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Calif. home sales enter spring in slump

Posted by Mehran Aram on Wed, May 29, 2019 @ 17:05 PM

Home sales in California failed to enter the spring home buying season with any momentum as buyer demand continues to be met with affordability challenges. The California Association of Realtors reported that closed escrow sales of existing, single-family detached homes in the state were 4.8 percent lower in April than they were last year.

“Weak buyer demand, largely prompted by elevated home prices, is playing a role in the softening housing market,” said C.A.R. President Jared Martin. “However, with low interest rates, cooling competition and an increase in homes to choose from, buyers can take advantage of a more balanced housing market.”

The seasonally adjusted annualized rate of home sales was 396,760. This is what would be the total number of homes sold during 2019 if sales maintained their current pace throughout the year. Last month’s sales figures are the ninth consecutive month under 400,000.

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: home sales, California Association of Realtors, California Home Sales, Affordability, Affordability Challenges, Low Interest Rates

Calif. home sales roar back after new year slump

Posted by Mehran Aram on Thu, Mar 21, 2019 @ 09:03 AM

After hitting their lowest level in more than 10 years in January, California home sales last month rebounded. The California Association of Realtors reported this week that February’s annual sales level reached its highest point in six months. February also experienced the biggest month-over-month gain in home sales since January 2011.

“Lower interest rates and stabilizing home prices motivated would-be buyers to get off the fence in February,” said CAR President Jared Martin. “With mortgage rates reaching their lowest point in a year, housing affordability improved as buyers’ monthly mortgage payments became more manageable.”

Mortgage rates have remained near a recent low point for the last several weeks after falling over the winter and remain at their lowest level in a year. Currently, 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: home prices, California Association of Realtors, Mortgage rates, low rates, California Home Sales

California housing affordability crunch eases slightly

Posted by Mehran Aram on Thu, Nov 29, 2018 @ 05:11 AM

Flat home prices and stable interest rates helped make housing more affordable in the Golden State, says the California Association of Realtors. The trade group reported this week that the percentage of home buyers who could afford to purchase a median-priced existing single-family home in California in the third-quarter climbed one percentage point to 27 percent in the second quarter of 2018.

Based on the current median home price of $588,530, buyers would need an annual income of $125,540 to qualify for most conventional loan products. Should home price appreciation continue to slow, and the strong economy continue to result in rising wages, the affordability factor should see more improvements.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.5 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, homebuyers, California Association of Realtors, Mortgage rates, home affordability, Conventional Loans

ARAMCO Report - Tuesday May 5, 2015

Posted by The Aramco Group on Tue, May 5, 2015 @ 15:05 PM

Home Prices Should Go Up for Rest of 2015

 

The prices for detached single family homes in San Diego went up 6.03 percent between March 2014 and March 2015, according to the Greater San Diego Association of Realtors.

Statewide prices in California went up 7.2 percent, and national prices went up 5.6 percent over the same time period according to the California Association of Realtors and CoreLogic’s Home Price Index respectively.

Home prices in twenty-seven states and the District of Colombia are within 10 percent of historical peaks for prices in their territories, but California is not one of them. California’s median home price of $440,000 is still -18.2 percent of its peak of $538,000 registered in May 2006.

However the CEO of CoreLogic said, “All signs are pointing toward continued price appreciation [nationally] throughout 2015.”

Prices are being driven upwards due to limited housing inventories across the country during a time with low mortgage rates and improving consumer confidence.

Those looking to sell their home and then purchase a new one will find mortgage rates near an all-time low. Conforming no point 30-year fixed mortgages averaging 3.875 percent while 15-year mortgages averaging 3.215 percent.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: San Diego County, home prices, San Diego, California, CoreLogic, 30 year fixed rates, California Association of Realtors, Greater San Diego Association of Realtors, National Association of Realtors, home values, home selling, National

ARAMCO Report - Wednesday April 1, 2015

Posted by The Aramco Group on Wed, Apr 1, 2015 @ 16:04 PM

Pending home sales in California rocketed to their largest increase in six years. According to the California Association of Realtors (CAR) the state’s February-to-February pending home sales rose 15.6 percent on the Pending Home Sales Index. It is the third year in a row with an increase; it is the first time with a double-digit gain since 2012; and it is the single largest increase since April 2009. CAR’s California-specific index, like other larger national indexes, measures transactions when the contract is signed but the total sale has not yet closed — as it can take up to six weeks for a deal to be finished. Some sales fall through but most usually do not, so California’s housing market will have a bullish summer.

