ARAMCO Report - The Mother of ALL Mortgage Blogs!

Home selling: what stays and what goes

Posted by Mehran Aram on Thu, Jul 18, 2019 @ 06:07 AM

An eccentric seller who had an emotional attachment to the door knobs in a home, a prize-winning rose garden and a crystal chandelier. These are just some of the unorthodox items sellers have taken from their home prior to moving out according to stories from seasoned Realtors. But according to the California Association of Realtors, there are some rules about what can actually be removed from a property.

The general rule-of-thumb is, if it’s nailed down, bolted or mounted, it stays behind. Understanding the difference between a fixture and personal property is key to knowing what to pack up. Buyers are legally entitled to receive all of the home fixtures as they appeared when the offer to purchase was made. But that hasn’t stop some sellers from stripping the home of some essentials that should have stayed like the toilet paper holders, light bulbs and the knobs to all the drawers and cabinets.

Unless sellers explicitly state otherwise in the negotiating process, home buyers shouldn’t expect to enter their new homes as victims of petty theft.

Meanwhile, 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, home selling, Home Sellers

ARAMCO Report - Thursday May 7, 2015

Posted by The Aramco Group on Thu, May 7, 2015 @ 14:05 PM

A Place in the Market for Flipped Homes

Relatively high gross returns on investment demonstrate that there is still a place for house flipping in the national and local real estate markets. RealtyTrac revealed that 4 percent of total single-family home sales, or 17,309 homes, were flipped in the first quarter of 2015. San Diego County accounted for 6.1 percent of the total volume or 1,055 homes.

There is a demand for move-in ready houses that have been retrofitted for modern tastes especially as there is a shortage of new housing starts recently and inventories are growing slim.

The average gross profit, nationally, for completed flips in the first quarter was $72,450, up from $65,290 in the last quarter of 2014. The average gross return on investment (ROI) was 35.1 percent for completed flips in the first quarter, which was only slightly down from 35.3 percent in the fourth quarter of 2014.

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 are averaging 3.875 percent while 15-year mortgages are averaging 3.125 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 purchase, RealtyTrac, Flipping Homes, 30 year fixed rates, home selling

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 - Monday April 27th, 2015

Posted by The Aramco Group on Mon, Apr 27, 2015 @ 13:04 PM

Not everyone is selling their homes

The percentage of homeowners that are “equity rich,” nationally, went up 0.2 percent in April 2015 to 19.8 according to RealtyTrac. These homeowners own at least 50 percent of their home’s equity. National housing inventories have not risen much because many of these owners are concerned that they will not find a replacement home if they list their own. Twenty-seven percent of San Diego’s properties were equity rich at the end of the first quarter 2015.

Inventories of homes with mortgages in serious delinquency or that are in some stage of foreclosure only make up 4.5 percent of all mortgages in the U.S. in March 2015 according to the National Association of Realtors. Sales of distressed properties made up 9 percent of March’s total home sales in California this year compared to 12.5 percent in March 2014. Home prices will strengthen as these homes sell because each transaction reduces the inventory of deeply discounted properties.

Home buyers and homeowners refinancing will find that conforming no point 30-year first mortgage rates average 3.75 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: home sales, San Diego, RealtyTrac, Housing Market, inventory, 30 year fixed rates, housing recovery, home selling

ARAMCO Report - Wednesday April 15, 2015

Posted by The Aramco Group on Wed, Apr 15, 2015 @ 16:04 PM

Homebuilder Confidence Up, Mortgage Applications Down

Homebuilders nationwide have more confidence in the sellers’ market for single-family homes in April 2015 than they did in March. According to the results from the Home Builders Index (HBI)—which is released every month by the National Association of Home Builders (NAHB) and Wells Fargo—the national index went up 4 points in April to 56 points from 52 last month. That is much higher than the tie for the survey’s record low of 9 points in December 2008, recorded during the recession. Homebuilders with on-the-ground knowledge have been responding to the survey since 1985, and they give a score (0-100) based on current home sales, expected sales in the next six months, and on current homebuyer traffic.

Even as builders have greater optimism about the housing market, the number of people applying for mortgages dropped 2.3 percent in the week ending on April 10th compared to one week earlier — due to rates for non-FHA 30-year mortgages inching higher.

Conforming no point 30-year fixed rates average 3.75 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: 30 year fixed rates, National Association of Home Builders, Mortgage applications, Home Builders, Wells Fargo, Home Builders Index, HBI, NAHB, home selling, builders

ARAMCO Report - Thursday May 29, 2014

Posted by Mehran Aram on Thu, May 29, 2014 @ 17:05 PM

For the first time in 3 years, the U.S. economy contracted in the first quarter of 2014 by 1 % most likely because of an unusually harsh winter.  But here in spring, the economy appears to be rebounding based on some of the recent reports.  Mortgage rates remain at their lowest level since November of last year with conforming no point 30 year fixed rates averaging 4 1/8 th and 15 year rates closer to 3 1/8 th.  Meanwhile pending home sales in April rose by 4/10 ths of a % for existing homes.

