COVERAGE INFORMATION:
California Department of Real Estate (DRE) NEWS CLIPS service coverage:
Monday through Friday (except state holidays) each week includes electronic format articles retrieved from newspapers
or news services that report real estate related news in California and some national services. Coverage is for California
newspapers that are available electronically via the Internet – and any significant related breaking news.
|
© Copyright 2023, California Department of Real Estate Links to web sites do not constitute an endorsement from The California Department of Real Estate. These links
|
Top Stories
Homebuyers’ Monthly Payments Drop to Lowest Level in Nearly a Year, Bringing Back Some House Hunters
DANA ANDERSON, Redfin News
The median U.S. mortgage payment was $2,361 during the four weeks ending December 31, down $372 (-14%) from October’s all-time high to its lowest level in nearly a year. The weekly average mortgage rate dipped to 6.61% at the end of December, down from a 23-year high of 7.79% in late October.
National News
Mortgage rates edge higher, snapping 9-week slide
The Orange County Register (Subscription)
The average long-term U.S. mortgage rate edged higher this week, ending a nine-week slide that gave prospective homebuyers some breathing room after home loan borrowing soared to the highest level in more than two decades.
The average rate on a 30-year mortgage inched up to 6.62% from 6.61% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.48%.
Office Landlords Nationwide Increasing Concessions to Lure Tenants in U.S.
MICHAEL GERRITY, World Property Journal
According to a new report from CBRE, office-building owners across the U.S. are granting more concessions, such as months of free rent and larger tenant-improvement allowances, to entice companies into their buildings amid a challenging office market and slowing economic growth.
CBRE’s analysis of 3,400 lease transactions across 12 major U.S. cities found that effective rents declined by 1.2% in top-tier buildings since 2022. The decline was greater for lower-tier buildings: 3.9%.
California News
Bay Area’s most expensive property is back on the market — with revised price tag
AIDIN VAZIRI, The San Francisco Chronicle (Subscription)
The Bay Area’s most expensive property has returned to the market after a two-year hiatus, now listed with a revised price tag of $110 million.
Nestled in Woodside, one of Silicon Valley’s most affluent neighborhoods, the storied Green Gables estate was listed for the first time ever in 2021 for $135 million but failed to secure a buyer.
Economic Forecast: San Francisco real estate market sees 2024 as a year to reset
SARAH KLEARMAN, HANNAH KANIK, The San Francisco Business Times (Subscription)
As companies downsize their office spaces and seek to draw employees back to their desks, they are looking for major upgrades to their buildings. Amenity-rich buildings with features like gyms, outdoor space, restaurants and concierge services are the first tenants flock to when looking for new spaces, prompting some landlords to invest in those upgrades. The owners of 525 Market spent $20 million to make over the building, adding a fitness studio, co-working space and a speakeasy, and One Sansome’s landlords spent $24 million to add restaurant, bar and private event space. Companies also become less price sensitive on a per-square-foot basis as they downsize.
Return-to-office mandates fuel higher rents in Silicon Valley, data shows
MARK CALVEY, The San Francisco Business Times (Subscription)
Workers being called back to the office, even on a hybrid basis, are contributing to high rents in Silicon Valley’s key employment centers.
Mountain View, for instance, had the biggest year-over-year increase for a one-bedroom rental, jumping 19%. The hometown of Google’s parent Alphabet last month garnered the Bay Area’s highest median rent, commanding $3,510 for a one-bedroom, according to the latest data from Zumper. That was followed by Palo Alto, $3,220; Cupertino, $3,130; and San Francisco, with monthly rent of $2,920 for the one-bedroom.
California housing costs at 7-year low, relatively speaking
JONATHAN LANSNER, The San Jose Mercury News (Subscription)
California housing costs ran 60% above the US norm in 2022, by this math. That’s the smallest premium since 2015’s 58%.
So you see, I’m not saying the cost of putting a roof over your head in California has become any bargain. I’m only highlighting a sliver of calm in California’s affordability mess.
Golden State housing expenses still rank second-priciest in the US. Only DC was higher by this measurement, at 77% above average. New Jersey was No. 3 at 36%.
Economic Forecast: Will California’s housing market get sunny again?
