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CA Housing Market Overheating?

Southern California home prices increased more than 28% compared to a year ago this time. The dramatic 28% plus jump was greater than any year-over-year increase during the housing boom and the most since January 1989. California’s median home price reached $400,000…$119,000 more than a year earlier, the highest dollar amount in more than five years. There are signs the fast pace of rising home prices won’t continue as mortgage rates rise and the belief that the price gains will spur more home owners to place their houses on the market to meet the demand.

The increase in median price is still a pittance compared with the most expensive communities in Northern and Southern CA regions, where the median price range is $4.8 million to $2.2 million. Listed below are the top 5 most expensive zip codes for northern and southern CA. The 5 most affordable ZIP codes all rest in the Inland Empire with prices ranging from $60,000 (Barstow) to $100,000 (Sugar Loaf), but those homes are becoming harder and harder to find, as investors have scooped up many of the houses to either flip or rent

Top 5 Most Expensive Zip Codes NOCAL:
  1. 94027 Atherton – $4,897,000
  2. 94010 Hillsborough – $4,127,250
  3. 94022 Los Altos – $4.016,000
  4. 90274 Rolling – $3,972,500
  5. 94957 Ross – $3,795,000
Top 5 Most Expensive Zip Codes SOCAL:
  1. 90402 Santa Monica – $2,621,000
  2. 90210 Beverly Hills – $2,487,000
  3. 92067 Rancho Santa Fe -$2,300,000
  4. 92657 Newport Coast – $2,217,500
  5. 90272 Pacific Palisades – $2,000,000

Interest Rates:
Mortgage rates increased a full percentage point and this increase was fueled by signals from the Fed that it may begin tapering its massive purchases of Treasury bonds and mortgage securities later this year. Although the increase has made buying a home noticeably more expensive for borrowers, from a historical perspective, current mortgage interest rates are still incredibly low. For some perspective, prior to the great recession, the next lowest rate for a 30 year fixed mortgage rates was 6.83% in October 1993! Today’s rates are still over 2 full points lower than 2 decades ago.

Leading indicators (days on market, months of housing supply and list to sale discount ratio) still point towards a strong real estate market and rates are still low. If the time is right for you to purchase a home, rental property, second home, or refinance your current mortgage, please contact me for a no obligation quote and Pre-Approval.

 

Current Conforming Rates
(Pmyts based on a average loan amount of $250,000)
for a historical perspective on rates please visit my blog on our website

Loan Program

Monthly Pmyt

Rate

APR

Points

30YF

$1248

4.375

4.50%

0

20YF

$1531

4.125%

4.375%

0

10YF

$2557

3.375%

3.625%

0

15YF

$1771

3.375%

3.625%

0

5/1 ARM

$1122

3.50%

3.75%

0

7/1 ARM

$1193

4.00%

4.25%

0

FHA 30YF

$1229

4.25%

4.50%

0

FHA 15YF

$1756

3.25%

3.50%

0

 

Current High Balance Rates – Max Loan Amount $625,500
(Pmyts based on a avg loan amount of $550,000)

30YF

$3169

4.50%

4.75%

0

15YF

$4626

4.00%

4.375%

0

5/1 ARM

$2896

3.75%

3.87%

0

7/1 ARM

$3031

4.125%

4.50%

0

FHA 30YF

$3123

4.375%

4.75%

0

Disclosure: These are our current conforming and High Balance rates based on primary residences only, your actual rate could be higher depending on several “Risk Factors” such as credit score, LTV, Cash-out, Investment prop, 2nd home, zero cost etc. Please call us for an accurate custom quote including jumbo loans up to $2 million and beyond.

 

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