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San Diego housing inventory growth leads nation

Posted by The Aramco Group on Sat, Jul 14, 2018 @ 14:07 PM

The supply of homes for sale on the market, which have been chronically low in recent years, may have finally reversed course according to a new report. Real estate company Trulia reported last week that home inventory jumped during the second quarter of 2018.

The inventory jump was the largest quarterly increase in three years according to some reports, with San Diego topping the list of major metropolitan markets.

"San Diego posted the largest inventory growth – 22 percent year-over-year," according to Alexandra Lee, an analyst for Trulia. "Compare that with the same quarter last year, when [San Diego] registered a 28 percent inventory decrease."

An imbalance of supply and demand in the housing market has driven prices higher. Increasing inventory may slow the pace of price increases, aiding buyers.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Underfunded retirements get second chance with reverse mortgages

Posted by The Aramco Group on Mon, Jul 9, 2018 @ 14:07 PM

The general rule-of-thumb is that retirees maintain between 70 to 80 percent of their pre-retirement income to afford a post-work life that they will find comfortable. Yet, studies show that the vast majority of those close to retiring have very little saved. Social security, which on average only replaces 40 percent of an average earner's income, currently accounts for 90 percent of monthly income for more than a third of retirees.

When personal savings, 401ks and government trust funds aren't enough, seniors may find a second chance to fund their longevity with a reverse mortgage. The government regulated program allows homeowners 62 or older to tap their home equity and unlike a traditional home loan, reverse mortgage borrowers do not need to make monthly payments.

Rather, borrowers will receive disbursements – supplemental income in the form of a lump sum, fixed monthly payments, a line of credit or a combination of all three.

Meanwhile, conventional, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Where are all the sellers?

Posted by The Aramco Group on Sun, Jul 8, 2018 @ 14:07 PM

An acute shortage of homes for sell has been plaguing the housing market for the last couple of years with no end in sight. This historically low level of housing supply has driven up prices, leads to bidding wars and puts increased pressure on homebuilders to keep up with demand. The underlying issue behind all of this is that current homeowners are simply not listing their homes for sale.

Despite numerous polls that show many do have a desire to move, sellers are notably absent from the housing market but for a reason. A CoreLogic study shows that in the first quarter of 2018, 50 percent of all existing homeowners had a mortgage rate of 3.75 percent or less – this is below the current market average. Homeowners who sell and buy a new home would be giving up this low rate.

Additionally, a current homeowner looking to move would be entering the same housing market as everyone else; the one riddled with steep competition and hefty price tags.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

San Diego home prices up nearly 7 percent since last year

Posted by The Aramco Group on Sat, Jul 7, 2018 @ 14:07 PM

Between May 2017 to May 2018, homes in the San Diego metropolitan area climbed 6.8 percent, a significant increase that is helping sellers realize record profits and others to get larger cash-out refinances. This latest information comes from the CoreLogic Home Price Index released this last week.

Looking ahead, the CoreLogic HPI Forecast predicts home prices to gain another 5.1 percent nationwide by May 2019. Despite the rising prices, consumer research shows that renters are looking to get out of their lease and buy a home. According to CoreLogic's CEO Frank Martell, "Even in the most expensive markets, we found four times as may renters looking to buy than homeowners willing to sell."

Across the U.S., 15 percent of homeowners and 28 percent of renters have indicated they would like to buy a home in the next 12 months, while only 112 percent have indicated a desire to sell.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Believe it or not, mortgage rates are low

Posted by The Aramco Group on Fri, Jul 6, 2018 @ 14:07 PM

It may not seem like it with recent upticks but when compared to yester-year, mortgage rates are historically low. Currently, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent. These rates are a cakewalk compared to the rates of our fathers and grandfathers.

In the 1980s, the Federal Reserve tried to quell skyrocketing inflation with higher interest rates. It was common for a homebuyer thirty years ago to obtain a mortgage with a double-digit interest rate. In fact, according to a historical study conducted by Trulia, in 1981, mortgage rate averages were as high as 16.6 percent.

