That’s a four percentage-point jump in the Fannie Mae poll since February and the largest monthly increase since September. The share saying it would be hard for them to get a home loan is up 6 percentage points from a year earlier.

From November 2015 to April 2022, the majority of consumers said it would be easy to obtain a mortgage.

That’s in line with a net 68% of respondents anticipate that credit will be harder to obtain in the year ahead, a Federal Reserve Bank of New York survey showed. This is the highest share of consumers expecting tighter credit in four months and compares with a net 70.4% a year ago.

High debt levels, and higher interest rates paired with years of elevated inflation are weighing on households and that likely points to lower risk tolerance among lenders. Stricter standards make it harder for consumers to get credit for home and home equity loans, credit cards, and auto loans.

Still, US consumer borrowing advanced in February, driven by the largest increase in credit-card balances in three months.

Total credit rose $14.1 billion after a revised $17.7 billion gain in January, according to Federal Reserve data. Revolving credit, which includes credit cards, climbed $11.3 billion in February. Non-revolving credit, such as loans for vehicle purchases and school tuition, increased $2.9 billion. The figures aren’t adjusted for inflation.

Robust job growth continues to drive household spending, though consumers’ credit-card balances are mounting. With accounts carrying higher interest rates and monthly payments taking a bigger chunk of their paychecks, those borrowers could be at risk should the economy and labor market weaken.

Total credit expanded at a 3.4% annual rate in February after growing 4.2% the month prior. The Fed’s report doesn’t track debt secured by real estate, such as home mortgages.

In 2023, median home renovation costs soared to $24,000, a 60% rise from 2020, according to the annual Houzz study of United States homeowners engaged in renovation projects.

The trend is even more pronounced among the top 90th percentile of spenders, where budgets expanded by 77%. Just three years ago, homeowners spent $85,000. In 2023, that blossomed into a staggering $150,000.

More than half of 17 thousand homeowners Houzz interviewed invested $25,000 or more into their projects in 2023.

As Americans increasingly tailor their homes to serve as personalized sanctuaries, the home renovation industry is experiencing a notable boom. The aforementioned Houzz study spoke to a total of 32,615 individuals, unveiling key trends, financial investments, and underlying reasons fueling the uptick in home improvements.

Soaring costs

The data reveals a remarkable increase in home renovation spending over the past three years.

With the cost of materials and labor increasing, many Americans are looking for ways to improve their living spaces while saving money.

DIY home makeovers are a practical solution for homeowners looking to revamp their living spaces without overspending. By focusing on resourcefulness and creativity, individuals can transform their homes into stylish and functional havens.

Reduce, Reuse, Repurpose

Makeovers often involve repurposing materials, DIY projects, and selective updates that prioritize high-impact areas of the home. The goal is to achieve a fresh look and improved functionality while minimizing expenses.

One important part of executing a successful project is the strategic use of resources. Homeowners may opt for cost-effective alternatives instead of expensive materials and furnishings. Renovators also might find ways to refresh existing pieces.

Paint cabinets, rearrange furniture; focus on making noticeable changes without the need to undertake costly renovations. The clever integration of thrifted or second-hand items adds unique character to a home while keeping costs down.

DIY vs. Pros

Deciding between DIY and hiring professionals depends on skill level, complexity of tasks, and the value of time.

For instance, most simple painting or minor repairs can be done by homeowners with minimal experience, while complex electrical work or plumbing should be entrusted to certified professionals.

When choosing a DIY approach, be sure to weigh the risks and quality of the outcome. Will it really save money in the long run, or will a botched DIY project result in more sunk costs? Not to mention the possibility of additional damage or risk of physical injury or even death.

Assessing your space

Before making any financial commitment, homeowners should evaluate their existing space to maximize its potential. Creativity and objectivity are crucial here.

Looking at a room with a fresh perspective can reveal opportunities for upcycling existing furniture or repurposing spaces for better functionality.

Identify any unused corners or areas that could serve a new purpose. Envision ways to refresh walls or surfaces without complete overhauls.

