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Calif. state officials label California home sales as “weak”

Posted by Mehran Aram on Sun, Jul 28, 2019 @ 08:07 AM

In a report issued last week by the California Legislative Analyst’s Office, home sales in the Golden State were called “weak”, a volte-face to what is normally considered to be one of the hottest housing markets in the U.S.

The state office cited new data that shows statewide home sales were notably lower than historic norms in June.

“Home sales were on a clear downward trend during the second half of 2018 and the beginning of 2019,” the report read. “Sales remain relatively weak.” The report notes however that Californian’s shouldn’t fear an economic downturn or a bust in the housing market. Rather, the latest data is being considered by some economists as merely the ebb and flow of the industry.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 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: Mortgage rates, California Home Sales, Golden State

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

Home sellers averaged $61k in profits in 2018

Posted by Mehran Aram on Mon, Feb 11, 2019 @ 05:02 AM

Overall, 2018 was a seller’s market but recent housing data suggests that that may change soon. Property owners who sold a home in 2018 saw an average profit of $61,000 according to a new report. This is up from $50,000 in 2017 and $39,500 in 2016.

ATTOM Data Solution’s Year-End 2018 U.S. Home Sales Report showed an average 32.6 percent return on investment for Americans who sold a home last year, compared to their original purchase price. Many markets in California saw ROI’s well above twice the national average.

Driving the profits for home sellers are home prices rising to new records in 69 percent of major U.S. markets including San Diego.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.375 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 sales, Mortgage rates, California Housing Market, San Diego Housing Market, California Home Sales, Home Sellers, Home Profits, Housing Data