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FHA increases loan limits in nearly every area of U.S. for 2018

Posted on April 26, 2018 | Leave a comment

The Federal Housing Administration announced Thursday that nearly every area of the U.S. will see FHA loan limits increase in 2018.

The new loan limits will take effect for FHA case numbers assigned on or after Jan. 1, 2018.

FHA is required by the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008, to set Single Family forward loan limits at 115% of median house prices, subject to a floor and a ceiling on the limits. FHA calculates forward mortgage limits by Metropolitan Statistical Area and county.

Back in 2016, the FHA increased loan limits for just 188 counties. Then, in 2017, this number jumped to 2,948 counties that saw an increase. And now, the number of counties increased even further to 3,011 counties for 2018.

In high-cost areas, the FHA’s loan limit ceiling will increase to $679,650, up from $636,150 this year. The floor will also increase from $275,665 to $294,515 in 2018.

However, in 223 counties, the FHA loan limits will remain the same.

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San Diego home prices up 7.6% in a year

Posted on April 25, 2018 | Leave a comment

San Diego had the seventh-highest home price increase in the nation in February, said a key real estate index released Tuesday.

The region’s home price increased by 7.6 percent in a year, said the S&P CoreLogic Case-Shiller Indices. Seattle had the biggest increase in a year at 12.7 percent.

Other California cities covered by the 20-city index outpaced San Diego. San Francisco was up 10.1 percent in a year and Los Angeles up 8.3 percent.

All cities covered in the index experienced gains, which experts attribute to a strong economy and limited home supply.

“With expectations for continued economic growth and further employment gains,” wrote David Blitzer, managing chairman of the Index Committee at S&P Dow Jones Indices, “the current run of rising prices is likely to continue.”

Blitzer said year-over-year national increases for the last 70 months compares to a previous run from January 1992 to February 2007. That time period represented 182 months of national increases, when prices averaged a 6.1 percent gain annually.

The indices evaluate home prices by more than just price, tracking repeat sales of identical single-family houses as they turn over through the years. Prices are adjusted for seasonal swings. The San Diego median home price in February for a resale single-family home was $580,000, said CoreLogic.

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San Diego home price hits new record high: $550k

Posted on April 24, 2018 | Leave a comment

he San Diego County median home price soared to its highest point ever, $550,000, in March, said real estate tracker CoreLogic.

Home prices increased 6.8 percent in a year, which experts attribute to a lack of homes for sale and a strong economy. The previous home peak was $545,000 in June.

The big picture: San Diego County’s median home price is technically still down from the height of the housing boom. In November 2005, the median hit $517,500, which is more than $650,000 when adjusted for inflation. The San Diego region is still a cheaper option in coastal Southern California compared to Los Angeles and Orange counties, which also hit new price peaks in March, CoreLogic reported Monday.

What is causing the price increase: A strong economy is fueling demand for homes while the number of houses available remains limited, said Chris Thornberg, economist and founding partner of Beacon Economics. There were 4,857 homes listed for sale in March, said the Greater San Diego Association of Realtors. That is 488 more than March of last year. However, those listings are down from 5,652 in March 2016, 6,101 in 2015 and 6,223 in 2014.

Are we in a housing bubble? No. Economists say today’s upswing is more sustainable, driven not by risky lending but by an improving economy, low mortgage rates and a shortage of homes for sale. Thornberg said March’s peak should not be viewed as the start of a bubble, which assumes housing prices are very overvalued.

disclaimer: for information and entertainment purposes only

FHA increases loan limits in nearly every area of U.S. for 2018

San Diego home prices up 7.6% in a year

San Diego home price hits new record high: $550k

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