Budget wisely

Before beginning any project, it’s important to create a budget. A simple breakdown may include materials, tools, decor, and contingencies for unexpected costs. Proper forecasting and cost tracking are imperative for staying within the budget.

Compare prices and see if discounts are available for bulk purchases or sales. Explore local thrift shops, online resellers, and online marketplaces for unique finds at a lower cost.

Also, keep an eye on seasonal sales and clearance events. Many stores offer coupons or discount codes that can help save big on purchases.

Incorporating cost-effective strategies can vastly reduce expenses while still achieving a fresh and updated look. Homeowners can transform their living spaces without breaking the bank by focusing on creativity and resourcefulness.

Harness the potential of existing items by repurposing and upcycling them to serve new functions. For example, an old ladder could be transformed into a bookshelf or aged doors could be converted into a unique headboard. The key is to see beyond an item’s current state and envision what it could become with a little innovation.

Small with impact

Transforming a home space doesn’t require a huge budget or professional expertise. From repainting walls to repurposing thrift finds, the possibilities are endless, allowing homeowners to inject new life into familiar spaces.

If painting is too much work or if DIYers need a renter-friendly option, Zillow home trends expert Amanda Pendleton expects wallpaper murals to be big in 2024. “In a weekend, you can apply a floral wallpaper mural to your home office for a stunning Zoom background or add a large landscape to the dining room to dial up the drama,” she states.

Simple projects such as this can be easily achieved in a short amount of time and for relatively little money.

Budget-conscious improvements often hinge on a willingness to learn new skills. Home improvement blogs and social media platforms, such as YouTube and TikTok, provide a wealth of ideas and tutorials that assist DIY enthusiasts in tackling projects big and small. These resources have democratized home design, making interior updates easy for those who once viewed hiring a professional as the only viable option.

DIY home makeovers combine creativity and practicality. Focusing on upcycling and smart material choices, these projects refresh spaces and foster an environmentally conscious approach to living. Homeowners are finding that sustainable practices can align with aesthetic goals, resulting in stylish and responsible interiors.

The renewed federal inquiry comes after the U.S. Court of Appeals for the District of Columbia on Friday overturned a lower-court ruling from 2023 that had quashed the Justice Department’s request for information from NAR about broker commissions and how real estate listings are marketed.

Friday’s ruling was another setback for NAR, still reeling from a March 15 agreement to settle several lawsuits that alleged the group had violated antitrust laws and had conspired to fix the rates that real estate agents charge their clients. Pending federal court approval, NAR will pay $418 million in damages and will significantly change its rules on agent commissions and the databases, overseen by NAR subsidiaries, where homes are listed for sale.

Home sellers in Missouri, whose lawsuit against NAR and several brokerages was followed by multiple copycat claims, successfully argued that the group’s rule that a seller’s agent must make an offer of commission to a buyer’s agent had forced them to pay inflated fees.

The Justice Department now has another chance to peel back the curtain on those fees and other NAR rules that have long confused and frustrated consumers.

“Real-estate commissions in the United States greatly exceed those in any other developed economy, and this decision restores the Antitrust Division’s ability to investigate potentially unlawful conduct by NAR that may be contributing to this problem,” said Assistant Attorney General Jonathan Kanter, the head of the Justice Department’s antitrust division, in an emailed statement. “The Antitrust Division is committed to fighting to lower the cost of buying and selling a home.”

Americans pay roughly $100 billion in real estate commissions annually. In many other countries, commission rates hover between 1% and 3%; in the United States, most agents specify a commission of 5% or 6%, paid by the seller. Those high commission rates have been at the heart of NAR’s mounting legal challenges.

In an emailed statement Friday, representatives for NAR said the organization was “reviewing today’s decision and evaluating next steps,” adding that they remained “steadfast in our commitment to promoting consumer transparency and to supporting our members in protecting their clients’ interests in the home buying and selling process.”

Should NAR wish to appeal the ruling, it will have to now take it to the Supreme Court.

