CA. ASSOC. OF REALTORS NEWS

  • For release:
    July 14, 2016

    Racial disparities in roadblocks to achieving American Dream

    Prospective home buyers want current presidential candidates to address housing affordability

    LOS ANGELES (July 14) – Prospective home buyers face numerous challenges when it comes to achieving the American Dream, and homeownership obstacles vary among ethnic groups, according to a poll conducted by leading think tank the Futures Company in partnership with the CALIFORNIA ASSOCIATION OF REALTORS®' (C.A.R.) Center for California Real Estate.

    For all respondents, saving enough for a down payment is the biggest barrier to becoming a homeowner, cited by nearly one in three (29 percent) prospective home buyers, followed by housing supply constraints (27 percent), access to credit and financing (22 percent), and personal debt (19 percent).

    These hurdles diverged across race and ethnicity. Thirty-one percent of non-Hispanic whites said constrained housing supply was the most likely deterrent to becoming a homeowner, while a third of Hispanics cited access to credit and financing as their primary challenge in buying a home.

    African-Americans (33 percent) and Asians (32 percent) both cited a lack of down payment or savings as the main prohibitive factor in purchasing a home.

    "With record high rents and only about a third of the state's households able to afford to buy a median-priced home, the dream of owning a home in California is evaporating," said C.A.R. President Pat "Ziggy" Zicarelli. "It's even more discouraging for prospective ethnic home buyers who must face greater obstacles to scrape together a down payment or obtain credit and financing."

    Homeownership and sense of well-being

    The poll also found that the vast majority (84 percent) of respondents agree that owning their own home gives them a greater sense of well-being and control over their environment. Across all incomes, races/ethnicities, and generations, respondents overwhelmingly agreed on the positive impact of homeownership on their personal satisfaction and health from having greater control over their environment.

    Housing and retirement strategy

    In connecting housing to opportunity, nearly three in four (72 percent) agree that owning a home is part of their retirement strategy, believing that homeownership is a tool for long-term financial security among those who plan to buy a home or currently own one.

    Presidential candidates and housing policy

    Lastly, nearly three-fourths (70 percent) of survey respondents who plan to buy a home agreed that they would like the current presidential candidates to address how to make housing more affordable in their campaigns.

    And, across all incomes, generations, and races/ethnicities, consumers were strongly in agreement that housing affordability should be a top priority on the presidential campaign trail as candidates make their pitches for ballots in the lead-up to the November contest.

    However, housing affordability and solutions to reduce the cost of living have received noticeably little attention this campaign season. Other than releasing plans to increase the five-decades-low homeownership rate, the presumptive nominees, Democrat Hillary Clinton and Republican Donald Trump, have not issued comprehensive housing policies, including action items to address the significant housing affordability crisis.

    The Center for California Real Estate (CCRE) (centerforcaliforniarealestate.org) is an institute from the California Association of REALTORS® dedicated to advancing real estate knowledge. The goal of the center is to arm C.A.R.'s 185,000 members with ideas that help them become more knowledgeable, professional, and insightful in their work as practitioners and stakeholders in the future of real estate. To fulfill this goal, CCRE regularly enlists the foremost experts on topics of pertinent interest to the industry.

    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 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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    Created: 8/24/2016 3:13:12 AM
  • For Release:
    July 19, 2016

    CALIFORNIA ASSOCIATION OF REALTORS® Disappointed in HUD Decision to Insure FHA Mortgages with PACE Loans

    LOS ANGELES (July 19, 2016) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today issued the following statement in response to the U.S. Department of Housing and Urban Development's new policy that the Federal Housing Administration (FHA) will begin insuring mortgages on certain properties with Property Assessed Clean Energy (PACE) loans.

    "Although C.A.R. supports voluntary consumer-friendly energy improvement programs for homeowners, C.A.R. believes that HUD was ill advised to approve placing PACE loans in a senior position to FHA first mortgages," said C.A.R. President Pat "Ziggy" Zicarelli. "Doing so places FHA homebuyers and taxpayers at risk and does homeowners a disservice by approving a loan product without consumer protections and which is aggressively sold to homeowners who rely on FHA financing for safe and affordable mortgages."

    PACE loans are unfairly expensive, and often are sold by high pressure door-to-door sales people. Although PACE loans are in a senior position, they carry interest rates higher than the first-mortgage or a home equity loan. C.A.R. feels that the FHA has failed to justify why it supports a program whose interest rates border on predatory and do not follow even basic lending guidelines for consumers.

    "This loan product has no minimum disclosures, no underwriting of the borrower, no proof that the borrower has the ability to repay, no three-day right to rescind, no marketing limitations, no interest rate or fee caps, no kickback prohibitions; nothing," added Zicarelli. "If the housing market of the last decade has taught us anything, it's that first-time homeowners, and low- and moderate-income homeowners are the most vulnerable and will be taken advantage of. Sadly, it is they who the FHA is inviting unregulated PACE lenders to target."

    For the last six years, HUD has stayed silent while California's housing market has operated under the guidelines of the Federal Housing Finance Agency (FHFA); the conservator of Fannie Mae and Freddie Mac. The FHFA prohibits PACE loans to be placed in a senior position to the mortgage. HUD's announcement today of a contrary policy to accept PACE loans in a senior position to the first mortgage will only cause confusion and uncertainty for homeowners, home buyers, REALTORS®, lenders, escrow, title, and the housing market overall. The confusion is particularly unfortunate because the FHA only accounts for approximately 20 percent of mortgages.

    Both the FHA and Fannie Mae currently offer mortgage financing that allows borrowers to finance energy efficiency improvements at lower rates than PACE loans.

