudly supports California’s pro-homeownership provisions of the 2022-2023 state budget and thanks Gov. Newsom and the California Legislature for their leadership efforts. These vital housing budget items not only mean more hard-working families can afford to purchase a home; they also unlock a host of positive benefits that come with homeownership. They open the door to true housing security, better health outcomes, strides forward in education, and wealth-building that creates generational legacies — particularly for communities of color still facing disproportionately low homeownership rates because of decades-long discriminatory housing practices.

Specifically, we commend the inclusion of $250 million for CalHome, which acts directly to increase the supply of affordable ownership housing, and $500 million for Senate Pro Tempore Toni Atkins’ new California Dream for All Program, which will make homeownership more attainable to the state’s working families to achieve homeownership and support traditionally underserved communities as they build generational wealth that has for too long been out of reach.

These programs are a critical step forward to addressing California’s severe homeownership affordability and housing equity crisis.”

The California Homeownership Coalition includes the following organizations:

CALIFORNIA ASSOCIATION OF REALTORS®
California Building Industry Association
Habitat for Humanity California
California YIMBY
Black Leadership Council
Housing Action Coalition
The Two Hundred
National Association of Hispanic Real Estate Professionals (NAHREP)
California Community Builders Self-Help Enterprises
Heritage Housing Partners
The Greenbelt Alliance
LA Coalition
The Casita Coalition

Article Source: https://www.car.org/aboutus/mediacenter/newsreleases/2022releases/statebudgetpassed

Save water. Save California.

As the state’s drought conditions continue to worsen, Californians have been asked to voluntarily reduce water use by 15%. If conservation efforts don’t improve this summer, the state could be forced to impose mandatory water restrictions throughout the state.

– Turn off your sprinklers and other irrigation systems when rain is in the weather forecast.
– Prioritize watering your trees when faced with watering restrictions: Remember, trees are an investment. It will take more water, time and money to replace a mature tree lost to drought than to keep one alive.
– Replace grass with drought-resistant landscaping or turf: Water-wise plants and landscaping use little or no water once established.
– Install automatic shut-off valves for your outdoor sprinkler systems: Installing a drip irrigation system and a smart controller can save 15 gallons each time you water.
– Plant water-wise plants: Check with your local water agency on the best plants for your climate. It is best to use water-wise, California-native plants where possible.
– Lay mulch around your plants and yard: Laying 2–4 inches of organic mulch around your yard can keep the soil moist and reduce water use.

Read Full Article at C.A.R.org >>

May Monthly Home Sales and Price Report

Home sales in California dip below pre-pandemic levels as the effects of rising interest rates begin to show even as prices set another record, C.A.R. reports

Existing, single-family home sales totaled 377,790 in May on a seasonally adjusted annualized rate, down 9.8 percent from April and down 15.2 percent from May 2021.

May’s statewide median home price was, $898,980 up 1.6% percent from April and up 9.9% percent from May 2021.

Year-to-date statewide home sales were down 8.9 percent in May.

LOS ANGELES (June 16) – California’s housing market started showing signs of a market shift in May, as the monthly average 30-year fixed rate mortgage surpassed 5 percent for the first time since April 2010 leading to the lowest sales level since June 2020, and the largest year-over-year decline in five months, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Infographic: https://www.car.org/Global/Infographics/2022-05-Sales-and-Price

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

NAR Applauds FHFA Equity Plan for GSEs

WASHINGTON (June 8, 2022) – The Federal Housing Finance Agency (FHFA) released finalized equity plans Wednesday for Fannie Mae and Freddie Mac. According to the FHFA, the plans are intended to “address barriers experienced by renters, aspiring homeowners, and current homeowners before, during, and after getting a mortgage” and include actions to address financial education, access, and costs. The plans will be reviewed and updated periodically.

Read the Full Article in the National Association of Realtors Newroom >>

Homeownership coalition supports joint legislative budget proposal

SACRAMENTO (June 6) – The California Homeownership Coalition — which includes the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), California Building Industry Association (CBIA), Habitat for Humanity and other leading statewide advocacy groups — lauded the Joint Legislative Budget Proposal, which proposes to make a substantial investment in new affordable home construction, down payment assistance and increased access to homeownership opportunities for all Californians. The Coalition pledged to work with the Legislature and Gov. Gavin Newsom to make sure these investments including ownership supply, are part of the final State Budget agreement.

Read the Full Article at C.A.R. Newsroom >>

Hud Commemorates The 20th Anniversary Of National Homeownership Month

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) mark June as National Homeownership Month following President Biden’s proclamation issued on Tuesday. This year’s Homeownership Month celebrates the 20th year of this opportunity to amplify the benefits of homeownership and the work that remains to achieve fairness and equity in access to affordable homeownership for all Americans who seek it.

Read the full article at HUD.gov >>

N.A.R. Applauds New HUD Program Prioritizing Housing Supply

WASHINGTON (June 2, 2022) – The Department of Housing and Urban Development (HUD) announced its “Our Way Home” initiative this week to connect communities across the country with the resources needed to combat the nation’s housing supply shortage.

The following is a statement from NAR President Leslie Rouda Smith:

“NAR commends HUD Secretary Marcia Fudge on launching the innovative “Our Way Home” program as part of an all-hands-on-deck approach to addressing the housing supply crisis….

Read the full Statement and Article in the N.A.R. Newsroom >>

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