January 2021

A huge rise in Alameda sales in December has taken away from January sales numbers in terms of inventory. January 2021 average sale prices show little to no appreciation compared to January 2020 but expect this number to rise with the spring market, continued low interest rates, low inventory and high buyer demand. Elsewhere in Alameda County, appreciation averaged a whopping 20% increase. This shows just how different local markets are not just from city to city but neighborhood to neighborhood. For a special market report on YOUR neighborhood contact us today for a free no obligation report. Our most recent hot sale was 15368 Ruggles St. in San Leandro which listed for $750,000 and sold for $920,000. Which this was $90,000 over the highest comparable sale in the neighborhood and it was not staged or updated!

The U.S. economy contracted 3.5 percent overall in 2020, the largest decline in 74 years, despite gross domestic product expanding at an annualized rate of 4 percent in the fourth quarter. Unemployment claims nationwide remain elevated, although claims are falling in California. Last week, first-time jobless claims by California workers fell to their lowest level in 10 months.

The California Employment Development Department (EDD) has now resolved 99 percent of the 1.6 million backlogged claims identified in mid-September. An audit of the EDD revealed that outdated technology caused claims to be delayed, and a failure to heed warnings about fraud resulted in billions being paid out in fraudulent claims.

 

Republican lawmakers have proposed a $618 billion aid package as a counter to President Biden’s proposed $1.9 trillion packages. The new package would scale back direct payment amounts and start phasing out payments for those who make over $40,000 per year (in contrast with $75,000 per year in the President’s proposal).

Applications for the California Small Business Relief Grant Program are now being accepted, but the window closes on February 8th. This will be the last chance to apply for a grant from the program, so don’t delay if you’re interested in potentially receiving a grant of $5,000 to $25,000. If you already received an email saying you have been added to the waitlist, there is no need to reapply in this application window. Your prior application will be considered. For more information on this program and other small business loans and grants currently available to REALTORS, please refer to the FAQs here.

Governor Newsom signed an emergency bill (SB 91) on Friday extending the eviction moratorium for Californians suffering from financial hardship due to COVID-19 through June. SB 91 pauses evictions for tenants who declare under penalty of perjury an inability to pay rent for a COVID-related reason. Tenants will still be responsible for paying unpaid amounts to property owners, but they cannot be evicted as a result of those unpaid amounts. The bill also establishes a State Rental Assistance Program using the $2.6 billion in federal rental assistance funds allocated to California. The program will offer rent subsidies to help pay past-due rent by low-income tenants. C.A.R. took a “neutral” position on SB 91.

 

With mortgage rates still low, the housing market remains a bright spot for California’s economy. California REALTORS continues to report strong demand and price growth, while supply remains tighter than usual.

The passage of Prop. 19 at the ballot box, allows homeowners who are 55 and older, people with severe disabilities, wildfire or natural disaster victims to transfer their current property tax base to a replacement home anywhere in California. Beginning Feb. 16, 2021, it also changes the rules on exemptions from reassessment for intergenerational transfers by limiting the exemption to the transfer of a primary residence to a child (or grandchild) only when the property continues to be used as a family home by the child (or grandchild). You may have many questions regarding the implementation of the new law, so the California Association of Realtors Legal Team has prepared extensive FAQs to address some of those questions related to intergenerational transfers. If you have family owned properties now is the time to see a real estate attorney or qualified tax advisor to discuss the tax implications.