The local real estate market remains one of the 10 hottest markets in the nation, although there appears to be no end in sight for the inventory shortage, according to reports from various industry sources. The market will likely remain very challenging for would-be buyers throughout the summer. According to www.Realtor.com, the National Association of REALTORS® (NAR) official website, San Diego was the 10th “hottest” real estate market in June with the typical home taking just 37 days to sell. San Diego was one of the five California markets on the list. The Vallejo-Fairfield area in northern California led the list. Nationally there were 11 percent fewer homes on the market in June than during the same month last year, marking 24 consecutive months of year-over-year inventory declines, according to NAR. Nationwide, a typical home was on the market 60 days. In 80 percent of markets there are fewer homes for sale currently than this time last year, NAR said. Meanwhile, the San Diego County median home price hit $530,000 in May, according to real estate tracker Core-Logic. The new higher number represents an 8.2 percent increase in a year. For all of Southern California, the median home price in May was up 7.1 percent year-over-year, bringing the median to $492,000. The largest increase was in San Bernardino County, at 8.8 percent, to a median price of $310,000. It was followed by San Diego County with the 8.2 percent increase; Riverside County with a 7.9 percent increase for a median of $356,000; Ventura County with a 7.1 percent increase for a median of $553,750; Los Angeles County with a 6.8 percent increase for a median of $560,500; and Orange County with a 6.7 percent increase for a median of $695,000. High demand from home buyers and a limited supply of homes for sale are the main ingredients in the recipe for rising home prices, according to Zillow. Three factors are driving demand, including millennials are aging into home ownership, the labor market is booming and wages are growing. Indeed, some economists are wondering about a possible housing bubble since home prices are rising faster than inflation. Since demand is exceeding supply and financing is available, there seems to be nothing right now to prevent prices from continuing their upward trend. According to the latest Market Pulse Survey from the California Association of REALTORS® (C.A.R.), market conditions remained positive, but some REALTOR® expectations are beginning to decline. While fewer properties sold above asking price, the market remained competitive as multiple offers inched up in May from April. C.A.R. said the share of homes selling above asking price was down from 38 percent a year ago to 35 percent in May 2017, while the share of properties selling below asking price was unchanged at 34 percent. The remaining 31 percent sold at asking price, up from 27 percent in May 2016. Also, C.A.R. said 70 percent of properties sold in May received multiple offers, up from 68 percent in May 2016. The share of properties receiving three or more offers in May was 44 percent, compared to 46 percent a year ago. C.A.R. also said a lack of available inventory continued to be at the top of the list of concerns for REALTORS®, with 41 percent indicating it as their biggest concern. Declining housing affordability and high-interest rates concerned 23 percent of REALTORS®, while inflated home prices-housing bubble was cited by 21 percent of REALTORS®. The economy, lending and financing, and policy and regulations rounded out REALTORS®’ remaining biggest concerns. Finally, some analysts believe the economy is growing due to improved local labor conditions, rising prices of local stocks and stronger measures of U.S. consumer confidence due to President Trump’s business-friendly policies. Survey company Gallup said consumer spending in the U.S. rose was $103 a day in June, the best performance for the month since 2008. The daily spending in May was $104. Gallup said Americans' reported daily spending has averaged $100 or more since February -- the longest stretch of triple-digit spending averages since 2008. Spending in July is likely to hold at its current level, because in most years over the past decade, Gallup has recorded figures for July that were within $3 of June's average. The June results were based on more than 15,000 interviews conducted as part of Gallup daily tracking throughout the month. Gallup asks Americans each night to report how much they spent the previous day, excluding spending on normal household bills and major purchases, such as a home or car. The measure gives an indication of discretionary spending.
