The History of San Diego Real Estate: A Look at the Modern Day Industry

SD-real-estate-history

 

In this special series, we will be covering the evolution of the real estate industry from the 1960’s to present day. These posts are based on the industry experience of Coastal Premier Properties Broker, Tom Tucker. It is our hope that by retelling the history of real estate in San Diego County, we will be able to trace the changes at a social, economic, and technological level that have led to today’s current industry profile and the results that have occurred for consumers, for better and for worse. Click here to read about San Diego in the 1960’s, 1970’s, 1980’s, 1990’s, and 2000’s.

 

2015

 

San Diego Real Estate History: 2015, Present Day

 

San Diego County Population: 3,211,252 people

San Diego County Population Growth For The First Half of This Decade: 3.7%

Estimated Number of New Housing Units Built in 2010 or Later: 2,213 Units

Estimated Number of Total Housing Units in the County by 2009: 292,174 Units (Including 47,015 Units Built Prior to 1960)

(information provided by the U.S. Census Bureau, Date of Last Census: 2013)

 

Five years into 2010 and the industry is still rapidly changing. With so many technology companies racing to be the first to deliver the new, most-cutting edge product and society’s reliance on this type of consumerism, real estate agent’s have been forced to adopt a cutting-edge approach as well. The agent who responds the fastest and has the best tools while still providing the best service at the best price, generally wins. Consumers are now used to being able to shop around for a “product” and that approached has dramatically changed the real estate game.

On a consumer level, the introduction of third-party sites at the beginning of the decade, sites like Zillow, Trulia, Homes.com, and more, have changed how the public gets their information and what their relationship with their agent is. Consumers have access to a tremendous amount of information about the homes they wish to buy or sell. Not only can see what their neighbor’s home sold for, they can look at high-res pictures and videos of a property, find out when the open house will be, see how long a property has been on the market, and  get up to date information about schools, crime, and more. This wealth of information that is available to consumers at no cost has led to some to question what role real estate agents will play in the future.

This incredible amount of availability, has a dark side, though, one that ensures the place of real estate agents in years to come. The data that consumers receive is not pure. It’s often incorrect, muddied, or unclear. The stack of paperwork and disclosures that a buyer and seller must complete is often overwhelming and it’s often difficult to understand what all those contracts are actually saying. More than ever, consumers need real estate agents to help them navigate the wealth of information they’ve been granted.

The future of real estate looks bright. People are buying properties without ever seeing them, simply by watching video or looking at photos their agent sent. International investments are on the rise. People can review offers and sign contracts from their mobile phone, on a lunch break, or on vacation. New laws protect consumer interests. “Buyer Beware” has become utterly archaic. Disclosures have shifted the nature of liabilities, allowing people to be more confident in the person they’re doing business with and what they’re getting out of the deal.

Simply put, people are able to transact real estate deals in ways that would have been unimaginable fifty years ago. It’s both easier and harder to buy your dream home, today, but it’s exciting nonetheless.

 

Notable Changes in Real Estate Law From This Decade:

 

2010: Financial Literacy Outreach. In April 2010, the California Department of Real Estate (DRE) launched its Financial Literacy Outreach Program. In an effort to educate all Californians to fully understand the complexities of real estate transactions, from school-aged kids to senior citizens, the DRE through this program and by partnering with other government agencies dedicated to Financial Literacy, will promote a wide range of activities, resources, workshops and other important events.

2010: SAFE Act Becomes Law. The Federal Secure and Fair Enforcement (SAFE) Mortgage Licensing Act of 2008 became law in California with the enactment of Senate Bill 36.

2010: AB 260 was part of an ongoing effort by the Legislature to tighten its regulation of mortgage brokers and strengthen consumer protections following the mortgage crisis. AB 260 (2009) placed restrictions on high cost mortgages including limiting the use of prepayment penalties, yield spread premiums and negative amortization. The bill also codified that mortgage brokers are fiduciaries of the borrower. Brokers are now prohibited from steering a borrower into a loan that is more beneficial to the broker than the borrower.

