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The spending habits of San Diego households

Posted by Mehran Aram on Thu, Oct 17, 2019 @ 05:10 AM

The spending habits of San Diego households

The U.S. Bureau of Labor Statistics reported last week that households in the San Diego-Carlsbad metropolitan area spent an average of $79,672 per year in 2017-2018. This includes all major living expenses including housing, healthcare, food and transportation. In comparison, the national average spending amount was $60,580.

In general, San Diego-area households spent their money in ways that aligned with the rest of the nation with a couple of notable differences. Housing is the largest expense for residents in the region at $28,591 per year. This accounts of 35.9 percent of a San Diego household’s budget, compared to a U.S. average of 33 percent.

Residents of San Diego also tend to spend more on dining out. Nationwide, households spend 43.6 percent of their food budget on eating away from home. San Diegans spend 47.4 percent.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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: San Diego County, San Diego, Mortgage rates, households, Household Spending, Household Budget, National Average Spending, Housing Expenditure, U.S. Bureau of Labor Statistics

Homeowners Associations: Friend or Foe?

Posted by Mehran Aram on Fri, Oct 11, 2019 @ 05:10 AM

The number of homeowners who belong to a Homeowners Association has ballooned over the past 50 years, growing from 10,000 communities in the 1970’s to over 300,000 today. And according to a survey from Porch.com, it’s a love-hate relationship.

HOA households appreciate that their community association ensures clean streets, can help settle neighborly disputes and offer amenities like a neighborhood gym and pool. But many also find the rules and costs associated with an HOA to be hefty.

The survey found that the most common HOA fine was for improper landscaping and trash cans being left on the curb beyond pickup times. Fifty-two percent of homeowners say they have not had to pay a fine to their HOA but millennials, at a rate of 54 percent, said they would likely skip out on paying a fine should they get one.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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: HOA Payments, Mortgage rates, homeowners association, HOA, households, Homeowner Fees

74 percent of U.S. housing market unaffordable for average wage earners

Posted by Mehran Aram on Mon, Sep 30, 2019 @ 06:09 AM

A cooling off the housing market has not translated to more affordable homes for the average household in the U.S. ATTOM Data Solutions reported last week in its Q3 2019 U.S. Home Affordability Report that homes in 371 of 498 U.S. counties analyzed are simply too expensive for average wage earners.

The most unaffordable markets in the nation included Los Angeles, Orange and San Diego counties. These same regions topped the list in the previous quarter as well.

Affordability was determined by calculating the amount of income needed make monthly house payments on a median-priced home, assuming a 3 percent down payment and a 28 percent debt-to-income ratio and compared it to weekly income data in each region.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 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: San Diego County, San Diego, Wages, Mortgage rates, home affordability, ATTOM Data Solutions, Affordability, households, Unaffordable Markets

Mounting debt keep needle from moving on homeownership

Posted by Mehran Aram on Sat, Sep 21, 2019 @ 08:09 AM

The high cost of living alone would be enough to keep many American households from being able to afford a home. When combined with credit card payments, student loan debt and stagnant wages, the obstacles on the road to homeownership become seemingly insurmountable.

In a new survey conducted by Bankrate, debt payments, including student loans are among the primary reasons people can’t afford a home. Further, 52 percent of Millennials state that their income is simply not enough. This sentiment was shared by Gen Xers (55 percent) and Baby Boomers (55 percent).

The survey also showed that just over half of all adults in the U.S. are unaware of the minimum down payment requires to buy a home. Low down payment programs, like an FHA loan, allow buyers to purchase a home with as list as 3.5 percent down.

Meanwhile, 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: Millennials, debt, FHA, homeownership, Mortgage rates, Low Down Payments, Housing Affordability, Baby Boomers, Affordability, households, Gen x, Generation X

Homeowner equity levels continue to climb

Posted by Mehran Aram on Tue, Jun 11, 2019 @ 05:06 AM

Despite a recent slowdown in price appreciations, homeowners with a mortgage in the U.S. saw their equity levels shoot up by 5.6 percent on average over the past year. This equates to $6,400 per homeowner according to the Home Equity Report released last week by CoreLogic.

Nevada once again led the nation with the biggest increase in equity levels, climbing $21,000, followed by Idaho ($20,700) and Wyoming ($20,300). Californians saw an average increase of $4,116.

These increases have pulled more homeowners out of negative equity territory. The number of households who owe more on their mortgage than their current home’s value has dropped to just 4.1 percent of all mortgage properties.

Meanwhile, 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: homeowners, CoreLogic, negative equity levels, home equity, homeownership, Mortgage rates, Underwater Homes, Equity Rich, households