    Now, more than ever, the California legislature must pass C.A.R. sponsored AB 2693 (Dababneh) to ensure consumers are aware of the consequences of PACE loans and have the opportunity to rescind after a three-day cooling off period.

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


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    Created: 8/24/2016 3:13:12 AM
  • For release:
    July 11, 2016

    C.A.R. sues PDFfiller.com for $136 million for willfully and unlawfully selling C.A.R. Forms

    LOS ANGELES (July 11) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) has sued PDFfiller.com for approximately $136 million in statutory damages arising from PDFfiller.com's unauthorized use and publication and sale of C.A.R.'s suite of copyrighted real estate forms. PDFfiller.com has advertised its platform as one that may be used to create and obtain blank and fillable C.A.R. forms without authorization or permission from C.A.R. Members of the general public may purchase subscriptions to PDFfiller.com in order to gain access to the C.A.R. forms and PDFfiller.com's various editing functions. The lawsuit charges misappropriation and copying of dozens of the association's most popular and valuable forms, including selling access to and advertising the ability to create reusable and fillable forms. According to PDFfiller.com's own site, PDFfiller has sold and granted access to the C.A.R. forms to hundreds of thousands of users, in violation of C.A.R.'s copyrights and trademarks.

    The complaint alleges willful infringement of both C.A.R.'s copyrighted forms and its registered trademarks. The suit further alleges that PDFfiller.com has purchased search terms intended to lead the public to its site when they search for C.A.R. documents, and then sells access to its website. PDFfiller.com has charged users for access to counterfeit C.A.R. documents bearing C.A.R.'s registered tradename and logo which they have no right to do.

    C.A.R.'s lawsuit seeks a permanent injunction to prohibit future infringing activity and also over $136 million in monetary compensation, including statutory penalties, and attorneys' fees.

    "C.A.R. forms are copyrighted and are the gold standard in the industry," said C.A.R. President Pat "Ziggy" Zicarelli. "REALTORS® use C.A.R.'s original forms because they are heavily vetted and kept up to date with current laws and best practices. We unapologetically protect our work from unauthorized copying and tampering to protect the reliability, quality, and security of our work. This protects the integrity of the real estate transaction with the most up-to-date documentation."

    C.A.R.'s copyrighted forms are created through extensive vetting by real estate lawyers and many members. This results in forms for its members that are the most accurate, creative and useful real estate forms for use in real estate transactions. It is important that C.A.R. members know that when they see a C.A.R. logo, the content has been through C.A.R.'s deliberative process.

    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 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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    Created: 8/24/2016 3:13:12 AM
  • For release:
    June 8, 2016

    Renters value homeownership but face affordability challenges when it comes to buying a home, C.A.R. survey finds

    LOS ANGELES (June 8) – Current renters value homeownership and want to buy a home but many are encountering affordability and financial obstacles that prevent them from buying, according to the CALIFORNIA ASSOCIATION OF REALTORS®' (C.A.R.) "2016 Renter Survey."

    Nearly half of renters (48 percent) plan to buy a home in the future, with 10 percent saying that they plan to buy within a year. For those not planning to buy, an improvement in finances, lower housing prices, and saving enough for a downpayment would motivate them to buy now.

    Of the 28 percent of renters who don't plan to buy in the future, 50 percent said they can't afford to buy, 20 percent will not buy because they prefer to rent, 19 percent said they can't qualify for a mortgage, and 15 percent lack a downpayment. Job uncertainty (9 percent), economic uncertainty (12 percent), and housing market uncertainty (6 percent) were among other reasons renters cited for not buying a home.

    Homeownership remains important to renters, with nearly half (45 percent) rating it 8 or higher in importance on a scale of 1-10, with 10 being extremely important. The average was 6.8. Nearly all renters (95 percent) see advantages to homeownership; freedom to do what you want with your home, building equity, and having permanence and stability were the top benefits mentioned by renters.

    One of the surprising findings of this survey is that more than one in four millennial renters said they plan to purchase a home that will accommodate their parents, and about one in five millennials indicated they plan to pool funds with family members to buy a home.

    Primarily reflecting cultural values, Hispanic renters were more likely to buy a home that will accommodate their parents and/or adult children than any other ethnic group, with 46 percent indicating so, compared with 35 percent of blacks, 32 percent of Asians, and 29 percent of whites. Hispanics and Asians place a strong value on family, and tend to live with multi-generations under one roof more so than other ethnic groups.

    Other key findings from C.A.R.'s "2016 Renter Survey" include:

    • Forty-six percent of renters claimed they currently rent because they can't afford to buy, and 13 percent said they have poor credit and can't qualify for a loan. The remaining renters choose to rent because they like the flexibility, freedom and ease of renting, are concerned about the maintenance costs of owning a home, or are not interested or aren't ready to buy.
    • Nearly four in 10 renters (39 percent) indicated they plan to purchase a home in the same county where they currently reside, and 23 percent plan to buy in the same neighborhood.
    • Fifteen percent of renters plan to buy a home out of their current area, with 7 percent planning to move to another state, 7 percent to another county in California, and 1 percent to another country.
    • Of the renters who are planning to leave the area where they currently reside, 27 percent are moving to find lower housing prices, 24 percent are moving for a better neighborhood, 14 percent want to be closer to family, 9 percent want a shorter commute, and 7 percent are moving for a better school district.
    • Two in three renters have made some kind of preparation to buy a home: 25 percent have searched for homes, 16 percent have searched online for information about the homebuying process, and 12 percent have spoken to a REALTOR®.
    • Thirty-one percent of renters previously owned a primary residence, and 9 percent currently own real estate. Of those who previously owned a home, the reasons for selling included family reasons (37 percent), financial difficulties (28 percent), and work (13 percent).