Meanwhile conforming no point 30 year fixed mortgage rates average 3.625 percent while 15-year rates average 3.0 percent.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Pending Home Sales Index, Housing Market, California Association of Realtors, Housing, housing recovery, homes

ARAMCO Report - Friday March 20, 2015

Posted by The Aramco Group on Mon, Mar 23, 2015 @ 14:03 PM

Foreclosure activity—including default notices, scheduled auctions and bank repossessions—should return to pre-crisis levels by the end of 2015 according to Realty Trac. The total numbers fell year-over-year by 9% to their lowest level since July of 2006. This is further evidence of a healthier housing market both nationally and in California. January to February, 2015 was the best monthly increase in state-wide home sales for the beginning of the year since 1980. That gives hope for increasing gains into the spring months. Most of February’s home sales were in the Central Valley however, according to Selma Hepp, a senior economist for the California Association of Realtors who spoke to the Pacific Southwest Association of Realtors in El Cajon on Tuesday. San Diego has not rebounded as much mostly because the county is suffering from a shortage of housing inventory.  Last month 2,245 units sold, which is a 13.2 percent increase from January, but it is a decrease of 1.2 percent from last year. Meanwhile conforming no point 30 year fixed mortgage rates average 3.75 percent with 15-year rates closer to 3 percent. 

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: home sales, Realty Trac, foreclosures, California Association of Realtors, economic growth, economic data

ARAMCO Report - Monday February 23, 2015

Posted by The Aramco Group on Tue, Feb 24, 2015 @ 11:02 AM

According to the National Association of Realtors, the housing market did not get off to a great start in 2015. Existing home sales in January fell 4.9% to the lowest level in 9 months. But the median home price year over year was up 6.2%. Meanwhile the California Association of Realtors reported continued momentum with international buying activity with more than 1-in-3 international buyers being from China with mostly cash purchases. Conforming no point 30 year fixed mortgage rates average 3 7/8ths with 15 year rates closer to 3 1/8th. And now for something completely different… Did you know that the first sky written ad using an airplane was in 1922. The words “Daily Mail” were written over Epsom Downs, U.K.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: home prices, Housing Market, China, Daily Mail, 30 year fixed rates, California Association of Realtors, National Association of Realtors, Epsom Downs, England

ARAMCO Report - Friday February 13, 2015

Posted by The Aramco Group on Tue, Feb 24, 2015 @ 11:02 AM

Mortgage rates rose by about an 1/8th of a %. Over the past week with conforming no point 30 year fixed rates averaging 3 7/8ths and 15 year rates closer to 3 1/8th. Easing worries over the global economy and rising stock prices led to the biggest 2 week sell off in U.S. government bonds in a year. Meanwhile according to the California Association of Realtors, buying a home in California became slightly more affordable in the last quarter of 2014 compared to the prior quarter. And now for something completely different… Did you know that on average, a man spends $130 on Valentine’s Day gifts and plans? That contributes to the $14.7 billion industry.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: bonds, Valentine's Day, 30 year fixed rates, sell-off, California Association of Realtors, home values, homes, stock prices

ARAMCO Report - Thursday May 22, 2014

Posted by Mehran Aram on Thu, May 22, 2014 @ 18:05 PM

More good news on housing. Existing home sales in April rose by 1.3 %, the fastest pace since December. That was the first increase in sales in 2014. Meanwhile in the Golden State more homeowners now have positive equity according to the California Association of Realtors, 88.4 % of home sellers in April had positive equity. Meanwhile conforming no point 30 year fixed mortgage rates still average 4 1/4 % with 15 year closer to 3 1/4 %.

And now for something completely different. The 1906 Chicago Cubs hold the record for the most road wins in a single season with 60 wins.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Reverse Mortgage, Aramco Report, and now for something completely different, Mehran Aram, Chicago Cubs, California, 30 year fixed rates, California Association of Realtors, equity, Baseball, refinance