With 1.5 million members, a powerful lobbying arm in Washington and $1 billion in assets, NAR has an outsize influence on the real estate industry. It even owns the trademark for the word “Realtor,” and an agent must be a member to call themselves one.

The Justice Department sued the trade group in 2005, claiming that NAR promoted anti-competitive practices and inflated commissions, and the two sides agreed to a 10-year settlement in 2008, during which time NAR was required to change many of its policies regarding home listing sites.

After that settlement expired, the Justice Department reopened its investigation, issuing demands for documentation on how Realtors in the United States use NAR-operated databases to list homes and discuss commission rates, as well as the rules on agent compensation that the organization enforces among its membership.

The department even issued statements of interest in two lawsuits against NAR, regarding anti-competitive practices, including the Missouri case, which NAR settled in March.

In 2020, it looked like the case had ended — the Justice Department offered another settlement to NAR, this one requiring rule changes like more disclosure around broker fees. NAR agreed, and the investigation was closed.

But in 2021, under the new Biden administration, the Justice Department backed out of its settlement and announced it was reopening its inquiry. NAR took them to federal court in a bid to stop them, and initially was successful in January 2023. But the Justice Department appealed, and a three-judge panel of the appeals court sided with the department in a split ruling — with two judges in favor and one against.

In an interview with The New York Times, Michael Ketchmark, who was the lead lawyer in the Missouri home sellers’ lawsuit against NAR, called the renewed investigation “great news for homeowners and homebuyers across the country,” which would expand upon the impact of the civil cases against the group.

NAR’s agreement to settle came months after a jury verdict in October 2023 in favor of the home sellers that would have required the trade group to pay at least $1.8 billion in damages.

“Through our trial and our settlement with NAR, we advanced the ball as far as we could down the field,” he said. “This is an opportunity for the DOJ to continue to hold them accountable, and if they feel additional steps need to be taken through criminal prosecution or regulation, now they have the green light to do it.”

The pain: The number of million-dollar cities in five pricey California regions rose by 76% since the pandemic upended the economy.

The source: My trusty spreadsheet reviewed Zillow tabulations of cities with median home values in excess of $1 million as of February compared to a year ago and pre-coronavirus November 2019.

The pinch

Five of California’s costliest metro areas for housing had a combined 169 million-dollar cities this year, up 10 over 12 months – or 6%. Since 2019, million-dollar cities have grown by 73 – or a 76% increase.

Yet, cities where the typical home is worth seven figures grew even faster across the nation.

There were a total of 550 US million-dollar cities in February, up 59 in a year – or 12% growth. It’s also an increase of 332 cities since 2019 – or a 152% jump.

Think about those five California metros and their million-dollar cities …

San Francisco: 69 cities in February – unchanged in a year and up 23 vs. 2019. That’s adding 50% in five years.

Los Angeles-Orange County: 63 – up 7 in a year and up 33 vs. 2019. That’s a 110% gain in five years.

San Jose: 18 – unchanged in a year and up 8 vs. 2019. That’s 80% more over five years.

San Diego: 10 – up 3 in a year and up 5 vs. 2019. That’s double in five years.

Santa Maria-Santa Barbara: 9 – unchanged in a year and up 4 vs. 2019. That’s 80% more over five years.

Pressure points

Overall, California led the nation this year with 210 million-dollar cities – up 12 in a year. No 2019 data was available.

Note that California has 38% of the nation’s “million-dollar cities” but just 10% of the US housing supply.

Other states with very expensive housing include …

New York: 66 cities – up 12 in a year.

New Jersey: 49 – up 14 in a year.

Florida: 32 – off 2 in a year.

Massachusetts: 31 – up 4 in a year.

Colorado: 21 – unchanged in a year.

Washington: 18 – up 2 in a year.

Hawaii: 17 – up 1 in a year.

Texas: 14 – off 1 in a year.

Maryland: 10 – up 2 in a year.

The report shows 34 states in February had at least one city with typical home values above $1 million.