2017 ELECTION RESULTS
Eligible Voters: 5092 (Total ballots issued)
Quorum Requirement: 255 (5% set by Bylaws)
Total Ballots Cast: 935
Percent vote return: 18%
Invalid Ballots: 85 (opened, but not completed)
|District||Eligible Voters||Quorum Requirement||Ballots Cast||% Voted|
|Out of Area||657||33||94||14|
2018/2019 DIRECTORS Elected to terms expiring as indicated
Director, At Large: Tasha Manzano (term begins 1/1/2018-12/31/2019)
Director, South Coast: David Cabot (term begins 1/1/2018 -12/31/2019)
Director, South Coast: Lily Zhou (term begins 1/1/2018- 12/31/2018)
Director, Central Coast: Dana Whittaker (term begins 1/1/2018-12/31/2019)
Director, Tri Cities: Jianni Bernard (term begins 1/1/2018-12/31/2019)
Director, Inland: Carolyn D’Agosta (term begins 1/1/2018-12/31/2019)
Director, Out of Area: Jan Ryan (term begins 1/1/2018-12/31/2019)
Director, Associated Professional: Stan Stark (term begins 1/1/2018-12/31/2019)
2017 DIRECTORS Continuing in 2018
Director, Central Coast: Bill Richard (term 1/1/2016 – 12/31/2018)
Director, Tri Cities: Carol Farrar (term 1/1/2016-12/31/2018)
Director, Inland: Kevin Williamson (term 1/1/2016-12/31/2018)
Director, At-Large: Raylene Brundage (term 1/1/16-12/31/2018)
Director AP, Stan Stark (term 1/1/2016-12/31/2017)
Immediate Past President: Mike Carunchio (term 1/1/2018-12/31/2018)
NAR DIRECTORS Continuing on Board with term expirations as indicated
Director, NAR Rep: Marie Jebavy (term expires 12/31/2018)
Director, NAR Rep: Bob Pahlke (term expires 12/31/2019)
* Discrepancy from total quorum due to rounding
Jami Besecker, Keller Williams Realty You may know NSDCAR REALTOR® member Jami Besecker as this year’s chair of NSDCAR’s Grievance Committee. The Grievance Committee receives ethics complaints and arbitration requests and determines whether a complaint, on its face, merits a formal hearing on the matter by a panel of the Professional Standards Committee. The purpose of the Grievance Committee is to provide a preliminary review and screening process. The committee is similar to a grand jury's function within the judicial system. Jami has served on the Grievance Committee since 1994. She also served for 10 years (1984-1994) on NSDCAR’s Professionals Standards Committee. The Professional Standards Committee hears complaints in matters of ethics and conduct mediation and arbitration hearings. But did you know that Jami is a member of an outrigger canoe club? “Just hum the theme to the Hawaii Five-O TV show and you’ll get the idea,” said Jami. For the past 15 years, Jami has been as an active member of the Kupa'a Mau Outrigger Canoe Club (KMOCC) located at Marine Corps Base, Camp Pendleton. The name Kupa'a Mau is the Hawai'ian translation of the U.S. Marine Corps motto Semper Fidelis, Latin for “Always Faithful.” Outrigger canoe paddling is the official state sport of Hawaii. “The paddling community always has a lot of fun,” said Jami. “We share a love of the ocean and an interest in experiencing the Polynesian culture and that aloha spirit. Our club is one of 28 clubs within the Southern California Outrigger Racing Association, which includes Southern California, Arizona and Nevada. Our teams regularly compete up and down the state and in Hawaii.” Jami also is a runner. She clocks between 15 and 20 miles weekly, running five mornings a week along the South Carlsbad State Beach campground. “It’s a beautiful beach, especially with the new stairways that leads to the beach,” she said. “The camp hosts and workers are my morning family.” Jami said she has competed in the Carlsbad Half Marathon for the past 13 consecutive Januarys and normally attends the annual Thanksgiving Day O’side Turkey Trot 10k. On Saturday morning, June 17, Jami plans to compete in the 4th annual San Diego County Fair 5k on a behind-the-scenes 3.1-mile course through the Del Mar Fairgrounds. “I like to run for exercise and it keeps me motivated, plus I like to eat,” Jami said. Jami grew up in Pennsylvania and is a diehard Pittsburgh Steelers NFL fan. She met her husband Ken while attending Indiana University of Pennsylvania in Indiana, Penn. “The next day after we were married (in April 1977), we headed west to live in San Diego as Ken got a job at NCR in Rancho Bernardo,” Jami said. “Ken built the system for the French to run their lottery system. We had planned to stay here for just a couple of years. Of course, that was 40 years ago.” Jami and Ken have two grown children, son Kyle who lives in Huntington Beach and works in computer technology (like his dad), and daughter Lindsey, who lives in Vista with her husband Greg and recently blessed the family with their first granddaughter, Avery Winnie Ball. “She’s the joy of Jami and Ken's life,” said Jami. Upon their arrival in California as newlyweds back in 1977, Jami was planning a career as an art teacher. “It was right before Proposition 13 passed. As a result, arts and music were among the first budget items to cut,” said Jami. (On June 6th, 1978, nearly two-thirds of California's voters passed Prop. 13, reducing property tax rates on homes, businesses and farms.) “My husband Ken saw a help-wanted ad in the newspaper for real estate. The ad read `Earn and Learn.’ So, I signed up and I’ve never looked back.” Jami earned her real estate license in 1978. She became a broker in 1982. “My broker number starts with zero-zero,” Jami said. “Yep, I’ve been around for a while.” She specializes in properties in Carlsbad, Leucadia, Encinitas, Oceanside, Vista , San Marcos, Escondido, Solana Beach and Carmel Valley. She has experience in 1031 exchanges, investment properties, VA, FHA, short sales and REOs. “I have seen the North County blossom to what it is today, the growth has been tremendous,” Jami said. “I have to say I am enjoying the business now more than ever,” said Jami. “After 40 years nonstop in the same career, I do not know not many people who can attest to that. I was blessed to find work where I can help clients achieve home ownership, create solid investments and sell the largest asset a family can have and having a great ride while doing so. I always advise anyone who will listen, `when you find a good realtor hang onto them, together you can have great long term journey.’” Jami is a stronger supporter of NSDCAR. “Our Association is in good hands because our members adhere to high standards of moral conduct and ethical conduct in real estate business practices. We stand for competency, fairness and high integrity. I’m proud to be a member.”
