ARAMCO Report - The Mother of ALL Mortgage Blogs!

San Diego rent prices hit new all-time high

Posted by The Aramco Group on Sat, Oct 13, 2018 @ 09:10 AM

Renters in San Diego are paying more than ever to lease a home, according to a new report. San Diego County’s average rent climbed to $1,960 per month in September, the highest average ever recorded. This data, which was compiled by MarketPointe Realty Advisors, shows that driving up the average are the nine new apartment complexes that opened this year with comparably high lease prices.

San Diego has grown to be notorious for its high cost of living, particularly for renters. Average monthly rent has grown at twice the rate of inflation in recent years which has brought it up to become the tenth most expensive rental market in the nation. More expensive markets include San Francisco ($3,650 monthly), New York City ($2,850 monthly) and San Jose ($2,470 monthly).

Still, experts are forecasting that rent prices may stabilize as the overall housing market cools. Already, year-over-year increases have slowed. September’s annual jump in rental prices was 5.74 percent, compared to 6.36 percent in 2017.

More expensive leases could give renters an incentive to become homeowners instead. 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 4.25 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, Rent, Monthly Rent

Foreclosure filings at lowest levels since 2005

Posted by The Aramco Group on Fri, Oct 12, 2018 @ 12:10 PM

The number of Americans whose properties are at some point in the foreclosure process has fallen to a 13-year low according to new data. Homeowners with default notices, scheduled auctions or bank repossessions is down 6 percent as of Q3 compared to Q2 and down 8 percent from last year. This latest information comes from ATTOM Data Solutions’ Q3 2018 U.S. Foreclosure Market Report.

In total there were 177,146 U.S. properties with foreclosure filings last quarter. This represents a 36 percent decrease from the pre-recession average of 278,912. Counter to the national trend, there were some major metropolitan markets where foreclosure starts increased including in San Diego. There were 744 filings in San Diego, up four percent from last year.

Meanwhile, 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 4.25 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: foreclosure, Default Notices, Foreclosure Filings, San Diego County, San Diego, Mortgage rates

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: Housing Inventory, Housing Market, San Diego Housing Market, San Diego, home sales, California Housing Market

California voters to decide on rent control measure

Posted by The Aramco Group on Sun, Oct 7, 2018 @ 09:10 AM

The rate at which rents are rising in California is unprecedented. More than half the state’s renters are spending 30 percent or more of their monthly income on rent according to the U.S. census bureau. Because of this predicament, organizers collected enough signatures earlier in the year to ensure that Proposition 10 is put before voters. The ballot measure would allow cities and counties across the state to expand rent control,

Supporters of the initiative say it will offer relief for renters and protect them against unreasonable or exorbitant rent increases. Opponents, on the other hand, claim it could lower demand for housing and even prevent owners from setting rent prices on rooms in their own homes.

While San Diego does not currently have any local rent control laws in place, other California cities do. The passage of Proposition 10 would give cities the discretion to expand rent control locally.

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: California, Rent Control, Renters, census bureau, Proposition 10, San Diego

Home affordability at 10 year low

Posted by The Aramco Group on Sat, Oct 6, 2018 @ 10:10 AM

Home prices in U.S. may not be climbing as fast as they were at the beginning of the year, but new data shows that Americans are still feeling the affordability crunch. ATTOM Data Solutions released its Q3 2018 U.S. Home Affordability Report last week which showed that home prices in the third quarter were at the least affordable level since 2008.

“Rising mortgage rates have pushed home prices to the least affordable level we’ve seen in 10 years, both nationally and at the local level,” said Daren Blomquist, senior vice president at ATTOM. “Close to one-third of the U.S. population now lives in counties where buying a median-priced home requires at least $100,000 in annual income.”

In San Diego County the annual income needed is higher than the national average at $160,745 based on the current median home price in the region of $570,000.

Meanwhile, 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 affordability, home prices, median price, San Diego, San Diego County

ARAMCO Report - Thursday June 4, 2015

Posted by The Aramco Group on Thu, Jun 4, 2015 @ 16:06 PM

The Catch 22 of Renting before Buying

San Diego rents increased 5.5 percent between April 2014 and April 2015. That is equivalent to an increase of $123 per month as of April of this year, when the median monthly rent was $2,347 according to Zillow.

Renting is traditionally the stepping-stone to homeownership in the American dream, but while higher rents motivate people to buy a home and get out of the rental market they can also hinder homeownership by siphoning potential savings away from being used for a down payment.