    Renter Survey slides:

    The survey was conducted online to 1,000 renters statewide in March 2016, with a sample error rate of 3.1 percent at 95 percent confidence interval. Sample weighted by ethnicity and age/generations according to 2014 U.S. Census Bureau data.

    For complete survey results, visit http://www.car.org/marketdata/surveys

    Follow us on Twitter @CAR Media and @CAREALTORS®

    Like us on Facebook.

    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 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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    Created: 8/24/2016 3:13:12 AM
  • For release:
    June 21, 2016

    C.A.R. analysis finds presidential elections have little impact on California housing market

    Prospective home buyers want current presidential candidates to address housing affordability

    LOS ANGELES (June 21) – Presidential elections have historically had little or no negative impact on the California housing market, according to findings by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

    "Transitory political events such as presidential elections don't drive the housing market," said C.A.R. President Pat "Ziggy" Zicarelli. "Market fundamentals such as housing inventory, affordability, interest rates, job growth, and consumer confidence are the real factors that influence the housing market."

    In an analysis of home sales dating back to 1990, the average growth in home sales during an election year is usually either slightly higher or lower each month than in non-presidential election years. Notably, sales growth is rarely negative during an election year, and there is no evidence of a systematic negative impact on home sales or prices stemming from election season. In fact, C.A.R. found that growth in home sales at the end of an election year actually outperforms non-election years by 7.1 percentage points.

    On a monthly basis since 1990, California home sales contracted by roughly 2 percent during the last four months of the year. However, during the past five election cycles, sales in the final months of the year picked up, rising by 5.3 percent on average compared with -1.8 percent during non-election years. With the exception of December 2004, every single month of the final quarter saw robust growth in home sales during election years.

    The pattern for California home prices is similar. C.A.R. also found little evidence of a negative effect on home prices during an election year. In fact, home price growth in California during the past five election cycles was slightly better than the long-run average of 5.6 percent. Again, the effects were most pronounced during the final months of the year when demand – and therefore, upward pressure on prices – were boosted by roughly 5.6 percentage points following the elections.

    Slides (Click to open):

    Home sales growth election vs. non-election years
    Home price growth election vs. non-election years

    Presidential candidates and housing policy

    In a separate poll* by leading think tank The Futures Company commissioned by C.A.R., nearly three-fourths (70 percent) of survey respondents who plan to buy a home agreed that they would like the current presidential candidates to address how to make housing more affordable in their campaigns.

    And, across all incomes, generations, and races/ethnicities, consumers were strongly in agreement that housing affordability should be a top priority on the presidential campaign trail as candidates make their pitches for ballots in the lead-up to the November contest.

    However, housing affordability and solutions to reduce the cost of living have received noticeably little attention this campaign season. Other than releasing plans to increase the five-decades-low homeownership rate, the presumptive nominees, Democrat Hillary Clinton and Republican Donald Trump, have not issued comprehensive housing policies, including action items to address the significant housing affordability crisis.

    *The poll was conducted by The Futures Company in partnership with the Center for California Real Estate, an institute dedicated to the advancement of advancing real estate knowledge from C.A.R.

    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 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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    Created: 8/24/2016 3:13:12 AM
  • For release:
    August 23, 2016

    California pending home sales post fourth straight annual increase in July

    Steady sales shows signs of strength, portending fall improvement in market

    LOS ANGELES (Aug. 23) – Led by the Southern California region, California statewide pending home sales continued to build momentum in July, posting an increase from both the previous month and year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

    Despite an increase in pending sales, California's housing market showed signs of cooling competition with fewer buyers overbidding on homes, as reflected in C.A.R.'s July Market Pulse Survey**. The survey results indicate a decrease in the premium paid over asking price and the percentage paid below asking price reaching its high level.

    Pending home sales data:

    • Statewide pending home sales rose in July on a seasonally adjusted annualized basis, with the Pending Home Sales Index (PHSI)* increasing 3.5 percent from 118.4 in July 2015 to 122.5 in July 2016, based on signed contracts. Pending sales have been on a rising trend for the past couple of months, which should translate into an increase in closed transactions in the fall.

    • On a month-to-month basis, California pending home sales were up 3.0 percent from June's index of 119.0.

    • At the regional level, Southern California pulled up the market with a year-over-year increase in pending home sales, while the San Francisco Bay Area reversed its gain last month. Pending sales in the Central Valley were essentially flat.

    • Pending home sales in Southern California as a whole rose 1.6 percent from July 2015, thanks primarily to year-over-year pending sales increases of 7.8 percent in Orange County and 7.5 percent in San Diego County. Compared to June 2016, pending home sales were down 1.8 percent.

    • For the Bay Area as a whole, pending sales were down 3.5 percent from July 2015 and down 3.8 percent from June, despite year-to-year increases in pending sales in San Francisco (20.6 percent) and San Mateo (3.6 percent) counties. Low affordability and limited housing supply has been plaguing the region, however, an improvement in inventory in recent months should alleviate low housing stock in the upcoming months.

    • Pending sales in Central Valley were essentially flat, down just 0.1 percent from the previous year but up 1.9 percent on a month-to-month basis.

