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Southern California Housing Market Trends 2022

Southern California Housing Market Trends 2022

Southern California set or matched price records for the first half of 2022. Here are some statistics which tell a story of the continuing interest in California real estate:

  • Los Angeles County: the median price rose 8.1% to $860,230 in June
  • Orange County: the median price rose 11.2% to $1,265,000 while sales decreased by 36.1% (the highest decline in sales of all 6 counties).
  • Riverside County: the median price rose 12.2% to $645,000 while sales decreased by 27.4%.
  • San Bernadino County: the median price rose 12.6% to $490,000 while sales decreased 27.5%
  • San Diego County: the median price rose 9.8% to $950,000 while sales decreased by 30.5%
  • Ventura County: the median price rose 10.7% to $930,000 while sales decreased by 22.6%

According to Zillow, the median home price in California is $800,172, and has risen an impressive 18.5% year-over year. California Homebuyers are still paying above listing price for homes, but they are paying less compared to what Buyers were paying last month and last year.

If you are one of the eager Homebuyers who have been competitively forced out of the market because you could not obtain your mortgage fast enough, consider a privately funded loan from Sun Pacific Mortgage. We have been known to have money available in as little as a week and offer the next best thing to an all-cash offer. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com, we look forward to assisting you no matter where in California you are wanting to buy.

North Bay Real Estate Market and the U.S.Economy

North Bay Real Estate Market and the U.S.Economy

The red-hot North Bay real estate market has responded to the climbing interest rates and growing inflation by slowing sales. For rates to go from 3% to 6% is a shock to the market. The current market still favors Sellers, however.

In the North Bay year-over year property sales in May were down in Sonoma County by 22% (385 homes sold); Napa County 12.1% (105 homes sold); Marin County by 10.1% (178 homes sold). In Solano County sales rose 5.8% with 328 homes sold in May. This increase was not a surprise to CAR Chief Economist, Oscar Wei, who knows that Solano County is the most affordable county in the North Bay.

There is a definite shift in the market. Buyers are realizing that they don’t need to put in an offer on the first thing they see, and there is a decrease in multiple offers and homes selling for more than the asking price. It is note-worthy that the economists see this as a shift to a more balanced market rather than a crash like we witnessed in 2005 to 2012.

In May, 16% of homes in the three counties sold at reduced prices, and by late June that number jumped to 19%. There is a slowdown of both the low end and the high-end Buyers. People are still buying, just not at the frenzied rate they have been in recent years.

Different demographics have influenced the real estate market in recently, but that could be changing. With baby boomers becoming seniors who may be more reluctant to downsize because of higher interest rates, much of the market will belong to the millennials.

We know that there will always be a demand for housing in the North Bay. So, while things may not be as hectic as they have been for the past 3 years, we can relax a bit and welcome the more stable, balanced market that we are experiencing today.

Whether it be a Buyers’ or a Sellers’ market, Sun Pacific Mortgage is here to offer our privately funded loans to those borrowers who need a fast close or have been turned down for a conventional mortgage. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see what we can do for you.

Hot Summer Financing For Owner Occupied Properties!

Hot Summer Financing For Owner Occupied PropertiesSee our recent blog about how Private Money can speed up the process:
https://www.sunpacificmortgage.com/blogs/how-can-you-get-into-contract-for-a-home-faster/

Turned Down Elsewhere for a home loan – refinance or purchase?  We have been providing our Hard Money loan programs for 34 years now, let us help you!

 We provide financing for owner occupied/primary residences as well as investment properties.

 Credit issues, difficult-to-prove income, property doesn’t qualify – not a problem.

Recently Approved & Funded Owner Occupied Loans 

$631,000 – Sacramento County
11 Days To Complete
Debt to income ratio too high so turned down elsewhere

$615,000 – Contra Costa County
13 Days To Complete
Difficult To Prove Income As Self-Employed

$705,000 – Riverside County
5 Days To Complete
Wanted Fast Loan To Strengthen Purchase Offer

$581,000 – Santa Clara County
17 Days To Complete
Had Credit Issues and Wanted To Do Debt Consolidation

Call us at 707-523-2099 today or visit our website at www.sunpacificmortgage.com with any questions or scenarios you have. We’ll get back to you quickly!

Newly Launched – Hot Summer Program!

Newly Launched - Hot Summer Program!

See our recent blog about the benefits of our Alternative Financing Solution:
https://www.sunpacificmortgage.com/blogs/stated-income-loans-from-sun-pacific-mortgage/

This unique program is for Borrowers & Buyers who are just shy of qualifying for “A paper” home financing.   It’s our Hot program offering lower Hard Money rates from 7%- 9%:

  • Borrowers with good credit (640+)
  • Lower Loan To Value (less than 60% LTV)
  • Nice property in good location
  • Fast financing (many funded in less than 1 week)

Recently Funded Alt-A Scenario By Us:

Santa Rosa Home Buyer is turned down by her Lender 23 days into a 30-day Escrow, just had an alleged last-minute issue as to proof of income.  Her Agent luckily knew of us and immediately called our office, requesting quick help.  In just 6 days we had her loan approved and funds ready for her needed Bridge Loan of $946,870!