Quotable

“The housing market is tight with few homes available, and competition is still high for attractive homes. That competitive pressure is pushing home values higher across the U.S.,” the report said. “The typical U.S. home is worth 4.2% more than it was a year ago. In current million-dollar cities, the median year-over-year home value growth is 4.6%.”

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

By this I mean you need an owner ready to make the next deal and an occupant who’s kicked the tires and is prepared to sign. Ideally, these motivations mesh into a synchronicity that is melodious.

Southern California’s industrial real estate market is a mismatch of expectations. Owners tend to remember how things were in early 2022 when occupant demand was robust, inventory was scarce, and interest rates were affordable.

Folks who lease and buy these buildings perceive the opposite — a downturn in their business (less need for space), more addresses sitting vacant for longer, and borrowing costs that have doubled. A standoff akin to an Old West gunfight has ensued.

Fortunately, no one will be bodily harmed in said showdown. However, owners late to the fight may suffer financial losses.

Today, I’d like to discuss our biggest task as commercial real estate brokers. That is educating owners and occupants to current market conditions.

Understanding market dynamics

To grasp the current state of affairs, we need to delve into the factors shaping the industrial real estate market in Southern California.

In the recent boom, investors favored constructing large warehouses for logistics operators, who primarily lease these spaces. Initially, the demand surged as online shopping soared, prompting distributors to expand their inventory storage.

However, as the frenzy settled, warehouses across all submarkets now sit vacant, competing for tenants.

While reducing rental rates seems a logical solution, constraints like promised returns to investors or fixed cost structures complicate matters.

Challenges faced by owners

Owners are grappling with the challenge of reconciling past experiences with present realities.

Many are holding onto outdated expectations, hoping for a return to the heyday of early 2022. However, failing to acknowledge the shifts in demand, supply, and financing could lead to missed opportunities and financial losses.

Perspective of occupants

Occupants, on the other hand, are feeling the impact of changing market conditions firsthand.

With businesses adapting to new norms and uncertainties, the need for commercial space has shifted. This shift in demand has implications for leasing and purchasing decisions, as occupants navigate a landscape fraught with uncertainties.

The broker’s role in education

As brokers, our role extends beyond facilitating transactions; we are educators and advisors.

Providing owners and occupants with comprehensive market insights, backed by data and analysis, is essential for setting realistic expectations and making informed decisions. By bridging the gap in understanding, we empower our clients to navigate market shifts with confidence.

Synchronicity and moving forward

Ultimately, success in commercial real estate hinges on collaboration and adaptability. By fostering open communication and collaboration between owners and occupants, we can work towards mutually beneficial outcomes.

Embracing flexibility and adaptability allows us to navigate market shifts and seize opportunities as they arise, paving the way for continued success in an ever-changing landscape.

Education of owners and occupants is key to success in commercial real estate. By equipping buyers and sellers with the knowledge and insights needed to weather market shifts, we can bridge the gap in expectations and reach agreement.

I’ve often opined: Allow the market to be the bad guy. If I tell an owner: Here’s how it is, I’m asking that reliance’s be placed on my experience and credibility. I could be wrong. However, if we engage in a process of discovery, the market is sending the feedback.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. .

There may be reasons why neighbors are not interested in serving.

Could any of the below characteristics describe your association?

Volunteer managers

Do directors spend many hours each week on HOA business, inspecting the property, observing vendors, and otherwise dealing with the HOA’s daily matters?

The well-intentioned sacrifice of so much time and energy may deter others from board service.  Some neighbors may be retired or have the energy to spend 20-30 hours each week on association matters, but many don’t – and they are frightened of that level of commitment.  Let the manager manage, or hire a better one.  If the association does not have a manager, hire one.

Volunteers need to be reassured they are not signing up to be free HOA co-managers.

Fire and brimstone

Some associations have meetings fraught with conflict and low standards of board behavior. Few volunteers want to join a board in which directors display hostility toward each other, or serve an association that seems to be always in litigation.