    Year-to-Year Change in Pending Sales by County/Region

    County/Region/State July 2016 July 2015 Yearly % Change
    Counties
    Kern 73.2 94.0 -22.1%
    Los Angeles 83.3 86.6 -3.8%
    Monterey 72.6 59.7 21.6%
    Orange 75.9 70.4 7.8%
    Sacramento 81.0 80.4 0.7%
    San Bernardino 71.8 72.2 -0.6%
    San Diego 141.4 131.5 7.5%
    San Francisco 85.3 70.7 20.6%
    San Mateo 107.1 103.4 3.6%
    Santa Clara 94.1 103.7 -9.3%
    Regions
    SF Bay Area 143.3 148.5 -3.5%
    So. CA 111.5 109.7 1.6%
    Central Valley 102.9 102.9 -0.1%
    California (SA) 122.5 118.4 3.5%

    * Seasonally adjusted

    July REALTOR® Market Pulse Survey**:

    In a separate study, California REALTORS® responding to C.A.R.'s July Market Pulse Survey reported slower growth in floor calls, listing appointments, and open house traffic, which was expected as seasonal factors typically lead to fewer market activities at this time of year.

    • After reaching an all-time high of 38 percent in May, the share of homes selling above asking price in July dropped to 34 percent, unchanged from a year ago. Conversely, the share of properties selling below asking price slipped to 36 percent from 43 percent in July 2015. The remaining 30 percent sold at asking price, up from 24 percent in July 2015.

    • For homes that sold above asking price, the premium paid over asking price fell to 7.8 percent, down from 11 percent in June and 11 percent from a year ago.

    • The 37 percent of homes that sold below asking price sold for an average of 14 percent below asking price in July, which was up from 11 percent in June and 9.6 percent a year ago. The July 2016 figure was the highest since C.A.R. began tracking this statistic in 2014.

    • More than six in 10 properties (66 percent) for sale received multiple offers in July, down from 72 percent in June and 67 percent in July 2015, indicating a slight cooling in market competition.

    • The average number of offers per property dipped slightly to 2.8 in July, compared with 3.0 in June and 3.0 in July 2015. Forty-four percent of properties received three or more offers in July, down from 47 percent in June. Homes priced between 300,000 - $399,000; $500,000 -$749,000; and $1 million - $1.99 million saw and increase in three or more offers compared to a year ago.

    • In a sign of cooling home prices, more than one in four (26 percent) properties had price reductions in July, up from 23 percent in June. Twenty-eight percent of properties had price reductions in July 2015.

    • Low inventory, declining housing affordability, and high home prices were the top concerns for about two-thirds (70 percent) of REALTORS®.

    • While still in positive territory, REALTORS®' optimism of market conditions over the next year has been waning over the past few months, with the index hovering at 52, unchanged from June and down from 60 in July 2015.

    Graphics (click links to open):

    YTY change in pending home sales by region.
    More properties selling below asking price.
    Two-thirds of homes received multiple offers.
    Price range of homes receiving 3+ offers.

    *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 sent to more than 10,000 California REALTORS® to measure data about their last closed transaction and sentiment about business activity in their market area for the previous month. Approximately 300 REALTORS® responded.

    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 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

    Created: 8/24/2016 3:13:12 AM
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    CNBC: U.S. New Home Sales Race to Near 9-Year High
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    Todays_re_news

    Created: 8/24/2016 3:13:12 AM
  • For release:
    August 16, 2016

    California home sales and median price decrease in July as affordability crunch puts dent in housing market

    - Existing, single-family home sales totaled 415,840 in July on a seasonally adjusted annualized rate, down 4.1 percent from June and 5.1 percent from July 2015.

    - July's statewide median home price was $509,830, down 1.8 percent from June and up 3.9 percent from July 2015.

    - Year-to-date sales are down from the previous year for the first time in more than a year and a half by 0.3 percent.

    LOS ANGELES (August 16) – California home sales stumbled in July as low inventories and eroding affordability dragged down the housing market, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

    Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 415,840 units in July, 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 2016 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

    The July figure was down 4.1 percent from the revised 433,600 level in June and down 5.1 percent compared with home sales in July 2015 of a revised 438,230. Home sales remained above the 400,000 pace for the fourth straight month, but sales have declined year over year for the fifth consecutive month.

    "Despite the tight housing supply conditions that have persisted over the past few years, home sales have stayed relatively solid," said C.A.R. President Pat "Ziggy" Zicarelli. "Even with a shortage of homes on the market, low rates and strong demand have been the norm. Some regions, such as the Bay Area, are seeing an uptick in inventory as high prices are motivating sellers to list their properties for sale. While this could ease the inventory somewhat, supply remains tight, and low affordability is expected to be an issue in the short term."

    The statewide median price remained above the $500,000 mark for the fourth straight month, but there are signs of an expected slowing in price growth. The median price of an existing, single-family detached California home slipped 1.8 percent in July to $509,830 from $519,410 in June. July's median price increased 3.9 percent from the revised $490,780 recorded in July 2015. 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. More homes being sold at the high end of the market (over $1 million) and slightly fewer sales at the lower end (under $300,000) contributed to the year-over-year gain in the median price.

    "California's median home price rose again in July from last year, but the pace of increase has clearly slowed down in recent months," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "While fundamentals such as increasing household formation and strong job creation continue to fuel housing demand and support price growth, low housing affordability and reduced buying power of home buyers has put a cap on how fast the statewide median price can grow."

