Realtor Magazine September October 2020 by Bakersfield Association of REALTORS®

M A G A Z I N E SEPTEMBER / OCTOBER 2020

With the help of volunteer donations into the REALTOR® Action Fund ®

INSIDE: Gary Crabtree indicates the housing market is making a comeback. See Page 14 R E A L T O R S

P O S I T I V E L Y

I M P A C T

O U R

1 C O M M U N I T Y BAKERSFIELD REALTOR® MAGAZINE

BAKERSFIELD REALTORÂ® MAGAZINE

update

2020 OFFICERS President Ronda Newport Watson Realty

President-Elect Scott Knoeb Frontier Real Estate Services, Inc. Vice President Anna Albiar Coldwell Banker Preferred, RLT Secretary/Treasurer Wayland Louie RE/MAX Golden Empire Immediate Past President Athena Collup Miramar International, Mill Rock Chief Executive Officer Kim Huckaby

2020 Directors Nik Boone Ascend Real Estate

Michele Cooper Karpe Real Estate Center Martha Johnson Watson Realty Bill Mell Bill Mell & Associates Kym Plivelich Marcom Real Estate Glenn Porter RE/MAX Golden Empire Brian Tuttle Coldwell Banker Preferred, RLT Michelle Valverde Wyrick & Associates Real Estate

ON THE COVER

Because REALTORS® DONATED TO THE REALTOR® ACTION FUND, we were able to be re-classified as essential workers during a pandemic and staty-at-home executive orders for the state of California.

CONTENTS

Bakersfield REALTOR® Magazine

C.A.R. 2020 PRESIDENT Although we are living in challenging times, Jeanne Radsick feels lucky to be in Bakersfield.

BAKERSFIELD CITY MANAGER Christian Clegg sees opportunities of Bakersfield making the transition from a mid-sized suburban town, to a large urban city.

REALTORS® SHINE DURING COVID-19 Glenn Porter reveals how your donations into the RAF helped reclassify us as “essential” during stay-at-home orders.

GARY CRABTREE REVEALS THE FUTURE OF THE HOUSING MARKET All the signs show that the housing market is making a comeback, but what’s driving the market?

AFFORDABLE HOUSING AND NEW CONSTRUCTION Bakersfield touted as California’s best-kept secret.

IT’S IN THE NUMBERS Association has tracked the numbers since the Governor’s COVID-19 Executive Order.

NEW REALTORS® WADE THROUGH COVID-19 Q&A of new Realtors who are facing additional challenges in their newly acquired profession during a pandemic.

STRENGTHENING YOUR TEAM Become a more influential leader when you give your power away.

77% OF POTENTIAL HOME SELLERS ARE PREPARING TO SELL After a pause, home sellers are gearing up to list their properties with the reopening of the economy.

WE WILL RECOVER THIS YEAR Record-low interest rates fueling home sales along with families rearranging where they live while technology comes into play.

Executive Editor - Kim Huckaby CEO Managing Editor - Carol Duran Contributing Articles Editor - Tiffany Waldowski Statistics - Jamey Lyster Graphic Designer - Carol Duran Bakersfield Association of REALTORS® 2300 Bahamas Drive, Bakersfield, CA 93309 P. 661-635-2300 F. 661-635-2317 www.bakersfieldrealtor.com facebook.com/bakersfieldrealtors twitter.com/bakorealtors BAKERSFIELD REALTOR

MAGAZINE

LETTER FROM THE PRESIDENT

Make Lemonade out of Lemons

keep hearing, “I bet this isn’t the

needed to focus on how to be productive

kind of year you were expecting as

during this crazy time, so we took the

President,” and it’s true, it’s not the

opportunity to form Presidential Advisory

kind of year any of us expected. We

all had high hopes for 2020, and it started with a BANG. We had a very successful Leadership Summit with the 2020 team. We welcomed in our new CEO, Kim Huckaby, I conquered my fears of being a presenter at the Economic Summit for

Courageous leadership creates a sense of stability amidst the chaos”

IREM (which was AMAZING!), and we

Groups (PAG) to review everything from “status changes” in the MLS to reviewing the “criteria” for running for Association Director. The phrase “this is the way it has always been done” isn’t said anymore. We have taken this time to make the type of courageous decision-making and smart risk-taking that has been needed for a while

had a beautiful and memorable Inaugural

and I am PROUD of that. Everyone shares

at Luigi’s celebrating the newly sworn in

running, navigating unprecedented

2020 Directors. We quickly got into the

uncertainties in our industry to keep the

weeds by evaluating and re-aligning our

members informed of all the changes

to live up to it...“Courageous leadership

Strategic Plan for the next three years with

and answer all the media requests regarding

creates a sense of stability amidst the

Bob Harris. And then just like that,

the housing market. This exposure has

chaos.” That has been my goal for the

the curtain came down, and life as we knew

led to tremendous personal and

members, creating a sense of stability.

it stopped.

professional growth for me. I think a

Thank you to NAR, C.A.R., our C.A.R.

“normal” year would not have had the

President Jeanne Radsick, our CEO Kim

same level of results.

Huckaby, our Leadership Team, and of

What is the saying? “Make lemonade out of lemons? Well, that is exactly what we have done. Although this year has

I refer to this being the year of change.

been very tough, it has been amazingly

We have taken this opportunity to review

challenging and inspirational on the flip

just about every aspect, from committees to

side. Right off the bat, we hit the ground

how we do business at the Association. We

BAKERSFIELD REALTOR® MAGAZINE

this forward-thinking in leadership. I recently read this phrase and have tried

course, our Members.

LETTER FROM THE CEO

Times of crisis have a way of bringing us together Congratulations to Glenn Porter and his team at ReMax Golden Empire for reaching 100% participation in the REALTOR® Action Fund. What an accomplishment!

want to start by saying that I truly miss seeing each of you in person, and I hope you, your families, and businesses are staying well. The subsequent months since the COVID-19 lockdown began have been a bit of a blur filled with ups and downs and profound changes that have swelled into all facets of our daily life. The one thing I know for certain is that we have found ourselves in a world transformed. Each day I see the unique and difficult challenges our members have faced and continue to face during this challenging time, with varying degrees of impact across the spectrum. To say the least, our members have been forced to deal with abrupt, extraordinary, and at times impossible restrictions. But despite these stringent constraints, our members have shown remarkable resilience and have found ways not only to transform and comply, but to excel in their businesses in the COVID-19 era from the onset. Though the most severe restrictions have now eased, and we have been fortunate to fend off further local restrictions, as seen in most other California jurisdictions, there is no doubt that the pandemic has had a deep impact on our members and real estate as a whole. And yet, there still is hope. I continue to witness

our members move mountains to serve their clients, and consistently display the will to persevere, innovate, and rise to the occasion, just as they always do. Times of crisis have a way of bringing us together. We have seen a tremendous increase in member participation in these last few months. It has become clear to me that our Association is more important than ever to our members. The Association and its leadership have been and remain deeply committed to getting our members through this crisis by being a source of timely information, truth, assistance, and support. We are here to provide resources for our members, fight for our members, and to help our members solve issues, no matter how big or how small. We have made it a priority to adjust our advocacy issues and priorities with a narrow focus how COVID-19 is impacting our members, specifically, and concentrating on where we can be most effective right now to benefit them - such as halting further restrictions, making our members eligible for the Kern Recovers Small Business Program relief funding, and fighting against additional eviction moratoriums. The financial and economic security of our members is critical. We will continue to invest in technology

tools and educational opportunities that provide value and help increase our members’ production and success in this new virtual world. Though our Association remains “unessential” at this time and our doors are still technically closed, I can assure you that we “are here to serve you” and will continue to meet our member’s needs and conduct business without interruption. For now, the Association must continue to follow all mandated guidelines and place the health and well-being of our members, volunteers, community, and staff first and foremost. As a result, sadly, we have had to start making tough decisions, including canceling events, fundraisers, and traditional celebrations. But just as you continue to rise to the occasion, the Association is doing the same. We are continuously seeking and have found new and creative means to engage and connect in ways we could never have imagined. Our ability and willingness to adapt have been proven, and we will continue to innovate to serve our members. Together we will move forward, continue to find solutions, and create new opportunities with the characteristics and generosity that exemplify the meaning of being a REALTOR®. BAKERSFIELD REALTOR® MAGAZINE

2020 C.A.R. President and Local REALTOR® feels Lucky to be in Bakersfield

Affordable Housing & New Construction contribution by

JEANNE RADSICK 2020 C.A.R. PRESIDENT CENTURY 21-JORDAN LINK & CO.

Do you feel lucky? Well, I do! There is no question that we are in very challenging times, but how are you handling it? As your 2020 President for the California Association of REALTORS®, I cannot believe how blessed I have been with our members’ support and positive comments. Sure, I miss seeing all of you and I miss the hugging. As a group, you won’t find a bigger group of huggers, but not being able to do so is a small price to pay, considering that we have been deemed essential workers and can continue to do our jobs. I hope that during some of your recent downtime, you have invested in yourself by taking classes to further your knowledge. Our business is changing right before our eyes, and a lot of what we are experiencing will never go back to the way it was. We are finding efficiencies in practice, but we are also finding that there are those among us who do not want to play by the rules. To be clear, the most frequent question that I get is “when can we do open houses?” But the answer to this question is currently explained through the reality that those in the

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Jeanne Radsick position of authority to make those decisions cannot trust us to play by the rules. With all the video cams out there, it is easy to see who wears masks, who touches and then doesn’t clean, and who sends the required PEAD forms and who doesn’t. When our folks in Sacramento are able to go out on weekends and see open houses going on, why would they open the door to everyone doing that? We are all in the same boat, we do not want to get sick. Yet, I will bet that we all know

someone who has died of complications from the coronavirus. We all need to make sure that we are doing everything properly and playing by the rules to defeat this thing. Back to being lucky, let me tell you that with all the travel I have done over the last three years, I have seen many people up and down the state. What a pleasure to see members in their own backyard! But since late March, everything has been done by Zoom. The positive to this is that I have had the opportunity to reach almost double the number of people. The diversity is amazing because where we live affects everything that we do. I feel very lucky to live in Bakersfield because we not only have affordable housing, but we have new construction going on, and in most areas of the state, that is not happening. Without new construction, there is a gap in move-up buyers, which limits the availability of first-time buyers. And before you hear the inevitable “but it’s hot!” think about the trips to Las Vegas or Palm Springs that everyone wants to go on. Just re-think the priorities of what we have to offer rather than what we don’t have. Yes, I feel lucky. I hope that you do too!

R EA LT O R S ® A R E “A MB ASSADOR S” TO THE ASSOCIATION contribution by

JENNIFER PITCHER GOVERNMENT AFFAIRS CONSULTANT

STATE LEGISLATION UPDATE As the State legislature grapples with partisan politics and finding solutions to help the millions in need in California, REALTOR® advocates continue to fight for private property rights and our members’ ability to do business. Here are some of the bills the California Association of REALTORS® supports and opposes: AB 1484 (Grayson) Fee Mitigation Act: Housing Developments—This bill would, among other provisions, require the establishment of a stronger nexus between the impact and development fees being charged to a developer, and the actual impact of the specific development. This bill also prohibits local agencies from charging new developments to subsidize improvements to existing infrastructure deficiencies and requires the formal adoption of nexus studies. Lastly the bill closes legal loopholes that allow local agencies to avoid nexus requirements or the establishment of a reasonable relationship for fees and taxes. C.A.R. supports this bill. AB 1551 (Arambula) Enhancing PACE Assessment Disclosures—In recent years, the Legislature has enhanced consumer protections for PACE financing programs. However, there is still a need for more consumer protection for a product which creates a “super lien” on a person’s home. AB 1551 will mandate a paper copy of the PACE disclosure to be given to potential customers. Also, the bill seeks to prohibit prepayment penalties for those who wish to pay off their assessment (commonly

done at the time of the transaction) and prohibits PACE assessments when a reverse mortgage is in place. C.A.R. supports this bill. AB 69 (Ting) Planning and Zoning: Housing: Development Application Modifications—This measure seeks to provide financing for homeowners to construct accessory dwelling units (ADUs) by establishing a new program in the State Treasurers Office which authorizes the California Housing Finance Agency (CalHFA) to issue revenue bonds to fund the program. C.A.R. supports this measure as it seeks to increase the states housing stock by providing homeowners with a financing option to fund the construction of an ADU. SB 974 (Hurtado) California Environmental Quality Act: Small Disadvantaged Community Water Systems Exemption—This measure will help impacted communities gain access to clean and safe drinking water. This bill offers a modest but important exemption to very limited community water supply projects that will help certain residents obtain clean and reliable

water. C.A.R. supports this measure as it will provide an exemption in CEQA to help expedite small community water projects. SB 1299 (Portantino) Commercial Property Conversions into Housing— Upon appropriation by the Legislature, SB 1299 requires the Department of Housing and Community Development (DHCD) to provide grants to local governments as a way to incentivize cities and counties to rezone empty big box retail stores and vacant commercial shopping centers to instead allow the development of workforce housing (up to 120% or the area median income). C.A.R. supports this measure as it seeks to help families afford to live within the communities in which they work. SB 915 (Leyva) Mobilehome Parks: Emergency Relief: Coronavirus—This measure would prohibit mobilehome parks from terminating the tenancy of a homeowner or resident who is impacted by the coronavirus (COVID-19) pandemic and it extends an additional 120 days after the state of emergency or local emergency is terminated, unless otherwise specified. This bill would also prohibit mobilehome parks from increasing rent, terminating tenancy, or refusing to renew tenancy. C.A.R. opposes this bill. SB 999(Umberg) Mobilhome Park Residencies: Rent Control Exemption— This measure would (until January 1, 2025) establish rent control in mobilehome parks on rental agreements entered into on or after January 1, 2020. C.A.R. opposes this measure. SB 999 failed to pass out of the Assembly Housing and Community Development Committee, however, the provisions of this

Continued on page 26 BAKERSFIELD REALTOR® MAGAZINE

Bakersfield has gone from a mid-sized suburban town to a large urban city

Transition continues to bring Hometown Feel contribution by

CHRISTIAN CLEGG BAKERSFIELD CITY MANAGER

When I started my new position in Bakersfield on March 2, I had no idea what was about to hit me. While COVID-19 has impacted us all, I remain very excited about what lies ahead. For me, Bakersfield really is the Sound of Something Better. I appreciate how warm and welcoming this community has been to me and my family, and we are so thankful to real estate professionals that helped us find our new home here. My wife of 18 years and our three children wanted to find a family-oriented community; and we feel very blessed to have also found a hardworking, friendly, community of faith. We look forward to raising our family here. I also look forward to the professional opportunity of leading a dedicated employee group, and the opportunity we have to help define the next chapter in the Cityâ&#x20AC;&#x2122;s history. I have taken on professional challenges the past 15 years that would prepare me for this job. I bring a variety of experiences that offer a broad perspective from which to think about how a city can and should achieve success. This perspective tells me that Bakersfield is full of opportunity. That is exciting! Bakersfield is a community in transition. It has gone from a mid-sized suburban town, to a large urban city. With that growth, however, we are experiencing new urban challenges, such as homelessness. We are also facing the challenge of keeping up to date

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Christian Clegg with the services and amenities a 21st century community has come to expect. Something I already love about Bakersfield is the friendly, hometown feeling. I would look to maintain our great community feel, while addressing our growth and new complexities. We can be strategic about how we grow and improve as we leverage new city resources to address our priority needs. Many ask me about my vision for the community; my response continues to be that I want to hear what vision the community has for itself. I want to listen and learn from you. There are two things I can reflect on though: 1) my vision for the City organization and 2) priorities already established by the City Council. The employees of this City have always

been committed to the community and have worked very hard. However, I see opportunities to modernize our workforce and provide them with the tools and resources to work even smarter and more efficiently. Moving forward, I will promote a workforce that: engages the community and looks for partnerships; takes a solutionsoriented, customer service approach; efficiently stewards public resources; and brings a strategic approach with objective data analysis. Ultimately, it is about creating a culture of professionalism and best practices that provide excellent services to our community. In reviewing the priorities established by the City Council, I find that their vision is responsive to our community needs and aligned with my perspective on where the City needs to focus our efforts. In the coming year we will complete numerous initiatives for each of the City Council goals: Public Safety, Homelessness, Strong Finances, Quality of Life, Economic Development, Infrastructure, Customer Service and Urban Renewal. The City of Bakersfield is uniquely situated with new resources to make real movement on our priorities. It is a time for opportunity, to make strategic investments to help our City come out of this pandemic even stronger than before. We will get through this. In Bakersfield and Kern County, you can still live the American Dream. Bakersfield is a community of opportunity and truly the Sound of Something Better.

REALTORS Shine during COVID-19 Monies donated by REALTORS helped to get reclassified as “ESSENTIAL” and return to work ®

contribution by

GLENN PORTER RE/MAX GOLDEN EMPIRE

I still remember every little detail of November 22, 1963; I was only eleven years old at that time. President John F. Kennedy was assassinated that day and this memory remains on my mind some 57 years later. Tragic events often implant seemingly insignificant details into the human mind; September 11, 2001, a Tuesday morning I was watching TV with my daughter, when the program was interrupted with video of airplanes crashing into the twin towers. We co-parented back then, and when my wife came home, our 18-month-old daughter ran to her saying, “Momma, moke (smoke), people die”. Her words still make me choke up 19 years later. You may not have these specific memories, but I am sure you will remember the Coronavirus for the rest of your life. As a former Marine, I have spent much of my life studying military history, and I assure you that no enemy, foreign or domestic, has ever crashed onto the shores of America like COVID-19. Think about this… we first heard about the “Virus” on December 31st, which was followed by reports of “many” deaths in China on January 11th. Nine days later, on January 20th, it became personal as the first case was diagnosed in America. From the East Coast, the Coronavirus rapidly moved across the “fruited plains” and

Glenn Porter on March 19th, under the Governors orders, California Real Estate agents were classified as a “non-essential” business employees. We were ordered to Shelter-in-Place (translated: sit at home wondering what to do). Many of us experiencing a rough time trying to explain to our kids why they couldn’t go to school, spend time with friends, or even attend their own graduations. Social life as we knew it was gone, as were most services, and for reasons yet unknown, toilet paper was all the rage. This was followed with a need to be “social” by being “distant”, which may very well be the world’s most provocative oxymoron. Now, think back to March 19th, can you still remember how you felt when you were classified as nonessential? Scary times, but fortunately we

“all” had an incredible advocate: organized real estate. Our local Association, California Association of REALTORS®, and the National Association of REALTORS® fought for us, fiercely. The REALTOR® ACTION FUND and RPAC utilized the voluntary monies donated by REALTORS® to advocate on your behalf, and in the midst of despair, we were reclassified as essential and were able to return to work. Many REALTORS® were impacted financially, but organized real estate came to the rescue by utilizing the REALTOR® ACTION FUND through contributions made by REALTORS® to give you the opportunity to receive PUA funds through the EDD, even though independent contractors do not pay into that system. Because of local advocacy, REALTORS® were also added to the list of eligible businesses to receive funding through the Kern Recovers Small Business Relief Program. In fact, REALTORS® were in the top five to be awarded funding. I hope every REALTOR® reading this takes time to immediately make a donation of no less than $20 to the REALTOR® ACTION FUND https://www.car.org/en/ advocacy/PACSnRAF/raf (DO IT RIGHT NOW). Be part of your own continuing success by doing this and show your appreciation for what the donations from other REALTORS® have done for you, your family, and your clients. BAKERSFIELD REALTOR® MAGAZINE

Community comes together during Pandemic Judy Miller Gathers REALTORS® to Help Seniors in Need

contribution by

JUDY MILLER

COLDWELL BANKER PREFERRED, RLT.

The community outreach by the Bakersfield Christian Real Estate Fellowship (CREF) for the past seven years has been to help with Christmas for Seniors in November and December. This is done by donating and delivering Christmas gifts from “tree ornaments,” which list a senior’s “wish” for Christmas. Donations of toiletry items are delivered to the seniors as well. Instead of having our CREF December meeting at the Association, we have gone to their “headquarters” for that year to help wrap these gifts and deliver the packages a couple of weeks before Christmas. Christmas for Seniors is sponsored by the Bakersfield Police Department with Sandy Morris at the helm. Most of the names of low-income, needy seniors come from the Department of Aging and Adult Services. When COVID hit in March, and everyone was to “stay at home,” the need to help these low-income, needy seniors became apparent; they could not leave home, and even if they did, the lines were long, and they put themselves at risk as a lot of them have health issues. That’s when we went to work to create a partnership between the Association of REALTORS®, CREF, Christmas for Seniors, Department of Aging & Stewards, Inc with CityServe to help our seniors. Robin Robinson, who is the head of CityServe, graciously provided a location on L St., and a full-time volunteer, Shannon Castro, to oversee the operation of this project. Since that time, with the help

BAKERSFIELD REALTOR® MAGAZINE

Judy Miller

REALTOR® Coldwell Banker Preferred, RLT

of not only REALTORS® and Affiliates, but the community at large as well, we have been able to deliver non-perishable food and toiletry items to hundreds of needy seniors. This last month, the location on L St. had to be vacated due to a prior commitment that CityServe had with BC to provide classes for those in need of educational courses. Our Association offered our location for this project since we are not open to the public and have space that is not being utilized. THANK YOU to Kim Huckaby, CEO, Ronda Newport, 2020 President, and the Board for allowing us to operate at our Association. With the private entrance on the north side of the building, we can keep the Association staff safe and not interfere with their work. Shannon has it so well organized, thanks to her oversight and volunteers. They

adhere to COVID guidelines and ensure that each item donated is sanitized before being distributed to the senior. This past week our YPN group organized a Taco Tuesday Drive-thru sponsored by Agape Mortgage, which allowed our members to enjoy delicious tacos while donating to the seniors or Houchin Blood Bank. On that one day, almost $900 was donated in cash and food and toiletry items – GREAT job!! This community effort has been amazing, and I can tell you first-hand that the seniors are so thankful and appreciative since I get some of the calls for help. This year Christmas for Seniors in November and December will be different since we really can not assemble as a community to wrap Christmas gifts. Seniors need food, which was not distributed at Christmas. This year, we will probably continue with what we have been doing, at least through the end of the year. How can YOU help? You can donate food, toiletry items, or monetary donations to purchase food OR even volunteer to deliver to a needy senior. Since we now have a commercial-size refrigerator, you can also donate some perishable food. Checks can be made out to Christmas for Seniors. Donation items can be dropped off at the north side of the Bakersfield Association of REALTORS®, 2300 Bahamas Drive, Monday-Thursday 9 am to 4 pm, and Fridays 9 am-noon. THANK YOU to all of you who have given these past several months as this is an on-going need. Please contact me for more information or questions.

Purchase Contract used as First Resource in Dispute Buyer has broad inspection contingency rights when exercised in good faith

contribution by

JOE NEWTON OMBUDSMAN

The purchase contract is the first resource to consult when there is a dispute over whether earnest money should be returned to the buyer. While the RPA produced by the California Association of REALTORS® (C.A.R.) doesn’t spell out in all cases who will be entitled to the funds, nevertheless, it does provide guidance in terms of the buyer’s and seller’s respective rights. The RPA (Paragraph #12) recites “Buyer’s acceptance of the condition of, and any other matter affecting the property, is a contingency of this Agreement as specified...and buyer shall have the right...to conduct inspections, investigations, tests...and other studies...” A default period exists by agreement, but that period can be made longer or shorter by agreement. If the buyer within the agreed inspection period finds something about the property that is unacceptable, what are the buyer’s options? The RPA provides for three options: (1) they can request that the sellers make repairs. Notable is that not everything objectionable is capable of being repaired and further the seller may refuse to make the repairs; (2) the buyer may remove the inspection contingency; or (3) the buyer may cancel without penalty as it is not a breach of the contract at this point.

Joe Newton Disputes over deposits may occur when there is a buyer’s cancellation. The right to cancel must be exercised in good faith and in writing. Sometimes the seller will question the “good faith” nature of the cancellation by the buyer. The inspection contingency is broad in application. Besides that outlined in the RPA (Paragraph #12), also included are the items in the BIA (Buyer’s Inspection Advisory) that include “personal needs, requirements, and preferences of the Buyer.” If a buyer properly cancels based upon an open contingency, the buyer would be entitled to retain their deposit. In this case it is not a breach of contract which such breach must be

established by the seller in order to justify the retention of the EMD. The most typical scenario in which the seller might retain the deposit is if the seller cancels for failure of the buyer to close escrow after the buyer has removed all contingencies. In such a situation, the seller should be delivering a Demand to Close Escrow (DCE), and not a NBP. Failure to agree on the disposition of an EMD is often followed by Mediation between the parties. The contract allows for exclusion of mediation if the matter falls within the jurisdiction of a small claims court. It is most common that parties to a typical EMD dispute will not want to take the matter to court. It is probably in everyone’s best interest to explore the possibility that there has been a misunderstanding or that a compromise can be reached. The property being sold is the ultimate goal and any further delay to accomplish the sale is not beneficial to the parties. C.A.R.’s Practice Pointer states not to provide assurance to one’s client that they will always receive the deposit back. You may explain that under the terms of the contract the buyer has broad inspection contingency rights, and that they may be entitled to the return of the deposit when those rights are exercised in good faith. Ultimately, if there is a dispute, it could be a judge or arbitrator that decides the issue and the outcome can be uncertain until then. BAKERSFIELD REALTOR® MAGAZINE

C H A R I TA B L E

F O U N D AT I O N

Strong communities don’t just happen.

We build them.

Your Bakersfield Association of REALTORS® Charitable Foundation provides many ways to support our

community through: n Grants recommended by members and local non-profits for property-related assistance n Community Improvement Projects involving our members n Housing Education for the consumer and community-oriented organizations around affordable housing

There are many ways to amplify our impact as a REALTOR® community.

Help us build a stronger Bakersfield. Your association’s Foundation supports causes you care about through partnerships that lead to a safe, healthy, vibrant Bakersfield. Discover more about how to amplify your impact at www.barcf.com

Your association’s Foundation supports causes you care about through partnerships that lead to a safe, healthy, vibrant Bakersfield

Discover more about how to amplify your impact at www.barcf.com

BAKERSFIELD REALTOR® MAGAZINE

REALTORS® come together to help those in need during Pandemic

YPN Taco Tuesday Drive-thru Lunch a Huge Success Our local Young Professionals Network (YPN) REALTORS® find a way to safely give back to our community during COVID-19 with a Taco Tuesday drive-thru lunch provided by Agape Mortgage. Donations were dropped off for Seniors in need, and blood donated to Houchin Blood Bank to help save lives.

YPN Taco Tuesday Drive-thru Lunch – by the Numbers: n $862

in cash donations

n Perisable

food and toiletries donated to the Senior Project (aka Christmas for Seniors) n 12+

pints of blood from 15 donors to Houchin Mobile Blood Bank. (The bus was full the entire event).

BAKERSFIELD REALTOR® MAGAZINE

The Housing Market is Coming Back contribution by

GARY CRABTREE AFFILIATED APPRAISERS

All the signs are showing that the housing market is making a comeback The Bakersfield market continues in its peak marketing season as if a pandemic does not exist. Supply again declined by 3% while demand increased by 14%, leaving an unsold inventory of THREE weeks. June’s supply comprises only 0.4% of the total single-family homes in the community. New construction continues at a strong pace, but new home builders have scaled down their price point to cater to the “entry level” or “first time homebuyer”. However, upward pressure may be placed on the homebuilders with increases in impact fees and changes in building codes, and the increased cost of materials that has

BAKERSFIELD REALTOR® MAGAZINE

been brought about by increased tariffs. All indices are trending upward with the median list price increasing 3%, the median pending price up 1%, and the closed sales price increasing 1.9%. Year over year pricing is up 6.8% and the annualized appreciation rate climbed to 6.46% and up some 2.2% from the same month last year. Marketing times remain at 13 days (or two weeks) and buyers compete for listed properties through multiple offers. The market continues its “feeding frenzy”. The highest price range in demand is $200,000 to $300,000 at nearly 40% market share. Last month, two of every three sales fell into the $200,000 to $400,000 price range while 7% of the market closed in the $500,000 to $700,000 range. In my opinion, in spite of the COVID virus, the basic driver in this market is its AFFORDABILITY. The Bakersfield median

price is 54% below the state’s median price and the latest data indicates the Bakersfield market is the third most affordable in the state at 51%, versus the state average of 33%. Interview’s with REALTORS® active in the market revealed that a large number of buyers are moving into the area from other parts of the state due to its affordability and the newly found ability to work from home. Unlike the housing bubble of 2005, Bakersfield is now being discovered for its affordability. Which would you rather purchase, a home in Bakersfield for $280,000 or a median price home in Los Angeles at $550,000, or Orange County at $839,500, or the Central Coast for $685,000, or San Francisco at $950,000? In the prime price sector, appraisers are experiencing difficulty in supporting sales prices with market driven time/market condition adjustments due to a mechanism

...buyers are moving into the area from other parts of the state due to its affordability and the newly found ability to work from home.

Bakersfield Housing Market Characteristics for the Month of July 2020

to measure market conditions installed by the GSE’s after the housing bubble. It’s called the Market Conditions Form which measures changes in a neighborhood’s price in increments of six and three months. Thus, in a rapidly increasing market the increase may be 1% per month but when measured in three-month increments, the supported increase may be less than half of the real appreciation rate. The GSE’s have set up a massive market database that reviews and analyzes every appraisal submitted to them and ties it to the appraiser’s license. If the appraisals don’t meet their standards, the appraisers license will be “tagged” and he/she will be removed from the national appraisal registry without recourse, which means you are out of business. I mention this to alert REALTORS® to perform due diligence in pricing their properties. Or, if you want to avoid appraisal issues, have the buyer/ seller “opt out” of the appraisal contingency clause in your standard purchase contract. BAKERSFIELD REALTOR® MAGAZINE

Transaction Coordinators working through COVID-19 regulations

Adopting New Forms and Working from Home Transaction coordinators assists the real estate agent in reviewing contracts for compliance, and conduct communications and actions throughout the process from clients, lenders, title, insurance companies, inspectors, and more. We asked a few TC how the pandemic has changed thier way of doing business and here are their responses.

FABIOLA “FABY” DEES F Dees Real Estate Services, Inc.– DRE Q: What has been the biggest impact you have experienced due to the COVID-19 pandemic? A: In my business, the biggest impact I have experienced is not being able to have the one-on-one interactions we are used to in this business. We do have some clients who purchase properties sight unseen, but a majority of our clients are buying their first homes or selling homes they have been in for years. Social distancing requirements and not have someone present in many situations has been challenging. Personally, not being able to see my family and friends, and not being there to spend big milestones with them has impacted me greatly. We have missed out on a lot of big events due to the possible risks of COVID-19, and this pandemic has been a good reminder to make the time to be present for family and friends when you can. Q: Are you currently working in the office or remotely from home?

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A: My business is a remote business, so I continue to work remotely. Q: What new changes have you implemented to your TC routines that have positively helped your TC process? A: I’ve been making more of an effort to time block and set up programs like TCWorkflow to help with streamlining more of my business. Q: What new implemented procedures will you continue to use after the COVID-19 pandemic has passed? A: I plan to continue time blocking and utilizing more TC based software in my business. Q: During these last few months, what have been the biggest hardships that your clients/agents have faced? A: Uncertainty has been the biggest issue I have been seeing with both clients and agents. There is still that feeling of the unknown and wondering what the market will be like next year. Q: Business or personal, what has been the biggest obstacle you have endured throughout this pandemic? A: Business has been going well, but the first few weeks of this pandemic were rocky as we were all adjusting to the changing guidelines and requirements that we needed to implement in order to continue to do business. Personally, the biggest obstacle has been the reduced family time with my extended family. I have missed the large gatherings and random BBQs that my family would have

just to see one another because we could. Q: Any pointers you would like to share with those reading this article right now? A: Take the time to invest in technology. Find a system you like using and learn how to use all of its features so that you are comfortable using the features as needed.

KAREN TARANGO Transaction Coordinator, Agentco Q: What has been the biggest impact you have experienced due to the COVID-19 pandemic? A: Our whole lives completely changed. Everything from regular date night with my hubby to how my children are getting their education has been changed. The biggest thing for me is my children’s education. They’ve just started school Monday and I can tell they’re not getting nearly enough “classroom” time. Q: Are you currently working in the office or remotely from home? A: Before the pandemic I was working from home, for the most part. I would have my office hours twice a week, but I’m currently working remotely 100% of the time. Q: What new changes have you implemented to your TC routines that has positively helped your TC process? A: The only thing I can really think of is now I have to remind my agents not to forget to use the COVID forms in all the transactions. Q: What new implemented procedures will

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editing

Bakersfield Touted as California’s Best Kept Secret

Affordable Housing and New Construction contribution by

CARRIE WILLIAMS

CHADDICK WILLIAMS REALTY AND DEVELOPMENT

As in years past, we are once again seeing multiple offers over list price within hours of homes being listed. Buyers are willing to pay cash above the appraisal in most cases. Gary Crabtree, with Affiliated Appraisers, has recently referred to our current market as, “a feeding frenzy with demand sharply up and supply way down,” and I have to agree. I’ve been in the Bakersfield home industry for over 30 years now and continue to tout Bakersfield as California’s best kept secret to my clients. We are located within two hours of so many destinations providing quick commutes for work and play; Los Angeles, The Central Coast, The Sierra Nevada’s, and Fresno for example. For this reason, along with our existing, newly constructed, and custom new-home affordability, we are seeing many buyers relocating from the Bay Area as well as Los Angeles. In order to meet the demands of those relocating as well as our own local new home market demands, there are a few builders investing in developments across Bakersfield. These builders are working hard to turn a profit while being ever mindful to keep

Carrie Williams costs down for their clients. Those finding themselves in the new home market also have the option of building a custom home. This choice appeals to those who prefer to work directly with their builder, choose their own lot location, finely tune their plans, and go through the creative process of sifting through thousands of custom home finishes. According to a recent article in Mortgage News Daily, “Builders are finding that acquisition, development, and construction

(ADC) loans in the last half of 2019 were both easier to access and less costly.” The article goes on to say, “That may be, in part, behind a fourth quarter 2019 surge in custom home building.” We see this as relevant for the current Bakersfield market and encouraging news for those interested in the custom home niche. Recently it’s been reported by Lawrence Yun, National Association of REALTORS® chief economist that, “June’s huge 20.7% jump in home sales is giving support to a more promising housing market forecast for the rest of 2020.” He also added in his latest statistical report, “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.” With the ebbs and flows of our local housing market, one thing remains consistent and that is my passion for home. Nothing pleases me more than to carefully guide my clients and help them understand each step of the process they need to go through to obtain their real estate goals. They can be assured of successful pricing strategy, professional contract transaction and negotiation management, free consultation and home analysis, as well as an effective real estate marketing platform. BAKERSFIELD REALTOR® MAGAZINE

BY THE NUMBERS 902,000 14,752 227 2,082

Kern Recovers Program Funding Local REALTOR® Relief Received

Phone Calls

Claudia Bugarin

Professional Standards Administrator 16+ years at the Assoc. n Grievance and Professional Standards n Commercial Investment Liaison

Commercial Investment Attendees

Education and Professional Development Director 14+ Years at the Assoc. n Coordination of Educational & Professional Development Programs and Services n Logistics — Programs and events n Store Administrator

Zoom Annual Membership Attendees

Braodcast Notices

eKeys Issued

Attendees for NAR Candidate Training

Membership Newsletters

69 10 27

DRE w/Douglas McCauley Town Hall Attendees

4 115 22

BAK New Members Onboard Training Classes

Zoom Attendees

158 112 25 26

Cindy Kiser

158

Zoom Meetings

Richard Beene Show Guest Appearences

Linda Curutchague

Member Services Manager 6+ years at the Assoc. n Supervises Member Services Department n Maintains membership Documents

TUG Zoom Instagram Attendees

Media Interview

BPD Break in Zoom Attendees

3 3 5 41 26 41 11

GEMLS Board of Directors BAKERSFIELD REALTOR Meetings

BAK Board of Directors MAGAZINEMeetings

MLS New Member Onboard Training Classes

RPA-CA Zoom Atteendees

Membership Newsletters

YPN Bart Tipton Zoom Attendees

TUG Medi Atte

Tracking a few of the Association’s numbers through member service and various programs, products and actions since the COVID-19 Executive Order, March 19 Jamey Lyster

289 187 65 587 Applications Processed

Lockboxes Sold

Meeting Surveys Sent

Executive Committee Volunteer Hours

Advocacy Letters

9 37

Finance and Facilities Director 12+ years n Financial Processing n Financial Reporting n Billing

Carol Duran

Communications Design & Development Director 7+ years at the Assoc. n REALTOR® Magazine n Social Media Marketing n Email Marketing n Designs Association collateral

TUG YouTube Attendees

Meghan Cooper

Member Services Administrative Assistant 2+ years

YPN Zoom Power of Routine Attendees

Ginger Edwards

NAR Leadership Progream Attendees

7 16 23

n MLS Operations n MLS Rapattoni Instructor n Internet Support n Technology

Survey Responses

30 218 400 Committee Meetings

Information Technology (IT) MLS Services Director 23+ years at the Assoc.

n Incoming phone calls n Staff Project Assistance

NAR & C.A.R. Grant Funding Awarded

168 70 Membership Town Hall Attendees

Rental Assist. & Eviction Attendees

5 30 5

Town Hall Meetings

TUG Virtual Open House

Technology Zoom Meetings

18 25 24 50 360 6 377

G Social ia Zoom endees

TUG Facebook Attendees

Surveys Emailed to Members

Brokers Forum

TUG Zoom Eye Spy Attendees

SPF Ombudsman Committee Calls received MeetingsBAKERSFIELD REALTOR MAGAZINE 19 ®

Additional Challenges of Selling Real Estate during a Pandemic

New REALTORS® Wading through COVID-19 and myself safe. It has been quite an adjustment, but necessary. Q: What have been the greatest opportunities/challenges of conducting business during the pandemic? A: Some of the greatest challenges are ensuring all safety protocols are followed while showing property, as well as working with clients and others while maintaining social distancing. A great opportunity has been the increased usage of conducting virtual meetings, which saves time and resources.

JENNIFER NUNEZ - LOPEZ GOLDEN VALLEY REAL ESTATE GROUP

CODY BROWN Coldwell Banker Preferred, RLT Member Since March 2020

Q: Why did you get into real estate? A: I have always had a passion for the industry, which blossomed while working as a staff member at the Association from 2008-2016. I grew passionate for housing and helping others achieve the American dream. Q: How is conducting business during the pandemic? A: Following regulations and protocols set by C.A.R. and local brokerages are key to keeping property owners, clients,

BAKERSFIELD REALTOR® MAGAZINE

Member Since July 2020

Q: How did you get interested in real estate? A: I got interested in real estate when my sister was looking to purchase a home, her agent mentioned to her that they were hiring at her office if she would be interested. While she didn’t take advantage of that opportunity, I certainly did. About almost a year later, I got my real estate license, and I am now a Licensed REALTOR®. Q: How has your life changed since becoming a real estate agent? A: Becoming a real estate agent has allowed me to meet new people and

develop my social skills. Q: What has been the biggest impact you have experienced due to the COVID-19 pandemic? A: The Covid-19 pandemic affected the process of me getting my real estate license. I had to be re-scheduled for my exam four months later than my original exam date. Q: What was the best advice you ever received regarding real estate? A: The best advice I ever got regarding real estate is that nobody will be as invested in your success as you are, and you will only get exactly what you put in.

How to bring Stability and Hope to Your Business JADON NEWMAN

FOUNDER & CEO OF NOBLE CAPITAL, REAL TRENDS

Many business leaders face extreme challenges during their careers, but the coronavirus pandemic is uncharted waters for all. Most offices and stores are slowly reopening across the U.S. Companies still operating are mostly working remotely, and many are doing business differently to adjust to the new normal. As uncertainty continues to reign, how should leaders respond to new fiscal challenges, and what guidelines should they follow? Companies around the world are reevaluating how they do business to overcome the challenge that we all face at this moment. Times of crisis are when the best leaders step up, calm their workforce, believe in their capabilities, and go beyond the norm to influence changes that make a company more robust for the long haul. While the health and well-being of team members have to be leadership’s primary concern, it’s never been more critical to find new and creative ways to meet revenue goals. Challenging times is when innovation is often born, and that starts with leaders who won’t be paralyzed by problems, but rather see them as opportunities to grow. Here are five tips to help business leaders navigate this unprecedented time: • Turn to your core values. A company’s core values act as a compass in stormy seas,

Newman says, bringing some stability and helping maintain direction even while waves of uncertainty approach. Your unchanging core values provide clarity amid the turbulence. They serve as a framework to inform your decision-making process, especially during periods of uncertainty. • Be strong and honest. Leaders who are best prepared to get through a crisis have an excellent level of resiliency. They have mental discipline, accept life’s insecurities, and don’t panic when the storm hits. The next step is committing to transparency with employees. Share your thoughts, concerns, and encouragement, and reinforce the company values. • Learn, invite new ideas, and adjust. A crisis causes leaders to reevaluate processes and consider improvements tailored to a changing business climate. It’s imperative to learn from the current crisis, and, from your data, determine what your company can do differently to adjust. Embrace it as an exciting opportunity to innovate and be better. Solicit ideas from your most trusted people. Look at new services and products you could create. Everything from what you sell to how you deliver it might be on the table for a change. • Be extra resourceful. One thing we learned during the last recession is how to be resourceful. Now is the time to reorganize and refocus to achieve lean and efficient

business operations. Develop a plan to reduce costs without interrupting critical business functions. Reach out to your network and external partners to leverage any resources you may have outside of the company. Empower all team members and leaders at your company to exercise a new level of responsibility. • Increase and improve communication. Communication with team members, clients, and external partners is paramount. There’s no reason you can’t enhance communication despite the current circumstances. Increase the use of technology to stay in front of clients, including video conferencing, emails, and even text messages when appropriate. Work with your business leadership to develop the proper communication plan for your business. How a company overcomes significant challenges determines what type of company they are. As leaders step up and guide a company through, they develop deeper leadership capabilities that will last long beyond the current crisis. Likewise, their company will be stronger for it. Jadon Newman is the founder and CEO of Noble Capital (www.noblecapital.com). With a 20-year career in real estate and finance, he specializes in private lending, private equity, investment real estate, and strategic venture capital. This article reprinted with the permission of Real Trends Inc. Copyright 2020. BAKERSFIELD REALTOR® MAGAZINE

Strengthening Your Team

GINO BELFARI REAL TRENDS

When the pandemic became widespread, I released a statement about the importance of industry leadership and in it wrote this: A business is only as resilient as the leader who guides it; lead with conviction and confidence, focusing on solutions rather than what you can’t control. That idea is still applicable today as we continue navigating every challenge presented by the COVID-19 crisis. Strength in this new world is a dichotomous concept; we must be strong as leaders, but we also must instill strength in all those we lead. You become a more influential leader when you give power away. If you’re wondering how to build your team’s internal strength, here are a few ideas: Provide opportunities for self-direction and decision-making. The more you empower your team members with the ability to make decisions, the more they’ll gain confidence and competence in the choices they make. When team members can take ownership of their initiatives and implement their ideas, you create a climate where everyone is fully engaged. Your team knows that what they say and do matters critically to the success of the overall organization. Understand that being in control is a basic human instinct. Power is not about

BAKERSFIELD REALTOR® MAGAZINE

greed or financial gain; it’s about the ability to direct and decide and inspire and influence. People want responsibility and control. They want to know that their work and the decisions they make will positively impact future outcomes. Choice feeds power. A study by researchers at the Delgado Lab for Social and Affective Neuroscience at Rutgers University revealed that choice activates the rewardcentric circuits of the brain, making people feel more confident and willing to explore options outside of their comfort zones. Goals and commitments can create power. By allowing your team members to set their own goals and obligations without influence from a manager or leader, you’re empowering them to decide the trajectory of their success. You’re allowing them to take the initiative and self-direct themselves toward excellence in execution. Don’t worry about slackers. It could be argued that by giving your team autonomy, you’re also opening people up for laziness or an inability to execute because there’s no pressure influencing performance. However, slackers will self-select out of a working system with strong leadership and an empowered team. After a while, team members will get tired of doing the slacker’s work, and the slacking member of the team will be forced to step it up or step out.

Invest in strengthening the knowledge and capacity of your team. I’ve long been an advocate for coaching and training, and that has never been truer than it is today when so many excellent mentors and coaches are providing incredible online resources for learning. Think of yourself as a coach. Some of the best leadership examples come from the world of sports—Bill Walsh, Phil Jackson, Bill Belichick, Vince Lombardi, and Don Shula. All of these great coaches were actively engaged in building the physical and mental strength of their teams. Beyond building strength, another aspect of being a coach is the assessment of robustness. A forward-thinking leader is constantly evaluating team members and asking how best to guide them toward greater competency and fortitude. As Frances Hesselbein, former CEO of the Girl Scouts of the U.S.A., once said: “Ask, don’t tell.” So, what’s the message? Leadership is a mindset and a movement toward greater strength within an entire organization, creating empowered team members who feel motivated to perform at their very best. While we’re all at home figuring out how to keep business thriving, let’s remember to focus on helping our team members thrive. This article reprinted with the permission of Real Trends Inc. Copyright 2020.

The Power of Gratitude Start each day off on the right foot by giving thanks

LARRY KENDALL NINJA SELLING. REAL TRENDS

What if you woke up today with only the things you gave thanks for yesterday? This has become a reality for many of us during the pandemic. Remember when we would say, “I have to go to a sales meeting.” Or, “I have to hold an open house.” With a new perspective, we look forward to the day we can say, “I get to go to the sales meeting.” The simple activities we took for granted, like taking a friend to dinner, are now valued and missed. Writer Laura Kelly Fanucci states it beautifully. “When this is over, may we never again take for granted A handshake with a stranger Full shelves at the store Conversations with neighbors A crowded theater Friday night out The taste of communion A routine checkup The school rush each morning Coffee with a friend

The stadium roaring Each deep breath A boring Tuesday Life itself. When this ends may we find that we have become more like the people we wanted to be we were called to be we hoped to be and may we stay that way — better for each other because of the worst.” - Laura Kelly Fanucci Dr. Robert Emmons, University of California-Davis, has devoted much of his career to the study of gratitude. Here are five of his findings on the power of a morning gratitude routine. 1. Goals: Participants who kept gratitude lists were more likely to have made progress toward important personal goals (academic, interpersonal, and health-based). 2. Mindset: A daily gratitude intervention (self-guided exercises) with young adults

resulted in higher reported levels of the positive states of alertness, enthusiasm, determination, attentiveness, and energy. 3. Giving: Participants in the daily gratitude condition were more likely to report having helped someone with a personal problem or having offered emotional support to another. 4. Health: In a sample of adults with neuromuscular disease, a 21-day gratitude intervention resulted in greater amounts of high-energy, positive moods, a greater sense of feeling connected to others, more optimistic ratings of one’s life, and better sleep duration and sleep quality, relative to a control group. 5. Well-Being: Grateful people report higher levels of positive emotions, life satisfaction, vitality, optimism, and lower levels of depression and stress. Grateful people do not deny or ignore the negative aspects of life. They put them in perspective. Begin your day with the power of gratitude. As Dr. Michael Beckwith says, “You cannot bring anything new into your life until you are first grateful for what you have now.” This article reprinted with the permission of Real Trends Inc. Copyright 2020. BAKERSFIELD REALTOR® MAGAZINE

Will We Recover this Year?

Low inventory, cyclical slowdowns mean a housing market functioning below capacity STEVE MURRAY REAL TRENDS PRESIDENT

Pending sales were up through May, June, and early July. The level of closings for June was nearly as high as they were in June 2019 in many markets. The surge, which started in early May, seems set to continue through at least the end of July and maybe into August. Record-low interest rates are fueling much of this surge, along with some indications that families are also rearranging where they live. Reports from suburban realty firms and agents—as well as from leading firms in the ex-urban and rural property markets—show

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an increased level of activity. While much of this anecdotal, it’s so widespread across the country as to give it credence. Much of the May-through-July surge can be credited to packing 90-120 days of buying activity into 60 days. There will be a cyclical slowdown as autumn approaches. Reports from across markets indicate that listing inventory is down in most markets, below the level of last year when it was already low. Housing markets cannot function at full capacity when little inventory exists. Unless home builders can start adding 1 million or more

new housing units a year, most markets will be faced with scarce inventory and rising prices—just when 20 million+ American workers and businesses are trying to reopen. Economists from several sources, including NAR, Realtor.com and Zillow, believe that unit sales will not totally recover this year. A rough average of their forecasts indicates unit sales would be down 12%-15% from 2019 by the end of this year. Should they be on the mark, then sales in the fourth quarter will be softer than last year. This article reprinted with the permission of Real Trends Inc. Copyright 2020.

U.S. Home Sales and Listing Activity since the start of the Pandemic

Tight Supply has Contributed to Price Stability in Many Markets REAL TRENDS

Nationwide new listing volume was down 25.8% nationwide com-pared to the week ending March 13, when most COVID-19 measures were implemented. Although, the weekly new listing volume is up 17.4% from its lowest level, which occurred during the week ending April 17. Nationwide weekly new listing volume has been increasing each week since that time. For the week ending May 8, the weekly volume of listings going into contract for single-family detached homes was down 5.2% nationwide compared to the week ending March 13, when most COVID-19 measures were implemented. Weekly volume of listings going into a contract is up 46.2% from its lowest level, which occurred during the week ending April 10. Of note, nationwide weekly contract volume has been increasing each week since April 10, indicating buyers are finding ways to complete transactions while

practicing social distancing. During the week ending March 13, there was an early spike in properties being removed from the market. That trend reversed for the subsequent three weeks. Since the week of April 5, removals have settled back down to pre COVID-19 levels. The total nationwide available inventory of single-family detached homes was down by 4.7% compared to the week ending March 13, when most COVID-19 measures were implemented, and has remained relatively constant over the past six weeks. Tight supply has helped stabilize prices in many markets through the weeks following March 6. For example, since the week ending March 6 through current, there are 86,234 fewer properties in total supply than before the beginning of COVID-19 stay-at-home measures. Thirty-six of forty-six states have shown an increasing demand for properties under contract that exceeds the net supply.

If this trend continues, it will put increasing pressure on real estate values. Before the COVID-19 pandemic, housing prices continued to rise in most markets. Using a three-week moving average of the median price of new listings, two-thirds of the states reviewed saw a rise in median housing prices for newly listed properties as the historically strong spring buying season continues. An Uptick in Median List Price Over the week ending May 8, 32 of the 46 states have seen an uptick in the median list price of new listings, while 14 states have shown price declines. Hawaii, New York, Florida, Connecticut, and California have shown the strongest price gains. West Virginia, New Jersey, D.C., North Dakota, and Idaho have all shown the most significant declines in new listing prices. This article reprinted with the permission of Real Trends Inc. Copyright 2020.

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Continued from page 7 measure have now been amended into AB 2782 (Stone), another mobilehome bill that C.A.R. opposes. SB 1410 (Caballero) COVID-19 Emergency: Tenancies—Under SB 1410’s new program, a property owner and a tenant may enter into an agreement that allows a tenant to defer any back rent accrued during the COVID-19 state of emergency and an unspecified number of days thereafter. Beginning in 2024, the tenant would have 10 years to pay that COVID-19 back rent to the state, and the property owner would get, in turn, tax credits equal to the amount of that COVID-19 back rent. Unfortunately, SB 1410, among other things, severely limits the ability of a property owner to evict a tenant for practically any reason during the COVID-19 state of emergency, regardless of whether the property owner participates in the program. Meaning, a property owner who declines to participate in the program would be unable to evict a tenant for

Continued from page 16 you continue to use after the COVID-19 pandemic has passed? A: I can’t think of anything. I can’t wait to get back to my regular routine. Q: During these last few months, what have been the biggest hardships that your clients/agents have faced? A: I think we were a little worried about the market when the pandemic began. I was worried about low buyer confidence and it causing a crash. Currently, the struggle is low inventory. My agents are working more than ever and getting beat out on homes with 10+ offers. Q: Business or personal, what has been the biggest obstacle you have endured throughout this pandemic? A: The biggest obstacle has been trying to keep my home life as close to what it was before the pandemic as possible. Q: Any pointers you would like to share with those reading this article right now? A: Just know that this will pass and there is a light at the end of the tunnel.

TERESA ARZATE Transaction Coordinator RealtyOne Group Strong Q: What has been the biggest impact you

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nuisance or other serious violations of the lease agreement. This limitation also applies retroactively, which is impracticable. C.A.R. will oppose SB 1410 until it is amended to remove the burdensome limitations on the ability to evict for a property owner who does not participate in the program created by the bill. AB 1436 (Chiu) Tenancy: Rental Payment Default: State of Emergency: COVID-19—AB 1436 prohibits a rental property owner from evicting a tenant for COVID-19 back rent accrued before April 1, 2021. Under the bill, rental property owners are prohibited from pursuing a civil action to recover COVID back rent until April 1, 2022. C.A.R. opposes AB 1436 which effectively alters rental contracts. C.A.R. opposes the bill because it is unconstitutional and provides no financial protection for “mom and pop” property owners, who must still pay their mortgages and have a legal obligation to repair and maintain their properties. Furthermore, AB 1436 has been amended to include foreclosure moratorium

provisions that could lead to higher mortgage costs for California homebuyers and owners. Locally, the Bakersfield Association of REALTORS® supported the City of Bakersfield’s recent adoption of $5 million in CARES Act Relief funding to be used for “rental assistance/eviction avoidance.” This is federal funding that has been awarded to the City as part of their total CARES Act relief funding. We applaud the City Council for not only allocating resources to help tenants in need, but we also thank them for not adopting a more stringent eviction moratorium. Hundreds of cities throughout the state have adopted eviction moratoriums that go beyond the state’s actions. C.A.R. has been fighting eviction moratorium legislation, however, in March 2020 Governor Newsome issued an Executive Order that stops evictions statewide; then in April 2020, the Judicial Council (the Courts) issued their own eviction moratorium that goes beyond the Governor’s provisions. This was an unprecedented act by the Courts.

have experienced due to the COVID-19 pandemic? A: Agents and clients are using more technology, even those agents who were not too familiar with technology. Q: Are you currently working in the office or remotely from home? A: I’m working from home. Q: What new changes have you implemented to your TC routines that have positively helped your TC process? A: Nothing new. Q: During these last few months, what have been the biggest hardships that your clients/agents have faced? A: Technology for those who are not too familiar, either completing forms online or electronic signatures. Q: Business or personal, what has been the biggest obstacle you have endured throughout this pandemic? A: None

A: Having the office closed. Q: Are you currently working in the office or remotely from home? A: Home. Q: What new changes have you implemented to your TC routines that have positively helped your TC process? A: Just working from home full-time. Q: What new implemented procedures will you continue to use after the COVID-19 pandemic has passed? A: I will continue to work from home most of the time once the office does open back up. Q: During these last few months, what have been the biggest hardships that your clients/agents have faced? A: Signing documents through DocuSign has been difficult as we have quite a few older people and Spanish speaking people who do not use DocuSign. Q: Business or personal, what has been the biggest obstacle you have endured throughout this pandemic? A: Working from home full time, not seeing agents on a daily basis, not going out anywhere unless necessary.

RONNIE CHASSI Transaction Coordinator Miramar International Real Estate Q: What has been the biggest impact you have experienced due to the COVID-19 pandemic?

NAR offers predictions of the real estate market as cities start to reopen

What Real Estate can expect during and after COVID-19

REAL TRENDS

By Craig McClelland, vice president and COO of Better Homes and Gardens Real Estate Metro Brokers

Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of REALTORS®, recently joined Better Homes and Gardens Real Estate Metro Brokers for an exclusive discussion about the impacts of COVID-19 on real estate. Below are highlights of my conversation with him. They provide insight into what the industry can expect, according to the data Yun has gathered. Jobs and the Economy The current sharp rise in unemployment claims we’re seeing is expected to be followed by large numbers of people returning to their jobs once government-imposed economic shutdowns end. We may not return to the full pre-COVID-19 employment, but the vast majority will go back to their jobs. This, in turn, will positively impact the third and fourth quarters. That is when the economy’s bounce-back will be evident. Foreclosures and Home Inventory A foreclosure crisis is not expected. Before the pandemic, buyers met the credit standards to buy a home, so there was no overstretching of their budgets.

The increase in home sales that we were experiencing pre-pandemic was a 10-year high. Home prices also reached an all-time high. However, it will take multiple years to resolve the housing shortage created when building dramatically declined after the housing crisis of 2008-2012. Even though there are currently fewer listings than before, we went into the pandemic with low inventory and will come out of the pandemic with low inventory. Consumers still need more choices for the mid-price point and slightly below. Buyer and Seller Thought Processes Now that the stimulus package is active, consumers are not as nervous. In many places, people are being cautious about social distancing and health guidelines but are still moving forward with their buying or selling plans. Many buyers are doing multiple virtual home tours before going on a physical visit. Those who still aren’t ready to buy are saving their money in preparation for the economy reopening. NAR also surveyed roughly 3,500 Realtors and found that home sellers are not panicking. Some are merely holding the listing until the economy is back on track. Sellers are not dropping their prices either. They are aware that this is a temporary situation.

REALTORS ®working with buyer clients see some of them say they would like to wait until the economy reopens or don’t want to continue looking to comply with government shelter-in-place orders (though it is possible to abide by those orders and still tour homes). Clients who want to look are not making offers with deep discounts either. Even though individuals are still buying and selling, we are missing out on the spring buying season and may not fully recover it in the autumn. The good news is that we may have more activity this year in autumn and winter months than compared to the traditional amount of activity. What Agents Can Do Continue to build relationships. Reach out to past clients. Some may have been financially impacted and can take advantage of mortgage forbearance. Keep working with customers that need your assistance now. Craig McClelland is vice president and COO of Better Homes and Gardens Real Estate Metro Brokers (metrobrokers.com) in Georgia. The family-owned and operated business have 27 offices and 2,500-plus highly trained sales associates throughout metro Atlanta and north Georgia. This article reprinted with the permission of Real Trends Inc. Copyright 2020. BAKERSFIELD REALTOR® MAGAZINE

REAL TRENDS

U.S. Home Prices End First-half of Year on Stronger Note

Home prices across the United States rose in the first six months of the year at an annualized rate of 6.3 percent, according to Radian Home Price Index (HPI) data released by Red Bell Real Estate, LLC, a Radian Group Inc. company (NYSE: RDN). The Radian HPI also rose 8.1 percent yearover-year (July 2019 to June 2020), which was slightly higher than the year-over-year increase of 7.8 percent recorded last month. The annualized increase represents a resumption of a general upward trend in annualized yearly gains. The Radian HPI is calculated based on the estimated values of more than 70 million unique addresses each month, covering all single-family property types and geographies. “While there has been localized volatility in home prices during the pandemic, prices overall have remained quite resilient. After gains across the U.S. slowed in May, the first half of the year ended on an impressive note, especially given the significant headwinds real estate transactions have faced,” noted Steve Gaenzler, SVP of Data and Analytics. Nationally, the number of closed real estate sales was higher in the final week of June than in the same week of 2019. That marked the first time since the end of March that weekly counts of closings were higher in 2020 than 2019. Gaenzler added that “the recent surge in places where COVID cases are growing may alter the current path of strong home prices, but we didn’t see that result in the first half of the year.” NATIONAL DATA AND TRENDS • Median home price in the U.S. rose to $256,740 in June • Home prices rose an annualized 6.6 percent during the second quarter Nationally, the median estimated price for single-family and condominium homes rose to $256,740 in June from the $254,826 recorded in May. Across the U.S., home prices rose 6.6 percent in the second quarter, a slight increase over the first-quarter gain. Distressed sales in

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June 2020 represented 5.1 percent of all sales, with REO accounting for 4.4 percent of the distressed sales. This is a decrease from May, when distressed sales represented 6.0 percent of sales, with REO sales at 5.2 percent. While homeowner equity remains at or near record levels, distressed sales will likely increase in the coming months as national unemployment rates remain elevated.

REGIONAL DATA AND TRENDS • First-Half 2020 results are positive for all Regions • Midwest and West are strongest Regions; Northeast and Southwest are weakest In the first half of 2020, all six of the Regional indices recorded positive home price appreciation rates in excess of 4.5 percent (annualized). While home price appreciation slowed earlier in the second quarter, a stronger June propelled the Regions higher for the quarter and half-year. Months of Supply, which helps measure the balance between supply and demand by taking the current month’s active and under contract listings and dividing them by last month’s sales, stood at 4.04 months of supply in June. This was down from 4.51 months in June of last year, and also decreased from May. Declining months of supply often result in more price competition and price stability. The Northeast recorded the slowest rate of appreciation in the first half of the year. While Connecticut continues to lag the other states in the Region, New Hampshire and Maine have experienced increasingly strong home-price momentum in 2020. In the South, home prices in Louisiana are

largely unchanged since the beginning of 2020, while Tennessee and Georgia have recorded the strongest appreciation rates. Florida, the largest state in the Region, continues to perform weaker than other states. Utah and Washington have helped make the West the second-best performing region in the first half of the year. California has underperformed seven of the 11 Regional states but has performed better than Nevada, Hawaii and Wyoming. The Midwest Region continues to record the highest rates of home price appreciation in the country. Fueled by demand for lower, or more affordably priced markets, Indiana, Minnesota and Missouri have driven the Region higher. Within the Midwest, Illinois has been the weakest large-state performer. METROPOLITAN AREA DATA AND TRENDS • Metro areas end quarter on strong note • 70 percent of largest Core-Based Statistical Areas (CBSAs) had stronger Q2 than Q1 All of the 20 largest metro areas in the U.S recorded positive price appreciation in the second quarter and first half of 2020. A total of 14 of the 20-largest CBSAs had stronger second-quarter price appreciation rates than those recorded in the first quarter of 2020. Of the six metros recording a weaker second quarter as compared to the first, three were in California (Los Angeles, San Diego, San Francisco) and the remaining three were in the Mid-Atlantic Region (Washington, DC; Baltimore, MD; New York, NY). The weakest large metros in the first half of 2020, based on annualized growth, included Baltimore (+3.0 percent), Washington, D.C. (+3.3 percent), Boston (+3.3 percent), and Miami (+3.3 percent). The strongest included Minneapolis, Seattle, and Phoenix, which all had greater than 7 percent annualized home price appreciation in the first half of the year. This article reprinted with the permission of Real Trends Inc. Copyright 2020.

77% of Potential Home Sellers are preparing to Sell following end of Stay-at-Home Orders

REALTORS® REPORT REAL TRENDS

More than 3 in 4 potential sellers–77%– are preparing to sell their homes following the end of stay-at-home orders, with half completing do-it-yourself home improvement projects, according to a new survey from the National Association of REALTORS®. “After a pause, home sellers are gearing up to list their properties with the reopening of the economy,” said NAR Chief Economist Lawrence Yun. “Plenty of buyers also appear ready to take advantage of recordlow mortgage rates and the stability that comes with these locked-in monthly payments into future years.”

NAR’s latest Economic Pulse Flash Survey, conducted May 3-4, asked members how the coronavirus outbreak has impacted the residential and commercial real estate markets. Several highlights include: • Five percent of Realtors® said their clients are shifting neighborhood preferences from urban areas to suburban areas due to COVID-19. • About 1 in 8 Realtors®–13%–reported buyers have changed at least one home feature that’s important to them due to COVID-19. For these buyers, the most common home features they identified as important are home offices, yard space for exercising or growing food, and space to accommodate a family.

• Nearly 3 in 4 Realtors® currently working with sellers this week–73%– reported their clients hadn’t reduced listing prices to attract buyers. View NAR’s Economic Pulse Flash Survey report: www.nar.realtor/research-and-statistics/ research-reports/nar-flash-surveyeconomic-pulse View NAR’s Weekly Housing Market Monitor: www.nar.realtor/research-and-statistics/ weekly-housing-market-monitor This article reprinted with the permission of Real Trends Inc. Copyright 2020.

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What One Charity Taught Me about Building a Relationship - Based Business BAO LE

CEO OF BAOSS DIGITAL | REAL TRENDS

Leaders worth their salt understand how important it is to build relationships with those you want to lead. I learned this lesson firsthand while on assignment working with Doctors Without Borders/Médecins Sans Frontières (MSF). Working side-by-side in some intense scenarios, I came to truly appreciate what it means to lead with the heart. Now, as I forge ahead building the future of my real estate lead-generation agency, these earlier lessons about leadership have come full circle. During a time when people need connection, helpful-ness and human kindness more than ever, we all should take our cues from mission-driven organizations like MSF. Here are the four big lessons that guide me as I build my relationship-based business: 1. Develop Ambassadors, Not Employees Doctors Without Borders/Médecins Sans Frontières (MSF) is a dynamic movement propelled forward by people from all corners of the globe who share a common mission: To save lives and alleviate suffering by delivering medical care where it is needed the most. To achieve this mission, the medical personnel who work with MSF are not merely employees. They are ambassadors for MSF

promoting its ideals and raising awareness about the organization. Going beyond simply providing some arbitrary number of leads, we understand that success is about boosting your confidence and feeling supported in your sales process. Once real estate professionals experience this relationship-based approach, they become instant ambassadors. Ambassadors don’t sit back and let life happen. They go out and close deals. 2. Go Where You Are Needed the Most This simple, but powerful concept drove the founders of MSF. In May 1968, a group of young doctors decided to go where their medical services were needed the most: To the victims of wars and disasters anywhere in the world. The needs of buyers and sellers have shifted during the pandemic. However, smart real estate professionals who follow this principle have naturally shifted their focus to meet current needs. There is a good reason why agents are still closing deals within three months. It’s because they trust the system and go where they’re needed the most. 3. Let Transparency and Accountability Be Your Beacon For a medical aid organization that relies on

the financial support of donors, transparency and account-ability are crucial. In the real estate lead-generation business, these values are just as important. In a relationship-based business, fraud should never be an issue. When you put trust at the core of how you lead, your value will shine through to your clients. 4. Get Creative With the Resources You Provide Medical professionals working with MSF aren’t afraid to get creative to find solutions out in the field. Providing medical aid without the institutional support of hospitals requires thinking outside the box. This is why so many institutions, like nursing homes, turned to MSF to help train staff during the COVID-19 pandemic. Real estate leaders and professionals also need to get creative during this unprecedented time. Here are some ways real estate professionals have shifted their real estate businesses online: • They email weekly videos about the state of their local market. • They work with photographers to create 3-D virtual home tours. • They livestream open houses as virtual events. • They send memorable gifts to clients (such as face masks and homemade hand sanitizer). • They understand, especially in this climate, standing out is about more than simply following up on leads. • They see opportunity where others see disappointment. Doctors Without Borders/Médecins Sans Frontières is a unique organization with amazing professionals doing much needed work. But the lessons of leadership apply to every business in every industry. When leaders focus on building relation-ships, there’s no limit to what we can do together. Bao Le is a philanthropist, tech expert and CEO of Baoss Digital, which is a marketing agency for top real estate professionals. This article reprinted with the permission of Real Trends Inc. Copyright 2020.

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BRING YOUR “A” GAME

It’s the new normal LARRY KENDALL AUTHOR OF NINJA SELLING

Today is the day to take action and help your brokerage thrive. During a six-week period from mid-March to the end of April, Andrea Tuell sold 10 houses. This was a period when showings were either prohibited or limited in many markets due to COVID-19. Some described it as a lockdown. Andrea, as well as her buyers and sellers, were not going to wait for the storm to end. They learned to dance in the rain. Similar stories from other top sales associates have flooded in from throughout the country. As a result, the real estate market survived and thrived in COVID-19 better than many expected. There are three key lessons offered here. 1. The Power of Mindset. The sheer determination and courage to find a way to get things done is a testament to the human spirit. Despite the limits placed on sales associates and their customers, many found a way to move from the life they have to the life they dream about. Meanwhile, others are still in hibernation, waiting for the storm to pass. Mindset is the key difference.

