Industry announcements

SDAR Presents Webinar on Prop 19 for Realtors

The Greater San Diego Association of REALTORS® (SDAR) will present “Proposition 19: A REALTOR® Guide to Navigating the New Law and Supporting Your Clients!” on Monday, Dec. 7, at 10:30 a.m. over the Zoom platform.

Proposition 19 was approved by California voters and has a significant impact on residential property taxes in the state. REALTORS® are invited to hear from licensed Investment Advisor & Enrolled Agent Jesse Lipscomb as he discusses key issues every real estate professional needs to understand about Proposition 19, including market value versus assessed value, leveraging new increased portability provisions to help homeowners downsize or upsize their home, and assisting clients transfer investment properties before the February 15 deadline.

San Diego 2nd highest for bidding wars

The Pacific Southwest Association of Realtors (PSAR) said San Diego recently had the second highest number of multiple offers on homes for sale in the U.S. According to a Redfin study, 73.2 percent of San Diego homes were involved in a bidding war in October, second only to Salt Lake City’s 75 percent. “Multiple competing bids is the norm in today’s market,” said Yvonne Cromer, a PSAR board member. “Competition is fierce due to low mortgage rates, a shortage of homes for sale and increased demand for extra interior space because of remote work and home schooling. Winning a bidding war requires an extra commitment, often offering more than the asking price and waiving contingencies. I’m not expecting a slowdown anytime soon.”

SDAR Hosts Webinar on Realtor Advertising

Real estate licensees – brokers and salespersons – are guided by many advertising requirements, and it’s often misunderstood how the Realtor Code of Ethics extends to how they conduct themselves online. Whatever you wouldn’t say or do in front of someone, you also shouldn’t do on social media and other online platforms.

The Greater San Diego Association of REALTORS® (SDAR) invites you to join Broker Dan Hill for a free webinar on Thursday, Dec. 10, at 10:00 a.m., as he walks through compliance for real estate advertising. Register at bit.ly/1210adv for the Zoom webinar or contact SDAR Education Department at (858) 7158000.

Steps toward homeownership

The Pacific Southwest Association of Realtors (PSAR) is inviting all San Diegoarea realtors to attend a free live online workshop on preparing clients to share in the American dream of homeownership from 10 a.m. to 2 p.m., Tuesday, Dec. 8, over Zoom. The workshop, titled “Steps Toward Homeownership” and presented for the first time by the California Association of Realtors (CAR), will include information on lending and down payment assistance options, as well as overcoming various hurdles to financing homeownership, such as lack of inventory, rising rents and student loan debt. PSAR said the webinar will help realtors acquire financial literacy knowledge and strategies to bolster their referral pipeline so they can help prospective buyers become “mortgageready.” For more information, call PSAR at (619) 421-7811, or visit www.psar.org.

Coldwell Banker West honored with writing award

Coldwell Banker West (CBW), one of San Diego County’s largest real estate brokerages, was recently honored by the San Diego Press Club with a journalism writing award in the real estate category for a news story about CBW’S 2019 merger with San Diego-based Ascent Real Estate. The merger, believed at the time to be one of the largest in recent San Diego real estate industry history, created a real estate brokerage with 14 offices and approximately 1,000 agents. The story was noteworthy because it explained the behind-the-scenes merger negotiations, along with the history of the two brokerages. The San Diego Press Club’s 47th annual Excellence in Journalism Awards drew more than 1,100 entries, making it one of the largest journalism competitions in the nation.

Homes selling in 7 days

The Pacific Southwest Association of Realtors (PSAR) reports seven days was the median number of days it took to sell an existing, single-family home in October 2020, which was the same number in September 2020. However, according to recent statistics from the California Association of Realtors (CAR), the seven-day timeframe compares to 18 days a year ago in October 2019. The seven-day figure also compares to eight days in August 2020, 10 days in July 2020, 12 days in June 2020, 11 days in May 2020, eight days in April 2020 and 10 days in March 2020. Statewide, the median number of days an existing, single-family home remained unsold on the market was 10 days in October, which was the lowest number ever recorded by CAR.

Risk of waiving contingencies

The Pacific Southwest Association of Realtors (PSAR) said homebuyers who find themselves in bidding wars have a better chance of closing the deal without requesting contingencies, such as inspection and appraisal reports. Roughly 20 percent of homes sold by Redfin over a month’s time in San Diego are transacted with buyers waiving such reports in order to make their offers more attractive. “Buyers can put themselves at risk without such protections,” said Mike Anderson, a PSAR board member. “However, some buyers are willing to take the risk since it’s a hot market with low mortgage rates and a severe shortage of inventory.” Other ways to make offers more attractive, said Anderson, include flexible escrow time-frames and rentback agreements.

Interest rates to remain low in 2021

The Pacific Southwest Association of Realtors (PSAR) expects mortgage interest rates will remain at historically low levels in 2021, roughly between about 2.75 percent and 3.5 percent on a typical 30-year loan, fueling a steady rise in mortgage originations. According to Sam Calvano, a mortgage lender and PSAR board member, rates fell recently to 2.5 percent, a record low this year. During the 2020 third quarter, 3.25 million mortgages were originated on U.S. residential properties, the highest figure in 13 years, according to Attom Data Solutions. That total was 17 percent higher than 2020 Q2 and up 45 percent from 2019 Q3. “In 2021, low mortgage rates will keep the housing market healthy as if the Covid pandemic never happened,” Calvano said.

Unsold inventory at 1.8 months

The Pacific Southwest Association of Realtors (PSAR) reports the inventory of available homes for sale in San Diego County was 1.8 months, compared to 1.7 months in September 2020 and 2.8 months in October 2019. Statewide, the California Association of Realtors said the inventory for the entire state remained unchanged at 2.0 months, compared to September 2020, when it reached the lowest level in nearly 16 years since November 2004. Statewide inventory in October 2019 was 3.0 months. Inventory levels in months refers to the number it would take for the current inventory of homes on the market to sell-out given the current sales pace.

More move-up buyers in 2021

The Pacific Southwest Association of Realtors (PSAR) is expecting the available inventory of higher-priced, move-up homes will improve in 2021, aided by a growing number of move-up buyers seeking larger homes. According to Sean Hillier, a PSAR board member, the coronavirus has motivated homebuyers to desire more square footage for homebound distance learning for school and working remotely for the job.

“I’m expecting an increase in sales of move-up homes in 2021,” said Hillier. “Lingering economic uncertainty over the economy from the pandemic and a volatile stock market, as well as a shortage of homes for sale, will keep the overall housing market in check. But, the luxury segment, including the secondhome segment, will do well in 2021. People want to love where they live.”