    Other key points from C.A.R.'s July 2016 resale housing report include:

    • C.A.R.'s Unsold Inventory Index, which indicates the number of months needed to sell the supply of homes on the market at the current sales rate, inched up to 3.6 months in July from 3.2 months in June. The index stood at 3.3 months in July 2015.
    • The Bay Area region continued to see an increase in inventory, with all counties except Solano and Sonoma seeing an increase from the previous year. Active listings in Los Angeles, the Inland Empire, San Diego, and the Central Valley declined compared to July 2015.
    • The median number of days it took to sell a single-family home edged up slightly in July to 28 days, compared with 27.1 days in June and 29 days in July 2015.
    • C.A.R.'s sales-to-list price ratio* dipped in July, with sales prices slightly decreasing to 99.2 percent of listing prices statewide in July from 99.6 percent in June and 99.1 percent in July 2015.
    • The average price per square foot** for an existing, single-family home statewide was $247 in July 2016, down from $248 in June but up from $241 in July 2015.
    • San Francisco County had the highest price per square foot in July at $824/sq. ft., followed by San Mateo ($788/sq. ft.), and Marin ($606/sq. ft.). Counties with the lowest price per square foot in July include Madera ($127/sq. ft.), Tulare ($128/sq. ft.), and Siskiyou ($131/sq. ft.).
    • Mortgage rates are expected to remain low in the foreseeable future due to global economic uncertainty. Mortgage rates declined in July, with the 30-year, fixed-mortgage interest rate averaging 3.44 percent, compared with 3.57 percent in June and 4.05 percent in July 2015, according to Freddie Mac. Adjustable-rate mortgage interest rates slipped in July to an average of 2.75 percent, a decline from 2.78 percent in June and 2.96 percent in July 2015.

    Graphics (click links to open):

    • July sales at-a-glance infographic.
    Calif. existing home sales historical.
    Share of sales by price range.
    Historical condo sales.
    CA price per square foot.
    CA sales to list price ratio.

    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. 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 39 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 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

    July 2016 County Sales and Price Activity
    (Regional and condo sales data not seasonally adjusted)

    July-16 Median Sold Price of Existing Single-Family Homes Sales
    State/Region/County Jul-16 Jun-16 Jul-15 MTM% Chg YTY% Chg MTM% Chg YTY% Chg
    CA SFH (SAAR) $509,830 $519,410 r $490,780 r -1.8% 3.9% -4.1% -5.1%
    CA Condo/Townhomes $421,360 $413,110 $387,830 r 2.0% 8.6% -11.2% -12.5%
    Los Angeles Metropolitan Area $468,450 $477,230 $452,200 r -1.8% 3.6% -14.0% -10.6%
    Inland Empire $320,440 $319,100 $294,790 0.4% 8.7% -10.6% -5.9%
    S.F. Bay Area $810,510 $841,960 $774,220 r -3.7% 4.7% -11.6% -16.1%
    S.F. Bay Area
    Alameda $800,000 $803,000 $765,000 r -0.4% 4.6% -10.6% -16.2%
    Contra-Costa $625,000 $625,000 $550,000 r 0.0% 13.6% -12.2% -18.8%
    Marin $1,150,000 $1,218,500 $1,049,000 r -5.6% 9.6% -16.7% -12.2%
    Napa $634,380 $619,000 $630,000 r 2.5% 0.7% 0.0% -9.3%
    San Francisco $1,362,500 $1,350,000 $1,284,440 r 0.9% 6.1% -15.9% -14.0%
    San Mateo $1,350,000 $1,306,250 $1,300,440 3.3% 3.8% -13.3% -13.8%
    Santa Clara $1,045,000 $1,050,000 $965,000 -0.5% 8.3% -17.7% -18.9%
    Solano $381,000 $390,000 $350,000 r -2.3% 8.9% -7.5% -10.6%
    Sonoma $572,500 $608,000 $543,500 r -5.8% 5.3% 2.4% -14.9%
    Southern California
    Los Angeles $513,700 $502,190 $490,360 r 2.3% 4.8% -17.7% -13.3%
    Orange $734,000 $754,000 r $720,000 r -2.7% 1.9% -11.3% -13.6%
    Riverside $359,900 $360,000 r $335,000 r 0.0% 7.4% -13.8% -4.2%
    San Bernardino $248,210 $245,220 $230,180 r 1.2% 7.8% -4.7% -8.6%
    San Diego $560,000 $560,000 r $549,000 r 0.0% 2.0% -8.4% -8.9%
    Ventura $644,010 $674,310 $622,580 -4.5% 3.4% -17.5% -12.4%
    Central Coast
    Monterey $539,750 $537,000 $479,500 0.5% 12.6% -14.0% -18.2%
    San Luis Obispo $549,000 $525,000 r $519,000 r 4.6% 5.8% -3.6% -1.2%
    Santa Barbara $583,800 $742,000 $707,000 r -21.3% -17.4% -13.2% -22.0%
    Santa Cruz $756,500 $800,000 $750,000 -5.4% 0.9% -10.3% -35.1%
    Central Valley
    Fresno $235,700 $241,000 r $225,000 r -2.2% 4.8% -13.2% 1.2%
    Glenn $225,000 $205,000 r $177,500 r 9.8% 26.8% -34.6% -15.0%
    Kern $233,500 $239,700 r $229,700 r -2.6% 1.7% -8.1% -13.8%
    Kings $215,000 $207,000 r $193,790 r 3.9% 10.9% -19.8% -28.1%
    Madera $233,000 $230,380 r $215,000 r 1.1% 8.4% -22.2% -18.2%
    Merced $215,000 $213,500 r $195,900 r 0.7% 9.7% -15.1% 3.2%
    Placer $435,000 $430,000 r $395,000 r 1.2% 10.1% -18.4% -9.9%
    Sacramento $320,000 $329,000 r $291,000 r -2.7% 10.0% -11.3% -7.6%
    San Benito $485,000 $511,500 r $450,000 r -5.2% 7.8% -13.6% -3.4%
    San Joaquin $308,500 $315,000 r $290,000 r -2.1% 6.4% -7.4% -5.6%
    Stanislaus $270,000 $276,000 r $250,000 r -2.2% 8.0% -12.0% -16.3%
    Tulare $215,000 $210,000 r $185,800 r 2.4% 15.7% -2.5% 9.6%
    Other Counties in California
    Amador $275,000 $319,000 r $287,000 r -13.8% -4.2% -19.6% -25.5%
    Butte $288,750 $275,000 r $265,000 r 5.0% 9.0% 3.6% 9.3%
    Calaveras $291,000 $315,000 r $270,000 r -7.6% 7.8% -14.8% -21.6%
    Del Norte $201,280 $198,750 r $206,000 r 1.3% -2.3% -38.5% -15.8%
    El Dorado $425,000 $461,550 r $420,750 r -7.9% 1.0% -14.4% -13.1%
    Humboldt $307,900 $284,000 r $274,900 r 8.4% 12.0% 5.1% -4.7%
    Lake $245,250 $259,000 r $212,000 r -5.3% 15.7% -6.0% -7.1%
    Mariposa $270,000 $264,000 r $277,000 r 2.3% -2.5% 52.6% 70.6%
    Mendocino $345,000 $350,000 $317,000 r -1.4% 8.8% -6.9% 26.4%
    Mono $550,000 $687,500 $450,000 -20.0% 22.2% 60.0% 33.3%
    Nevada $359,000 $352,000 r $321,000 r 2.0% 11.8% 6.9% 22.1%
    Plumas $245,000 $270,000 r $250,000 r -9.3% -2.0% 0.0% -25.5%
    Shasta $229,450 $243,000 r $233,000 r -5.6% -1.5% -12.6% -4.5%
    Siskiyou $214,000 $215,000 r $169,500 r -0.5% 26.3% -7.7% -21.7%
    Sutter $275,000 $251,000 r $224,440 r 9.6% 22.5% -13.1% 10.7%
    Tehama $184,000 $235,000 r $202,500 r -21.7% -9.1% -27.9% -22.5%
    Tuolumne $245,000 $245,000 r $274,000 r 0.0% -10.6% 18.1% 2.4%
    Yolo $389,000 $399,900 r $382,500 r -2.7% 1.7% -11.6% -7.0%
    Yuba $254,500 $250,000 r $229,500 r 1.8% 10.9% -13.5% -12.5%

