Earlier this week, C.A.R. was informed that Compass, Inc. has agreed to purchase Glide Labs, Inc. and its transaction management software. Glide has been a longtime partner and is now a new member benefit that provides access to C.A.R. Forms. Protecting members’ best interests has always been C.A.R.’s focus. As such, C.A.R. will continue to monitor the Compass-Glide transaction in the days and weeks ahead and keep you informed of developments.
In This Issue:
- The Economy & Your Finances: Final round of applications for California small business grant program opens today
- The Market & Industry: California market closed out April strong
- Around the State: California has lowest case rate in the nation
- Health Check-Up: CDC issues new outdoor mask guidance for fully vaccinated people
The Economy & Your Finances: Final round of applications for California small business grant program opens todayThe application period for the sixth and final round of funding for the California small business grant program opens today, April 28, and runs through May 4. California small businesses can apply to receive grants ranging from $5,000 to $25,000. If you previously applied for a grant, you should not apply again — if you were not selected in a previous round, your application will be automatically moved to this sixth round. For more information and to apply, head to CaReliefGrant.com.
According to a poll of over 500 economists, the U.S. economy will recover from the coronavirus slump with vigorous growth this year. Still, the job market is expected to lag, with unemployment rates for economies like that of the United States not forecast to return to normal this or next year. In the United States last week, unemployment claims fell nationwide but rose slightly in California, though they notably remained below 100,000 for the second week in a row.
Some unemployment recipients are contending that an EDD glitch has prevented them from extending their benefits beyond 52 weeks. Experts encourage recipients to closely monitor their accounts to ensure their benefits are still active and file a new claim if necessary. Those receiving regular state Unemployment Insurance (UI) benefits must reapply for federal benefits if they’re still unemployed when they reach the end of their benefit year. Those receiving Pandemic Unemployment Assistance (PUA) benefits don’t need to apply for a new claim when the reach the end of their benefit year. They should, however, continue to look out for messages in their UI Online accounts notifying them that they have weeks available to certify.
With the extended tax filing deadline approaching on May 17, know that if you received unemployment payments this year, you do not need to pay California state unemployment taxes on those benefits. You may still need to pay federal taxes, but the American Rescue Plan Act created new thresholds for what’s taxable. If your adjusted gross income is $75,000 or less for singles or married people filing separately — or $150,000 for married joint filers — you don’t have to pay taxes on your first $10,200 of 2020 unemployment benefits. Additionally, you don’t have to pay federal income taxes on forgiven PPP loans or EIDL advances. A bill is before the governor to exclude these from California state income taxation for taxpayers that meet certain criteria. Consult with your tax advisor if this might affect you.
Sources: KCRA, California Small Business Grant Program, Reuters, Los Angeles Daily News, KTVU, KQED
The Market & Industry: California market closed out April strong
The California housing market closed out April on a strong note, with home sales poised to accelerate on a year-to-year basis as we enter the beginning of the period when home sales began to be affected by the lockdown last year. Demand remains high, fueling the highest sales price-to-list-price ratio (102.2 percent in March 2021) C.A.R. has recorded in two decades.
Weekly mortgage demand jumped 8.6 percent last week after interest rates dipped below 3 percent for the first time in nearly two months. This was the first overall increase in weekly mortgage applications since the end of February.
Facing rising and unpredictable lumber prices, builders are increasingly adding escalation clauses to their sales contracts. While these clauses do protect builders from rising costs, they could price out customers who are unable to afford the escalated price.
Sources: C.A.R. Research & Economics, CNBC, Inman News, REALTOR® Magazine
Around the State: California has lowest case rate in the nation
As of 10:54 a.m. today, cases in California number 3,712,343 and 45.6 percent Californians are at least partially vaccinated. In fact, California now has the lowest case rate of any state in the nation. Infections are declining across the state among young and middle-age adults, which is particularly encouraging as those demographics were key drivers of earlier surges. The improvement has been attributed to California’s vaccine rollout, in addition to continued social distancing and mask-wearing. The statewide average for ICU bed availability is 31.3 percent, and the state is averaging a 1.5 percent positivity rate for tests.
California’s vaccination rollout did slow with the recent pause of the Johnson & Johnson vaccine. Now that the CDC has recommended Johnson & Johnson vaccinations resume, it remains to be seen whether the state will reverse the recent blip before it morphs into a more downward trend.
The University of California and California State University campuses will require vaccination for all students, faculty and staff attending in person this fall. Both systems would allow for exemption due to medical or religious reasons.
Sources: Los Angeles Times, Blueprint for a Safer Economy, The San Francisco Chronicle, NPR, AP News
Health Check-Up: CDC issues new outdoor mask guidance for fully vaccinated people
The US Centers for Disease Control and Prevention on Tuesday issued new guidance on outdoor mask use for fully vaccinated Americans.
Fully vaccinated people can now unmask at small outdoor gatherings, or when dining outside with friends from multiple households. The CDC is telling unvaccinated people that they still need to wear a mask at such gatherings.
A study from MIT revealed staying six feet apart indoors does almost nothing to stop the spread of COVID-19. According to the study, the six-foot rule is based on outdated information about how the coronavirus spreads. Other variables — like the number of people in a space, whether they wear masks, what they are doing, and the level of ventilation — are much more important.
While the United States is making significant progress vaccinating the population against COVID-19, experts remain concerned that as long as a significant number of infections are present, the virus has an opportunity to mutate. The two variants that originated in California were recently found to be 20 percent more infectious than the original virus.
Dr. Anthony Fauci said on Monday that the United States should expect to reach a turning point in the pandemic within a few weeks, if vaccinations continue at the current pace. Infections will still exist, but Fauci expects the number of infections per day, hospitalizations and deaths to significantly decline within the next few weeks.
Sources: Business Insider, Yahoo! Finance, The San Francisco Chronicle, CNBC