Welcome to the 70th issue of the California Coronavirus Weekly Recap newsletter. Before we get started with this week’s news, we want to let you know C.A.R. is offering a COVID Relief Wrap Up webinar on July 22 at 10 a.m. As life begins to return to normal, many of the federal and state programs designed to provide relief to individuals and businesses during the COVID pandemic are coming to a close. However, there are still a few elements of these programs that REALTORS® need to consider. For REALTORS® that received Paycheck Protection Program (PPP) loans, many still need to apply for loan forgiveness. And for REALTORS® who are also landlords, many are still looking to receive financial assistance for unpaid rent. C.A.R. attorneys will tell you what you need to know about PPP loan forgiveness and landlord relief so that you can take full advantage of these benefits. Register here.
In This Issue:
- The Economy & Your Finances: : Experts concerned about delta variant impacting global economic recovery
- The Market & Industry: Foreclosure crisis looking less likely
- Around the State: Cases rising in California for first time in months
- Health Check-Up: Pfizer to develop booster shot
The Economy & Your Finances: Business Should Be Booming — If Only There Were Enough Workers For The JobTreasury Secretary Janet Yellen expressed her concerns at the G20 Summit that the delta variant could derail the global economic recovery. The highly contagious Delta variant is now the most prevalent in the United States, and global leaders are concerned about its impact on a globally connected economy. And the managing director of the International Monetary Fund, Kristalina Georgieva, warned that there is a risk of rising inflation that could lead to a sharp tightening of financial conditions around the world.
In California, unemployment claims rose last week by 3,000; nationwide jobless claims increased as well. While California’s economic recovery is continuing, unemployment claims remain 32 percent higher than they were just prior to the start of the pandemic.
As of this past Sunday, the California Employment Development Department (EDD) now requires applicants for unemployment benefits to submit proof they are job searching. PUA benefit recipients must also take action to restart their businesses. According to the EDD, claimants will be receiving notices in the coming weeks detailing what’s required. Activities that may meet the PUA work search requirement for each week include pursuing new or additional clients, marketing the business, attending networking events, and enrolling in training or education courses that will help their business and doesn’t interfere with their ability to return to full-time self-employment. Meanwhile, two-thirds of California taxpayers are still waiting to receive the $600 one-time stimulus payments announced by Governor Newsom in May.
Sources: Reuters, The New York Times, The Mercury News, KTVU, CBS San Francisco
The Market & Industry: Foreclosure crisis looking less likely
A nationwide spike in forbearances is looking less likely. While 2.7 million Americans are behind on their mortgage payments, 77 percent of homeowners in forbearance programs are on a loss mitigation repayment plan. And forbearance loans decreased last week for the 18th straight week.
Consumers increasingly agree now is a great time to sell a home and a particularly bad time to buy one. The net share of those who said it was a good time to buy decreased 11 percentage points month over month. At the same time, the net share of Americans who thought home prices would increase in the coming months declined 3 percentage points.
California’s supply issue continues to improve. The number of new listings being added to the MLS each day remains slightly ahead of the number of homes being closed on the MLS each day in California — which means the number of homes on the market has been increasing in California for a little over a month. Active listings are still depressed with relation to pre-pandemic levels.
Sources: REALTOR® Magazine, HousingWire, Fannie Mae, C.A.R.
Around the State: Cases rising in California for first time in months
Cases are rising in California for the first time in months as the highly infectious Delta variant continues to spread. Hospitalizations have increased 34 percent since mid-June. The Bay Area in particular has been named an emerging hot spot by the federal government.
Health experts say that while it is too soon to tell if the uptick is a minor setback or the start of a trend, they continue to have confidence in California’s reopening plans. Conventions and conferences are returning, with in-person attendees required to show either proof of vaccination or a recent negative COVID test. While the Delta variant poses serious risks to those who are unvaccinated, vaccinations have been shown to be effective at preventing it from causing severe symptoms.
As of 10:37 a.m., cases in California number 3,820,514 and hospitalizations numbered 1,594. The statewide average for ICU bed availability was 30.5 percent and 59.4 percent of Californians were at least partially vaccinated.
Masks have been reinstated at the California State Capitol Building after a COVID outbreak infected nine people, four of whom were fully vaccinated. At least seven of the nine people work in the same office.
State officials announced new guidelines for schools last Friday, which are stricter than those issued by the CDC. In California, students and staff will be required to continue wearing masks indoors, whether they are vaccinated or not. But physical distancing will not be recommended due to the obstacles it poses to reopening schools.
Sources: Los Angeles Times, The San Francisco Chronicle, The Guardian, EdSource, CDC, CBS Sacramento
Health Check-Up: Pfizer to develop booster shot
Pfizer and BioNTech announced they are developing a booster shot of their coronavirus vaccine to target the Delta variant. Executives have said people will likely need the third shot within 12 months of getting vaccinated. Clinical studies could begin as early as August.
The World Health Organization (WHO) said on Monday that most fully vaccinated people who are infected with the Delta variant of the coronavirus are asymptomatic. However, they can still spread the virus to others who may not be vaccinated and thus more likely to come down with a serious illness.
Health experts are still recommending COVID testing, even for the fully vaccinated in some cases. Breakthrough infections are rare, but they do happen — and concern is greater now that the highly contagious Delta variant is the dominant strain in California and nationwide.
Sources: The San Francisco Chronicle, CNBC