Chaotic meetings

Disruptive and uncomfortable meetings filled with hostility between directors and the audience will repel most volunteers, who decide that life is too short to deal with unpleasant people. They will avoid meetings and not volunteer.

Elevate professionalism and civility in board meetings, and consider adopting board meeting rules promoting civility and order.

Fear of liability

Volunteer directors should not fear liability, even while making important association decisions.  The Business Judgment Rule, corporate process, directors’ and officers’ errors and omissions insurance all protect volunteers.

Stay within those protections and the director’s role, which is directing – making decisions.  Leave actions to managers and vendors.  Directors should be continually trained on these important protections.

El jefe

A president acting as the HOA’s “boss” discourages volunteers by not recognizing that the board actually is the boss. Who wants to join a board where their contribution seems unnecessary and their views unimportant?

If the president plays the dictator, regularly squelching differing viewpoints, don’t be surprised at the short list of applicants for board seats.

Homeowner associations act through the board, not the president. Presidents inhibiting reasonable discussion and unilaterally making decisions without board votes are disrespecting the role of the other directors.

HOA presidents should be leaders but not bosses of their associations.

Ignorance is not bliss

Some associations suffer from poor member participation because members have no idea what their board is doing.

Find additional methods to keep your neighbors informed about the goings-on in their association other than just posting the minutes. Better communication leads to greater confidence in association governance and a greater willingness to volunteer.

Major projects

It’s difficult to find volunteers during a major renovation or repair, governing document overhaul, or even a lawsuit. So, find volunteers before the major project begins.

Big boards

Some boards are unnecessarily large for the size of the association.

For example, does a 25-member association need five directors — 20% of the membership? A 3-member board may be adequate and much easier to staff. Changing the board size to a more appropriate number probably will require a membership vote to amend the association bylaws.

Adjust some things, and get those board seats filled!

Kelly G. Richardson CCAL is a Fellow of the College of Community Association Lawyers and Partner of Richardson Ober LLP, a California law firm known for community association advice. Send column questions to Kelly@roattorneys.com.

“How expensive?” tracks measurements of California’s totally unaffordable housing market.

The pain: Tenants will find dwindling cost advantages when choosing California’s cheapest places to rent compared with the state’s priciest spots.

The source: My trusty spreadsheet reviewed Apartment List’s rent data between January 2017 and March 2024. It’s an interesting metric because it’s a mix of Census Bureau figures and results from the company’s own rental listings for 47 states, the District of Columbia, and 583 US cities – including 82 in California. (Yes, no Alaska, Maine or Vermont).

The pinch

My spreadsheet created a rent “bargain” yardstick by splitting the 82 California cities into two groups.

For high-priced rents, we looked at what stat geeks call the “75th percentile” – the middle price of the 41 cities ranking in the upper half of rents statewide. That cost was compared with low-rent districts: the “25th percentile” – which is the middle rent for the cheapest 41 cities. (FYI: The often-used median is the 50th percentile.)

Back in 2017, there were 36% in rent savings between these measurements of California’s costliest and most inexpensive markets. That was $2,471 monthly rent in the upper half vs. $1,589 at the lower end. Or $882 potential savings each month between renting in a typical pricey California city vs. an “affordable” town.

• HOW NIMBY ARE YOU? Ponder common objections to new housing. TAKE OUR QUIZ!

Next, we looked at today’s conditions – data for the 12 months ended in March 2024. The housing discount for renting in the Golden State’s less-costly communities fell to 22%. That was $2,748 in the most-expensive cities vs. $2,144 in cheaper ones. Or $604 monthly.

Or ponder the shrinking savings this way: Rents in California’s costliest half grew just 11% since 2017. But there was a 35% surge in the more “affordable” locales.

Why the narrowing gap? You can blame a population push away from the biggest metropolitan areas, mostly near the ocean, and toward lower-cost communities that are primarily inland. That’s the byproduct of remote workers departing job hubs and folks seeking cheaper housing.

Pressure points

Sadly, rent “bargains” in California – relatively speaking – are disappearing.