2011: SB 931 prohibits a lender from pursuing a deficiency judgment against the borrower/homeowner in those cases where the lender consents to a short sale. Difficult economic times brought about a vast number of short sales – sales in which the lender agrees to accept less than what is owed from the homeowner in the sale of the residence. Prior to the enactment of SB 931, borrowers were potentially subject to deficiency judgments which would require them to pay the difference between the loan amount and the agreed short sale price.

2012: Recovery Account Renamed. Senate Bill 706 renamed the Recovery Account to “Consumer Recovery Account.”

2013: DRE Becomes the Bureau of Real Estate (BRE).

 

Notable San Diego Events From This Decade:

 

2011: Blackout darkens much of San Diego.

 

Notable United States Events From This Decade:

 

2010: Deepwater Horizon incident.

2013: Boston Marathon bombing.

2013: Edward Snowden, a former CIA employee, comes forward and admits that he is the source of the recent NSA leaks.

2014: The Affordable Care Act goes into effect.

2015: The fight over Net Neutrality takes center stage.



Advertisements

The History of San Diego Real Estate: 2000’s

SD-real-estate-history

 

In this special series, we will be covering the evolution of the real estate industry from the 1960’s to present day. These posts are based on the industry experience of Coastal Premier Properties Broker, Tom Tucker. It is our hope that by retelling the history of real estate in San Diego County, we will be able to trace the changes at a social, economic, and technological level that have led to today’s current industry profile and the results that have occurred for consumers, for better and for worse. Click here to read about San Diego in the 1960’s, 1970’s, 1980’s, and 1990’s.

 

2000

San Diego Real Estate History: The 2000’s

 

San Diego County Population: 2,813,833 people

San Diego County Population Growth For This Decade: 10%

Estimated Number of New Housing Units Built from 2000-2009: 38,142 Units

Estimated Number of Total Housing Units in the County by 2009: 289,961 Units (Including 47,015 Units Built Prior to 1960)

(information provided by the U.S. Census Bureau)

 

Overall, in the 2000’s, we saw a continuation of the reliance on technology and instant communication that dominated the past decade. Advances in technology, wireless internet services, and increasing speeds meant that people were growing even more connected.

Most prominently, this decade saw a reinforcement of the idea that real estate data was now publicly available for searching. The widespread use of websites, coupled with IDX searching, put a great amount of power into the hands of the public.

Marketing began to shift from print to online. More people spent time online than ever before and the real estate industry adjusted accordingly, spending lots of money on their websites and online advertising. By the mid-part of the decade, SEO and site-rank became new buzzwords in a real estate agent’s vocabulary.

Technology for mobile devices continued to improve, allowing us to take pictures and even short videos with our devices. We no longer needed to carry around extra equipment to showcase our listings for the public. We could even send these pictures and videos to clients, allowing them to see the house they were interested in, without going to the property.

By the end of the decade, the real estate industry’s relationship with technology was cemented. The instant delivery of information, access to up-to-the-minute pricing information, and ability to work remotely or “out in the field” greatly sped up the productivity of each agent and allowed them to form even better relationships with their clients.

 

Notable Changes in Real Estate Law From This Decade:

 

2002: Predatory Lending Laws. Assembly Bill 489 (Migden), as amended by Assembly Bill 344 (Migden), generally known as the Predatory Lending Law, added Sections 4970 through 4979.8 to the California Financial Code and imposed restrictions and limitations on specified loans secured by real property for which an application is made on or after July 1, 2002. Department of Real Estate (DRE) publications, as well as the DRE website, provided related consumer information in English, Spanish and Traditional Chinese.

2004: Consumer Protection Videos. The DRE funded the creation of videos and workbooks for first time renters and homebuyers. Approximately 375 videos and workbooks were distributed to educators at high schools, adult schools, colleges, libraries and community organizations to prepare the next generation for the rental and home purchase processes.

2005: Elimination of the Real Estate Advisory Committee. The Real Estate Advisory Commission elimination was undertaken to promote government reform by reducing duplication, overlap and bureaucracy.

2005: DRE Consumer Outreach. Developed educational videos, expanded information on DRE Web site, translated consumer material, developed common license information and search function on Web site and participated in numerous consumer outreach events.

2006: Multi-Departmental License Information Available Online. Through a collaborative effort with the Department of Corporations, Department of Financial Institutions, and the Office of Real Estate Appraisers, the Department of Real Estate developed and shared a common web page, open to the public, to serve as a one-stop resource for California real estate and financial services license information, laws, and regulations. This online enhancement was made available on March 11, 2005.

