CA. ASSOC. OF REALTORS NEWS

  • California home sales reach highest level in two years, experience first double-digit increase since May 2012, C.A.R. reports

    • Existing, single-family home sales totaled 437,040 in June on a seasonally adjusted annualized rate, up 3.3 percent from May and 11 percent from June 2014.
    • Statewide sales were above 400,000 mark for third straight month.
    • June statewide median home price was $489,560, up 0.8 percent from May and 7 percent from June 2014.
    • California's median home price was the highest since November 2007.
    • Available housing supply remained constrained with 3.3 months of inventory.

    LOS ANGELES (July 15) – Sales of existing, single-family homes in June reached the highest level in two years and experienced the first double-digit increase since May 2012, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. Home sales in the state have risen year over year for five straight months.

    Home sales remained above the 400,000 mark in June for the third consecutive month and rose to highest level since July 2013. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 437,040 units in June, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2015 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

    The June figure increased 3.3 percent from the revised 423,000 level in May and 11 percent compared with home sales in June 2014 of 393,820. The year-to-year change is significantly higher than the previous 6-month average increase of 4.3 percent observed from December 2014-May 2015.

    "Home prices continue to improve but at a more moderate rate compared with the previous year," said C.A.R. President Chris Kutzkey. "However, in areas such as the San Francisco Bay Area where tight inventory is fueling stiff competition and generating multiple offers, home prices are still rising at or near double-digit rates, and creating a challenging environment for potential buyers in the region. "

    The median price of an existing, single-family detached California home edged up in June from both the previous month and year for the fifth consecutive month. The median home price was up 0.8 percent from $485,830 in May to $489,560 in June, the highest level since November 2007. June's median price was 7 percent higher than the revised $457,700 recorded in June 2014. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

    "The housing market remained solid in June as the economy continued to pick up steam following a lackluster first quarter," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Overall, market fundamentals appear strong, and should provide some support for the market to stay above last year's level in the upcoming quarter. Housing supply, however, is one variable that remains a concern and could have an adverse effect on the market if the inventory constraints do not improve."

    Other key points from C.A.R.'s June 2015 resale housing report include:

    • While sales continued to improve from last year at the state level, the number of active listings dipped slightly from the previous year. Statewide, active listings dropped 1.9 percent in June compared with last year, but increased 5.1 percent from May. Regionally, the number of active listings increased 4.4 percent in the Central Valley and dipped 0.8 percent in Southern California, but declined significantly in the Bay Area (-10.7 percent.)
    • The June Unsold Inventory Index declined to 3.3 months in June, down from 3.5 months in May and 3.8 months in June 2014. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.
    • The median number of days it took to sell a single-family home rose slightly in June to 33.3 days compared with 28.5 days in May but was down from 33.8 days in June 2014.
    • According to C.A.R.'s newest housing market indicator which measures the sales-to-list price ratio*, properties are again generally selling below the list price, except in the San Francisco Bay Area, where a lack of homes for sale is pushing sales prices higher than original asking prices. The statewide measure suggests that homes are selling at a median of 99 percent of the list price, slightly up from 98.7 percent at the same time last year. The Bay Area is the only region where homes are selling above original list prices due to constrained supply with a ratio of 106.3 percent, up from 104 percent a year ago, but down from 107.3 percent in May.
    • The average price per square foot** for an existing single-family home was $226 in June 2015, unchanged from the previous month but a 3.7 percent increase from June 2014. Price per square foot at the state level has been on an upward trend since early 2012, and has been rising on a year-over-year basis for 41 consecutive months. In recent months, however, the growth rate in price per square foot has slowed down as home prices level off. San Francisco County had the highest price per square foot in June at $790/sq. ft., followed by San Mateo ($755/sq. ft.), and Santa Clara ($596/sq. ft.). The three counties with the lowest price per square foot in June were Siskiyou ($106/sq. ft.), Madera ($114/sq. ft.), and Kings ($118/sq. ft.).
    • Mortgage rates increased in June, with the 30-year, fixed-mortgage interest rate averaging 3.98 percent, up from 3.84 percent in May and 3.16 percent in June 2014, according to Freddie Mac. Adjustable-mortgage interest rates also edged up in June, averaging 2.54 percent, up slightly from 2.49 in May and 2.40 percent in June 2014.

    Graphics (click links to open):

    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 are 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. Due to the low sales volume in some areas, median price changes may exhibit unusual fluctuation. 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 33 counties.

    Leading the way?® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

    # # #

    June 2015 County Sales and Price Activity
    (Regional and condo sales data not seasonally adjusted)