Renters in high-income areas like San Diego can often pay higher than average percentages of their monthly income—sometimes up to 50 percent vs. an average of 30 percent nationally—on rents. This is because San Diegans’ median incomes have been 18.8 percent higher than the national average (approx. $63,000 vs. $50,000, via US Census), but their median monthly rental costs have been 72 percent higher than the national average ($2,347 vs. $1,364), as they were April 2015.

Mortgage programs from FHA, Freddie Mac and Fannie Mae—that have low down payments and that historically have lower interest rates—are meant to help qualified first-time homebuyers break this problematic cycle.

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.

Topics: San Diego County, home buying, San Diego, Down Payment, 30 year fixed rates, renting, Rent

ARAMCO Report - Friday May 8, 2015

Posted by The Aramco Group on Fri, May 8, 2015 @ 15:05 PM

How renters can be left behind in San Diego

Home ownership rates in San Diego went down 1.17 percent between 2010 and 2013 according the National Association of Realtors. That gives San Diego the 5th lowest homeownership rate (52.77 percent) of the 100 most populous metro areas in the US.

Rising home prices in many metro areas have helped homeowners build housing wealth in recent years, but the continued decline in homeownership means the gains are going to fewer people. According to the same study this resulted in an increase in inequality of 4.56 percent in San Diego over three years. This was primarily caused by how a typical home in San Diego appreciated $95,241 between 2010 and 2013 according to the survey. Renters were unable to harvest any of that growth.

By contrast, hourly wages for the average worker, across all non-farm sectors, rose three cents in April 2015 to $24.87, but have been stuck in a tight range of 1.8 percent to 2.2 percent annual growth since 2011.

Those looking to buy their first home or grow their housing wealth will find mortgage rates near all-time lows. Conforming no point 30-year fixed mortgages averaging 3.875 percent while 15-year mortgages 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: San Diego, 30 year fixed rates, homeownership, Housing, Inequality, Housing Wealth

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

Buying a New Home with a Reverse Mortgage

Posted by The Aramco Group on Thu, Apr 23, 2015 @ 13:04 PM

Did you know there is a way to buy a home and never make a mortgage payment?

Imagine this scenario:

You have $200,000 and you are looking for the perfect home that suits your retirement.

You are looking forward to buying your next home outright because you have spent a lifetime making monthly mortgage payments and to continue to would be a drag.

You are scared that $200,000 is not enough to find a home in San Diego.

You and your spouse engage a realtor, and look around the San Diego area for a perfect home or condominium, and you are disappointed that you cannot find any homes that…

1) Suit your family’s needs,

2) Are in your price range, and

3) Are in the neighborhood you want them to be.

Is this home the right size?

What are you to do?

Consider a using a reverse mortgage as a tool to get the right home.

If you or your loved one are over the age of 62, then you might qualify for a Reverse Mortgage for Purchase. It could expand your buying power and you still won’t have to make mortgage payments — if you do not want to!

The loan amount one can qualify for with a Reverse Mortgage for Purchase is based on the age of the youngest borrower. If the youngest borrower is 62 or over, then the loan can be the lesser of 52% the home’s appraisal value, the purchase price or the maximum lending limit.

Let’s go back to our situation where you and your spouse have $200,000 and are looking for the perfect San Diego home to right-size into retirement. If you and your loved one are 62 and qualify for a reverse mortgage, then 52% of the appraised value of the home you find can be covered by the reverse mortgage! 

You find the perfect home for $390,000. You could never afford it without a loan (or a winning lotto ticket), but with your reverse mortgage covering 52% ($202,800) now you can use $187,200 of your money to buy a home worth nearly twice as much as you could have purchased in cash.

Even better: the Reverse Mortgage for Purchase works just like a normal Reverse Mortgage. You retain the title to the home, and the loan does not come due until the last borrower leaves the home. The loan is non-recourse, so the bank can never come after you, your heirs or your estate regardless of what happens in the housing market.

You got everything that you set out to accomplish: you found a home that…

  • Suits your family’s needs,
  • Is in the right neighborhood,
  • Requires NO monthly mortgage payments,
  • And was within reach of your original budget!

You got everything you were looking for with the help of a reverse mortgage!

Look around you for a moment, and try to see the nooks and crannies of your home in a new light. Would you like to spend your future in a home that is better suited to your needs? If so, call ARAMCO Financial at (760) 438 – 2552 to see if a Reverse Mortgage for Purchase is right for you. Or sign up for our free educational workshop at www.ARAMCO.biz.

Don’t just downsize, right-size with a reverse mortgage!

Topics: Reverse Mortgage, HECM, home prices, home purchase, San Diego, purchase, Price, Reverse Mortgage for Purchase, Home Purchasing, HECM for Purchase