Think about California’s 10 “most affordable” communities and the hefty rent hikes found since 2017 …

Fresno: $1,327 average rent in the 12 months ended in March – up 42% vs. the 2017 average.

Victorville: $1,641 – no change data available.

Citrus Heights: $1,659 – up 38% since 2017.

Sacramento: $1,667 – up 30% since 2017.

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Santa Maria: $1,761 – up 52% since 2017.

Long Beach: $1,769 – up 19% since 2017.

Riverside: $1,810 – up 48% since 2017.

Pomona: $1,865 – up 31% since 2017.

Santa Rosa: $1,903 – up 18% since 2017.

Moreno Valley: $1,906 – up 48% since 2017.

Contrast those surges to what’s occurred in the state’s 10 costliest places to rent …

Calabasas: $3,302 a month – up 27% since 2017.

Newport Beach: $3,259 – up 27% since 2017.

Lake Forest: $3,169 – up 42% since 2017.

San Mateo: $3,137 – up 6% since 2017.

• MORTGAGE NEWS: What’s up with rates? Who’s lending? CLICK HERE!

Dublin: $3,131 – up 6% since 2017.

Emeryville: $3,032 – off 4% since 2017.

Sunnyvale: $3,019 – up 7% since 2017.

Irvine: $2,983 – up 29% since 2017.

Redwood City: $2,980 – up 2% since 2017.

Santa Clara: $2,979 – up 16% since 2017.

Bottom line

California tenants also don’t fare well within the national picture.

The state’s $2,154 average rent in the 12 months ending in March was topped only by Hawaii’s $2,239. Rent nationwide ran $1,402 a month, by this math. That’s 35% cheaper.

But let me conclude with a dash of good news: California’s overall rents rose by 21% since 2017 vs. US rents that jumped 28% in the same period.

Only six places had smaller rent hikes since 2017 – DC at 5%, Louisiana at 11%, Minnesota at 14%, Iowa at 15%, Oregon at 16%, and North Dakota 17%.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

This seismic business shift is like the 100-year flood.

How are buyers’ agents going to be paid? Nobody works for free.

In case you missed the big news, the national trade group was hit with a class action verdict that said it was price fixing commissions. Instead of paying out a $1.8 billion judgment, NAR settled for $418 million and said it would prohibit sellers from offering compensation to buyers’ agents through a Realtor-affiliated home-listing database.

Also see: House hunters fear Realtor settlement could make homebuying harder

This creates a buyer’s conundrum. Below are some avenues likely to evolve.

Buyers’ agents will either call ahead to the listing agent to find out if a buyer’s side commission is being offered. The agents may require the buyers to sign an exclusive buyers’ brokers agreement.

The available inventory of homes for sale is as tight as a drum and has been so since the pandemic days. Locating a home to buy, and receiving professional representation, are important.

For sellers: Sold a home recently? Here’s what you’ll get from the $418 million Realtor settlement

But signing an exclusive buyers’ side agreement, effectively locking oneself into one agent, may or may not be something a buyer will want to do. Buyers might commit if it’s a particularly sharp agent. Otherwise, why box yourself in? says the many buyers I’ve talked with.

Wealthy buyers can just pay their agents directly. Low-wealth buyers will be hard-pressed to come up with the down payment, closing costs, inspection fees and pay a buyer’s agent, say, 1% of the sales price or some preset amount like $4,000.

What other choices likely to evolve and become available to buyers are certainly a horn of plenty.

Online search engines and transaction platforms are sure to evolve. Think Amazon or Costco.

Buyers can arrange and/or agree to an à la carte menu of charges or hourly wages from licensees for services like tours, research, negotiating and the like.

Many buyers may go directly to the listing agent believing the listing agent will be more likely to accept an offer in which the agent doesn’t have to be concerned with the seller paying a buyer’s agent. (Regardless of the NAR settlement, some buyers already do this considering the tight inventory.)