Elyse Dittrich Nancarrow Realty Spring 2017 C.A.R. BOD Meetings in Sacramento Young Professionals Network (YPN) By C.A.R. Director Elyse Dittrich Do you like to have fun and be informed? Then YPN is for you! Key Take Aways: • YPN stands for Young Professional Network • Get involved at our local NSDCAR YPN • Learn how to give and get referrals through YPN • August is the Month of Giving • #KeepCalmAndYPN YPN, or Young Professionals Network, is part of a national group of young, career-minded real estate professionals who want to stay abreast of the latest tools, resources, and networking opportunities. We work together to educate each other on the real estate industry and to move into leadership within CAR. YPN may have the word “young” in it, but we don’t discriminate! We encourage all ages to join in at our events at a local, state and national level. Let’s bridge the gap between ages and share information to becoming more successful. In Sacramento we hosted a workshop called “How to YPN” which was received quite well! We have been able to get new networks up and running at different local associations, as well as getting other networks back on their feet. In Sacramento we also hosted a Mega Mixer where 7 local association joined forces with CAR YPN to create one big night of networking! It’s events like these where you can connect with other people in the industry from all over the state. These are great for creating relationships for referrals! Interested in getting involved with NSDCAR’s YPN? Check out our FB page here: www.facebook.com/NSDCARYPN Interested in sharing information and referrals throughout the state of CA? Join our FB page: www.facebook.com/groups/carypn Interested in sharing information and referrals throughout the Nation? Join our FB page: https://www.facebook.com/groups/narypn/ Don’t forget to check in for August and see how you can join us in our annual Month of Giving! We encourage local YPNs to give back to their communities! Contact NSDCAR for more information on becoming an active member of our YPN group.
Would You Like To Know How Much A Bond Issue On The Ballot Is Going To Raise The Average Property Tax Before You Vote On It?
Sandi Adelson Homeland Properties Spring 2017 C.A.R. BOD Meetings in Sacramento Taxation and Government Finance By C.A.R. Director Sandi Adelson Would you like to know how much a bond issue on the ballot is going to raise the average property tax before you vote on it? C.A.R. is supporting a bill that would do just that. AB 1194 would require the ballot itself contain the estimate so that when you and your clients are voting on the bond the estimated average cost of that initiative is right in front of you so you can make a more informed decision. Would you like to show your clients how to reduce their property taxes even if values are increasing? Did you know that currently some property owners may qualify for property tax exemptions... disabled vets and their surviving spouses, seniors, etc. and are taking them? The problem is that it’s not something that the tax assessors and collectors highlight. As a matter of fact, it can be next to impossible to find out if your parcel qualifies for one (1) or more of these exemptions. C.A.R. has voted to “SPONSOR” a bill that would require tax collectors provide information on their websites regarding available exemptions AND that the tax bill contain the address of the website. (By the way, you can currently try to get this information, but it takes time and patience and there are no guarantees that you will ever contact the right department or person.) What if your property tax base could be transferred to your new property regardless of your age, the location of the new home, the price of the new home vs the selling price of your existing home, or whether you’ve done it before? C.A.R. has had a work group looking at the potential changes that could be made to expand Props 60 and 90. Currently you have to be over 55, you can only transfer once, the new home must be equal to or less than the selling price of your existing home (with adjustments for time), and the new home must be in San Diego County or one (1) of the other eleven (11) counties that have opted into Prop 90’s intercounty transfer ability. Florida has a tax model that allows “free” property tax base transfer with some qualifications, such as for primary residences only. It was approved that C.A.R. forward to the Secretary of State three (3) potential proposals for preparation of title and summary... the first step to a ballot initiative on a constitutional amendment.