DEVAN J. PATEL, The Silicon Valley Business Journal (Subscription)
Affordability and purchase power remain near all-time lows, prices continue to rise and sales inventory dips.
“We’re at a point in time now where less than 20% of households can afford to purchase a median-priced home,” Jordan Levine, an economist with the California Association of Realtors, said as part of the organization’s 2024 forecast. “Demand has taken a big step back and a lot of that is the result of high interest rates.”
See what’s behind California’s push to adopt more housing laws
JEFF COLLINS, The Orange County Register (Subscription)
California lawmakers got more than 60 housing measures signed into law in the past year, “an extraordinary number of bills,” said Cesar Covarrubias, executive director of the Kennedy Commission, an Orange County affordable housing advocacy group.
“That will impact housing in many ways from affordable housing, land use, CEQA (environmental reforms) to tenant protections,” Covarrubias said.
New laws also streamline development approvals, allow religious institutions and private colleges to build affordable housing, cap tenant security deposits on rentals and extend a law allowing increased construction in cities and counties that fail to meet homebuilding goals.
San Diego in ‘24: Experts predict higher home prices and more
PHILLIP MOLNAR, The San Diego Union-Tribune (Subscription)
This year could see yet another jump in home prices amid rising unemployment and gas prices, a group of local experts is predicting.
We asked our Econometer panel of San Diego business leaders and economists to predict what the economy will look like in the coming year. Detailed forecasts are listed at the bottom of the article.
At the start of 2023, the panel also made predictions — and came close to calling how the year would end.
Industry News
It’s official: NAR reports first full-year membership dip since 2012
DANIEL HOUSTON, Inman (Subscription)
What was expected for months has finally been confirmed: Real estate’s most powerful trade group lost members in 2023 for the first time in well over a decade.
National Association of Realtors membership declined by more than 26,000 in 2023, which amounts to a 1.7 percent decline from last year’s ranks. By the end of December, the organization’s total membership had settled at 1.55 million.
Zillow sues multiple listing services
BONNIE SINNOCK, National Mortgage News
A widely used industry provider of lead generation, technology and mortgage lending is suing two multiple listing services and a related entity in an Arizona federal district court for allegedly cutting off access to an online real estate scheduling platform.
Zillow Group and ShowingTime.com’s legal complaint against Arizona Regional Multiple Listing Service Inc., Multiple Listing Service Inc. and MLS Aligned LLC alleges the defendants have violated the Sherman Antitrust Act and engaged in a “conspiracy to monopolize.”
Adaptive Reuse
No Stories Today
Real Estate Technology
No Stories Today
Property News
The House Was Charming, but Came With a Catch: A Murder Took Place There
ERIKA MAILMAN, Wall Street Journal (Subscription)
Homes where a murder or other violent crime took place pose a conundrum for both buyers and sellers. Many buyers balk at purchasing these homes, feeling that living in them might be unsettling. For their part, victims’ families may not want to live in the house after an agonizing loss, but they need to access the funds it represents. If the home is unsalable, their losses increase and prevent them from moving forward to find a semblance of peace.
In Case You Missed It
New Laws Going Into Effect On January 1st
The Office of Governor Gavin Newsom
In partnership with the Legislature, Governor Gavin Newsom this year signed landmark legislation to support the reproductive rights of Californians, increase affordable housing, hold Big Oil accountable, and protect the safety, health, and well-being of all Californians.
“California is more than just a state of dreamers, we’re a state of doers. Thanks to the Legislature’s strong partnership in 2023, the state is leading by example to create opportunity, and advance and protect the rights of all Californians.”
Resources, Webinars, and Other Items of Interest
CA Real Estate Bulletin
California Department of Real Estate (DRE)
As an educational service to real estate licensees and other interested parties, DRE quarterly publishes the Real Estate Bulletin on the DRE website. New issues are released in mid-March, mid-June, mid-September, and mid-December.
https://www.dre.ca.gov/Publications/RealEstateBulletin.html
2024 Real Estate Law Book
DRE
The 2024 Real Estate Law is comprised of statutes and regulations with which real estate practitioners should be familiar. It is divided into four parts by subject matter as follows:
