FEBRUARY 2025
C.A.R. Placing Consumer Protection Open Letter in Newspapers Statewide
This week, C.A.R. is placing an open letter to homeowners, aimed at providing crucial guidance for those displaced by recent events. Signed by C.A.R. President Heather Ozur, the letter outlines key options for homeowners and offers critical advice on how to avoid common pitfalls during the rebuilding process.
The letter will be published in more than 45 newspapers across California, both in print and digital formats, ensuring it reaches as wide an audience as possible. Among the major outlets running the letter are the California editions of The Wall Street Journal and The New York Times, as well as the Los Angeles Times, Pasadena Star News, Mercury News, Sacramento Bee, San Diego Union-Tribune, Orange County Register, Fresno Bee, The Press-Enterprise, Desert Sun, and Daily Bulletin.
In an effort to further expand its reach, the letter will also appear in Spanish in prominent publications, including La Opinion, La Opinion de La Bahia, El Latino, and El Observador. The digital versions of these newspapers will feature both English and Spanish editions of the letter, ensuring that vital information is accessible to all communities.
Read the letter here:https://www.car.org/-/media/CAR/Documents/Your%20CAR/PDF/News%20Releases/CAR_OpenLetter_LA-Times
State Farm requests 22% emergency rate hike for California homeowners
If your home is covered by State Farm, you could soon face a 22 percent rate increase. In a letter sent to the California Department of Insurance on Monday, the company requested an emergency rate hike. Following the Los Angeles wildfires, State Farm says it has paid out more than $1 billion and expected to pay out more.
The company is asking for permission to increase rates so they can rebuild capital to keep providing coverage. "All we are asking for in the industry is adequate rates so that we can pay claims and expenses," said Janet Ruiz, Insurance Information Institute Director of Strategic Communication. Homeowners aren't the only ones that could be affected. The company is also requesting a 15 percent rate increase for condo owners and a 38 percent increase for rental dwellings.
C.A.R.provides Statewide Market Update
The market has been very fluid since the fires began in the first week of January. Closed sales in the 6 primary cities affected by the fire have dropped considerably from nearly 15 per week in the weeks ending January 4 and January 11, to just 5 over the past two weeks. That represents a nearly 70% cumulative decline in weekly sales volume from the start of January. Winter is typically a slow time for the housing market in general, but this compares with sales that were up 2% cumulatively over the past two weeks in the rest of the state (i.e. excluding Los Angeles County).
There are also signs that the impacts will continue as buyers, sellers, and homeowners decide their next steps. For example, home sales in our sample of 6 impacted cities showed that pending sales last week rose on par with new escrows opened in the rest of the state as the winter housing market begins to thaw (rising more than 20% over the previous week). Many buyers who were in the search and/or offer stage of their home purchase may be more motivated to move forward as they expect inventory to be even tighter moving forward.
Concerns about inventory are likely justified and the long-term impacts on supply are expected to outweigh the impacts to demand even though some residents will choose to relocate rather than rebuild. New homes being added to the MLS has jumped up over the past two weeks in our affected cities, as it has in the rest of the state. However, the pace of growth in new supply was nearly double the control group as both seasonal patterns and selling of affected properties drove a bigger increase in those markets. However, with pending sales also rising, the total available inventory has been roughly flat over the past two weeks despite rising in the rest of California.
As a result of the imbalance between the impacts to supply and the impacts to housing demand, we expect affected areas and areas perceived as substitutes (either geographically or by price point) will likely see more competition for homes amongst buyers and an uptick in home prices over the medium term. This has been a consistent pattern observed after previous wildfires in Santa Rosa and Paradise, as well as the Thomas Fire from a few years ago.
3 Reasons To Buy a Home Before Spring
Let's face it — buying a home can feel like a challenge with today's mortgage rates. You might even be thinking, "Should I just wait until spring when more homes hit the market and rates might be lower?"
But here's the thing, no one knows for sure where mortgage rates will go from here, and waiting could mean facing more competition, higher prices, and a lot more stress. What if buying now — before the spring rush — might actually give you the upper hand?
Here are three reasons why that just might be the case.
The winter months tend to be quieter in the real estate market. Fewer people are actively looking for homes, which means you'll likely face less competition when you make an offer. This makes the process feel less rushed and less stressful. According to the National Association of Realtors (NAR), homes sit on the market longer in winter compared to spring and summer. Fewer buyers in the market means you'll likely have more time to make thoughtful decisions. It also means you may have more negotiating power.
With homes staying on the market longer, sellers may be more willing to negotiate. This can lead to better deals for you as a buyer, whether that means a lower price or added incentives, like sellers covering closing costs or making repairs. Plus, when demand is lower, sellers often feel more pressure to work with serious buyers. This could give you an edge to negotiate terms that work best for your situation.
Historically, home prices tend to be at their lowest point in the winter months, too. According to data from NAR, home prices last year were at their lowest in January, February, and March — right before the spring buying season kicked in. This trend isn't new — Bright MLS shows between 2010 and 2024, home prices in January and February were, on average, 15% lower than during the month of peak home prices (typically June). Buying in the off-season means you're more likely to avoid paying the premium prices that come with the high demand of spring.
On top of that, home prices generally appreciate over time, meaning they tend to go up year after year. That means if you're ready to buy and you can make it happen, you're not only taking advantage of what might be the lowest prices of the year, but you're also locking in today's price before it increases in the future.
Bottom Line--While spring may seem like the obvious time to buy, moving before the peak season can give you significant advantages, like less competition, more negotiation power, and lower prices. If you're ready to explore your options, a local real estate agent is there to help.
3Yr January comparison for Santa Cruz, Monterey & Santa Clara County
Comments: New listings are looking up when comparing January 2023 to 2024 and now 2025. Sales are following the same trend although not as big of increase. Finally, prices are coming down across the board except for Monterey County. The average days on market look fairly similiar and only decreasing in Santa Clara County. Sale price to list price has increased steadily as you can see due to the low inventory. (Display of MLS data is deemed reliable and is not guaranteed accurate by the MLS as of 1/31/25)