2. Virtual Viewing. All 10 of Andrea’s contracts (six listings sold and four buyer sales) came after the buyers viewed the properties virtually. In each case, the buyers felt comfortable writing a contract subject to being able to physically inspect the property later. This process may become the new normal. According to the National Association of Realtors® 2019 Profile of Home Buyers and Sellers, buyers physically looked at 10 homes last year before they wrote a contract. With buyers now becoming more comfortable with virtual viewings, look for this number of physical showings to drop—potentially in half to five or six homes. More of the elimination process will be done online. Coming out of COVID-19, buyers, sellers, real estate professionals and their associated service providers are more comfortable in the virtual environment than they were six months ago. They are using Zoom conferences to buy, sell, finance and close their transactions. 3. Bring Your “A” Game. Virtual viewing is only effective if the listing real estate agent presents the property in the best possible light. This includes staging, professional photography, video (sometimes including

drone video), floor plans and detailed neighborhood information. All 10 of the properties Andrea sold had these marketing tools working for them. In all 10 cases, the listing agents brought their “A” Game. Listings that didn’t have these tools were left sitting on the sidelines. Prior to COVID-19, the market was so hot and the shortage of inventory so great that many real estate professionals would cheap out on their marketing. As one agent put it, “I can put this house on the market today and have multiple offers in 72 hours. Why should I spend money on staging, photography, video, floor plans, etc.?” Their question is answered in three ways: 1. You owe it to your seller to present their property professionally. 2. Potential sellers will see how you market and will want to list with you. Your next listing is embedded in this listing. 3. COVID-19 and virtual viewing have changed everything. Virtual viewing is now the new normal. Unless you bring your “A” Game, your listing will be overlooked. It won’t make the finals. And you (and your seller) will be left standing in the rain. This article reprinted with the permission of Real Trends Inc. Copyright 2020. BAKERSFIELD REALTOR® MAGAZINE

LOCAL NUMBERS YOU NEED TO KNOW

2019 Compared to 2020 by MLS Area

state of the

HOUSING MARKET 2020 YEAR-OVER-YEAR STATS

INDUSTRY STATISTICS

Area

Dollar Value

# Sold

Average Sold Price*

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

122

162

$25,252,099

$33,789,102

$215,443

$212,097

97.96

98.20

106

$12,294,549

$12,423,493

$140,471

$123,429

97.23

98.10

136

154

$30,196,076

$31,062,064

$235,114

$206,460

98.11

99.25

$9,007,000

$8,467,950

$407,636

$443,682

91.85

97.08

128

172

$24,503,660

$29,091,587

$194,005

$169,313

98.61

97.73

313

333

$69,770,280

$63,770,385

$232,085

$209,284

98.92

98.42

104

173

$27,117,233

$41,564,760

$276,693

$257,881

99.39

98.63

$15,093,665

$17,764,250

$330,458

$333,156

98.70

97.82

$11,753,111

$14,991,364

$179,894

$166,802

97.70

97.86

112

$25,703,530

$18,769,769

$227,315

$197,898

98.83

98.60

$730,000

$2,298,350

$182,500

$229,835

104.60

94.23

301

344

$55,945,754

$59,388,242

$198,328

$182,164

98.65

98.80

903

908

$235,864,404

$217,626,280

$272,556

$251,337

99.59

99.10

403

504

$141,602,197

$169,129,418

$355,240

$340,485

99.00

98.47

$11,106,112

$6,727,117

$411,000

$451,555

99.03

99.51

128

140

$41,385,622

$42,310,495

$323,325

$301,162

98.74

99.56

619

682

$214,327,892

$222,025,607

$346,777

$326,841

99.31

98.88

269

291

$111,786,218

$118,505,371

$422,954

$412,475

99.18

98.66

$5,536,000

$3,836,750

$662,000

$426,306

96.84

99.14

$6,226,412

$4,872,700

$327,706

$327,664

98.84

99.68

144

147

$50,947,554

$45,783,374

$362,706

$319,866

97.95

97.57

$3,237,999

$2,038,000

$204,867

$185,273

179

274

95.17

94.54

$4,198,499

$2,057,250

$151,360

$182,083

135

93.68

94.02

$14,822,002

$6,060,215

$315,362

$257,009

98.70

99.62

$1,915,000

$1,799,000

$638,333

$675,000

169

98.86

96.84

$3,667,900

$3,048,400

$312,656

$404,057

102

97.58

94.66

$6,772,400

$7,175,400

$178,221

$170,843

95.92

95.31

$1,694,000

$645,000

$564,667

$645,000

186

96.86

97.88

$125,000

$457,500

$152,500

0.00

100.79

$3,699,250

$2,659,400

$262,709

$243,267

95.30

99.01

147

122

$34,479,774

$27,628,770

$234,855

$225,912

98.44

98.17

119

141

$16,696,639

$16,996,812

$144,122

$121,146

97.62

97.32

104

112

$23,392,350

$23,247,375

$225,460

$207,159

98.28

96.94

115

126

$38,392,099

$40,176,285

$343,153

$321,678

97.49

95.74

* Figures from Single Family Homes Only. Statistics were run on August 2020

% of List Price*

DOM*

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The numbers tell the story Active, Pending and Sold - All Areas 1,800

1,800

1,600

1,400

2020

1,400

1,200

2019

1,200

1,000

800

600

400

200

CONTINGENT

ACTIVE

JUNE June All Areas

PENDING

2020

2019

1,800 June Contingent

981 2020 197

1,547 2019 262

Pending Active Sold Contingent

1,330 981 745 197

1,157 1,547 702 262

Active

Total Volume Closed Pending Median Sold Sales Price * Average DOM Closed * Total Volume

SOLD

% Year over Year Change -36.6% % Year over Year -24.8% Change 15.0% -36.6% 6.1% -24.8% 10.2% 15.0%

$205,907,519 $186,850,762 1,330 1,157 $270,000 $257,500 745 702 34 34 $205,907,519 $186,850,762

Median Sales Price * Average DOM *

June

2020 2019

ACTIVE

JULY July All Areas

CONTINGENT

PENDING

2020

2019

July Contingent

924 2020 242

1,575 2019 231

Pending Active Sold Contingent

1,318 924 827 242

1,166 1,575 771 231

Active

July

Average DOMClosed * Total Volume

$270,000

$257,500

4.9%

Median Sales Price *

0.0%

Average DOM *

2019

% Year over Year Change

Bakersfield Only Bakersfield

Price Class Y

Active Contingent & Sold Total Volume Median Sale Average DOM

Bakersfield O

Total Volume Closed Pending Median Sales Price * Sold

4.9% 6.1% 0.0% 10.2%

Ran on 9/17

Price Class Y Active SOLD Pending Sold % Year over Year Total Volume Change Median Sale -41.3% Average DOM % Year over Year 4.8% Change 13.0% -41.3% 7.3% 4.8% 16.8% 13.0%

$237,115,080 $203,007,324 1,318 1,166 $275,000 $255,575 827 771 31 31 $237,115,080 $203,007,324

7.6% 7.3% 0.0% 16.8%

$275,000

$255,575

7.6%

0.0%

2020

2019

% Year over Year Change

Bakersfield

June

2020

Bakersfield Only

July

Sold

JuneClosed Total Volume

614 600 2.3% % Year over Year 2020 2019 $172,246,137 $162,260,755 6.2% Change

Sold

July Closed Total Volume

704 680 3.5% % Year over Year 2020 2019 $207,275,980 $183,641,474 12.9% Change

Median Sold Sales Price * Average DOM Closed * Total Volume

$275,000 $260,000 614 600 29 32 $172,246,137 $162,260,755

5.8% 2.3% -9.4% 6.2%

Median Sales Price * Sold Average DOMClosed * Total Volume

$280,000 $262,750 704 680 27 30 $207,275,980 $183,641,474

5.8%

Median Sales Price *

$275,000

$260,000

Quarterly Comparisons Average DOM * 29 * Single Family Only

1st Qtr 2020

32 1st Qtr 2019

-9.4% 2nd Qtr 2020

New Listings * Single Family Only Contingent

2,431

2,860

1,845

506

646

683

487

Pending

1,900

2,049

1,711

1,849

Sold

1,662

1,640

1,493

1,852

$451,074,580

$409,970,487

$416,269,141

$489,736,337

$255,000

$240,000

$271,000

$255,000

$152.37

$142.56

$157.01

$148.55

Total Volume Closed Median Sales Price * Average DOM * Average Sale Price/SqFt *

$280,000

$262,750

Average DOM * 27 30 * Figures from Single Family Homes Only 2nd Qtr 2019 Statistics 3rd Qtr 2020 3rd Qtr 2019 4th Qtr 2020 were run on August 2020 2,436

6.6% 3.5% -10.0% 12.9% 6.6% -10.0% 4th Qtr 2019

Bakersfield uses the following Zip Codes: 93301, 93302, 93303, 93304, 93305, 93306, 93307, 93308, 93309, 93310, 93311, 93312, 93313, 93314.

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All

Record-low interest rates fueling home sales

Will we recover this year

STEVE MURRAY

ex-urban and rural property markets—show

ending sales were up through May, June, and early July. The level of closings for June was nearly as high as they were in June 2019 in many markets. The surge, which started in early May, seems set to continue through at least the end of July and into August. Record-low interest rates are fueling much of this surge, along with some indications that families are also rearranging where they live. Reports from suburban realty firms and agents—as well as from leading firms in the

this anecdotal, it’s so widespread across the

REAL TRENDS | PRESIDENT

P 34

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an increased level of activity. While much of country as to give it credence. Much of the May-through-July surge can be credited to packing 90-120 days of buying activity into 60 days. There will be a cyclical slowdown as autumn approaches. Reports from across markets indicate that listing inventory is down in most markets, below the level of last year when it was already low. Housing markets cannot function at full capacity when little inventory exists. Unless home

builders can start adding 1 million or more new housing units a year, most markets will be faced with scarce inventory and rising prices—just when 20 million+ American workers and businesses are trying to reopen. Economists from several sources, including NAR, Realtor.com and Zillow, believe that unit sales will not totally recover this year. A rough average of their forecasts indicates unit sales would be down 12%-15% from 2019 by the end of this year. Should they be on the mark, then sales in the fourth quarter will be softer than last year. This article reprinted with the permission of Real Trends Inc. Copyright 2020.

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2020 Good Neighbor Awards Recognize and Nominate Your Favorite REALTOR®

The Bakersfield Association of REALTORS® and Bakersfield Association of REALTORS® Charitable Foundation are proud to announce our first local Good Neighbor Awards program. We are recognizing REALTORS® who make extraordinary commitments

to improving the quality of life in our community through volunteer work. The winners will be announced in January and featured in our Magazine and receive a contribution to the charity of choice. Don’t wait, nominate a REALTOR® who is making an outstanding

contribution to our community. Go to www.bakersfieldrealtor.org / resources to download the application. You can also call us at 661-6352300 for more information. Deadline to submit the application is Friday, October 2, 2020, but don’t wait, NOMINATE YOUR COLLEAGUES NOW!

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F O U N D A T I O N