    June-15 Median Sold Price of Existing Single-Family Homes Sales
    State/Region/County Jun-15 May-15 Jun-14 MTM% Chg YTY% Chg MTM% Chg YTY% Chg
    CA SFH (SAAR) $489,560 $485,830 $457,700 r 0.8% 7.0% 3.3% 11.0%
    CA Condo/Townhomes $393,490 $390,330 $371,510 r 0.8% 5.9% 8.3% 16.2%
    Los Angeles Metropolitan Area $447,180 $440,050 $416,550 r 1.6% 7.4% 6.5% 16.1%
    Inland Empire $297,230 $288,960 $279,730 r 2.9% 6.3% 10.4% 18.2%
    S.F. Bay Area $833,330 $846,900 $774,010 r -1.6% 7.7% 9.4% 11.1%
    S.F. Bay Area
    Alameda $814,480 $814,930 $743,810 -0.1% 9.5% 9.7% 17.3%
    Contra-Costa (Central County) $839,910 $829,640 $765,960 1.2% 9.7% 13.4% 17.1%
    Marin $1,163,460 $1,153,120 $1,060,610 0.9% 9.7% -3.3% -10.3%
    Napa $641,670 $610,120 $556,250 5.2% 15.4% 5.0% 2.5%
    San Francisco $1,339,290 $1,375,000 $1,206,900 r -2.6% 11.0% 5.0% 9.4%
    San Mateo $1,300,000 $1,330,000 $1,150,000 r -2.3% 13.0% 8.2% -5.6%
    Santa Clara $990,000 $993,000 $902,500 r -0.3% 9.7% 7.6% 11.8%
    Solano $359,930 $360,490 $320,640 -0.2% 12.3% 16.6% 31.2%
    Sonoma $573,640 $566,040 $497,010 1.3% 15.4% 12.0% 8.3%
    Southern California
    Los Angeles $469,030 $432,570 $435,950 8.4% 7.6% 1.4% 13.4%
    Orange County $716,730 $717,850 $696,680 -0.2% 2.9% 9.4% 16.4%
    Riverside County $337,380 $332,490 $321,840 1.5% 4.8% 9.7% 15.0%
    San Bernardino $231,300 $220,890 $204,860 4.7% 12.9% 11.5% 24.1%
    San Diego $569,530 $538,660 $531,350 5.7% 7.2% 13.1% 22.9%
    Ventura $634,190 $620,460 $571,250 2.2% 11.0% 10.1% 20.8%
    Central Coast
    Monterey $485,000 $530,000 $485,000 -8.5% 0.0% 10.0% 17.7%
    San Luis Obispo $534,650 $498,150 $503,250 7.3% 6.2% 19.7% 24.6%
    Santa Barbara $746,320 $789,630 $659,480 -5.5% 13.2% -10.5% 1.8%
    Santa Cruz $726,000 $684,500 $699,500 6.1% 3.8% 20.2% 23.5%
    Central Valley
    Fresno $223,150 $216,110 $201,080 3.3% 11.0% 11.3% 24.5%
    Glenn $253,120 $170,000 $175,000 48.9% 44.6% -25.0% -21.1%
    Kern (Bakersfield) $219,950 $229,000 $215,000 r -4.0% 2.3% 0.0% 10.3%
    Kings County $195,380 $183,330 $194,440 6.6% 0.5% 42.1% 36.7%
    Madera $199,000 $222,060 $206,250 -10.4% -3.5% -3.6% -1.9%
    Merced $206,080 $203,570 $158,820 1.2% 29.8% 17.4% 8.9%
    Placer County $402,870 $403,420 $382,970 -0.1% 5.2% 16.7% 33.3%
    Sacramento $295,310 $293,480 $271,630 0.6% 8.7% 16.6% 21.1%
    San Benito $479,000 $444,980 $420,000 7.6% 14.0% 8.2% 17.8%
    San Joaquin $296,030 $280,000 $267,020 5.7% 10.9% 6.7% 13.7%
    Stanislaus $249,670 $245,570 $233,050 1.7% 7.1% 2.2% 17.3%
    Tulare $194,170 $188,790 $176,520 2.8% 10.0% 11.5% 7.8%
    Other Counties in California
    Amador $256,250 $233,330 $238,890 9.8% 7.3% 8.7% 25.0%
    Butte County $253,660 $261,110 $245,000 r -2.9% 3.5% 9.9% 28.2%
    Calaveras $256,580 $296,870 $253,410 r -13.6% 1.3% 7.3% 27.2%
    Del Norte $212,500 $170,000 r $200,000 r 25.0% 6.2% 15.8% 120.0%
    El Dorado County $410,320 $436,510 $372,950 -6.0% 10.0% -4.2% 2.0%
    Humboldt $273,280 $250,000 $248,960 9.3% 9.8% -2.8% 4.0%
    Lake County $211,670 $217,190 $184,440 -2.5% 14.8% 48.0% 23.3%
    Mariposa $281,250 $250,000 $237,500 12.5% 18.4% -31.8% 200.0%
    Mendocino $300,000 $307,140 $319,230 -2.3% -6.0% 14.8% 31.9%
    Nevada $330,000 $340,620 $316,130 r -3.1% 4.4% 14.8% 25.0%
    Plumas $295,000 $207,000 $230,250 42.5% 28.1% 16.1% 63.6%
    Shasta $235,170 $231,030 $226,790 r 1.8% 3.7% 1.3% 19.7%
    Siskiyou County $152,860 $145,000 $163,750 5.4% -6.7% -2.8% -18.6%
    Sutter $236,000 $218,060 $207,690 r 8.2% 13.6% 15.5% 13.9%
    Tehama $200,000 $186,000 $182,500 7.5% 9.6% -11.6% 22.6%
    Tuolumne $248,610 $241,670 $237,500 2.9% 4.7% 25.0% 19.0%
    Yolo $393,590 $393,180 $377,420 0.1% 4.3% -9.0% 4.9%
    Yuba $226,320 $219,440 $206,250 r 3.1% 9.7% 9.1% 47.4%
    Note: The County MLS median price and sales data in the table below 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 are 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. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. Due to the low sales volume in some areas, median price changes may exhibit unusual fluctuation.
    Los Angeles Metropolitan Area is a 5-county region that includes Los Angeles County, Orange County, Riverside County, San Bernardino County, and Ventura County
    S.F. Bay Area has been redefined to include the following counties: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma
    Inland Empire includes Riverside County and San Bernardino County