And now for something completely different: The White Sox won their first World Series Championship 108 years ago in 1906, defeating their crosstown rivals Chicago Cubs 4 to 2.

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, home buying, home purchase, Chicago, Mehran Aram, Chicago Cubs, World Series, home ownership, Southern California, White Sox, 30 year fixed rates, Baseball, home selling

San Diego Real Estate Market Forecast: HOT! HOT! HOT!

Posted by Craig Sutliff on Sat, May 3, 2014 @ 16:05 PM

Real Estate Market Forecast:  HOT! HOT! HOT!
To say the real estate market in San Diego is HOT, is an understatement. In just the past thirty days, the real estate market has really turned around in a night and day transformation. Many homes are now selling in a matter of days and the times of having MULTIPLE offers on each home are back. The Spring selling season is in full-swing, and with a bang--It truly is a seller’s market out there!

A positive trend is that there has been a 7% increase in the number of homes listed for sale, YTD. Overall, YTD closed sales are down 19% from last year and the average days on the market for a home has also decreased by 16%, which means they are selling a lot faster.  

Throughout 2013 a main complaint was a lack of homes for sale, and the high number of all-cash investors scooping up properties. We saw a very significant activity in the real estate market from January 2013 through September of 2013 with September hitting a median home value of $419,000 for Attached and Detached homes combined in San Diego County.

There was a higher level of nervousness leading up to the end of 2013.  I don’t think it can be understated that there was a palpable nervousness in the market with the governments bungling of the Obamacare rollout.  In addition to a seasonal decrease in sales, people were very nervous about the overall economy and the sharp rise in home values, and the market needed a little break. Then from September 2013 through February 2014 the market cooled off, sales volume dropped and home prices moderated and even dropped for a few months, ending February 2014 with a median home price of $404,700. 

Then came March. Although overall sales volume was down, the average median sales price for all homes, attached and detached increased 7% IN ONE MONTH up to $427,250. March sales of single- family residences, which excludes “attached” properties such as condos and townhomes, SURGED 32% over the previous month!  With the median sales prices for single-family residences hitting $490,000 which is the highest point since December of 2007. To say there is a bull-market in San Diego real estate sales, is an understatement.  If you are looking to sell your home, NOW is a perfect time. 

Additionally, even though prices have increased, rates are at historic lows and buyers are entering the market because they are listening to the Federal Reserve Chair Janet Yellin telling us that interest rates will be increasing.  They started last year with a measured decrease in their bond-buying activity, and have indicated they will continue to pare back.  The only thing that has really kept interest rates from spiking higher recently is the instability in the Baltic region with Russia and the Ukraine.  That is creating a flight to safety for investors into the US Treasury market.  Now, I don’t see any quick resolution to this situation, so that will keep rates low for the time being.  But if it is resolved peacefully, the proverbial “music will have stopped,” rates will increase, and you don’t want to be the one standing around without a chair.

Providing some relief is a 7% increase, YTD, in the number of newly listed homes for sale. I think once the numbers for April are released we will see further evidence of the HOT sellers market in San Diego.

For more information on The Aramco Group’s Real Estate call 877-700-0942.

Learn More

Topics: home prices, The Aramco Group, San Diego, Loans, real estate, California, home ownership, Aramco Properties, home selling, low rates, Selling

Best of Both Worlds for Real Estate!

Posted by Craig Sutliff on Fri, Nov 1, 2013 @ 16:11 PM
Home, Luxury Home, Home Prices, Real Estate

Is it possible to have the best of both worlds in Real Estate? A great time to sell your home and a great time to be a buyer?  I think the answer is Yes, AND that time is now.  Any expert will tell you that timing the market is near-impossible.  You never know when a “bottom” or “top” of the market is, until it has occurred.  Interest rates were at their lowest this year back in May, and they have trended upwards since then.  Now it is easy for every “expert” and consumer, to look back at a chart and say, “wow interest rates bottomed out in May, that is when you should have purchased a home and locked in a loan.”  The same thing goes for real estate, it is easy to look back on a chart and identify when home values were at their lowest.  And the same “experts” and consumers say, “Wow, I should have purchase real estate in 2011, at the bottom of the market.”  That’s why they say, but hindsight is 20/20, and as we all know, it is easy to identify an event after it has occurred.   