    r = revised

    July 2016 County Unsold Inventory and Time on Market
    (Regional and condo sales data not seasonally adjusted)

    July-16 Unsold Inventory Index Median Time on Market
    State/Region/County Jul-16 Jun-16 Jul-15 Jul-16 Jun-16 Jul-15
    CA SFH (SAAR) 3.6 3.2 3.3 28.0 27.1 29.0 r
    CA Condo/Townhomes 2.9 2.6 2.5 r 28.2 27.3 29.2 r
    Los Angeles Metropolitan Area 3.9 3.5 3.6 44.8 44.1 46.1 r
    Inland Empire 4.1 3.7 3.9 45.9 45.2 49.0
    S.F. Bay Area 2.6 2.3 1.8 r 22.4 21.1 21.6 r
    S.F. Bay Area
    Alameda 2.3 2.1 1.8 18.2 17.7 17.7
    Contra-Costa 2.6 2.2 1.2 r 19.7 19.0 19.3 r
    Marin 2.9 2.5 1.6 r 37.8 27.7 29.7 r
    Napa 4.0 3.9 3.2 52.8 47.5 49.4
    San Francisco 2.1 2.0 1.6 24.3 24.3 21.3
    San Mateo 2.1 1.9 1.5 18.4 18.3 17.8
    Santa Clara 2.3 2.0 1.8 19.7 18.6 18.6
    Solano 3.0 2.7 2.7 35.4 34.1 41.1 r
    Sonoma 3.0 3.1 2.7 r 44.9 41.5 46.0 r
    Southern California
    Los Angeles 3.6 3.2 r 3.4 38.4 38.8 41.2
    Orange 4.1 3.6 3.4 51.6 50.5 49.4
    Riverside 4.2 3.6 3.9 48.0 48.9 51.9
    San Bernardino 4.1 3.9 4.0 42.1 37.1 43.7
    San Diego 3.4 3.1 3.2 21.8 21.4 22.8
    Ventura 3.9 3.8 3.6 54.7 50.4 53.7
    Central Coast
    Monterey 4.4 3.6 3.3 26.9 24.9 27.5
    San Luis Obispo 4.0 3.9 4.1 29.4 27.7 36.9
    Santa Barbara 5.5 4.5 3.6 26.9 32.5 28.3 r
    Santa Cruz 3.7 3.4 2.6 24.1 20.5 25.0
    Central Valley
    Fresno 3.8 3.3 4.3 26.4 25.1 27.0
    Glenn 4.6 3.2 4.0 21.5 41.9 25.2
    Kern 3.7 3.3 3.5 25.2 26.1 24.7 r
    Kings 4.0 3.2 3.2 22.8 25.9 31.0
    Madera 6.0 4.9 6.0 48.2 62.0 46.8
    Merced 3.2 2.7 4.0 28.5 25.2 29.3
    Placer 3.3 2.6 3.1 21.4 20.8 23.7
    Sacramento 2.8 2.4 2.7 19.4 18.7 20.4
    San Benito 3.1 2.5 2.1 24.6 25.5 22.9
    San Joaquin 3.0 2.7 3.1 20.7 21.3 23.0
    Stanislaus 3.1 2.6 2.8 20.7 20.3 23.4
    Tulare 3.4 3.3 4.1 29.7 28.2 32.5 r
    Other Counties in California
    Amador 6.6 5.0 4.4 47.3 24.1 63.1
    Butte 3.1 3.4 4.1 25.2 27.4 32.0
    Calaveras 6.1 5.3 5.5 31.0 44.0 49.7
    Del Norte 10.4 5.8 8.7 91.0 100.7 105.5
    El Dorado 4.6 3.9 4.4 28.6 27.8 37.9
    Humboldt 3.7 3.9 4.3 27.2 23.3 28.9
    Lake 6.3 6.0 6.5 72.8 66.6 88.3
    Mariposa 3.1 5.1 7.1 93.9 115.2 75.5
    Mendocino 5.9 5.6 7.2 r 59.4 56.1 67.0
    Mono 10.4 NA NA 130.7 125.8 125.1
    Nevada 3.1 3.5 4.3 25.1 22.9 28.8
    Plumas 12.6 12.7 10.1 99.1 75.5 108.7
    Shasta 4.7 4.1 5.0 26.6 28.2 38.8 r
    Siskiyou 9.0 8.2 8.1 35.8 45.5 78.4
    Sutter 2.3 2.0 2.8 22.1 24.5 29.3
    Tehama 7.9 5.3 6.6 51.3 55.7 53.6 r
    Tuolumne 5.5 6.6 5.7 32.8 38.3 52.0
    Yolo 2.8 2.5 2.5 20.8 20.3 21.8
    Yuba 3.0 2.6 3.2 20.9 19.4 25.1