    June 2015 County Unsold Inventory and Time on Market
    (Regional and condo sales data not seasonally adjusted)

    June-15 Unsold Inventory Index Median Time on Market
    State/Region/County Jun-15 May-15 Jun-14 Jun-15 May-15 Jun-14
    CA SFH (SAAR) 3.3 3.5 3.8 33.3 28.5 33.8 r
    CA Condo/Townhomes 2.7 2.8 r 3.3 31.0 31.0 34.7 r
    Los Angeles Metropolitan Area 3.6 3.9 4.0 45.7 46.2 44.5
    Inland Empire 3.8 4.3 4.3 50.1 51.2 44.9 r
    S.F. Bay Area 2.0 2.2 r 2.5 34.9 20.9 33.7 r
    S.F. Bay Area
    Alameda 1.8 1.9 2.3 46.1 NA 47.9
    Contra-Costa (Central County) 2.0 2.1 2.3 47.7 NA 48.7
    Marin 2.4 2.3 2.4 28.3 26.9 29.1
    Napa 4.2 4.4 4.3 45.8 46.3 47.5
    San Francisco 1.7 1.8 3.1 20.8 19.2 21.0 r
    San Mateo 1.5 1.7 1.8 18.2 17.1 18.6
    Santa Clara 1.7 1.8 1.9 17.9 17.5 18.0
    Solano 2.6 3.2 3.2 41.8 36.6 33.7
    Sonoma 2.7 3.1 3.1 43.0 41.3 43.0
    Southern California
    Los Angeles 3.4 3.6 3.8 39.8 40.1 39.7
    Orange County 3.4 3.6 4.0 48.2 48.5 52.8
    Riverside County 3.7 4.3 4.1 53.8 55.0 47.5
    San Bernardino 4.1 4.4 4.6 43.3 43.0 40.0 r
    San Diego 3.2 3.3 4.0 22.7 23.2 24.1
    Ventura 3.7 4.0 3.7 51.2 51.7 47.5
    Central Coast
    Monterey 3.7 3.9 4.3 26.2 26.2 27.4
    San Luis Obispo 4.4 5.2 5.5 25.8 27.5 34.3
    Santa Barbara 4.0 3.4 4.0 35.8 29.9 27.4
    Santa Cruz 2.5 3.0 3.3 21.1 21.7 24.3
    Central Valley
    Fresno 4.0 4.3 4.5 25.6 25.6 25.7
    Glenn 5.3 3.8 4.5 28.2 25.2 28.6
    Kern (Bakersfield) 3.8 3.7 r 3.7 19.0 27.0 r 24.0
    Kings County 3.1 4.5 3.5 29.0 27.9 46.8
    Madera 8.8 7.9 3.9 70.3 42.9 26.3 r
    Merced 3.8 4.0 3.6 32.4 38.3 28.7
    Placer County 2.7 3.1 3.8 22.3 22.3 23.0
    Sacramento 2.5 2.9 3.2 20.0 20.6 22.3
    San Benito 2.2 2.6 3.5 31.0 19.8 26.1
    San Joaquin 2.7 2.9 3.0 23.2 23.9 23.1
    Stanislaus 2.8 2.8 3.0 23.1 23.9 23.2
    Tulare 3.9 4.3 3.9 28.8 25.9 33.6
    Other Counties in California
    Amador 4.9 5.4 5.8 39.7 28.8 55.9
    Butte County 3.5 3.8 4.8 r 31.0 25.9 36.8 r
    Calaveras 6.9 7.2 7.6 48.0 50.3 35.8 r
    Del Norte 7.6 8.3 18.7 105.5 105.5 r 131.9 r
    El Dorado County 5.1 4.5 5.0 33.4 27.2 35.1
    Humboldt 5.5 5.0 6.4 39.2 27.5 28.1
    Lake County 4.7 6.8 5.4 65.6 66.6 57.9
    Mariposa 8.4 6.0 18.0 115.2 82.8 52.8
    Mendocino 6.4 7.0 8.0 56.4 67.4 53.8
    Nevada 4.3 4.8 7.0 25.4 33.8 29.0 r
    Plumas 12.9 14.2 22.2 150.5 119.0 152.0
    Shasta 5.3 5.5 6.0 29.2 29.3 29.3
    Siskiyou County 11.7 10.8 9.7 53.8 86.4 47.3
    Sutter 2.8 3.5 3.8 r 27.4 32.0 24.2 r
    Tehama 6.6 5.4 7.7 43.9 46.8 52.8
    Tuolumne 5.9 7.2 8.2 22.4 36.8 43.8
    Yolo 2.8 2.4 3.0 22.1 19.8 21.3
    Yuba 3.2 3.5 4.3 r 24.9 21.7 22.2 r
    Note: The County MLS median price and sales data in the table below 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 are 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. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. Due to the low sales volume in some areas, median price changes may exhibit unusual fluctuation.
    Created: 7/29/2015 6:29:49 AM
  • For release:
    Monday, July 20, 2015

    C.A.R. Applauds Signing of AB 345 Into Law
    C.A.R.-sponsored legislation allocates three hours of a real estate broker's required CE for management and supervision of real estate licensed activity

    LOS ANGELES (July 20, 2015) – The CALIFORNIA ASSOCIATION OF REALTORS®(C.A.R.) applauds Governor Brown for signing into law AB 345, a C.A.R.-sponsored bill that earmarks three hours of a real estate broker's existing mandated continuing education (CE) for a course on the management and supervision of real estate licensed activity. Governor Brown signed the bill into law on Monday, July 13, and the bill becomes effective Jan. 1, 2016.

