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Home prices near pre-recession norms

Posted by The Aramco Group on Sat, Apr 9, 2016 @ 14:04 PM

Home prices inched up in January according to the home price index report by Black Knight Financial Services. On a month-over-month basis prices rose 0.1 percent and 5.3 percent compared to the same month last year. The report uses existing home sale and loan-level mortgage performance information to produce its data on pricing.

With the recent climbs home prices are just 5.4 percent below the peak seen in June 2006 of $267,000.

In San Diego, prices climbed 6.9 percent on an annual basis, the largest gain among the twenty largest metropolitan areas in the country. According to David Blitzer, managing director and chairman of the Index Committee at S&P Down Jones Indices, the driving factor behind rising prices boils down to two things: low inventory and cash shortages.

"While low inventories and short supply are boosting prices, financing continues to be a concern for some potential purchasers, particularly young adults and first-time home buyers," Blitzer said.

Zillow places the current median home value in San Diego at $531,700. Meanwhile, conventional conforming no-point 30-year fixed mortgage rates average 3.625 percent while the 15-year rate is near 3 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.