We continue to also offer our traditional Hard Money loan programs for those in need of fast cash, turned down elsewhere for credit issues or difficult to prove income or other disqualifying issues with conventional lenders.

Call us at 707-523-2099 or visit our website at www.sunpacificmortgage.com with any questions or scenarios and we’ll reply quickly with what we can do for you or someone you know!

Are We Looking at Deceleration or Depreciation?

You are probably well aware that houses have skyrocketed recently, but did you know that this has been true for the past 122 consecutive months? Much of this increase was due to the abundance of Buyers and the lack of Sellers. Experts are forecasting ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing, just not as fast as they have been.

Mark Fleming, Chief Economist at First American, identifies a key reason why home prices won’t depreciate or drop:

“In today’s housing market, demand for homes continues to outpace supply, which is keeping the pressure on house prices, so don’t expect the prices to fall.

Experts are forecasting ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing, just not as fast as they have been. The graph below shows home price forecasts from seven industry leaders. Note that none are forecasting prices to fall. 

Are We Looking at Deceleration or Depreciation?Looks like Investors and Buyers alike remain in an outstanding position to make substantial profits from their investments.

Having been in business for 34+ years, we are always looking for new Investors to join our team. Real estate continues to be one of the strongest investments, so if you or someone you know are interested in making up to 9-13% return on investments, give us a call at 707-523-2099 or fill out the form on our Investor website page here: https://www.sunpacificmortgage.com/invest-in-trust-deeds/

San Francisco and Bay Area Real Estate Report for May

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Even though we have been bombarded with negative headlines for over a month, the housing market in the North Bay has remained strong. San Francisco Bay Area has seen over 30% growth for residential real estate since the pandemic! That is huge! It has been on a 10-year bull run. Even though real estate markets have historically been on a 7-year cycle, this wild ride has been constant for 13 years! Hard to believe? Look at the statistics for single-family home sales for May:

San Francisco:

Avg. sale price: $2,410,387 (April $2,502,144)
Avg. list price: $2,148,931
Avg. Days on Market: 18
Homes sold: 282

Menlo Park:

Avg. sale price: $4,009,035
Avg. Days on Market: 10 (9% over asking)

Foster City:

Avg. sale price: $2,529,181
Avg. Days on Market: 11 (18% over asking)

Belmont:

Avg. sale price: $2,925,721 (15% over asking)
Avg. Days on Market: 10

San Carlos:

Avg. sale price: $3,052,856 (13% over asking)
Avg. Days on Market: 7

San Mateo:

Avg. sale price: $2,302,186 (15% over asking)
Avg. Days on Market: 11

Burlingame:

Avg. sale price: $3,289444 (9% over asking)
Avg. Days on Market: 9

 

Most analysts believe that the secondary and tertiary markets will be hit harder going forward, and that prices will begin to come down slightly for every market. Sellers will need to get realistic about our new normal and Buyers will need to be patient. Buyers will still need to pull the trigger on homes they love when the opportunity arises.

If you are interested in getting into this strong wealth builder but have been disqualified for a loan now that rates have risen, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website www.sunpacificmortgage.com. We have been in business supporting California Homebuyers for 34 years with private mortgages. Our investors are standing by ready to make your dreams of home ownership come true.

Breaking News – Loan of the Week

Breaking News – Loan of the WeekWe Help – Despite Being Turned Down Elsewhere

If you or someone you know are trying to refinance, buy a house or pull cash out and needs this done fast or is having difficulty elsewhere, we can help!  Our Private Money loan programs provide faster than usual funding AND can help those turned down elsewhere. Let us help you, just as we did below with our Loan of the Week:

See our recent blog about the Six C’s of Private Money:
https://www.sunpacificmortgage.com/blogs/the-six-cs-of-private-money-lending/

Loan of the Week

A Borrower and her Real Estate Agent from Santa Clara County reached out to us, desperate to save a home purchase.  Buyer was in Escrow but had just been turned down by their current Lender, due to some last-minute issue with the debt-to-income ratios.  A loan of $1-Million was needed immediately.  As Buyer had a sizable down payment, great credit and low LTV, we quickly got this loan approved and funded in just 11 days!

If you find yourself or someone you know in need of fast financing or having difficulty elsewhere getting a mortgage, give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com.  We’ll quickly let you know what we can do to help!