    AB 345 also permits salespersons to elect to take a course containing relevant information to assist them in understanding how to be effectively supervised by a responsible broker or branch manager.

    "C.A.R. commends Governor Brown for signing AB 345 into law," said C.A.R. President Chris Kutzkey. "Since the California Bureau of Real Estate can hold a manager accountable for failure to supervise, C.A.R. believes it important that a real estate broker understand how to properly manage real estate offices, salespersons, and broker associates, in order to minimize risk for all parties involved."

    Current law requires a real estate broker to exercise reasonable supervision over the activities of his or her salespersons. Existing law also requires real estate licensees renewing a license to complete 45 hours of California Bureau of Real Estate (CalBRE) approved CE. Currently, 15 hours of that CE requirement are earmarked for specified courses, while 18 hours are dedicated to consumer protection courses, with the remaining 12 hours of CE being elective.

    Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 165,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

    Created: 7/29/2015 6:29:49 AM
  • For release:
    July 6, 2015

    Improving economy and job growth draw buyers back to housing market, forming more households, REALTOR® survey finds

    LOS ANGELES (July 6) – With an improving economy and job market over the past year, home buyers have started forming households again, and buyers who previously experienced a foreclosure or short sale are back in the housing market, according to the CALIFORNIA ASSOCIATION OF REALTORS®' (C.A.R.) "2015 Survey of California Home Buyers."

    In 2015, more households were formed as the share of buyers who previously lived with their parents increased to 12 percent – the highest in the survey's history, up from 2 percent in 2014. Additionally, the share of those who previously rented dipped from 40 percent in 2014 to 39 percent in 2015, and those who previously owned fell from 59 percent in 2014 to 47 percent in 2015.

    With distressed sales at record lows, California is returning to a more normal housing market, with those who previously went through a foreclosure or short sale returning to the market and purchasing homes again. More than one in five home buyers (22 percent) experienced a distressed sale, most of which occurred after 2007. A further indication of this return to normalcy is reflected in the share of buyers who were previously "underwater" on their homes, which increased to 23 percent in 2015, up from 4 percent in 2014.

    Additional findings from C.A.R.'s "2015 Survey of California Home Buyers" include:

    • In what could further exacerbate a future housing inventory shortage, buyers in 2015 indicated they plan to keep their home longer than ever – an average of 20 years – substantially longer than the six years cited by home buyers in 2013.

    • Buyers cited "tired of renting" (15 percent), "wanted a place to live" (14 percent), "desired larger home" (12 percent), "changed jobs/relocated" (11 percent), and "desired better/other location" (8 percent) as the top reasons for purchasing a home. In looking specifically at first-time buyers, "tired of renting" was the top reason for purchasing a home (21 percent), followed by "wanted a place to live" (19 percent).

    • Despite the recent run up in home prices, the vast majority (85 percent) felt that their home was worth the price they paid, while 14 percent said the price was too high, and 1 percent said the price was too low.

    • While the majority of buyers (75 percent) were satisfied with their home purchase, one-fourth made compromises, with 13 percent saying they selected the best house given the limited supply in their desired neighborhood, and 12 percent who said they selected the best house in an affordable neighborhood because prices were too high in their preferred neighborhood.

    • Buyers put an average of 24 percent down on their home purchase in 2015, down from 28 percent in 2014, and 25 percent in 2013, but more than what has been the traditional 20 percent since 2009.

    • The primary source of down payment for first-time buyers was personal savings, cited by 49 percent of first-time buyers, followed by "borrowed or gift," cited by 33 percent of first-time buyers. The primary sources of down payment for repeat buyers were personal savings (34 percent) and proceeds from sale of previous residence (34 percent).

    • Buyers spent an average of 18 weeks considering buying a home before contacting a real estate agent in 2015, down from an average of 19 weeks in 2014 and a high of an average of 24 weeks in 2013. They spent an average of 14 weeks investigating homes and neighborhoods before contacting an agent in 2015, down from an average of 21 weeks in 2014 and a high of an average 29 weeks in 2013.

    • In 2015, it took home buyers an average of 12 weeks to look for a home, the longest since C.A.R. began the survey. It took an average of 10 weeks in 2014 and 2013 for home buyers to find a home. In a sign of less market competition, buyers made fewer offers in 2015 compared to previous years – an average of 2.6 offers, down from an average of 3.6 offers in 2014, and an average of 3 offers in 2013.

    Survey of California Home Buyers Slides (click links to open):

    More buyers previously lived with parents.
    Most buyers haven't experienced a distressed sale.
    Top reasons for buying.
    Buyers plan to keep homes longer.
    Source of down payment.
    Cash buyers still strong.

