C.A.R. president addresses housing market shift

California Association of Realtors President Otto Catrina recognizes the state’s housing market is changing. While presenting a housing and legislative update to members of the Silicon Valley Association of Realtors last week, Catrina alerted Realtors on how they can help their clients in light of the changing market.

“A shift is happening right now. We’re seeing it in price reductions and concessions,” Catrina told Silicon Valley Realtors. He noted now is the time for Realtors to educate their clients, go back to their toolbox, come up with new tools, and set seller and buyer expectations.

Due to the rise in mortgage interest rates, more buyers and sellers are deciding to wait in the sidelines. The Fed is expected to announce another interest rate hike on June 14 which could raise the interest rate to 6%.

The market is quickly changing. “When speaking to clients we need to go out 30 to 60 days into the future. In reality you can’t use old data. You got to use current data,” said Catrina.

Legislative-wise, Catrina said C.A.R. has had “huge successful wins.” The following bills have been defeated in the legislature: AB 2050, which would have weakened the Ellis Act; AB 2469, which would have created an onerous and expensive statewide rental registry; AB 2710, which would have created a statewide “first right of offer” for non-profits and tenants and an onerous process for such a right, which could have resulted in delays of up to a year for the sale of a property and worsened the housing crisis.

Meanwhile, legislative challenges include local rent control, moves to extend the eviction moratorium, and the clog of financial resources from the state to owners and renters.

“We’re starting to get traction on housing in the state and national level,” said Catrina. He reported C.A.R. is working with the state and governor and asking for $600 million for housing - $400 million for deed restricted housing, and $200 million for first-time homebuyer programs.

The C.A.R. president mentioned concern about the shifting market, inflation and expectations of a recession occurring in the second half of 2023 keep him up at night. He said for a recession to occur, there needs to be inflation, high gas prices and war. All three are present today.

Catrina also voiced major concerns about Asian hate crime, fire insurance, and water supply. C.A.R. is working on grants to help property owners comply with fire hardening mandates. He indicated Californians need to do a better job at water conservation. The state Realtor group has created a Climate Change and Sustainability task force, but electrification is a challenge since the grid does not have the capacity to make the transition.

Catrina continues to push the Realtor Party of California, indicating it is neither Democrat nor Republican; rather, it is a party that advocates for homeownership for all. He said it is a shame that the fractionalization in society has entered into churches, unions, and even Realtor associations.

“When we come together as Realtors, we have to be looking for those individuals and those issues that are supporting housing and supporting our industry. … We need to get people off the streets. We need to get people into housing. We need to do a better job convincing our legislators to get more affordable housing,” said Catrina.

In closing, C.A.R.’S president circled back to the shift in the market. He warned that the next three months will be tough emotionally for all parties – agents, buyers and sellers, because of the market shift as well as the volatile stock market.

“Don’t wait for these things to happen. Respond, be proactive, start preparing,” Catrina told members. “Be positive and let’s get ahead of the shift.”