PSAR recently hosted a PSAR Brokers Breakfast held exclusively for managing brokers and real estate office owners. About 80 brokers from throughout San Diego County attended the event.
In addition to discussing critical issues impacting large-size, medium-size and small-size companies, the brokers were asked in a survey to identify which real estate issues they were “most concerned” about. The survey stated: “On a scale of 1 to 5, with 5 representing “most concerned” and 1 representing “least concerned,” what are PSAR brokers most concerned about?
Among six choices, “Decline in Housing Affordability” was selected most often, representing 18 percent of votes cast. The top choice was identical to what PSAR members selected during a similar survey conducted at “Rally & Ride” pitch sessions in early March.
Brokers still considered the other five choices as very important, as indicated by a close margin in the percentage results.
The final tally of the PSAR Market Pulse Brokers Survey was: #1) Decline in Housing Affordability, 18 percent; #2) Lack of Inventory, 17 percent; #3) Rising Interest Rates, 17 percent; #4) Slow Down in Economic Growth, 17 percent; #5) Home Prices Overinflated, 16 percent; #6) Lending and Financing, 14 percent.
Interestingly, the results from PSAR’s Market Pulse Brokers Survey were slightly different than a statewide survey of California REALTORS® conducted by the California Association of REALTORS® (C.A.R.). The C.A.R. February Market Pulse Survey revealed that four in 10 California REALTORS® said low housing inventory was their biggest concerned, followed by 14 percent for declining housing affordability and 11 percent for overinflated home prices.
In addition to the six choices, PSAR asked brokers to list other major issues they were thinking about. Here are other issues brokers are concerned about:
-- Government interference, too many regulations
-- Unlicensed marketing companies
-- Licensing and client representation issues
-- Unlicensed agents
-- Mega brokerages with no oversight
-- Inaccurate info on websites
-- Agent professionalism and ethics concerns
-- Pocket listings
-- Oversight of teams
-- Discount brokerages
-- Realtors not entertaining other offers
-- MLS and CRMLS concerns
-- Legal issues with other REALTOR® associations
-- The importance of technology training
-- The role of transaction coordinators
-- Cyberattack and phishing worries
Meanwhile, other news affecting the real estate market includes recent reports on home prices.
According to the Standard & Poor's Case-Shiller Home Price Indices, home prices in San Diego rose 0.4 percent from December to January and 6.9 percent since January 2015. San Diego was given a ranking of 218.77 for January 2016, which was more than a doubling of home prices over the past 16 years. The climb was the second fastest in the U.S., behind only the 241.61 numerical value belonging to the Los Angeles area.
In addition, according to CoreLogic’s Home Price Index, which measures home value appreciations, San Diego home prices rose 7.6 percent in February 2016 from the same month a year ago. San Diego’s percentage was higher than the nation’s 6.8 percent increase since last February.
“Low inventories are boosting home prices, plus financing continues to be a concern for potential purchasers, especially younger adults and first-time home buyers,” said Anthony Andaya, 2016 PSAR president. “We need to be vigilant at educating millennials (18 to 34 year olds) on the benefits of homeownership as way to achieve wealth. We also need to provide young people whatever level of support we can to improve homeownership participation activity. Confidence, optimism and determination are hugely important in ensuring the future stability and growth of the housing market.”