2008: Consumer Protection and Outreach Expanded. In conjunction with the Governor’s Interdepartmental Task Force on Non-Traditional Mortgages, the Department of Real Estate developed and participated in multi-departmental programs to mitigate the effects of mortgage foreclosures throughout the State by participating in and sponsoring various consumer protection and outreach programs. This marks one of the first times that a joint committee, known as the ‘Housing Committee,’ organized under the Business, Transportation and Housing Agency (BTH) and consisting of all the housing-related departments (Department of Housing and Community Development, Department of Financial Institutions, California Housing Finance Agency, Department of Real Estate, Department of Corporations, and Office of Real Estate Appraisers), has collaborated to provide a solution to address the problem.

2008: Expanded Mortgage Disclosure Requirements. Emergency regulations were enacted in order to comply with the provisions of Senate Bill 385 (Machado), which became operative on January 1, 2008. The legislation, among other things, requires real estate brokers to adopt and adhere to the obj. New Mortgage Loan Disclosure Statement/Good Faith Estimate, Non-traditional Mortgage Product. Forms are available in English and have been translated into Spanish, Tagalong, Vietnamese, Korean, and Chinese.

2009: Prohibition of Advance Fees For Loan Modification Services. Pursuant to Senate Bill 94, any person, including real estate licensees and lawyers, are prohibited from demanding or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services affecting 1-4 unit residential dwellings. Most of the provisions of SB 94 will sunset on January 1, 2013, unless otherwise extended by new legislation.

2009: Bilingual Outreach. The Department of Real Estate (DRE) formed the Bilingual Outreach and Advocacy Unit (BOA) to address the underserved multi-cultural needs of the Spanish speaking community and other non-English speaking consumers. The BOA Unit is committed to assisting consumers by providing them with real estate resources and advocacy within DRE, as well as with other government agencies, law enforcement, and non-profit organizations. The BOA Unit will assist in consumer education efforts to prevent the perpetuation of real estate crimes, thereby helping to balance reactive enforcement activities with proactive prevention efforts.

2009: Certified Sites Program. In an effort to support new investment and retention of expanding industries in California, the statewide Site Certification Program was created, whose aim is to allow commercial and industrial building projects to commence more quickly than ever before. The program allows local governments to register commercial or industrial sites that are ‘project ready’ and market them as locations for new business investment and expansion. The certification of a site is performed by the California Department of Real Estate (DRE) who will review required materials to ensure a site meets specific criteria including, but not limited to, verification and availability of utilities, site access, environmental concerns, land use conformance and potential site development costs. The DRE will provide a current inventory of commercial and industrial sites that are available for purchase or lease, have the support of local permitting authorities, meet current evaluation criteria for various commercial and industrial uses and are readily available for project development or initiation of use in the shortest time possible.

2009: Loan Modification Task Force and Fraud. The Department of Real Estate (DRE) stepped up efforts to combat the loan modification scams, advance fee rip offs, and mortgage rescue fraud schemes through an internal Home Loan Modification Prevention Task Force. The Task Force was committed to protect consumers with over 2,400 investigations against loan modification companies, 100+ referrals to the California State Bar, 475 respondents named in Desist and Refrain orders and 50 accusations filed against real estate licensees. DRE appointed a Law Enforcement Coordinator to help ensure that all levels of law enforcement are informed of the administrative actions taken by the DRE and coordinate the filing of civil or criminal actions where appropriate. Through collaborative efforts of the Task Force along with local, state and federal law enforcement and government agencies, numerous administrative, civil and criminal actions have resulted and gained national attention. The unlawful actions of unlicensed individuals harm both the consumer and the industry.

 

Notable San Diego Events From This Decade:

 

2004: Petco Park opens.

 

Notable United States Events From This Decade:

 

2001: September 11th World Trade Center attacks.

2003: Iraq war begins.

2003: Columbia disaster.

2007: California Democrat Nancy Pelosi becomes the first woman Speaker of the House of Representatives

2008: Barack Obama becomes the first African-American to be elected President.

2009: Sonia Sotomayor becomes first Hispanic Supreme Court justice.