The local real estate market remains strong in several areas according to reports from various industry sources. Home prices, including distressed sales, increased by 7.1 percent year-over-year in April, according to a CoreLogic report. The California-based property data and analytics company said the nation is seeing similar increases. Nationwide, prices increased by 6.9 percent from April 2016 to April 2017, Core Logic said. The CoreLogic Home Price Index Forecast indicates that home prices will increase by 5.1 percent on a year-over-year basis by April 2018. Also, according to CoreLogic, all-cash transactions are in decline in San Diego. All-cash sales share was 20.4 percent in January 2017, a 0.09 percentage point decrease from January 2016. The nation’s 36.5 percent all-cash figure for January was unchanged from the comparable month in 2016. Statewide, California had an average of 27 percent of its home sales were all-cash transactions in January. Fortunately, loan delinquency rates continue to decline in San Diego County. Core Logic reports that 2.6 percent of residential mortgages were at least 30 days delinquent in February, compared with 3 percent a year ago. The percentage of residential mortgages delinquent 90 days or more amounted to an even 1 percent, a drop from 1.3 percent in February 2016. In California, 3.1 percent of residential mortgages were at least 30 days delinquent and 1.1 percent were 90 days or more past due. In good news for potential buyers, mortgage rates have inched back down to nearly 4 percent. In mid-April, the average rate dropped to 4.04 percent, said Mortgage News Daily. The average for a 30-year fixed-rate mortgage was 3.59 percent on Nov. 7. It started to climb after the general election, hitting 4.32 percent on Dec. 29. In costly markets, like Southern California, small rate changes can mean saving thousands of dollars over the life of a loan, even though rates are at historic lows. On the other hand, low rates do not change the home inventory situation, which is dismal. Low mortgage rates are certainly a boon for buyers, but it’s not much of a benefit if there’s very little available to buy. Meanwhile, home affordability changed little in San Diego County during the first quarter and remains elusive in many other parts of the state, according to the California Association of REALTORS® (C.A.R.). C.A.R. found that 28 percent of San Diego-area households could afford a single-family home in the first quarter. It marked a slight improvement from the 27 percent figure in the fourth quarter of 2016, but a decrease from the 29 percent who could afford homes in the first quarter of 2016. C.A.R. said that it takes a minimum household income of $115,900 to afford the median home price of $564,000. That translates to a $2,900 monthly mortgage payment, including taxes and insurance, and assuming a 20 percent down payment. Statewide, the percentage of homebuyers who could afford to purchase a median-priced, existing single-family home in California in first quarter inched up to 32 percent, from 31 percent in the fourth quarter of 2016. A year ago, however, 34 percent could afford a median-priced, single-family home, according to the C.A.R. The statewide affordability index has been below 40 percent for 16 consecutive quarters, and it is near the mid-2008 low level of 29 percent. Also on the down side, according to C.A.R., pending home resales were down in San Diego County and across the state in April. Based on signed contracts, pending home sales statewide declined 7.4 percent year-over-year in April, making the fourth straight monthly drop. C.A.R.’s Pending Home Sales Index (PHSI) registered 113.7 April compared to 122.8 a year ago. San Diego's pending sales index declined 11.1 percent year-over-year in April, ending up with an indexed level of 139.8. It marked the largest pending sales decline in Southern California. At the regional level, Southern California was actually the most resilient region in the state, where pending sales held on for a modest decline of 2.8 percent, aided by a 2 percent increase in Riverside County and a 1.1 percent uptick in Orange County. Also, to a new Zillow report, moving from a one-bedroom unit to a two-bedroom unit in San Diego will add $798 to the monthly mortgage. Zillow’s "Cost of Moving Up Analysis" report also shows that moving from a two-bedroom unit to a three-bedroom unit will add $928 to the monthly mortgage, and moving from a three-bedroom to a four-bedroom unit will add $998 to the monthly mortgage. In San Diego County, upgrading from a two-bedroom, one-bath home to a two-bedroom, two-bath home boosts the average monthly mortgage by $771. Payments increase to a more modest $791 a month when moving from a three-bedroom, one-bath unit to a three-bedroom, two-bath unit. However, the figure jumps to $962 when going to a three-bedroom, three-bath unit; increases to $988 when moving to a four-bedroom, three-bath house; and climbs to $1,368 a month extra when the upgrading to four bedrooms and four bathrooms. Finally, a recent study shows that California is crucial to U.S. growth. During the last five years, California has outperformed the nation in just about every important economic metric. Yes, the state is big, accounting for about 12 percent of the nation's population. But its share of economic growth has been even bigger. The state accounted for 17 percent of job growth in the United States from 2012 to 2016, and a quarter of the growth in gross domestic product. The Center for Continuing Study of the California Economy attributes California’s economic rebound to the three Ts, including technology, trade and tourism.