    The 2015 Survey of California Home Buyers was conducted by telephone and email to nearly 1,300 people statewide to measure their perceptions of the home-buying process. All eligible respondents closed escrow on their homes between February 2014 and February 2015. Access the full report on the survey findings here: http://www.car.org/marketdata/surveys/buyer/ and view the webinar presentation here: http://www.car.org/marketdata/videos.

    Leading the way...® in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
    # # #


    Created: 7/29/2015 6:29:49 AM
  • For release:
    May 12, 2015

    Lower interest rates and steady home prices ease California housing affordability for second straight quarter

    Seventeen regions see improvement from previous quarter, with Napa, Merced, Marin, San Luis Obispo, Los Angeles, and Alameda counties leading the way

    LOS ANGELES (May 12) – Lower interest rates and stabilizing home prices over the past year combined to make it easier for more Californians to purchase a home in the first quarter of 2015, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

    The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in first-quarter 2015 rose to 34 percent from the 31 percent recorded in the fourth quarter of 2014 and up from 33 percent in the first quarter a year ago, according to C.A.R.'s Traditional Housing Affordability Index (HAI). This is the second consecutive quarter of improvements for the state and the highest level since second-quarter 2013. California's housing affordability index hit a peak of 56 percent in the first quarter of 2012.

    C.A.R.'s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The Index is considered the most fundamental measure of housing well-being for home buyers in the state.

    Home buyers needed to earn a minimum annual income of $87,700 to qualify for the purchase of a $442,430 statewide median-priced, existing single-family home in the first quarter of 2015. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,190, assuming a 20 percent down payment and an effective composite interest rate of 3.97 percent.

    The median home price was $418,570 in first-quarter 2014, and an annual income of $86,800 was needed to purchase a home at that price. The effective composite interest rate in first-quarter 2014 was 4.46 percent.

    Key points from the first-quarter 2015 Housing Affordability report include:

    • The affordability picture was promising when comparing quarterly changes. Seventeen regions had improvements, nine had declines, and two were unchanged. Compared to first-quarter 2014, 11 regions had improvements, 12 had declines, and six held steady.

    • Marin, San Luis Obispo, and Monterey counties saw the largest year-to-year improvements in affordability, mainly due to increases in median annual household income and interest rate declines.
    • Contra Costa, Solano, and San Joaquin counties experienced the largest year-to-year declines in affordability, resulting from double-digit home price growth.

    • Affordability in Santa Clara and Sacramento counties held steady from the previous quarter, primarily due to moderate home price growth, which was offset by interest rate declines.

    • Marin, Napa, and Santa Cruz counties had the largest quarter-to-quarter improvements in affordability, mainly due to increases in the median annual household income, and declines in the interest rate and prices.

    • Contra Costa, Santa Barbara, and San Mateo counties posted the largest quarter-to-quarter declines in affordability as the result of strong home price gains.

    Housing Affordability slides (click link to open)

    Affordability peak versus current
    Annual income peak versus current
    PITI peak versus current


    CALIFORNIA ASSOCIATION OF REALTORS®
    Traditional Housing Affordability Index

    C.A.R. Region Housing
    Affordability Index
    Median Home
    Price
    Monthly Payment Including Taxes & Insurance Minimum
    Qualifying Income
    CA SFH 34 $ 442,430 $ 2,190 $ 87,700
    CA Condo/Townhomes 41 $ 369,420 $ 1,830 $ 73,230
    Los Angeles Metropolitan Area 35 $ 414,970 $ 2,060 $ 82,260
    Inland Empire 47 $ 281,000 $ 1,390 $ 55,700
    S.F. Bay Area 23 $ 748,330 $ 3,710 $ 148,330
    U.S. 61 $ 205,200 $ 1,020 $ 40,670
    S.F. Bay Area
    Alameda 23 $ 707,320 $ 3,510 $ 140,200
    Contra-Costa (Central County) 21 $ 755,760 $ 3,750 $ 149,810
    Marin 19 $ 1,036,050 $ 5,130 $ 205,370
    Napa 34 $ 492,550 $ 2,440 $ 97,630
    San Francisco 12 $ 1,175,850 $ 5,830 $ 233,080
    San Mateo 14 $ 1,202,000 $ 5,960 $ 238,260
    Santa Clara 22 $ 900,000 $ 4,460 $ 178,400
    Solano 48 $ 337,000 $ 1,670 $ 66,800
    Sonoma 31 $ 489,650 $ 2,430 $ 97,060
    Southern California
    Los Angeles 31 $ 434,710 $ 2,150 $ 86,170
    Orange County 22 $ 685,680 $ 3,400 $ 135,920
    Riverside County 42 $ 322,620 $ 1,600 $ 63,950
    San Bernardino 58 $ 212,300 $ 1,050 $ 42,080
    San Diego 28 $ 510,330 $ 2,530 $ 101,160
    Ventura 28 $ 583,820 $ 2,890 $ 115,720
    Central Coast
    Monterey 29 $ 465,000 $ 2,300 $ 92,170
    San Luis Obispo 30 $ 492,390 $ 2,440 $ 97,600
    Santa Barbara 18 $ 680,550 $ 3,370 $ 134,900
    Santa Cruz 22 $ 695,000 $ 3,440 $ 137,760
    Central Valley
    Fresno 51 $ 212,200 $ 1,050 $ 42,060
    Kings County 62 $ 186,000 $ 920 $ 36,870
    Madera 51 $ 212,500 $ 1,050 $ 42,120
    Merced 60 $ 177,240 $ 880 $ 35,130
    Placer County 46 $ 379,080 $ 1,880 $ 75,140
    Sacramento 49 $ 275,810 $ 1,370 $ 54,670
    San Joaquin 39 $ 269,400 $ 1,340 $ 53,400
    Stanislaus 43 $ 237,200 $ 1,180 $ 47,020
    Tulare 57 $ 175,930 $ 870 $ 34,870