Buyers can negotiate their own transactions directly with the seller. For example, a for-sale by owner or FSBO. Escrow companies routinely support FSBO transactions. At minimum, the buyer and seller need something written and signed. I’ve seen plenty of simply written agreements.

How do you find a home on your own? One way is to create a flyer explaining your wants and needs, who you are, your family, etc. Make 400 copies and start knocking on the doors in the neighborhood you are seeking. It’s a lot of leg work, but you’re likely to get some bites.

Buyers and sellers can always hire their own real estate attorneys to review and prepare documents, perhaps far cheaper than paying a percentage of the sales price to an agent.

Some mortgage loan originators or MLOs are also licensed real estate agents/brokers. Originating the mortgage and writing the real estate offer something of a double duty and certainly has the potential to evolve.

I would bet many real estate agents also will get their mortgage originator license as one way to get paid.

Freddie Mac rate news

The 30-year fixed rate averaged 6.82%, 3 basis points higher than last week. The 15-year fixed rate averaged 6.06%, 5 basis points lower than last week.

The Mortgage Bankers Association reported a .6% mortgage application decrease compared to one week ago.

Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $766,550 loan, last year’s payment was $273 less than this week’s payment of $5,008.

What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages with one point: A 30-year FHA at 5.75%, a 15-year conventional at 5.625%, a 30-year conventional at 6.25%, a 15-year conventional high balance at 6% ($766,551 to $1,149,825 in LA and OC and $766,551 to $1,006,250 in San Diego), a 30-year high balance conventional at 6.625% and a jumbo 30-year fixed at 6.75%.

Note: The 30-year FHA conforming loan is limited to loans of $644,000 in the Inland Empire and $766,550 in LA, San Diego, and Orange counties.

Eye-catcher loan program of the week: A 30-year jumbo at 6.375% with two points.

Jeff Lazerson, president of Mortgage Grader can be reached at 949-322-8640 or jlazerson@mortgagegrader.com.

My trusty spreadsheet, peeking at February’s CoreLogic sales stats, found these record-setting nuggets …

Sales: The 12,430 transactions completed in the six-county region – involving existing and new residences, homes and condos – represented a 17% jump from January. That’s the largest January-to-February increase in a database dating to 1988.

Pricing: The buying binge helped nudge Southern California’s median selling price up 5% to $740,000. This, too, is the biggest January-to-February gain on record.

Timely twist

February may not be seen as a hot month for homebuying, but it has seen noticeable upticks in sales and prices just before the traditional spring rush. Just ponder the previous 36 years.

Southern California sales have increased from January in 21 years. February’s average sales change is a 1.5% gain, making it the sixth-best month.

As for pricing, Southern California’s median has risen 28 times in February since 1988 – with an average price hike of 1.2%, the third-best month.

Now, let’s remember that one month does not make a trend. Still, the sales escalation is eye-catching, considering that Southern California suffered its slowest two-year homebuying pace on record between 2022-23.

• MORTGAGE NEWS: What’s up with rates? Who’s lending? CLICK HERE!

Leading this February’s one-month purchasing pop were sales of new homes, up 29%. Southern California builders have succeeded because they have homes to sell, and they’ve been aggressive with concessions to buyers – notably, cut-rate financing. Sales of existing condos were up 23% in February while existing house sales rose 15%.

February’s buying boost can be linked to the bottoming of mortgage rates in late 2023. House hunters may have rushed to close deals as rates rose at the start of 2024.

Plus, buyers may have noticed weaker pricing. Southern California’s home prices took their biggest 2-month dip in 12 years in December and January.

And don’t forget that leap year that added a day to conduct business, too.

Also, let’s remember any sales increase isn’t that surprising, considering just how slow Southern California homebuying has been.

• HOW NIMBY ARE YOU? Ponder common objections to new housing.TAKE OUR QUIZ!

Despite the record one-month sales bump, this was the third-slowest-selling February since 1988 – and 27% below average. Southern California housing remains very unaffordable.

