The ever-increasing cost of housing and utilities in San Diego has caused a significant slowdown in overall economic growth. Incomes throughout the county have remained relatively stagnant – causing families to pay a higher percentage of their income to housing.
According to the S&P/Case-Shiller Home Price Index, homes in San Diego have increased 4.8 percent since last year, more than the national average. While this spells good news for homeowners, it also shows that families are growing unable to afford housing in the county. Reports claim that the fundamental issue is regulators indecision to approve new construction to keep up with demand, causing house prices and rent to rocket.
The silver lining is that FHA and VA loans provide low and no-down payment options while mortgage rates remain near historic lows. The conforming no-point 30-year rates are averaging of 4 percent and 15-year fixed rates are averaging 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 question may be featured in an upcoming article.