    CALIFORNIA ASSOCIATION OF REALTORS®
    Traditional Housing Affordability Index

    STATE/REGION/COUNTY Q1 2015 Q4 2014 Q1 2014
    CA SFH 34 31 33
    CA Condo/Townhomes 41 39 41
    Los Angeles Metropolitan Area 35 34 35
    Inland Empire 47 47 47
    S.F. Bay Area 23 21 23
    U.S. 61 59 61
    S.F. Bay Area
    Alameda 23 20 22
    Contra-Costa (Central County) 21 23 24
    Marin 19 15 15
    Napa 34 24 28
    San Francisco 12 11 r 13 r
    San Mateo 14 15 14
    Santa Clara 22 22 22
    Solano 48 50 53
    Sonoma 31 29 29
    Southern California
    Los Angeles 31 28 31
    Orange County 22 21 21
    Riverside County 42 41 42
    San Bernardino 58 57 61
    San Diego 28 27 27
    Ventura 28 29 29
    Central Coast
    Monterey 29 27 23
    San Luis Obispo 30 26 24
    Santa Barbara 18 21 18
    Santa Cruz 22 17 20
    Central Valley
    Fresno 51 53 54
    Kings County 62 64 64
    Madera 51 50 r 54 r
    Merced 60 53 58
    Placer County 46 45 45
    Sacramento 49 49 50
    San Joaquin 39 41 42
    Stanislaus 43 44 46
    Tulare 57 56 59

    r = revised

    Leading the way?® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.


    Created: 7/29/2015 6:29:49 AM
  • For release:
    May 29, 2015

    Defeat of Senate Bill 364 preserves private property rights and protects California's rental housing market

    LOS ANGELES (May 29) -- The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today hailed the defeat of Senate Bill (SB) 364 (Leno) in the State Legislature this week. The bill would have eliminated property rights protections for owners of rental property and significantly discouraged efforts to create new rental housing in the city and county of San Francisco.

    "SB 364 was an unreasonable and unjustified attack on property owners that need or want to take a rental property off the market," C.A.R. President Chris Kutzkey said. "Discouraging investment in housing is bad policy, and SB 364 would have caused harmful unintended consequences. San Francisco already has the most protective, and the most expensive eviction rules in the state."

    In 1985, C.A.R. successfully sponsored the Ellis Act, preventing local governments from restricting the ability of rental property owners to remove a rental property from the market. SB 364 would have allowed San Francisco to prevent property owners from taking rental units off the market, unless every owner of that property has owned the property for at least five consecutive years. This effectively forces property owners to remain in the rental housing business even if they are losing money or simply wish to occupy their own property.

    San Francisco already has California's strongest renter protection rules. Seniors and the disabled are, under current state law, given a one-year notice when a property owner is going to vacate the unit. All other tenants receive 120 days.

    "California's 175,000 REALTORS® stand up for the rights of property owners and those who want the opportunity to rent or buy a home at a fair market price. SB 364 was an attack on private property rights, essentially allowing government to seize property by dictating its use," said Kutzkey.

    Leading the way...® in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

    Created: 7/29/2015 6:29:49 AM
  • For release:
    July 28, 2015

    C.A.R. Opposes Tax on Home Buyers in Senate Highway Transportation Bill
    Bill would put tax burden on home buyers, hinder future efforts at mortgage finance reform

    LOS ANGELES (July 28) – The CALIFORNIA ASSOCIATION OF REALTORS® is opposing a provision in the highway bill now being considered by the U.S. Senate that taxes home buyers by increasing the fees Fannie Mae and Freddie Mac charge on their loans. This provision would extend a tax on homeowners that Congress implemented in 2011, which C.A.R. opposed at the time.

    "C.A.R. opposes this provision because home buyers are being forced to offset the costs and take on this tax burden," said C.A.R. President Chris Kutzkey. "Not only will it increase the cost of homeownership and make it more difficult for a buyer to purchase a home, it will hinder future efforts at mortgage finance reform."

    Leading the way...® in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
    # # #

    Created: 7/29/2015 6:29:49 AM
  • DSnews: Single-family rental market continues to gain momentum
    By Brian Honea
    Single-family rentals comprise 40 percent of the rental market, nearly equal with multi-family's share (42 percent) and more than double the 2-to-4 family share (18 percent), according to CoreLogic's July 2015 MarketPulse.

    Housingwire: Key housing, mortgage finance bills facing markup in House
    By Trey Garrison
    The full House Financial Services Committee meets today to markup several bills of critical interest to the mortgage finance and housing industries, including a measure to formalize the TRID "hold harmless" grace period and a cap on CEO compensation for Fannie Mae and Freddie Mac.

    Los Angeles Times: Los Angeles-area home prices jump in May, Case-Shiller says
    By Andrew Khouri
    Nationally, home prices rose 4.4%, a slight pickup from the 4.3% increase recorded in April, the Standard & Poor's/Case-Shiller index showed.

