ARAMCO Report - The Mother of ALL Mortgage Blogs!

A uniquely California problem: too many mansions

Posted by Mehran Aram on Fri, Jun 7, 2019 @ 16:06 PM

Southern California is known for its streets lined with palm trees, beaches and glitz and glam. This includes homes that are so large, they can only be described as mega-mansions. However, a recent report from The Wall Street Journal shows that there is a growing inventory of these palatial homes and not enough buyers.

In Los Angeles alone, there are currently 50 ultra high-end homes under construction and are expected to cost anywhere from $35.5 million to $500 million. And in typical Hollywood fashion, real estate agents are ditching open houses and instead inviting potential buyers to lavish themed parties to check out these grand estates.

The influx in mega-mansions began several years ago where there was increasing interest from foreign buyers for such homes, but builders are seeing that domestic demand is far less, leaving them with a surplus of superfluous 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: California, Mortgage rates, Housing Inventory, California Housing Market, Southern California Housing Market, Mega Mansions, SoCal

Housing inventory rebounds after years of stagnation

Posted by Mehran Aram on Fri, Feb 22, 2019 @ 05:02 AM

There are currently more homes for sale today than at any point in the last decade. This is according to a survey released this week of RE/MAX agents nationwide. RE/MAX is a global real estate agent franchise with 120,000 agents worldwide. The organization’s latest National Housing Report shows the largest year-over-year increase in housing inventory in at least 10 years.

Inventory increased in January by 6.4 percent – this is the largest yearly increase since 2009 and the fourth consecutive month of increases. This latest upswing is a stark contrast to years of stagnation in the housing market. Previous reports had referred to the housing shortage as a ‘crisis’, primarily responsible for skyrocketing housing prices.

The increase in the number of homes for sale is the latest indication that there may be a gradual shift to a buyer’s market.

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: Mortgage rates, Housing Inventory

Buyers spending over 3 months to find next home

Posted by Mehran Aram on Sun, Feb 17, 2019 @ 08:02 AM

A shortage of homes for sale on the market is taking its toll on house hunters. A survey conducted by the National Association of Home Builders showed that 58 percent of buyers actively searching for a home to buy in the fourth quarter of 2018 had been looking for at least three months.

When respondents to the survey were asked what the primary reason for the delay in selecting home was, they cited a lack of homes for sale in their price range (49 percent) followed by not finding a home with their desired features (44 percent) and not finding a home in the right neighborhood (43 percent).

Despite the hurdles to finding the perfect home for the right price, just 16 percent of those surveyed say could give up a new home purchase altogether if these conditions persist.

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 Builders, NAHB, Mortgage rates, Housing Inventory, home buyers, Survey

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

ARAMCO Report - Friday May 15, 2015

Posted by The Aramco Group on Fri, May 15, 2015 @ 17:05 PM

Rise in mortgage applications to builders not enough

Mortgage applications for building new projects rose in March and April to their highest levels since August 2012 when the Mortgage Bankers Association (MBA) started tracking them. On a year over year basis, applications to builders for new home mortgages were up 16 percent.

This was a glimpse of good news for renters and homebuyers alike as it may alleviate some pressures in low home inventory rates across the country. The chief economist for the National Association of Realtors said in a release on May 15, 2015 “Housing supply needs to increase measurably to meet the pent-up demand for buying.” The National Association of Realtors does not expect the building market to fully recover until at least 2017 however.

In general mortgage application for purchases—including those by all types of consumers—was flat between March and April 2015, raising 1 percent. That includes all residential mortgage applications for new and existing homes.

People looking to buy a home will find mortgage rates near historic lows with conforming no point 30-year fixed mortgage rates averaging 3.875 percent while 15-year rates are averaging 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.

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Topics: 30 year fixed rates, Mortgage applications, Housing, homes, Home Building, Housing Inventory