    r = revised


    Created: 8/24/2016 3:13:12 AM
  • For release:
    July 26, 2016

    C.A.R. Launches Innovators Workshop

    New initiative to drive innovative real estate products, services, and solutions

    Los Angeles (July 26) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) this month launched the C.A.R. Innovators Workshop, seeking to drive further innovation of products, services, and solutions that will create efficiencies, improve productivity, and help REALTORS®, brokerages, and other real estate professionals to do their jobs and serve their clients better, smarter, and more efficiently.

    C.A.R. wants to hear from innovative REALTORS®, brokers, real estate industry gurus, engineers, software developers, and entrepreneurs alike about their ideas for transforming the way the real estate industry conducts business. Applicants do not need to be REALTORS®, but ideas should be creative and innovative; fill an unmet need in the marketplace; and have a value proposition that is easy to understand.

    C.A.R. will partner with applicants with the best ideas and provide the support, including financial, technical, strategic, and/or intellectual assets needed to turn these visions into reality.

    "C.A.R. could not be more excited about launching the Innovators Workshop to help find the next best idea in real estate," said C.A.R. President Pat "Ziggy" Zicarelli. "Our world is constantly changing and so is the way we do business as REALTORS®. This is a forward-looking program that will to keep our industry on the cutting-edge, while ensuring that improving the experience of REALTORS® and their clients remains the central objective."

    C.A.R. is also assembling a team of industry, technology and market experts to evaluate submissions to the C.A.R. Innovators Workshop. All experts from a relevant field are invited to help discover the next big idea for the real estate industry by becoming part of our Innovators Workshop Advisory Group (IWAG).

    New ideas and applications for the IWAG can be found at innovators.car.org.

    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 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

    Created: 8/24/2016 3:13:12 AM
  • For release:
    August 10, 2016

    Strong seasonal home prices weaken housing affordability in second quarter

    Minimum annual income required to purchase hits six digits for first time since Great Recession

    • Thirty-one percent of California households could afford to purchase the $516,220 median-priced home in the second quarter, down from 34 percent in first-quarter 2016 and up from 30 percent in second-quarter 2015.

    • A minimum annual income of $101,217 was needed to make monthly payments of $2,530, including principal, interest, and taxes on a 30-year fixed-rate mortgage at 3.85 percent interest rate.

    • Forty percent of home buyers were able to purchase the $411,390 median-priced condo or townhome. An annual income of $80,663 was required to make a monthly payment of $2,017.

    LOS ANGELES (Aug. 10) – Lower interest rates failed to offset strong seasonal price increases, making it harder for Californians to purchase a home in the second quarter of 2016, 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 second-quarter 2016 fell to 31 percent from the 34 percent recorded in the first quarter of 2016 and was up from 30 percent in second-quarter 2015, according to C.A.R.'s Traditional Housing Affordability Index (HAI). This is the 13th consecutive quarter that the index has been below 40 percent and is near the mid-2008 low level of 29 percent. 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 $101,217 to qualify for the purchase of a $516,220 statewide median-priced, existing single-family home in the second quarter of 2016. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,530, assuming a 20 percent down payment and an effective composite interest rate of 3.85 percent. The effective composite interest rate in first-quarter 2016 was 4.01 percent and 3.95 percent in the second quarter of 2015.

    Homes were slightly more affordable in second-quarter 2016 compared to a year ago, when the affordability index stood at 30 and the median home price was $488,500. An annual income of $96,650 was needed to make monthly payments of $2,420.

    Condominiums and townhomes also were slightly less affordable than in the previous quarter. Forty percent of California households earned the minimum income to qualify for the purchase of a condominium or townhome in the second quarter of 2016, down from 41 percent in the first quarter of 2016. An annual income of 80,663 was required to make monthly payments of $2,017.

    Key points from the second-quarter 2016 Housing Affordability report include:

    • Compared to affordability in first-quarter 2016, 25 of 29 counties tracked saw a decrease in housing affordability, two experienced an improvement (Napa and San Luis Obispo), and two were unchanged (San Francisco and Madera).