Locally speaking

Here’s how the six counties fared in February, ranked by the month’s sales gains …

San Diego: 2,132 sales, up 27% from January – the No. 1 increase over 37 years vs. 7% average one-month gain since 1988. This was the fifth-slowest February over 36 years and 26% below average. The county’s median price rose 3% to $825,000 (No. 4 gain in 37 years) vs. 1.2% average increase since 1988.

Ventura: 434 sales, up 25% from January – No. 2 increase vs. 3% average gain. Second-slowest February, 41% below average. Median rose 3.1% to $823,500 (No. 7 gain) vs. 0.2% average increase since 1988.

Orange: 1,775 sales, up 24% from January – No. 2 increase vs. 4% average gain. Third-slowest February, 29% below average. Median rose 4.3% to $1.11 million (No. 6 gain) vs. 1.5% average increase since 1988.

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Riverside: 2,576 sales, up 14% from January – No. 4 increase vs. 5% average gain. 15-slowest February, 8% below average. Median rose 3.2% to $567,500 (No. 13 gain) vs. 2.4% average increase since 1988.

San Bernardino: 1,767 sales, up 14% from January – No. 3 increase vs. 1% average decline. 11th-slowest February, 18% below average. Median rose 3.2% to $490,000 (No. 14 gain) vs. 1.8% average increase since 1988.

Los Angeles: 3,746 sales, up 12% from January – No. 1 increase vs. 2% average decline. Third-slowest February, 36% below average. Median rose 5.6% to $845,000 (No. 1 gain) vs. 0.5% average increase since 1988.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

The Federal Trade Commission’s online settlement tracker says California home sellers are getting a median refund of $1,553 after the company “tricked them into thinking that they could make more money selling their home to Opendoor than on the open market.”

Also see: What’s an iBuyer? These companies will buy your home quicker, but at what cost?

An FTC investigation found that home sellers who used Opendoor actually lost money.

“In reality, most people who sold to Opendoor made thousands of dollars less than they would have made selling their homes using the traditional process, and many paid more in costs than what sellers typically pay,” the FTC said in a statement Wednesday.

The FTC complaint said Opendoor charts marketed to prospective sellers “almost always showed that consumers would make thousands of dollars more by selling to Opendoor.” Instead, sellers spent thousands more on service fees and their home’s market value often “included downward adjustments.”

The premise of Opendoor’s marketing was that homeowners could skip the costs of fixing, listing and showing a home by selling it to Opendoor using an online app instead. The owner would get a cash offer after the company determined the home’s value using its own algorithm. The price would go down after Opendoor evaluated repairs and service fees.

Opendoor was one of several so-called iBuyers that zeroed in on the Southern California housing market a year before the pandemic’s low interest rates would vault prices to record highs. In March 2019, Opendoor, RedfinNow, Offerpad and Zillow Offers brought their substantial backing to sellers, promising a quick way to sell a home with few hassles.

Also see: Redfin tumbles after real estate firm downgraded over ‘flawed’ model

Sales represented a scant 1% of market share in the overall home transactions. By spring 2021, the companies were buying more homes, defying expectations that these online acquisitions would drop during the overheated seller’s market.

Zillow Offers, Opendoor, Offerpad and RedfinNow spent a combined $512 million buying 789 houses in Los Angeles, Orange, Riverside and San Bernardino counties, a study by Zillow found.

Nationwide, homeowners sold more than 15,000 properties to iBuyers that spring for nearly $5.3 billion, the study said.

The settlement with Opendoor:

—prohibits the company from making the deceptive or unsubstantiated claims to consumers about how much money they’ll get or the costs they will have to pay to use its service;

—requires Opendoor to have “competent and reliable evidence” to support claims made about the costs, savings or financial benefits

In the Opendoor settlement, the FTC is sending $4.06 million in payments to 2,472 recipients in California. The distribution comes eight months after the FTC and Opendoor agreed to settle the dispute.

Consumers who have questions about their payment can call the refund administrator, Epiq Systems, at 1-888-546-2054 or reference the FTC’s frequently asked questions about the refund process.

Staff writer Jeff Collins contributed to this report.