 

 

Join us next month for the final installment in our series as we take a look at the present state of our industry and look back at what notable changes shaped the evolution of the real estate industry into what it is today.

The History of San Diego Real Estate: 1990’s

SD-real-estate-history

In this special series, we will be covering the evolution of the real estate industry from the 1960’s to present day. These posts are based on the industry experience of Coastal Premier Properties Broker, Tom Tucker. It is our hope that by retelling the history of real estate in San Diego County, we will be able to trace the changes at a social, economic, and technological level that have led to today’s current industry profile and the results that have occurred for consumers, for better and for worse. Click here to read about San Diego in the 1960’s, 1970’s, and 1980’s.

 

1990

 

San Diego Real Estate History: The 1990’s

 

San Diego County Population: 2,498,016 people

San Diego County Population Growth For This Decade: 12.5%

Estimated Number of New Housing Units Built from 1990-1999: 44,929 Units

Estimated Number of Total Housing Units in the County by 1999: 251,819 Units (Including 47,015 Units Built Prior to 1960)

(information provided by the U.S. Census Bureau)

 

Overall, in the 1990’s, the real estate industry was shaped by the increasing usage of computers, the birth of the internet, the early days of email, and the rise of the cell phone. By the late 90’s, most households owned at least personal computer and one cell phone. People were more connected than ever, which had a direct effect on the speed and efficiency of the real estate industry.

The launch of the DRE’s website and the early days of the Multiple Listing System (MLS), meant that every agent had instant access to the latest listings in their area. The use of the internet brought about the standardization of business systems, allowing for more storage of data, and greater availability of information.

By the late 90’s, personal real estate websites had appeared and with it, IDX software, which is still in use today and provides the public with access to all of the real estate listings in their area. By the end of the century, the public was starting to play more of a role in their own real estate transactions. No longer were they forced to rely on their agent to come up with the properties they wanted to see. They could get online and search.

The widespread use of cellphones meant that agents were on call like never before. Where it had previously been customary to call someone and wait for them to get back to you, cellphone usage pioneered the idea that people should always be easily available. Ease of communication with cellphones and email really reshaped the business into what we know it as today: a fast-paced industry, where deals are made in minutes.

 

Notable Changes in Real Estate Law From This Decade:

1993: Licensing and Child Support. In accordance with Section 17520 of the Family Code, the Department of Real Estate (DRE) is precluded from issuing or renewing a full-term license if the applicant is on a list of persons (obligors) who have not complied with a court order to provide child support payments. The Department of Child Support Services compiles the list which includes all counties in California.

DRE will issue a 150-day license to an otherwise qualified applicant who is on the list of child support obligors. DRE will advise the applicant that the license applied for cannot be issued unless a release is furnished to DRE from the Department of Child Support Services during the 150 days.

1994: IVR System Launches. Self-service telephone system and interactive voice response (IVR) system for the public, licensees, and examinees becomes operational in the Department of Real Estate (DRE). The IVR system enabled DRE to deliver a higher level of service to consumers and the industry. It paved the way for easier access to licensing and other department information.

1996: The DRE launches its website. The Department of Real Estate’s initial Website included general information for consumers, information on how to obtain a real estate license, and subdivision information.

1997: License information is publicly available. The Department of Real Estate expanded its website to provide consumers the ability to check the status of real estate broker and salesperson licensees online. Also included in the expanded services were frequently asked questions about licenses.

1997: California Mortgage Lending Act becomes law. The California Residential Mortgage Lending Act (CRMLA) was enacted in 1994 and became operative in 1996. The CRMLA was enacted as an alternative to the existing laws licensing lenders under the Real Estate Law and the California Finance Lenders Law, in order to provide mortgage bankers with a licensing law specifically intended to regulate their primary functions of originating loans and servicing loans. Unlike the Real Estate Law and the California Finance Lenders Law, the CRMLA is specifically designed to authorize and regulate mortgage banking activities. An applicant under the CRMLA may obtain a license as a lender, a servicer, or both.

