ARAMCO Report - The Mother of ALL Mortgage Blogs!

Cease-fire in bidding wars

Posted by Mehran Aram on Thu, Jun 13, 2019 @ 05:06 AM

In just the latest sign that the housing market may be cooling slightly, CoreLogic has released new data that shows the volume of bidding wars taking place has returned to “normal levels”. The number of homes that are selling above their list price, driven by multiple prospective buyers offering competing bids, has dropped a similar rate as the historic norms seen in 2000 and 2001.

Thirty-one percent of homes that sold in March went above their asking price. This is down from the peak of 40 percent reached in the second quarter of 2018.

Home prices are reaching the upper limits of buyers’ budgets, preventing them from upping their offers. In San Diego, 28 percent of homes sold above the original list price while 30 percent sold below the list price.

Meanwhile, 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: home prices, CoreLogic, Mortgage rates, San Diego Housing Market, bidding war

When bidding wars make sense

Posted by Mehran Aram on Wed, May 8, 2019 @ 06:05 AM

With the home-buying season among us, buyers will be flooding the markets in search of the perfect home. This often means competition among house hunters leading to bidding wars that can drive prices through the roof. While this sounds tedious and unappealing, there may very well be sometimes that engaging in a bidding war makes sense.

Although the tide seems to be turning, the fact remains that it is still a sellers market. Inventory levels are still below healthy levels meaning buyers are clamoring over the homes that are listed. Taking that into consideration, it might be expected that buyers will face a little competition.

Additionally, sometimes homes will be deliberately unpriced to lure multiple offers. Be sure to use a true market value to establish your baseline and not an artificially low starting point. And of course, if it is your dream home and you simply cannot live without it, it may be worth it to battle it out – if you can afford it.

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, Realtors, Home Listings, bidding war, Home-Buying Season, House Hunters

Home buyer bidding wars at record low

Posted by Mehran Aram on Wed, Feb 13, 2019 @ 12:02 PM

In yet another sign that the housing market may be slowing down, online real estate brokerage Redfin reported this week that the number of home buyers who are facing bidding wars has decreased substantially over the last few months, reaching a near record low in January.

Just 13 percent of offers written by Redfin agents had multiple offers, little changed from December’s record low and down from 53 percent a year ago. Redfin reports that San Diego is one of the most competitive housing markets in the nation yet still saw a dramatic decrease in bidding wars over the past year. Eighteen percent of San Diego offers faced competition, compared to 63 percent in January 2018.

Only one in five San Diego buyers faced a bidding war last month, compared to over half last year.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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, Housing Market, Mortgage rates, San Diego Housing Market, home buyers, bidding war