    • Seven of nine Bay Area counties recorded lower affordability numbers as did all six Southern California regions. Nine of 10 Central Valley counties and three of four Central Coast counties also saw lower affordability, compared to the previous quarter.

    • During the second quarter of 2016, the most affordable counties in California were Kings (56 percent); San Bernardino (56 percent); Kern (54 percent); and Fresno, Madera, and Tulare all at 50 percent.

    • San Francisco (13 percent), San Mateo (14 percent), and Santa Cruz (17 percent) counties were the least affordable areas of the state.

    Housing Affordability slides (click link to open)

    Affordability peak versus current
    Annual required income peak vs. current
    PITI peak versus current
    Regional comparison (2006-2016)


    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 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

    # # #


    CALIFORNIA ASSOCIATION OF REALTORS®
    Traditional Housing Affordability Index
    Second quarter 2016

    C.A.R. Region Housing
    Affordability Index
    Median Home
    Price
    Monthly Payment Including Taxes & Insurance Minimum
    Qualifying Income
    CA SFH 31 $ 516,220 $ 2,530 $ 101,217
    CA Condo/Townhomes 40 $ 411,390 $ 2,017 $ 80,663
    Los Angeles Metropolitan Area 33 $ 470,330 $ 2,305 $ 92,219
    Inland Empire 46 $ 315,500 $ 1,547 $ 61,861
    S.F. Bay Area 23 $ 840,920 $ 4,122 $ 164,882
    US 57 $ 240,700 $ 1,180 $ 47,195
    S.F. Bay Area
    Alameda 20 $ 825,700 $ 4,047 $ 161,898
    Contra-Costa 32 $ 628,150 $ 3,079 $ 123,164
    Marin 18 $ 1,225,000 $ 6,005 $ 240,190
    Napa 25 $ 630,000 $ 3,088 $ 123,526
    San Francisco 13 $ 1,375,000 $ 6,740 $ 269,601
    San Mateo 14 $ 1,330,000 $ 6,519 $ 260,778
    Santa Clara 19 $ 1,085,000 $ 5,318 $ 212,740
    Solano 45 $ 386,000 $ 1,892 $ 75,684
    Sonoma 26 $ 585,000 $ 2,868 $ 114,703
    Southern California
    Los Angeles 30 $ 480,040 $ 2,353 $ 94,123
    Orange County 22 $ 742,220 $ 3,638 $ 145,530
    Riverside County 41 $ 355,320 $ 1,742 $ 69,669
    San Bernardino 56 $ 242,370 $ 1,188 $ 47,522
    San Diego 26 $ 589,910 $ 2,892 $ 115,666
    Ventura 29 $ 647,320 $ 3,173 $ 126,922
    Central Coast
    Monterey 25 $ 535,000 $ 2,622 $ 104,899
    San Luis Obispo 27 $ 546,620 $ 2,679 $ 107,178
    Santa Barbara 20 $ 703,460 $ 3,448 $ 137,930
    Santa Cruz 17 $ 799,000 $ 3,917 $ 156,663
    Central Valley
    Fresno 50 $ 235,020 $ 1,152 $ 46,081
    Kern (Bakersfield) 54 $ 228,950 $ 1,122 $ 44,891
    Kings County 56 $ 212,660 $ 1,042 $ 41,697
    Madera 50 $ 221,700 $ 1,087 $ 43,469
    Merced 52 $ 212,080 $ 1,040 $ 41,583
    Placer County 46 $ 438,490 $ 2,149 $ 85,976
    Sacramento 45 $ 323,710 $ 1,587 $ 63,471
    San Joaquin 45 $ 313,840 $ 1,538 $ 61,536
    Stanislaus 48 $ 271,940 $ 1,333 $ 53,320
    Tulare 50 $ 207,700 $ 1,018 $ 40,724

    CALIFORNIA ASSOCIATION OF REALTORS®
    Traditional Housing Affordability Index
    Second quarter 2016

    STATE/REGION/COUNTY Q2 2016 Q1 2016 Q2 2015
    CA SFH 31 34 30
    CA Condo/Townhomes 40 41 39
    Los Angeles Metropolitan Area 33 35 32
    Inland Empire 46 48 46
    S.F. Bay Area 23 27 23 R
    US 57 60 57
    S.F. Bay Area
    Alameda 20 23 20 R
    Contra-Costa 32 38 34 R
    Marin 18 20 17
    Napa 25 23 R 24 R
    San Francisco 13 13 10
    San Mateo 14 16 13
    Santa Clara 19 22 19
    Solano 45 48 R 46
    Sonoma 26 28 R 27 R
    Southern California
    Los Angeles 30 31 30
    Orange County 22 23 21
    Riverside County 41 42 40
    San Bernardino 56 57 56
    San Diego 26 28 25
    Ventura 29 30 25
    Central Coast
    Monterey 25 27 27
    San Luis Obispo 27 26 28
    Santa Barbara 20 21 15 R
    Santa Cruz 17 18 20
    Central Valley
    Fresno 50 52 50
    Kern (Bakersfield) 54 55 54 -
    Kings County 56 58 62
    Madera 50 50 50
    Merced 52 55 55
    Placer County 46 48 44
    Sacramento 45 48 47
    San Joaquin 45 47 37
    Stanislaus 48 50 41
    Tulare 50 52 54

    R = revised

    CALIFORNIA ASSOCIATION OF REALTORS®
    Traditional Housing Affordability Index
    Second quarter 2016

    Created: 8/24/2016 3:13:12 AM