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Home prices rising fastest for entry level homes

Posted by The Aramco Group on Thu, Mar 8, 2018 @ 14:03 PM

As expected, home prices continued their upward trek in January according to global property information and analytics firm CoreLogic's Home Price Index, released this week. According to the HPI, home prices rose on both a monthly and yearly basis in January and noted that shortages of entry-level homes resulted in above average increases in that category.

"Entry-level homes have been in particularly short supply, leading to more rapid home-price growth compared with more expensive homes," said CoreLogic Chief Economist Frank Nothaft. "Homes with a purchase price less than 75% of the local area median had price growth of 9% during the year ending January 2017."

Nothaft added, that in comparison, homes that sold for more than 125 percent of median appreciated 5.3 percent over the same 12-month period. In San Diego, the median home price in January was $529,000, an $11,000 decrease from December but still 6.9 percent higher than last year.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.875 percent while the 5-year ARM is averaging 4 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.