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San Diego housing trend spells good news for entry-level buyers

Posted by Mehran Aram on Sun, Jun 9, 2019 @ 07:06 AM

A recent study from Realestate.com shows that the rate of home price appreciation in San Diego for dwellings in the lower third of prices is slowing. Homes in the bottom-third of the market appreciated at a rate of 2.2 percent annually as of April, that’s down significantly from the 10.4 percent price jump seen between 2017 and 2018. The slowdown in price growth for these entry level homes may make it easier for first-time buyers to get in the market.

Of course, entry-level homes in San Diego still come with a nearly half-million dollar price tag. Although the San Diego Housing Commission offers down payment assistance and that can potentially be coupled with programs like an FHA loan which allows buyers to purchase a home with as little as 3.5 percent down.

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, real estate, Mortgage rates, San Diego Housing Market, San Diego Housing Commission, Housing Trends, San Diego Housing

Nearly half of renters wish they were owners

Posted by Darius Aram on Mon, Jun 3, 2019 @ 05:06 AM

Despite the increased cost, repairs, taxes and insurance, 45 percent of renters regret renting instead of being able to buy a home. This is more than five times the share of homeowners (8 percent) who regret buying instead of renting. This information comes from a survey conducted by Zillow Research.

The top two regrets that renters have include not being able to build equity in a property and not having the ability to customize or improve their home. This was followed by feeling that that rental prices are simply too high.

87 percent of renters have regrets about their current home compared to 72 percent of people who own. San Diego ranked near the top, with 91 percent of renters reporting at least one regret.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 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, homeowners, home equity, Zillow, homeownership, Mortgage rates, Renters, San Diego Housing Market, Rental Prices

Where California’s new homes are being built

Posted by Mehran Aram on Tue, May 21, 2019 @ 05:05 AM

There is an ongoing housing shortage in California that experts by-and-large have collectively labeled a crisis. Builders appear to be working to address this shortage but continue to fall short of meeting demand.

Southern California appears to be bringing new homes online at a much faster rate than the north. Los Angeles had 3,0002 single-family properties and a whopping 12,828 multi-family dwellings completed last year. Other SoCal cities with a high volume of new single-family homes include Irvine (1,945), San Diego (940) and Menifee (883). In Northern California, the state capital led the pack. Sacramento had 1,654 new single-family homes built in 2018.

The California Department of Finance reports that the total number of new residences built last year was about 97,000. To compare in 2006 there 200,000.

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: new homes, Mortgage rates, California Housing Market, San Diego Housing Market, housing shortage, Southern California Housing Market, California Department of Finance, California Housing Shortage

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

Homeowners perception of home values off the mark

Posted by Mehran Aram on Thu, Apr 18, 2019 @ 06:04 AM

Homeowners’ view of their home value was not in alignment with appraisers during the month of March. According to the National Quicken Loans Home Price Perception Index, the gap between a homeowner’s perception of their home value and that of a professional appraiser widened significantly last month. The gap grew by 25 percent compared to February.

San Diego’s data painted a different picture, however. Residents within the County actually underestimate their home values by about 0.93 percent. This is a wider gap than the one seen in January when San Diego homeowners undershot their values by 0.86 percent.

The variance between the national average and San Diego suggests that home values in the region continue to climb at a rate greater than what homeowners anticipate.

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, San Diego, homeowners, home values, Mortgage rates, San Diego Housing Market, Appraisers, Home Appraisal, Quicken Loans

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

San Diego is a retirement hot spot

Posted by Mehran Aram on Sun, Apr 14, 2019 @ 08:04 AM

If you’re looking for moderate weather year-round, pristine beaches and the flexibility of a suburban life with a little urban thrill nearby, San Diego is an ideal place to retire in. This is why millions of retirees are making San Diego their new home. In fact, according to a new report, the city ranks number 14 nationwide of best places to retire.

One of the drawbacks may be San Diego’s cost for housing but experts are quick to point out that for seniors, this may not necessarily be a deal breaker. Powerful financial tools like a HECM for Purchase (H4P) eliminate the cost barrier to buying a home. H4P is a home loan insured by the Federal Housing Administration that allows those 62 or older to combine their down payment with loan proceeds from a reverse mortgage.

Launched in 2008 by the FHA, H4P is easier to qualify than a conventional loan and can be used for the purchase of a single-family home, townhome and FHA-approved condominiums. Most appealing is that they loan requires no monthly mortgage payment and can help free up much needed cash in retirement.

Today, 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: Reverse Mortgage, HECM, San Diego, Retirement, Reverse Mortgage for Purchase, HECM for Purchase, San Diego Housing Market

San Diego home sellers cutting prices

Posted by Mehran Aram on Sat, Mar 30, 2019 @ 06:03 AM

San Diego County was one of only three major metropolitan markets in the U.S. to see an annual decrease in seller gains, down 5 percent from January 2018. This is according to an analysis by ATTOM Data Solutions. Real estate website Trulia is also reporting that San Diego had the second-most home price reductions in the nation so far in 2019.

While price reductions are not uncommon when market conditions lean towards buyers such as during the winter and when mortgage rates drop, San Diego hasn’t had so many cutbacks in home prices in nearly five years. Twenty percent of homes for sale in the County had a price reduction in February, the most of any California city.

Discounts off the initial list price suggest that the market is responding, albeit slowly, to the affordability crunch buyers in the region have been experiencing. Today, 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, Trulia, Mortgage rates, home price appreciation, San Diego Housing Market, San Diego Homeowner, ATTOM Data Solutions

Home-price growth extends slow streak

Posted by Mehran Aram on Fri, Mar 29, 2019 @ 10:03 AM

Growth in home prices slowed again in January, according to a new report. This is the tenth consecutive month of tapered growth in year-over-year appreciation recorded by CoreLogic. The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, climbed 4.3 percent in the year ending January. This is down from 4.6 percent the prior month.

When looking at prices on a month-to-month basis, most regions saw a decrease. San Diego home prices fell 0.2 percent in January but remain 1.3 percent higher over the past 12 months.

Slower price growth combined with lower mortgage rates have experts speculating that the spring and summer will see elevated home purchase activity.

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: home prices, Mortgage rates, home price appreciation, San Diego Housing Market, S&P CoreLogic Case Shiller, San Diego Home Prices, National Home Price Index

San Diego homeowners are part of an elite club

Posted by Mehran Aram on Fri, Mar 22, 2019 @ 07:03 AM

Transitioning from renter to owner can be a challenge but a new report shows that to do so in San Diego is particularly difficult. In fact, personal finance website Bankrate states that the greater San Diego area is among the most difficult in the nation.

In a new study Bankrate examined the 50 largest metropolitan markets in the U.S., determining their accessibility for first time buyers based on affordability, job market, safety, culture, property taxes and more. San Diego was ranked as the seventh worst based on these factors.

Six of the top 10 worst places for first-time buyers were in California. While San Diego ranked well in culture, having plenty of recreation options, affordability challenges dragged it down.

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: San Diego, Mortgage rates, San Diego Housing Market, San Diego Homeowner