North Bay Real Estate Statistics for May 2022

Sonoma County Coming Out on Top in Move North

With interest rates rising and inventory falling, it is no surprise that we found this May very different from last May.  Here’s a snapshot of what happened in three of the North Bay counties last month in single-family residence sales:

Sonoma County: 

  • 492 Sold (22% fewer than 2021)
  • 416 New Listings (40% fewer than 2021)
  • 396 Closed Escrow (30% fewer than 2021)
  • 504 Homes left at end of May

Marin County:

  • 231 Sold
  • 185 New Listings (37% fewer than 2021)
  • 230 Closed Escrow
  • 174 Homes left at end of May (16% fewer than 2021)

Napa County:

  • 103 Sold
  • 87 New Listings
  • 117 Closed Escrow
  • 195 Homes left at end of May (17% fewer than 2021)

Marin County remained the hottest of all 7 North Bay counties.  The experts expect more inventory to appear from now until the end of August, which might improve the picture to a degree in spite of expected increases in interest rates.

If you are looking to purchase or refinance in these tight markets and have been turned down for a mortgage at a bank or lending institution, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com.  We offer privately funded loans based on equity, not credit scores.  As an added bonus, we are FAST!  Most loans fund in less than a month.  Buying and refinancing can be a torturous process, or it can be smooth sailing with Sun.

Loan turned down elsewhere? We Can Help!

First reblast artworkTurned Down Elsewhere?
We Can Help Get You Fast Loan Approval!

See our recent blog about current market conditions:
https://www.sunpacificmortgage.com/blogs/what-will-the-housing-market-look-like-as-the-rates-rise/

Increased rates and stricter qualifications causing loans to be turned down by other Underwriters or Lenders?  Get fast approvals and funding of loans here!

Make us your first and favorite Private Money Lender. We can help those turned down elsewhere and our specialty is speed.

Call us today at 707-523-2099 with any scenario or visit our website at www.sunpacificmortgage.com.  We will let you know quickly what we can do for you!

Recently Turned Down Loans From Others –
Approved & Funded By Us

We Offer FAST Financing; We Finance Owner Occupied & Investment Properties. We Can Finance Despite Credit Issues, Property Condition & Difficult To Prove Income;

Location:  Watsonville, Santa Cruz County
Finance Program:  Primary residence purchase
Loan Size:  865k
Days to Close:  11
Why Needed Us:  Needed fast close to purchase family home.

Location:  Berkeley, Alameda County
Finance Program:  Investment Property Refinance
Loan Size:  962k
Days to Close:  17
Why Needed Us:  Needed cash to make necessary repairs before listing house.

Location: Los Angeles, Los Angeles County
Finance Program:  Primary residence refinance
Loan Size:  577k
Days to Close:  14
Why Needed Us:  Needed to consolidate debts to repair credit.

So, You Want to Build an ADU in California?

So, You Want to Build an ADU in CaliforniaFor a variety of reasons, thousands of California Homeowners are adding Accessory Dwelling Units to their property. Whether it is for housing adult kids, aging parents, or another source of income, these smaller homes can be built for a fraction of the cost of a new house and can be installed relatively quickly.

These units are viewed as part of the solution to California’s housing crisis and as a result we have seen laws passed over the last five years which have made it considerably easier to obtain permits while slashing local fees. Nevertheless, these projects are expensive, the rules can be complex, and the bureaucratic hurdles can be daunting.

ADUs can be attached or detached. They can be new builds or a conversion of an existing structure. According to a survey of ADU owners in Berkeley, the median construction price in 2020 was $150,000 or about $250 per square foot. Construction prices had risen dramatically since 2020, so the cost will be considerably more in today’s economy.

In support of these constructions, the law states that local governments retain some authority to set objective standards for such things as height limits, setbacks, parking requirements and landscaping, but if the ADU is no more than 800 square feet and16 feet high, set back at least 4 feet from the property line, it is eligible for a permit in any residential or mixed-use zone.

Local officials must act on a completed ADU application within 60 days or else it is automatically approved. At least that is what the law requires. A developer in Campbell who specializes in ADUs says that there is still “a ton of boxes to check” to get the project approved.

An ADU is still a complicated, costly project no matter how small it is because it requires a kitchen, a bathroom, a sewer connection and permits. As a builder in Los Angeles stated, “The stuff that you don’t see is the most important stuff-the foundation, the plumbing the electrical, what’s hidden behind the walls.”

The other key point to consider in a decision to add an ADU to your property is the increase in your property tax bill. Newly constructed ADUs are assessed at market value upon completion, which in California with a 1.25% tax rate, could raise your property tax on an ADU valued at $200,000 by $2,500 a year.

The idea of an ADU is a bit more glamorous than the reality when examining all the aspects associated with the build. But, for many Homeowners it had been the answer to otherwise unsurmountable problems. Weighing the pros and cons before embarking on a project this large, and consulting with local officials and contractors is essential to a successful outcome.

If you have been denied a loan from your bank or other lending institution, consider a privately funded loan from the investors at Sun Pacific Mortgage. Call us today at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see how we can help you with  your real estate financing needs.

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