While the nation is concerned about the effects of a possible recession, it is good to remember that while history doesn’t always repeat itself, we can learn from the past. According to historical data, in most recessions, home values have appreciated and mortgage rates have declined. By most accounts, it is highly unlikely that we will see any kind of protracted decline in new residential structures that could set off a recession.

Looking at the single-family residential market in two random counties in California, i.e. Alameda and San Joaquin, it becomes apparent that California may be spared the worst of the decline:

Alameda County:

Median List Price: $900,000

Average days on Market: 94

Inventory: 587

Price increase: 3%

San Joaquin County:

Median List Price: $555,000

Average days on market: 89

Price increase: 3%

Other than the fact that homes are sitting on the market longer than last year, it does not appear that prices have plunged to extents they have in other places in the nation.

According to Taylor Marr, Deputy Chief Economist at Redfin,

“The housing market has begun to recover after hitting a low point in the second week of November. We’re not out of the woods yet, but homebuyers are coming off the sidelines. The number of people contacting Redfin agents to start the homebuying process has improved 13%.”

If you are ready to start investing again – in rentals or your own home – and cannot qualify for a conventional loan or are looking for a fast close, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com.

Every year starts with predicted trends based on the previous year’s conditions and the overall financial, geo-political and social situation in any given area. Here are some of the ones predicted for California:

• Buyers will be less likely to invest. For Sellers this means a lower demand and more effort to sell their properties, while Buyers have more homes to choose from if they decide to make the move.
• Buyers are leaving cities for the suburbs. This trend from 2021-2022 will probably continue in 2023. Big cities such as San Francisco and Los Angeles are experiencing a decrease in sales, due to high prices and the fact that people are looking for a less busy place to live while they continue to work remotely.
• High mortgage rates continue to hurt both Sellers and Buyers. More Buyers are considering short-term private mortgages as a means of getting into a home quickly and with fewer restrictions.
• Should you buy or sell a new home now? The experts predict a continued Seller’s market in California. Low inventory ensures Sellers are at an advantage, and rising prices are only encouraging Sellers to put their properties up for sale.

If you do decide to sell this year, the experts advise not to wait until the last minute to find a new home. Many Sellers today find their new home first and use the equity in their existing home to obtain a “bridge loan”. This is allowing them to secure a home before selling their existing one. If this is a possible solution to your buying dilemma, give Sun Pacific Mortgage a call at 707-523-2099 to discuss a private bridge loan or visit our website www.SunPacificMortgage.com to find out more information about the Private Money mortgages we offer.