But, during these periods, both buyers and sellers were hesitant to enter the market. Buyers feared that home values would continue to drop, while home sellers didn’t want to sell, hoping that home values would stop dropping or, in many cases they were unfortunately already “underwater,” with no equity. Very few people are skilled enough to “time the market,” no matter what commodity one may be dealing with, be it the real estate market, interest rate market or the stock market. In 2011, when home prices were bottoming out, few home investors and house flippers were buying homes, but after empirical data, such as the National Association of Realtors, Existing Home Sales Statistics and the Case-Shiller Home Price Index, identified 2011 as the low point for home values, in 2012 and 2013 we saw a HUGE surge of real estate investors buying up properties to the extent that over 40% of all property sales in the first Quarter of 2013 were purchased by investors and about 50% of sales were All-Cash! time to be a buyer? I think the answer is Yes, AND that time is now. Any expert will tell you that timing the market is near-impossible. You never know when a “bottom” or “top” of the market is, until it has occurred. Interest rates were at their lowest this year back in May, and they have trended upwards since then. Now it is easy for every “expert” and consumer, to look back at a chart and say, “wow, interest rates bottomed out in May, that is when you should have purchased a home and locked in a loan.” The same thing goes for real estate, it is easy to look back on a chart and identify when home values were at their lowest. And the same “experts” and consumers say, “Wow, I should have purchase real estate in 2011, at the bottom of the market.” That’s why they say, but hindsight is 20/20, and as we all know, it is easy to identify an event after it has occurred.

So you might ask, with the recent run-up in home values; Are we at the peak? Should I sell? Should I Buy? Home values have increased significantly in just the past year, but are still off their, frankly irrational, highs in 2006. For mortgage loans, we have seen about a 1% increase in interest rates since May 2013 which slowed down the number of home sales and cooled-down the uptick in home prices. Inventory of homes for sale are still low, and while home values have had a strong run-up, there are still numerous home buyers wanting to purchase a home especially given the latest drop in interest rates. It is a fact that most home sellers are also home buyers, and thus I can, with much confidence, declare this a real estate market one that truly does benefit both buyers and sellers.


Craig Sutliff

Topics: home prices, real estate, Interest Rates, Aramco Properties, home selling, low rates

Owning Your Own Home: Still The American Dream

Posted by The Aramco Group on Tue, Mar 27, 2012 @ 21:03 PM

The green manicured lawn, the peaked roof, the white picket fence. You can just picture it: the all-American home.

Turns out, most Americans still think that's a pretty good thing.

The most recent Quarterly National Housing Survey, conducted by Fannie Mae, shows that the majority of Americans believe that owning their own home is preferable to renting.

The survey also shows that while financial and employment challenges might dissuade potential homebuyers in the short term, an employment uptick and improved personal finances, a pickup in interest rates in response to stronger economic growth, and stabilizing home prices may move Americans to pull the trigger on their aspirations in coming years.

And we feel this way regardless of race, age, education or other demographics. Another constant among all groups: the most important factors in choosing a home are still safety (aka, crime), and the quality of local schools.

"In spite of the impact of the housing crisis on home values and homeownership rates across the country, Americans by and large still hope to become homeowners," said Doug Duncan, vice president and chief economist of Fannie Mae. "Some may not be financially positioned to own a home in the near future, but Americans may begin to revisit that aspiration as employment and household balance sheets improve over the coming years."

Understandably, the margin of Americans believing homeownership holds the highest investment potential has declined over the past several years. At the same time, the perceived safety of owning a home as an investment has trended downward, reaching a low of 63 percent in the fourth quarter of 2011.

Here's to homeownership! Call us at 877.600.1130 or visit our offices in Carlsbad and we will be honored to do whatever we can to help you find and buy your dream home!

Topics: home prices, The Aramco Group, home ownership, home selling

Spring Is In The Air - And Good Housing News For A Change!

Posted by The Aramco Group on Wed, Mar 21, 2012 @ 11:03 AM

The housing data for February is out, and overall the news is pretty good - a little confusing, but generally positive. February existing home sales were up, then down, but still rather positive. Huh? Here's why.

According to the National Association of Realtors, existing home sales were reported as 4.59 million in February, up from January's 4.57 million. But then the January number was adjusted upward, to 4.63 million, which means that February's 4.57 million, which was an increase, is now a decrease. Got it?

OK. Don't worry too much about that. The fact is that this was the best January/February one-two punch in five years - i.e., before the housing industry collapse. And year-over-year, the February sales numbers are almost 9% higher than February of 2011. That is good news.

The median existing home price also rose, .3% to more than $156,000. That's also good news. And if you think that those numbers are driven by distressed - i.e., foreclosed - housing, think again. Distressed sales accounted for 34% of all transactions, with foreclosures accounting for 20% and short sales accounting for 14%. That's a lot, but that also means that roughly two out of every three houses sold were not distressed. Again, good news.

If you're looking to buy or sell your home, we can help. Our new Aramco Properties division can help you find either the house you've been looking for or the ideal buyer, and Aramco Mortgage can help you get the best rates on the best mortgage product for you - not us.

Give us a call at 866.600.1130 or stop by our North County offices. We'd love to meet you and see how we can help.

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Topics: home prices, home buying, Aramco Properties, home selling