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Housing market shifting in favor of buyers

Posted by Mehran Aram on Sat, Jun 8, 2019 @ 08:06 AM

After years of record low inventory levels, an influx of homes on the market is helping solidify speculation made by experts that 2019 may be the year the housing market finally shifts in favor of buyers. As mortgage rates decline, homeowners are seeing an opportunity to move and listing their home for sale.

“The U.S. housing market has largely favored sellers over the last several years as a result of the record-breaking low inventory and red-hot demand that led to intense competition and fast-rising home prices,” said Realtor.com’s Chief Economist Danielle Hale. “Slowing sales and growing inventories have caused supply to increase in many markets across the country.”

With more homes expected to be listed for sale this summer, the prevalence of bidding wars that have been seen in previous years is likely to be lessened.

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: home sales, Housing Market, National Association of Realtors, Mortgage rates, Realtor.com, U.S. Housing Market, National Housing Market

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

San Diego home sales down as prices continue to rise

Posted by Mehran Aram on Sat, May 4, 2019 @ 08:05 AM

Home sales in San Diego County fell for the eleventh consecutive month in March according to new data from real estate tracker CoreLogic. High purchase prices are being attributed to the sluggish sales. Although prices have moderated since last year, March’s median home price was up 0.9 percent compared to the same period in 2018.

There were a total of 3,224 closed escrow sales in San Diego County during the month, down 8.6 percent on a year-over-year basis.

In recent months, high home prices have been countered by lower mortgages rates which have been in the slide since early this year. Currently, 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 County, CoreLogic, Mortgage rates, San Diego Housing Market, median home price, San Diego Home Sales, San Diego Median Home Price, Closed Escrow Sales

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

Dirt lots being sold before homes are built

Posted by Mehran Aram on Thu, Mar 28, 2019 @ 06:03 AM

The volume of homes being sold before they have even been built is increasing exponentially according to a new report. Data from the Commerce Department showed that more than 34 percent of newly built homes sold in 2018 was either before or while the property was under construction.

This comes as welcome news to homebuilders as it indicates a continued strong demand for new homes. Builders were challenged last year with flat sales and rising material costs causing big builder stocks to lose 20 percent on average.

Demand for new housing is expected to move higher as mortgage rates remain low. 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, Housing Market, new homes, U.S. Department of Commerce, Mortgage rates

San Diego homes seeing cuts in sales-prices

Posted by Darius Aram on Tue, Mar 19, 2019 @ 06:03 AM

More San Diego homes are selling for a discount according to a new report. In fact, research from real estate website Trulia shows that San Diego County had the second-most home price reductions in the nation so far this year.

Data reveals that approximately one-in-five homes in San Diego saw a cutback from its original list price in the first several weeks of 2019 – the highest amount since 2014. Economists are saying that the increase in sales prices are an indication of a slow shift towards a buyers market.

The number of homes for sale in the region has also increased over the past year. There were 6,362 homes for sale in San Diego as of February, up from 4,636 during the same month 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: home sales, San Diego, Trulia, Mortgage rates, San Diego Housing Market

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

Luxury home sales down for first time in 2 years

Posted by Mehran Aram on Sat, Feb 9, 2019 @ 05:02 AM

The sales volume of the priciest homes in the U.S. is falling but their price tags are rising. Real estate brokerage Redfin released data this week that showed a four percent decrease in sales of homes priced at $2 million or more during the fourth quarter of 2018. This is the first time in more than two years that home sales at that price point have declined on a year-over-year basis. Uncertainty on Wall Street may have been a factor for the decline according to Redfin.

“In the fourt quarter of 2018 there was a lot of economic uncertainty – the stock market was all over the place,” said Daryl Fairweather, Redfin’s chief economist. “This may have encouraged luxury sellers to hold on to their real estate assets and also caused luxury buyers to be reluctant to make major home purchases.”

Nonetheless, luxury home prices continue to rise. The average sale price for the top 5 percent most-expensive homes in the U.S. rose 4.7 percent in Q4 to an average of $1.772,000.

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, home prices, real estate, Mortgage rates, Luxury Homes, Real Estate Assets, Average Sales Price, Sales Price, Home Sales Volume

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

New home sales climb higher

Posted by Mehran Aram on Sun, Feb 3, 2019 @ 05:02 AM

Sales of newly built homes, which had been sluggish for much of 2018, reversed course in November, rising a whopping 16.9 percent from the month prior. According to the U.S. Department of Commerce, new home sales climbed to an annual rate of 657,000. This beats the prediction of 571,000 made by economist in a survey conducted by The Wall Street Journal.

November’s increase was not enough to push new home sales into the black for the year where they remain 7.7 percent lower. Builders focusing primarily on the higher end of the market with larger, more expensive homes, is partly to blame for the annual decline.

November’s home sales report was released just last week after being delayed by the partial government shutdown.

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, new home sales, U.S. Department of Commerce, Mortgage rates, November New Home Sales