A few of my friends like to debate this but according to a state Department of Finance report issued in December 2020, it’s estimated that 135,600 more people left California than moved here last year. It’s only the 12th time since 1900 the state has had a net migration loss, and 2020’s was the third largest ever recorded. The percentage of California residents who left the state since 2015 has grown from 16% to 18% — a trend that continued in 2020.
I only have a few clients personal to Pence Hathorn Silver that now call Texas home, but several high-profile business leaders have gone or announced plans to move out of California. All of them motivated by lower taxes and fewer regulations. Among the most famous of course is Tesla CEO Elon Musk, and the headquarters of tech giants Oracle and Hewlett-Packard — who can trace back their roots to the founding of Silicon Valley.
It is easy to blame California’s high taxes and government policies for this migration, but state officials say the pandemic has majorly affected California’s population, specifically a spike in deaths and altering immigration patterns. Although lockdowns may have prevented some people from moving to California, they also allowed residents to leave as remote work became the new norm.
State officials base their population estimates on a few different sources; birth and death counts, the number of new driver licenses and address changes, school enrollments and federal income tax returns. These estimates may be subject to change. Several of those data sources were affected by the pandemic, including the extension of deadlines for taxes and license renewals. The state will likely revise this estimate this year based on new information.
DID YOU KNOW Economists surveyed by The Wall Street Journal estimate that the Labor Department will report that the consumer-price index increased by 4.7% in May from a year earlier, up from 4.2% for the year ended in April. This is the highest 12-month inflation rate since 2008. The core-price index, which excludes the often-volatile categories of food and energy, likely rose 3.5% in May from a year before, they estimated. (WSJ)
DID YOU KNOW The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.15% from 3.17%. Applications for a mortgage to purchase a home were essentially flat from the previous week and 24% lower than one year ago.
In 90402 Real Estate News…
Just one new listing came to market-
1525 San Vicente Blvd– I think this is more a publicity stunt than a serious list price of $90 Million. It is a huge house on over an acre and a half with 200 ft of frontage overlooking the Riviera Country Club golf fairways. The master bedroom alone is 2,500 sq ft. Last sale was in 2014 for $24.5M.
Six properties went into escrow-
621 15th Street– Listed at $4,699,000.
455 21st Place– Listed at $7,395,000.
229 22nd Street– Listed at $5,300,000.
527 15th Street– Listed at $3,250,000.
440 25th Street– Listed at $8,995,000.
414 Euclid Street– Listed at $3,700,000.
510 16th Street– Sold for $6,558,795. Originally listed at $7,295,000.
446 23rd Street– Sold for $5,755,000. Originally listed at $6,500,000.
614 14th Street– Sold for $4,250,000. Originally listed at $4,495,000.