The CRMLA authorizes licensees to make federally related mortgage loans, to make loans to finance the construction of a home, to sell the loans to institutional investors, and to service such loans. Licensees are authorized to purchase and sell federally related mortgage loans and to provide contract underwriting services for institutional lenders. Licensees are authorized to service any federally related mortgage loan regardless of whether they make the loan or purchase a servicing portfolio. A licensed CRMLA lender is also authorized to provide brokerage services to a borrower, by attempting to obtain a mortgage loan on behalf of the borrower from another lender.

1998: New and renewal licensees must provide proof of US Residency. In 1996, the United States Congress passed the Personal Responsibility and Work Opportunity Act (the Act) which requires states to eliminate a broad array of public benefits for illegal immigrants. The definition of a public benefit includes professional and occupational licenses issued to individuals by state agencies. For purposes of the Department of Real Estate (DRE), the term ‘public benefit’ applies to original and renewal real estate salesperson and broker licenses; prepaid rental listing service licenses; and mineral, oil and gas broker licenses.

To implement the provisions of the Act, the DRE adopted Regulation 2718 effective August 1, 1998. The regulation requires proof of legal presence in the United States from all applicants for a license. The requirement applies to applicants for both original and renewal licenses.

1999: Major DRE Computer System Overhaul. The Department of Real Estate (DRE) deployed a comprehensive, enterprise computer system that migrated all of the DRE’s existing information and data processing activities from a variety of stand-alone and outdated systems into an organization-wide client-server system. The EIS is the foundation of DRE’s complex information technology (IT) infrastructure.

 

Notable San Diego Events From This Decade:

1980: California State University, San Marcos, opens.

1995: ARCO Olympic Training Center opens in Chula Vista.

1996: San Diego hosts Republican National Convention, first national political convention in San Diego history.

1997: Heaven’s Gate incident.

1997: Naval Training Center on Point Loma closes to all active military use.

1999: Legoland California opens in Carlsbad.

Notable United States Events From This Decade:

1990: Iraqi troops invade Kuwait, leading to the Persian Gulf War
1992: End of the Cold War.

1993: World Trade Center bombing.

1995: Oklaholma City bombing.

1999: U.S. and China sign historic trade agreement.

Join us next month as we dive into the history of the 2000’s and take a look at what changes in that decade shaped the evolution of the real estate industry.

The History of San Diego Real Estate: The 1980’s

SD-real-estate-history

 

In this special series, we will be covering the evolution of the real estate industry from the 1960’s to present day. These posts are based on the industry experience of Coastal Premier Properties Broker, Tom Tucker. It is our hope that by retelling the history of real estate in San Diego County, we will be able to trace the changes at a social, economic, and technological level that have led to today’s current industry profile and the results that have occurred for consumers, for better and for worse. Click here to read about San Diego in the 1960’s and 1970’s.

 

1980

 

San Diego Real Estate History: The 1980’s

 

San Diego County Population: 1,861,846 people

San Diego County Population Growth For This Decade: 34%

Estimated Number of New Housing Units Built from 1970-1979: 58,717 Units

Estimated Number of Total Housing Units in the County by 1979: 206,890 Units (Including 47,015 Units Built Prior to 1960)

(information provided by the U.S. Census Bureau)

 

Overall, in the 1980’s, technology was on the rise. Offices saw their first fax machines, pagers, and cellphones. The speed of data flow increased as boards were able to fax information about the newest listings to their members and people were able to fax documents to each other. However at this time, signatures on faxes weren’t considered to be legally binding. Early adopters started to have carphones and most people had pagers. The speed of the business was starting to pick up. The late eighties saw the first computers appearing in the office, in the form of word-processing machines.

By the mid-80’s the local boards have merged into just a handful, a model we still have today.

Also the 80’s saw an increase of a focus on agent information and disclosures. When an agent listed a home, they had to count all the rooms themselves, measure the spaces, and come up with all pertinent information about the property from inspecting it. Today, we have stored data to work off of.

People were qualified to purchase homes by their agent. Today, we recommend that anyone interested in purchasing a property meet with a lender to be pre-approved. There was less of separation of specialties and more of a focus on the agent being able to wear many hats including inspector, loan officer, etc.

 

Notable Changes in Real Estate Law From This Decade:

1981: Regulation of Time-Share Offerings. With the subsequent enactment of Assembly Bill 2252 on January 1, 2005, DRE, in collaboration with the time-share industry, reformed the time-share law streamlining the qualification process while improving consumer protection.

