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Calif. home sellers see top profits

Posted by Mehran Aram on Wed, Jun 26, 2019 @ 08:06 AM

Although profit margins have narrowed over the last year, homeowners are still making a bundle on the sale of their homes, particularly in California. Analytics company ATTOM Data Solutions studied the difference between what buyers originally paid for their home and how much they sold it for. The report found that among the top 20 markets nationwide, California had the biggest home seller gains.

San Francisco topped the list with a 74.0 percent return on investment, selling for an average of $385,000 above the original purchase price. This is down from a ROI of 81.6 percent seen last year. San Diego sellers saw a 42 percent return as of April, down from 50 percent during the same month last year.

Homeowners staying in their homes longer is leading to large seller gains. Despite the downturn from last year, current ROIs are still well above levels seen a decade ago.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 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.

Topics: California Housing Market, Home Sellers, ATTOM Data Solutions

Underwater homes still exist

Posted by Mehran Aram on Tue, May 14, 2019 @ 14:05 PM

While home values have risen rather steadily for the last several years, there remains a notable number of American homeowners who are still underwater. According to ATTOM Data Solutions, more than five million homes were seriously underwater as of the first quarter of 2019. For a home to be considered seriously underwater, the balance of the mortgage is at least 25 percent more than what the home is worth.

San Diegans on the other hand are on the opposite end of the spectrum with one of the lowest underwater rates in the nation. Approximately 40 percent of property owners in San Diego are equity rich, meaning the value of the home is more than 50 percent of its mortgage. This is consistent with the rest of California where 43 percent of homeowners are equity rich.

Higher levels of equity combined with low mortgage rates have led to a surge in refinances as of late. Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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.

Topics: San Diego County, San Diego, homeowners, home values, Mortgage rates, Underwater, ATTOM Data Solutions, Q1 2019, Underwater Homes, Equity Rich

Distressed home sales continue to decline

Posted by Mehran Aram on Thu, May 9, 2019 @ 06:05 AM

Bank owned sales, third-party foreclosure auctions and short-sales continue to decline on an annual basis, according to a new report. ATTOM Data Solutions’ Q1 2019 Home Sales Report shows that total distressed home sales accounted for 14.2 percent of all single-family and condo sales last quarter. This is down from 15.2 percent a year ago.

Distressed properties can often be bought at far below market range and are a popular choice for investors looking to “flip” homes.

With increased home values and low mortgage rates, buyers have been able to fend off foreclosures and short-sales, keeping distressed properties on the market at their lowest point in years.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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.

Topics: foreclosures, Mortgage rates, distressed property sales,, ATTOM Data Solutions, distressed home sales, Bank Owned Sales, foreclosure auctions, Distressed Properties

Home sellers' declining profits signal a market shift

Posted by Mehran Aram on Thu, May 2, 2019 @ 06:05 AM

So far, 2019 seems to be a continuation of the slow but steady decline in profits realized by sellers that was seen last year. Property owners who sold a home in Q1 2019 shows an average profit of $57,500 since purchase, down from $61,000 at the end of 2018. This is according to ATTOM Data Solutions' Q1 2019 U.S. Home Sales Report.

These latest profit figures represent an average 31.5 percent return on investment for Americans who sold a home last quarter, compared to their original purchase price. The report also shows that sellers owned their home for approximately 8.05 years before selling, down slightly from a record-high average tenure of 8.17 years in Q4 2018.

Experts suggest that declining profits are a signal that conditions may be shifting from a sellers’ to a buyers’ market.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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.

Topics: Housing Market, Mortgage rates, Home Sellers, ATTOM Data Solutions, Property Owners

U.S. foreclosure activity lowest since 2008

Posted by Mehran Aram on Tue, Apr 16, 2019 @ 05:04 AM

Foreclosures nationwide ended Q1 at their lowest point since 2008. ATTOM Data Solutions released its Q1 2019 U.S. Foreclosure Market Report, which showed foreclosure filings, default notices, scheduled auctions and bank repossessions were down 23 percent from the previous quarter and 15 percent from the same period last year.

There was a total of 58,550 U.S. properties with foreclosure filings in March 2019. While this is up seven percent from the previous month it is still 21 percent less than last year and the ninth consecutive month of year-over-year declines.

“While we did see a slight increase in U.S. foreclosure starts from last quarter, bank repossessions reached an all time low in the first quarter of 2019,” said Todd Teta, chief product officer at ATTOM. “[This] shows continuing signs of a strong housing market.”

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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.

Topics: foreclosures, Default Notices, Foreclosure Filings, ATTOM Data Solutions, Bank Repossessions, Foreclosure Activity

Housing affordability issues affecting more Americans

Posted by Mehran Aram on Sun, Mar 31, 2019 @ 09:03 AM

Home prices are currently less affordable than the historic average in 71 percent of U.S. housing markets. This unsurprising yet concerning revelation comes from ATTOM Data Solutions Q1 2019 U.S. Home Affordability Report. The report analyzed 473 U.S. counties and found that the median home price in 335 were not affordable for the average wage earner.

The report determined affordability for average wage earners by calculating the percent of monthly take-home income needed to pay for a mortgage, property taxes and insurance on a median-priced home assuming a three percent down payment.

San Diego County was among several other California markets deemed the most unaffordable, including Los Angeles and Orange counties.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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.

Topics: San Diego County, Mortgage rates, home affordability, Housing Affordability, California Housing Market, median home price, ATTOM Data Solutions, Affordability

San Diego home sellers cutting prices

Posted by Mehran Aram on Sat, Mar 30, 2019 @ 06:03 AM

San Diego County was one of only three major metropolitan markets in the U.S. to see an annual decrease in seller gains, down 5 percent from January 2018. This is according to an analysis by ATTOM Data Solutions. Real estate website Trulia is also reporting that San Diego had the second-most home price reductions in the nation so far in 2019.

While price reductions are not uncommon when market conditions lean towards buyers such as during the winter and when mortgage rates drop, San Diego hasn’t had so many cutbacks in home prices in nearly five years. Twenty percent of homes for sale in the County had a price reduction in February, the most of any California city.

Discounts off the initial list price suggest that the market is responding, albeit slowly, to the affordability crunch buyers in the region have been experiencing. Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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.

Topics: home sales, San Diego, Trulia, Mortgage rates, home price appreciation, San Diego Housing Market, San Diego Homeowner, ATTOM Data Solutions