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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

Six-figure salary needed to afford local homes

Posted by Mehran Aram on Sat, Oct 5, 2019 @ 08:10 AM

Using information from the National Association of Realtors, mortgage data provider HSH.com put forth a study that shows how much one needs to earn in order to afford a median home in a given region. On a national level, a household needs to take in $61,123 per year to afford a home but this varies drastically when looking at markets along the coast.

In San Jose, the most expensive metropolitan area to a buy a home in, an income of $254,.836 per annum is needed to keep your monthly mortgage payment from swallowing your paycheck. San Francisco requires a salary of $198,978 per year, while San Diegans need to take in $127,292.

The study calculated the annual before-tax income required to cover the principal, interest, taxes and insurance payments against standard mortgage-to-debt earnings ratios.

Today, 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, National Association of Realtors, Affordability

San Diego property tax bills break record

Posted by Mehran Aram on Wed, Oct 2, 2019 @ 05:10 AM

San Diego’s Treasurer-Tax Collector Dan McAllister announced this week that his office would be mailing out this month over one million property tax bills. This marks the first that the number of bills going to local property owners has reached the 7-figure mark.

“Despite the need for more housing that we hear about on a regular basis, I see this record-high parcel number as a positive sign,” McAllister said. “It means new units are coming on the market.”

The County is expected to take in approximately $6.9 billion in revenue from the tax bills. This is an increase of $482 million over last year. The first installment of payments is due on November 1.

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, Mortgage rates, San Diego Housing Market, San Diego Housing, San Diego County Assessors Office, San Diego Tax Bills, San Diego Property Taxes

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

Pleasant weather comes with a premium

Posted by Mehran Aram on Wed, Sep 18, 2019 @ 05:09 AM

Paying for sunshine is one way to look at it. In an analysis of federal weather data, Zillow estimated the number of “pleasant days” per year for every city in the U.S. The result of the analysis confirm the conventional wisdom: regions with the best weather also tend to be more expensive places to live. California dominated the top of the list with coastal towns ranking at the top.

Ventura was recorded to have over 300 pleasant days per year, followed by San Diego at 276 and Santa Barbara at 266. These housing markets also have a median home price that is more than double the national median.

Of course, weather isn’t the only factor determining home prices. The notoriously rainy Seattle and the harsh winters of New York - both places with pricey homes - were not greatly impacted by their less-than-pleasant climates.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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, California, Mortgage rates, California Housing Market, California Weather, Weather, Climate, Susnshine, Coastal California

Foreclosures see uptick last month

Posted by Mehran Aram on Mon, Sep 16, 2019 @ 05:09 AM

The number of foreclosure filings in the U.S. increased four percent from July to August with the addition of 53,007 properties nationwide. That equates to approximately one in every 2,554 properties. Despite last month’s increase, overall filings remain 24 percent lower than they were a year ago.

This latest information comes from ATTOM Data Solutions.

There were 11,493 homes repossessed by lenders in August, up four percent from the previous month but 47 percent less than the same period last year. This is a reversal of the previous 10 months of declines.

San Diego saw 230 foreclosure starts last month, down 19 percent year-over-year.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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, foreclosures, Mortgage rates, San Diego Housing Market, Foreclosure Filings, Foreclosure Starts, Repossessed Homes, San Diego Foreclosures

Homebuyers call ceasefire in bidding wars

Posted by Mehran Aram on Mon, Aug 12, 2019 @ 05:08 AM

The number of home buyers engaging in bidding wars with other buyers has dropped more than 45 percent over the last year. Only 11.2 percent of offers written by Redfin agents faced homebuyer competition, the lowest rate in eight years.

This is a radical change from the peak reached in March 2018 when 59 percent of home purchases ended in a bidding war.

San Diego appears to be fighting against the national trend. The local housing market still faces fierce competition with 21.3 percent of Redfin sales seeing a bidding war. This makes San Diego the second most competitive housing market in the U.S. The current volume of bidding wars is up from 19.4 percent in June but down significantly from 61.5 percent in July 2018.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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, Housing Market, Redfin, Mortgage rates, home purchases, bidding war, San Diego Housing

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

San Diego home sales fall by double-digits

Posted by Mehran Aram on Tue, Jul 16, 2019 @ 17:07 PM

New data released last week by the Greater San Diego Association of Realtors shows that home sales in the County stumbled from May to June as prices continued to climb. Sales of existing single-family homes and condominiums both fell month-over-month, dropping 13.6 percent and 16.2 percent, respectively.

The decline in sales coincides with sales prices increasing during the same period. Sale prices for single-family homes increased 2.4 percent while the cost for attached properties shot-up 3.5 percent. The median price of a single-family home in San Diego is currently at $674,900. This is up from $654,000 in June 2018.

This latest data shows a reversal in the San Diego housing market which had seen monthly increases in sales every other month so far in 2019.

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, San Diego, Greater San Diego Association of Realtors, existing home sales, Mortgage rates, San Diego Housing Market, Existing Homes, San Diego Home Prices, San Diego Home Sales, San Diego Housing

San Diego County property tax revenue climbs higher

Posted by Mehran Aram on Tue, Jul 2, 2019 @ 05:07 AM

When the nearly one million property tax bills get mailed to San Diego County residents later this year, it will be the fifth year in a row that the total amount due has grown by more than five percent. County Assessor Ernest Dronenburg announced last week that the expected assessed value of all taxable property in San Diego will amount to just under $575 billion. This is a six percent increase over last year.

California’s Proposition 13 however protects residents from property tax increases more than two percent in a fiscal year, so that actual revenue is expected to be $551.9 billion. The assessments are not just on homes but include parcels of land, businesses, boats and airplanes in San Diego as well.

Income to the County from property taxes help fund public services like police and fire departments, schools and parks.

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: San Diego County, San Diego, property taxes, Mortgage rates, San Diego Housing Market, Assessors Office, California Proposition 13, Prop 13, San Diego County Assessors Office, Ernest Dronenburg