Trulia reports that homes are about the most affordable today than they've been at any point in the last 40 years due to income growth and historically low mortgage rates.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Despite heated market, buying still more affordable than renting

Posted by The Aramco Group on Thu, Jul 5, 2018 @ 14:07 PM

Home prices are climbing. Mortgage rates have inched up. Inventory is low. Still, house hunters feeling the crunch should not despair. A home affordability calculator available by Trulia shows that even in high priced markets like San Diego, after just four or five years of occupancy, homeowners fare better than renters.

The rate at which homes are appreciating in value gives owners a better return on investment than the stock market, retirement accounts and other forms of savings. Rather than battling landlords over rising rent costs, owners gain the advantage of equity while being able to modify their home to fit their lifestyle.

Studies have shown that overtime, homeowners have net worth's far great than those of renters. As for mortgage rates, today conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Foreclosure rate continues to fall

Posted by The Aramco Group on Wed, Jul 4, 2018 @ 14:07 PM

Nationwide, the number of Americans who are past-due on their mortgages continues to drop but new figures from Fannie Mae show that the effects of last year's devastating hurricane season continues to linger.

Serious delinquencies, those three months or more past-due, are down to just 1.03 percent as of May. This is near the lowest rates seen in a decade. The serious delinquency rate peaked in February 2010 when it reached 5.59 percent.

The volume of homes in some state of delinquency ticked up in the aftermath of last year's Hurricanes Harvey and Irma. Experts anticipate the rate to decline another half percent or more when those who were displaced by the disasters recover completely.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Independence Day displays catch the buyers' eye

Posted by The Aramco Group on Tue, Jul 3, 2018 @ 14:07 PM

The summer home-buying season is in full-swing and the weekends surrounding the Fourth of July are busy for open houses. Numerous homes on the market will have their red, white and blue regalia on full display to lure in buyers. And according to some professionals, American homebuyers are attracted to such shows of patriotism.

According to real estate news magazine RISMedia, prideful displays are a pleasant sight to potential home buyers and can get them to check out an open house they may have otherwise skipped. Balloons, banners and signs in the colors of the American flag

Even more appealing to potential homeowners is when a property listing showcases great views of firework displays. According to Zillow, homes with views in general are among the most sought-after features by buyers, so much so that house hunters are willing to pay a premium for one.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Home flipping activity hits 6-year high

Posted by The Aramco Group on Mon, Jul 2, 2018 @ 14:07 PM

The volume of home flipping is at its highest levels since 2012, indicating investors are not deterred by increasing prices in the housing market. The resurgence of home flipping is seen as positive by industry experts who say the practice helps alleviate housing shortages and brings upgraded homes onto the market while some claim it can drive up prices.

Homes flipped in the first quarter of 2018 represented 6.9 percent of all sales – up from 5.9 percent in the previous quarter. Home flipping is the purchase and sale of a property within 12 months. Investors often make renovations to the home and then sell it for a profit.

Flippers are seeing record profits. On average the gross profit for a flipped property was $69,500 nationwide. In hot markets like San Diego, profits are closer $123,000. This represents a whopping 29.8 percent return on investment.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

San Diego homeowners realize record profits

Posted by The Aramco Group on Sun, Jul 1, 2018 @ 14:07 PM

San Diego has one of the best returns for homeowners who are selling according to a new report from Zillow. In fact, the San Diego metropolitan area is one of only five major U.S. markets where homeowners are seeing six-figure profits from their home sale.

Unsurprisingly, homeowners on the West Coast dominated the top of the list with the highest returns. On average, the median home sale in San Jose garnered $296,000 for its owner. This was followed by San Francisco ($222,000), Los Angeles ($137,000) and Seattle ($123,000). San Diego landed the number five spot with homeowners raking in a whopping $108,000.

There is high demand for homes in the San Diego region which is leading to homeowners being able to sell their homes in just a few weeks.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.