 

Notable San Diego Events From This Decade:

 

1980: The San Diego Trolley, first line in the city’s new light-rail transit system, is dedicated.

1982: After a massive fund-raising drive to rebuild it, a new, three-theater Old Globe complex opens in Balboa Park.

1984: Padres win National League Pennant; World Series games first played in San Diego.

1988: San Diego hosts its first Super Bowl.

1989: San Diego Convention Center opens.

 

Notable United States Events From This Decade:

 

1981: Sandra Day O’Connor is sworn in as the first woman Supreme Court justice.

1986: Challenger disaster.

1989: Exxon Valdez oil spill.

 

Join us next month as we dive into the history of the 1990’s and take a look at what changes in that decade shaped the evolution of the real estate industry.

The History of San Diego Real Estate: The 1970’s

SD-real-estate-history

 

In this special series, we will be covering the evolution of the real estate industry from the 1960’s to present day. These posts are based on the industry experience of Coastal Premier Properties Broker, Tom Tucker. It is our hope that by retelling the history of real estate in San Diego County, we will be able to trace the changes at a social, economic, and technological level that have led to today’s current industry profile and the results that have occurred for consumers, for better and for worse. Click here to read about San Diego in the 1960’s.

 

 

San Diego Real Estate History: The 1970’s

 

San Diego County Population: 1,357,854 people

San Diego County Population Growth For This Decade: 37%

Estimated Number of New Housing Units Built from 1970-1979: 67,620 Units

Estimated Number of Total Housing Units in the County by 1979: 148,173 Units (Including 47,015 Units Built Prior to 1960)

(information provided by the U.S. Census Bureau)

 

Overall, in the 1970’s, we began to see the emergence of the structures and the protocols that uphold our industry today. Perhaps most significantly, we started to see the first real cooperation between the different local boards, allowing real estate agents affiliated from other boards to obtain copies of the listing books. You were able, if you wanted to take a trip down to the board everyday, to get copies of the newest listings as soon as they hit “the market”. These came in the form of tear-sheets: small slips of papers that contained the bare bones facts about the property. The following week that same property would be available in page form with its photograph for inclusion in the books. The first real “go-getters” of this decade, were the ones who took it upon themselves to go and get the tear-sheets before the pages were ready for the book. This is the first indication that the industry’s engine was beginning to rev.

For consumers, the 1970’s marked an era of major progress. Franchises began to emerge during this decade. Century 21, Red Carpet, ERA, are just a few examples of the company franchises that started to emerge in contrast to the previous model of the independent brokerage. The emergence of these franchises, where one company owned multiple offices and thus controlled a “territory”, was a major impetus in the standardization of the language of our forms. These franchising companies had access to corporate attorneys, who worked with state and national boards to introduce the idea of using standardized forms in real estate transactions. Prior to the 1970’s, there were many different styles and languages used in each form and nothing was standardized from brokerage to brokerage or board to board. By the end of the decade, standard language for standard forms had appeared and everyone had mutually agreed to use them. During this decade, disclosure forms began to appear. Previously, a contract was about two pages long. What a difference from today’s industry where a file can amass quite a stack of paperwork.

During this industry, consumers also began working exclusively with one agent, who would show them properties to buy that were listed by other agents. This was different from the shopping model of the 1960’s where a buyer would call an agent to inquire about their inventory.

 

Notable Changes in Real Estate Law From This Decade:

 

1970: Under Business and Professions Code 10004, the Division of Real Estate was renamed Department of Real Estate (DRE).

1978: Proposition 13 is approved. In June of 1978, California voters approved Proposition 13, amending the State Constitution so that the maximum annual tax on real property is limited to one percent of ‘full cash value’ (market value) plus a maximum of two percent annual inflation factor based on the Consumer Price Index (CPI), as calculated by the California Department of Industrial Relations. (Sections 51 and 110.1) An additional sum is allowed to pay for indebtedness on affected property approved by voters prior to the passage of Proposition 13. Also, selected new indebtedness is allowed, only by a two/thirds vote of the residents affected.

 

Notable San Diego Events From This Decade:

 

1970: San Diego becomes California’s second-largest city.

1973: Point Loma College is established.

1975: Mayor Pete Wilson launches plans for a dramatic redevelopment of downtown San Diego.

