Make sure you have seen the FAQs C.A.R. has prepared for the reopening of California this week. See here for more information.
In This Issue:
- The Economy & Your Finances: California’s GDP shrunk by less than Texas & Florida in 2020
- The Market & Industry: New guides for REALTORS® on California reopening
- Around the State: California fully reopens
- Health Check-Up: Decline in testing concerns public health experts
The Economy & Your Finances: California’s GDP shrunk by less than Texas & Florida in 2020Last week, California’s jobless filings hit their lowest level since the start of the pandemic, totaling just 53,000. California accounted for 14.4% of all of the unemployment claims filed in the U.S., even though the state has only 11.8% of the nation’s labor force. Lower-income workers, workers of color and the youngest workers are still far more likely to be unemployed than the state average.
New research from UCLA Anderson Forecast finds that states that imposed weaker COVID-19 prevention methods did not experience an economic boost for doing so. To illustrate this point: In 2020, California’s GDP shrunk by less than Texas and Florida. California’s economy was also helped by the fact that workers in industries like technology could work from home and saw far fewer job or pay cuts, helping the state’s economy overall.
Nationwide jobless filings dropped for the sixth straight week to 376,000 from 385,000 the week before. Claims still remain high by historic standards; prior to March 2020, initial jobless claims regularly came in below 220,000. Consumer prices rose solidly in May, although the jump appears to be temporary.
Sources: The OC Register, The Associated Press, Public Policy Institute of California, Reuters, The Mercury News
The Market & Industry: New guides for REALTORS® on California reopening
While as of yesterday, California has reopened, there are still some protocols that will apply to REALTORS®. C.A.R. has created an extensive and detailed new Q&A and Quick Guide to ensure that members are in compliance and well-informed with the new rules that have gone into effect, including changes for open houses and showings. The Q&A addresses the following issues:
Physical distancing and cleaning requirements
• Posting rules of entry
• PEADs and other sign-in requirements
• Wearing of masks
• Requiring proof of vaccination and/or negative COVID test results
• Addressing claims of medical and religious exemptions to wearing masks
• Conducting door knocking activities
• Distributing flyers
• Reopening offices
As of yesterday, the only restriction will be to follow the CDPH Guidance for Face Masks, otherwise there will be no restrictions. No physical distancing will be required for guests and customers. No cleaning. No posted rules of entry. And no PEADs or any other type of sign in. No one will have to agree to an office prevention plan. No one will have to attest to their current health status.
Mortgage applications fell 24% last week to their lowest level since January. After growing for 52 consecutive weeks on a year over year basis, new applications first began to decelerate in April. This is consistent with both the C.A.R. and Fannie Mae home purchase sentiment indices released last week, which showed increasing pessimism among buyers as prices rise and competition over limited available listings remains fierce.
More than a year into the pandemic, and cities seem to be getting more attractive again. Moves away from dense urban centers have started to slow, according to a new study from Updater.
Sources: C.A.R., California Department of Public Health, REALTOR® Magazine
Around the State: California fully reopens
Yesterday, Governor Newsom’s executive order went into effect, ending California’s stay-at-home order. There are no longer any capacity limits or physical distancing requirements for businesses, and people who are fully vaccinated won’t be required to wear a mask — including indoors.
The color-coded tier system is also gone. But masks are still required for everyone on buses, trains, planes, ships, taxis and ride-share vehicles, as well as in airports, bus stations and ports. Masks are also required indoors for everyone in K-12 schools, child-care facilities, health care facilities, prisons, jails and shelters. California will remain in a state of emergency for an undetermined length of time.
As of 9:20 a.m., cases in California number 3,778,123 and hospitalizations numbered 977. California has one of the highest vaccination rates in the nation, with 56 percent of the residents of all ages (and 71 percent of adults) having received at least one dose. San Francisco is nearing herd immunity, while Los Angeles still has a ways to go.
Sources: Los Angeles Times, KTLA, The Mercury News, The New York Times
Health Check-Up: Decline in testing concerns public health experts
As coronavirus testing continues to decline, experts warn that less testing will make it difficult to identify and track new outbreaks. Daily coronavirus tests in the United States peaked in mid-January at about 1.8 million. Since then, the number has dropped by more than half, to an average of about 700,000 tests per day.
International air travel is beginning to surge now that vaccination rates are up. If you’re planning for international travel this summer, the CDC recommends that you get vaccinated before you go and avoid the 60 countries on the “very high risk” list. Some countries will want to see your vaccination card.
Scientists are concerned about variant B.1.617.2, first detected in India, which now accounts for more than 90 percent of new cases in the U.K. The variant is thought to be around 40 percent more transmissible than the alpha variant and is currently estimated to be responsible for around 6 percent of cases in the U.S.
Sources: The San Francisco Chronicle, NPR, The New York Times