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Where California’s new homes are being built

Posted by Mehran Aram on Tue, May 21, 2019 @ 05:05 AM

There is an ongoing housing shortage in California that experts by-and-large have collectively labeled a crisis. Builders appear to be working to address this shortage but continue to fall short of meeting demand.

Southern California appears to be bringing new homes online at a much faster rate than the north. Los Angeles had 3,0002 single-family properties and a whopping 12,828 multi-family dwellings completed last year. Other SoCal cities with a high volume of new single-family homes include Irvine (1,945), San Diego (940) and Menifee (883). In Northern California, the state capital led the pack. Sacramento had 1,654 new single-family homes built in 2018.

The California Department of Finance reports that the total number of new residences built last year was about 97,000. To compare in 2006 there 200,000.

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: new homes, Mortgage rates, California Housing Market, San Diego Housing Market, housing shortage, Southern California Housing Market, California Department of Finance, California Housing Shortage

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

Buyers’ make comeback in the West

Posted by Darius Aram on Wed, Mar 20, 2019 @ 07:03 AM

After years of shrinking affordability and limited choices, the housing market in the U.S. may be on the verge of normalizing. According to Zillow’s latest Buyer-Seller Index, home prices have cooled in 30 out of 35 major metropolitan areas. The top 10 are all in the West.

San Jose, often one of the most expensive housing markets in the nation, is currently the fastest-cooling metro. In fact, Zillow says that the region has cooled off so much that it is now a cold market – favoring buyers over sellers.

Six of the top 10 cooling housing markets are in California including San Diego, San Francisco, Riverside, Sacramento and Los Angeles.

Today, 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: Housing Market, Mortgage rates, Housing Affordability, California Housing Market, home buyers

Homeowner equity levels still climbing

Posted by Mehran Aram on Sun, Mar 10, 2019 @ 08:03 AM

Homeowners are sitting on near record-levels of equity according to a new report, gaining an average of 8.1 percent in the last year alone. As a result, homeowners have greater access to ready cash in the form of a home equity line of credit (HELOC).

Equity levels climbed $9,700 in 2018 compared to the year before but California residents saw much higher increases. Property owners in the Golden State saw their home equity levels climb an average of $19,600 last year. Nevada led the nation with gains topping $29,400 on average.

The increases in equity could mean an increased number of home equity loans this year, particuarly as interest rates slide.

Today, 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: California, home equity, Mortgage rates, California Housing Market, Homeowner, Homeowner Equity

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

Slowdown in home sales felt more acutely on West Coast

Posted by Mehran Aram on Fri, Feb 8, 2019 @ 05:02 AM

January is typically a slower month for home sales and 2019 was no exception. Nationwide, home sales dipped last month but nowhere more than on the West Coast. New data from Redfin shows that the length of time it took for a home to sell increased most in the west.

San Jose saw an average of 45 days from listing to sale in January, up from 12 days during the same period last year. Seattle home spent 47 days on the market – up from 15 in 2018. Portland properties took 50 days to sell, increasing from 28 days. Additionally, Redfin is reporting that 15 percent of home saw a price cut in January.

With homes not selling as quickly, it may be indicative that the West Coast may be shifting to a buyers’ market.

Meanwhile, 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, California, Mortgage rates, California Housing Market, West Coast, Home Listings

Homeowner tax breaks for 2018 still up in the air

Posted by Mehran Aram on Thu, Feb 7, 2019 @ 05:02 AM

Although much of the focus is on border security, Congress has another big decision to make in the coming months: the renewal of certain tax breaks. Homeowners who itemize their deductions may still deduct the interest they paid on their home loan in 2018 but only up to certain limits.

In a tax code change that could disproportionately affect those living in pricier markets like California, the mortgage interest deduction is now capped at $750,000, down from $1 million for married couples. This applies to new home loans originated in 2017 or later. The new law also eliminates unlimited interest deductions for both new and existing home equity loans unless the loan was taken out to pay for property renovations.

Borrowers who purchase a home with a less than 20 percent down payment are often straddled with private mortgage insurance. In the past, some of these premiums were deductible however Congress has yet to extend this tax break for this tax season.

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 purchase, homeowners, Mortgage rates, California Housing Market, Mortgage Interest Deduction, Mortgage Interest, Taxes, Tax Break, Deductions, Home Loans

Weak housing market predicted for Calif. in 2019

Posted by The Aramco Group on Sat, Oct 20, 2018 @ 12:10 PM

Simply put, homes are too expensive and mortgage rates are on the rise. This is expected to drive down demand over the next year and contribute to an overall weaker housing market in 2019, one which is expected to see a decrease in home sales and a rise in the length of times properties sit unsold.

This grim outlook was made by the California Association of Realtors in its “2019 California Housing Market Forecast” released last week. Specifically, CAR anticipates a 3.3 percent decline in single-family home sales next year and fixed mortgage rates to climb to an average of 5.2 percent.

Some experts disagree, however, the 2019 will mark a turn-for-the-worse in housing, rather suggesting that a “cooling off” could be helpful in making California housing more affordable.

As for mortgage rates, today, conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 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, Housing Market, Mortgage rates, California Housing Market, Housing Forecast

Tide turns for long-time housing inventory shortage

Posted by The Aramco Group on Thu, Oct 11, 2018 @ 12:10 PM

Years of short supply and bidding wars may have finally reversed course, at least on the West Coast. A new report shows a significant turning point for home inventory levels in many regions including in California.

Redfin reports that when analyzing housing inventory nationwide, the biggest increases the volume of homes for sale were seen predominantly in the west. San Jose topped the list with a whopping 86.7 percent increase in home inventory compared to a year earlier. San Diego landed the number five spot on the list with a significant 26.8 percent increase in the number of homes on the market. This is in stark contrast to Q3 2017 when San Diego was seeing double-digit year-over-year decreases in housing supply.

Experts caution however that the increase is in part due to home sales falling, hence sales are no longer outnumbering new listings. This is likely due to prices reaching a tipping point for most buyers.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.15 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, Housing Market, Housing Inventory, California Housing Market, San Diego Housing Market