    Todays_re_news

    Created: 7/29/2015 6:29:49 AM
  • For Release:
    July 23, 2015

    C.A.R. Commends Gov. Brown for Signing SB 146 into Law
    C.A.R.-sponsored legislation assures that the law regarding "team names" is applied consistently at all levels of government

    LOS ANGELES (July 23, 2015) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) is commending Governor Brown for signing into law SB 146, a C.A.R.-sponsored bill that makes an important technical change to the real estate law by making it clear that the law regarding "team names" is applied consistently at all levels of government. Governor Brown signed the bill into law on Thursday, July 16, 2015, and due to the urgency statute, the bill went into effect immediately.

    "C.A.R. applauds Gov. Brown for signing SB 146 into law," said C.A.R. President Chris Kutzkey. "A lack of clear regulation created confusion throughout the real estate industry. This measure clarifies that 'team names' not requiring a Fictitious Business Name for purposes of the real estate law do not require the filing of an Fictitious Business Name with their local county. It also clears up any ambiguity ensuring that the law regarding 'team names' is applied consistently at all levels of government."

    In its Spring 2013 Real Estate Bulletin, the California Bureau of Real Estate (CalBRE) announced a stricter standard for what constituted a FBN. A lack of clear regulation created confusion throughout the real estate industry on what was and was not a FBN.

    In 2014, C.A.R. sponsored AB 2018 to resolve this ambiguity by statutorily defining how a salesperson, with their broker's permission, can use a FBN. While AB 2018 made compliance easier and created more industry transparency, there was still confusion regarding the county registration requirements for "team names." Even though it is clear that "team names" are not required to be registered with CalBRE, real estate licensees are being advised to continue to register these "team names" with their county.

    Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 165,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

    Created: 7/29/2015 6:29:49 AM
  • For release:
    July 23, 2015

    California pending home sales continue annual increase for seventh straight month
    Home sales expected to remain strong in upcoming quarter

    LOS ANGELES (June 22) – California pending home sales continued to gain steam in June, registering seven months of continued annual increases and the fifth consecutive month of double-digit increases, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

    In a separate report, California REALTORS® responding to C.A.R.'s June Market Pulse Survey saw a reduction in floor calls, listing appointments, and open house traffic, compared with May. The Market Pulse Survey is a monthly online survey of more than 300 California REALTORS®, which measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

    Pending home sales data:

    • California pending home sales were up 12.5 percent on an annual basis from the revised 107 index recorded in June 2014, marking the seventh straight month of year-to-year gains and the fifth straight month of double-digit advances.
    • Statewide pending home sales fell in June on a month-to-month basis, with the Pending Home Sales Index (PHSI)* decreasing 2.6 percent from a revised 123.6 in May to 120.4, based on signed contracts. The month-to-month decrease was slightly below the average May-June loss of 1.9 percent observed in the last seven years.
    • A shortage of available homes in the San Francisco Bay Area stifled pending sales in June, pushing the PHSI to 127.9, down 5.3 percent from 135.1 in May and down 0.9 percent from the 129.1 index recorded in June 2014.
    • Pending home sales in Southern California continued last month's increase by rising 4 percent in June to reach an index of 109.6, up 14.2 percent from the June 2014 index of 96.
    • Central Valley pending sales fell in June, dropping 8.2 percent from May to reach an index of 99.5 in June but up 14.2 percent from the 87.2 index of June 2014.

    Equity and distressed housing market data:

    • The share of equity sales – or non-distressed property sales – declined slightly in June to make up 92.4 percent of all home sales, remaining near the highest level since late 2007. Equity sales made up 92.6 percent of all home sales in May and 89.9 percent in June 2014. The share of equity sales has been at or near 90 percent since mid-2014.
    • Conversely, the combined share of all distressed property sales (REOs and short sales) rose slightly in June, up to 7.6 percent from 7.4 percent in May. Distressed sales made up 10.1 percent of total sales a year ago. Ten of the 43 counties that C.A.R. reported showed month-to-month decreases in their distressed sales shares, with Alameda and Santa Clara having the smallest share of distressed sales at 1 percent, followed by San Mateo (2 percent), Contra Costa (3 percent), and San Francisco (3 percent). Glenn had the highest share of distressed sales at 27 percent, followed by Merced and Siskiyou (both at 23 percent).
      June REALTOR® Market Pulse Survey**:
    • Reversing last month's decrease, the share of sales closing below asking price increased to 43 percent in June, up from 40 percent in May, but down from the highest point of 55 percent in January 2015. More than a third of homes (33 percent) closed over asking price, and 24 percent closed at asking price.
    • For the one in three homes that sold over asking price, the premium paid over asking price increased in June, suggesting increased market competition among home buyers in some local markets. In June, homes that sold above asking price sold for an average of 11 percent above asking price, up from 8 percent in May and 7.3 percent in June 2014.
      • The 43 percent of homes that sold below asking price sold for an average of 11 percent below asking price in June, up from 7 percent in May.
    • The share of properties receiving multiple offers was unchanged at 65 percent in June but down slightly from 66 percent in June 2014.
    • The average number of offers per property increased slightly to 2.9 from 2.8 in May and 2.7 in June 2014.
    • REALTOR® respondents reported that floor calls, listing appointments, and open house traffic all declined in June, compared with the previous month.
    • While the majority of REALTORS® (83 percent) expect better or similar market conditions over the next year, the percentage of REALTORS® who are optimistic about conditions over the coming year has been on the decline for the past six months from 62 percent in January to 44 percent in June.