1978: World-famed Old Globe Theatre in Balboa Park burns to ground in arson fire.

Notable United States Events From This Decade:

 

1979: U.S. establishes diplomatic ties with mainland China for the first time since Communist takeover in 1949.

 

Join us next month as we dive into the history of the 1980’s and take a look at what changes in that decade shaped the evolution of the real estate industry.

The History of San Diego Real Estate: 1960’s

SD-real-estate-history

In this special series, we will be covering the evolution of the real estate industry from the 1960’s to present day. These posts are based on the industry experience of Coastal Premier Properties Broker, Tom Tucker. It is our hope that by retelling the history of real estate in San Diego County, we will be able to trace the changes at a social, economic, and technological level that have led to today’s current industry profile and the results that have occurred for consumers, for better and for worse.

1960

San Diego Real Estate History: The 1960’s

 

San Diego County Population: 1,033,011 people

San Diego County Population Growth For This Decade: 31%

Estimated Number of New Housing Units Built from 1960-1969: 33,538 Units

Estimated Number of Total Housing Units in the County by 1969: 80,553 Units (Including 47,015 Units Built Prior to 1860)

(information provided by the U.S. Census Bureau)

 

Overall, in the 1960’s, the real estate industry moved at a much slower pace. Without the rapid delivery of data through the internet and email, it typically took much longer to sell a home. When an agent took a listing, they would go down to their local real estate board office and submit the listing. Once the listing was submitted, the board would make up a page with the home’s information and that page would be distributed weekly in a real estate “book”. These books, which were essentially a 3-ring binder, were given to every agent upon joining the board. Every week, a secretary would pick up copies of the new pages and bring them back to the brokerage office for everyone. And those pages would only include listings from that specific board’s jurisdiction. E.G. the Del Mar board only had Del Mar listings. If you wanted to sell homes down in the city of San Diego, you would also need to join that board. Cooperation between boards and thus, realtors, was almost non-existent. In the 1960’s, almost every city in San Diego had its own board of real estate. Today we have just three local boards and we are not restricted to buying and selling properties within our own board’s jurisdiction.

One of the most significant differences from the present day state of the industry, is how homes were bought and sold. Each agent had their own listings and each agent sold their own listings. Rather than choosing an agent to work with them in their home search, buyers who were looking for a home would call each individual agent and ask for their inventory. If the agent didn’t have anything they wanted to buy, they would move on to the next agent.

The public did not have access to any kind of information about what homes were for sale, they had to work with a real estate agent.

When agents priced a home, they worked with data for houses sold in the past quarter. Thus when an agent priced a home, the data they were using wasn’t as up-to-date as we experience it today. Using a quarterly comp rate meant that home price didn’t tend to change as rapidly as they do today.

In the 1960’s, all brokerages were independently owned. There weren’t any franchises or brokerages with multiple office locations. Today’s national and international brokerages had yet to make an appearance. Most real estate offices were named after the owner/broker e.g. Art Leach Real Estate.

Demographically, 90% of agents were male and only 10% were female. Almost all title reps were male and almost all escrow officers were female.

 

Notable Changes in Real Estate Law From This Decade:

 

1963: Recovery Fund Law Takes Effect. In 1963, Senate Bill 1576 was signed to effect financial protection for the public against dealings with unscrupulous brokers and salespeople.

 

Notable San Diego Events From This Decade:

 

1961: American Football League Chargers open first season at Balboa Stadium.

1964: UC-San Diego opens.

1964: SeaWorld opens.

1968: The Padres play their first game at San Diego Stadium.

1969: San Diego–Coronado Bay Bridge opens, replacing ferry service across San Diego Bay.

 

Notable United States Events From This Decade:

 

 1962: Lt. Col. John Glenn becomes first U.S. astronaut to orbit Earth

1962: Cuban Missile Crisis

1963: Rev. Martin Luther King, Jr., delivers his “I Have a Dream” speech

1963: President Kennedy is assassinated.

1964: President Johnson signs the Civil Rights Act.

1968: Rev. Martin Luther King, Jr., is assassinated in Memphis, Tenn.

Join us next month as we dive into the history of the 1970’s and take a look at what changes in that decade shaped the evolution of the real estate industry.