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Home sales fall more than expected

Posted by Mehran Aram on Sat, Jul 27, 2019 @ 05:07 AM

Sales of previously owned homes in the U.S. decline last month, marking the sixteenth consecutive month of year-over-year declines. High home prices and low inventory continues to keep potential home buyers on the sidelines. The 1.7 percent monthly drop in home sales in June is far greater than the 0.6 percent decline predicted by economists in a survey by The Wall Street Journal.

Although the rate at which home prices are rising has slowed over the past year, the median home price in the U.S. remains 4.3 percent higher than the same month in 2018. Prices for existing single-family homes have climbed every month for the past 88 months.

Driving prices higher is the short-supply of homes on the market. Inventory levels were at 4.4 months nationally. Experts cite 6 months as a healthy supply.

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: home sales, home prices, Mortgage rates, median home price, Low Inventory

San Diego housing market appears to be cooling off

Posted by Mehran Aram on Wed, Jul 24, 2019 @ 05:07 AM

It may be summer in America’s Finest City but that’s not keeping the housing market sizzling. Home price growth in San Diego has begun to level off compared to the steep price increases seen last summer.

Median home prices in San Diego are still climbing but over the past twelve months it has been a quite modest 1.9 percent increase, according to Zillow. The online real estate site expects the tepid growth to continue through next year.

With home prices leveling off and mortgage rates at their lowest levels in over a year, demand for housing in San Diego is expected to remain strong through 2020.

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: San Diego County, home prices, San Diego, Zillow, Mortgage rates, San Diego Housing Market, median home price, San Diego Home Prices, Americas Finest City, San Diego Median Home Price, San Diego Housing

Real estate history repeats itself

Posted by Mehran Aram on Wed, Jul 17, 2019 @ 05:07 AM

Wage increases not keeping up with the rising cost of living has been plaguing the housing market for several years, but a new study of historical trends shows that this dilemma has been frustrating buyers for decades.

A report from Clever Real Estate shows that median home prices have surged 121 percent nationwide since 1960 while household income increased just 29 percent. Renters have also felt the pain of rising prices with a 72 percent increase since 1960.

Homes in the West have felt this problem more acutely as median home prices have risen 195 percent over the past five decades, compared to wages rising only 26 percent over the same time period.

Today, 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: Housing Market, Wages, Renters, household income, home buyers, median home price, Cost of Living, Historical Home Prices

Home prices beyond affordable

Posted by Mehran Aram on Mon, Jul 8, 2019 @ 09:07 AM

The gap between what homebuyers want to pay for a home and what a home costs appears to be growing. A study conducted by Realtor.com found that, nationally, half of today’s house-hunters are looking to purchase a property for under $288,000. But that’s a 9.1 percent gap or $27,000 less than the median national home price.

Experts boil the dilemma down to the basic economic principle of supply and demand. There simply aren’t enough homes on the market that the average American can afford to buy. Although inventory is growing, it’s doing as at the top of the market – home's priced above $750,000.

“Entry-level homes continue to be difficult to come by as the inventory composition shifts more and more toward higher prices homes,” said Danielle Hale, chief economist for Realtor.com. “This is causing smaller and more affordable homes to appreciate rapidly, resulting in a mismatch between what buyers are able to spend and what sellers expect to receive.”

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: home prices, home purchase, homebuyers, Mortgage rates, Realtor.com, Realtors, median home price, Affordability, home inventory

April home prices stabilize

Posted by Mehran Aram on Tue, May 28, 2019 @ 06:05 AM

After falling during the month of March on an annual basis, home prices across the nation stablized in April, rising 2.8 percent. According to the latest data available from Redfin, U.S. home-sale prices reached a median of $307,000 last month. These newest figures show that although the beginning of the year may have seen a retreat in sale prices, demand rising in the spring is likely to reverse this trend.

“Homebuyers should take April’s home-price rebound as a cue that the cooldown may be coming to an end,” said Redfin Chief Economist Daryl Fairweather. “The good news is that even though home prices are rising again, mortgage rates remain below last year’s levels and are unlikely to tick back up in a meaningful way this year.”

Mortgage rates experienced a notable decline since last November and continue to remain low throughout 2019 with 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 prices, homebuyers, Redfin, Mortgage rates, median home price

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 sales rebound after sluggish start to 2019

Posted by Mehran Aram on Mon, Apr 15, 2019 @ 05:04 AM

Sales of existing homes in San Diego County climbed a whopping 28.2 from February to March according to new data. The Greater San Diego Association of Reatlors released a report last week that showed single-family home sales numbered 1,721 last month. This is up from 1,342 the month prior.

Lower mortgage rates helped push the March figures higher. Last month’s increases in home sales are a rebound from a seasonal low in January.

Home prices also increased in San Diego with the median cost for a detached home rising 0.3 percent to $630,000 as of March. 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, Greater San Diego Association of Realtors, existing home sales, single family homes, Mortgage rates, San Diego Housing Market, median home price, San Diego Home Sales, San Diego Median Home Price

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

U.S. home affordability drops to 10-year low

Posted by Mehran Aram on Wed, Dec 26, 2018 @ 05:12 AM

A report released last week by ATTOM Data Solutions only confirmed what homebuyers have been feeling for quite some time – affordable homes are increasingly difficult to come by. The Q4 2018 U.S. Home Affordability Report showed that the U.S. median home price during the fourth quarter was at the least affordable level since Q3 2008 – more than a 10-year low.

The index posted a reading of 91, down from 94 in Q3. Readings below 100 suggest that the current median home price is less affordable than the historic average. 357 out of the 469 U.S. counties analyzed in the report had readings below 100.

The silver lining according to a statement made by Darin Blomquist, senior vice president at ATTOM, is that annual wage growth outpaced annual home price appreciation. This includes in high-prices areas such as San Diego.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.625 percent, 15-year rates near 4.0 percent and the 5-year ARM averaging 4.375 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: Wages, home affordability, median home price, wage growth