    Graphics (click links to open):

    Share of Distressed Sales to Total Sales
    (Single-family)

    Type of Sale Jun-15 May-15 Jun-14
    Equity Sales 92.4% 92.6% 89.9%
    Total Distressed Sales 7.6% 7.4% 10.1%
    REOs 3.5% 3.6% 4.4%
    Short Sales 3.7% 3.4% 5.4%
    Other Distressed Sales (Not Specified) 0.4% 0.4% 0.3%
    All Sales 100.0% 100.0% 100.0%


    Single-family Distressed Home Sales by Select Counties
    (Percent of total sales)

    County Jun-15 May-15 Jun-14
    Alameda 1% 3% 4%
    Amador 8% 9% 23%
    Butte 9% 5% 8%
    Calaveras 6% 10% 16%
    Contra Costa 3% 2% 4%
    El Dorado 8% 5% 12%
    Fresno 10% 11% 17%
    Glenn 27% 0% 21%
    Humboldt 16% 14% 8%
    Kern 9% 8% 11%
    Kings 11% 13% 25%
    Lake 18% 15% 23%
    Los Angeles 8% 7% 10%
    Madera 9% 5% 9%
    County Jun-15 May-15 Jun-14
    Marin 4% 2% 3%
    Mariposa 20% 18% 40%
    Mendocino 20% 16% 10%
    Merced 23% 16% 16%
    Monterey 8% 7% 13%
    Napa 12% 4% 6%
    Orange 4% 4% 6%
    Placer 5% 6% 7%
    Plumas 20% 16% 18%
    Riverside 10% 10% 13%
    Sacramento 11% 10% 13%
    San Benito 8% 6% 7%
    San Bernardino 12% 10% 17%
    San Diego 4% 5% 6%
    San Francisco 3% 3% 3%
    County Jun-15 May-15 Jun-14
    San Joaquin 12% 10% 14%
    San Luis Obispo 4% 6% 5%
    San Mateo 2% 1% 3%
    Santa Clara 1% 1% 2%
    Santa Cruz 4% 4% 7%
    Shasta 8% 13% 14%
    Siskiyou 23% 17% 19%
    Solano 21% 9% 13%
    Sonoma 9% 3% 6%
    Stanislaus 11% 8% 12%
    Sutter 12% 13% 8%
    Tulare 14% 14% 21%
    Yolo 5% 2% 12%
    Yuba 18% 16% 9%
    CALIFORNIA 8% 7% 10%

    *Note: C.A.R.'s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually becomes closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.


    **C.A.R.'s Market Pulse Survey is a monthly online survey of more than 300 California REALTORS® to measure data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.


    Leading the way...® in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.


    ###


    Created: 7/29/2015 6:29:49 AM
  • For Release:
    July 23, 2015

    MLS, Industry Executives Discuss State of the MLS and Data Sharing
    Center for California Real Estate and C.A.R. Release New Executive Report about Data-Sharing and the Real Estate Industry's Future

    LOS ANGELES (July 23) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) recently convened a roundtable of industry experts on the topic of the Multiple Listing Service and data management issues. The highlights of the roundtable are outlined in a new whitepaper issued by the Center for California Real Estate, an institute from C.A.R. dedicated to intellectual engagement in the field of real estate.

    C.A.R.'s CEO Joel Singer moderated the panel, and was joined by Ann Bailey, founder and president of the consulting firm Pranix, Inc.; Robert Bailey, owner/broker of Bailey Properties, Inc.; David Charron, chief executive officer of the Metropolitan Regional Information Systems, Inc.; and Dale Ross, chief executive officer of Realtors Property Resource®, LLC.

    The timing of the roundtable coincided with a major announcement from the NATIONAL ASSOCIATION OF REALTORS® (NAR) about its decision to fund a joint project between NAR subsidiary Realtors Property Resource® (RPR) and a broker-backed initiative called Project Upstream. This project served as an important backdrop to the roundtable's discussion.

    During the roundtable, panelists discussed the state of the MLS, the future of the real estate industry, the potential success of RPR's Advanced Multi-list Platform (AMP™), limitations imposed by the industry's infrastructure with respect to efficient data sharing, and the potential game-changing effect of Project Upstream.

    "C.A.R. has long been a leader in terms of advancing efforts to consolidate the vast number of MLSs," said C.A.R. Chief Executive Officer Joel Singer. "Members are frustrated with outdated and inefficient technology platforms, and as the state Association, we need to ensure that the industry stays competitive in the sphere of technology-driven solutions that support the professionalism and businesses of our members."

    To read the report, visit http://www.car.org/ccre/pdf/Data-Sharing_Dilemmas-CCRE_Whitepaper.pdf.

    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 nearly 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

    The Center for California Real Estate (CCRE) is an institute founded by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) dedicated to intellectual engagement in the field of real estate. Its mission is to advance industry knowledge and innovation with an emphasis on convening key experts and influence-makers. CCRE reflects C.A.R.'s increasing role in shaping the future of the industry by advancing innovative policy solutions and active dialogue with experts and industry stakeholders. For more information, please visit centerforcaliforniarealestate.org.

    ###

    Created: 7/29/2015 6:29:49 AM