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What Happened in the North Bay Real Estate Market in June 2022?

What Happened in the North Bay Real Estate Market in June 2022?The North Bay cities of Santa Rosa, Petaluma, Rohnert Park, and Windsor showed marked declines in homes and condo sales numbers compared to June 2021, but smaller declines from May 2022.  Here are some sample statistics:

Santa Rosa:

  • Available at end of June = 218 (-24% from June 2021; +28% from May 2022
  • New sales = 184 (-36% from June 2021; -11% from May 2022)
  • Median sales price = $750,000 (+6% from June 2021)
  • Days on Market = 29

Petaluma:

  • Available at end of June = 65 (+30% from June 2021; +30% from May 2022
  • New sales = 62 (-8% from June 2021; = to May 2022)
  • Median sales price = $947,000 (+6% from June 2021)
  • Days on Market = 21

Rohnert Park:

  • Available at end of June = 26 (-21% from June 2021; +1% from May 2022
  • New sales = 37 (-26% from June 2021; -21% from May 2022)
  • Median price = $733,000 (+32% from June 2021)
  • Days on Market = 22

Windson:

  • Available at end of June = 45 (+32% from June 2021; +55% from May 2022)
  • New sales = 27 (-31% from June 2021; -23% from May 2022)
  • Median price = $800,000
  • Days on Market = 24

The rise in mortgage rates has triggered some slowdown in the market, but at this time most economist see this as a “housing correction” not a “housing bust.”  They view the continued lack of available homes for sale to be the factor keeping prices from drastically falling currently.

If you are looking to buy in this ever-changing market, but cannot qualify for a conventional mortgage, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com. We have been helping Borrowers like you in California for more than thirty-four years.

 

Faster and Higher – Financing When Needed!

PLANES edit2Jumping High And FAST For You!

Are you unable to get home loan approval?  Private Money loans are FAST, and we work those in need of fast financing, or they’ve been turned down elsewhere.

We’ll help you jump higher and go faster towards that new home or refinance, like was done below:

Recently Funded

Screen Shot 2022 08 09 at 10.29.47 AM

Continuing our 34-year legacy of helping rescue any loan that falls through or doesn’t quite qualify at this time.  We’ve got those FAST Private Money Loans! Visit our website at www.sunpacificmortgage.com or Call 707-523-2099 with questions or scenarios – we’ll quickly reply.

We Get Loans Done With Wave-Breaking Speed!

We Get Loans Done With Wave-Breaking Speed!

Our Private Money loan programs offer:

  • Quick Loan Approval
  • Fast Closes!
  • Difficult-to-prove-income OK
  • Credit not an issue
  • See below for our wave-breaking speed, loan of the week!

Local Loan of the Week

Program: Owner-Occupied Bridge Purchase
Loan Size: 739k
Location: Sonoma County
Days to Fund: 6 days!
Why Came To Us: Homebuyer was in Escrow when their conventional Lender turned them down due to last minute debt to income ratios being too high. They needed some wave-breaking speed to fund their purchase, otherwise lose their large deposit and miss out on their dream home.  Within just 6 days, their loan was approved, funded, and keys in hand to their new home!  Needless to say, Buyers were relieved and very appreciative.

Continuing our 34+ year Private Money Lending legacy, we are here if you need us! Visit our website at www.sunpacificmortgage.com or call today: 707-523-2099 with questions or scenarios and we’ll let you know what we can do to help you, a family member, or a friend.

What Happened in the Bay Area Real Estate Market During the 2nd Quarter?

What Happened in the Bay Area Real Estate Market During the 2nd Quarter

As one Realtor put it, “If the stock market is like a jet skier on a triple espresso, the real estate market is like a giant cargo ship that decelerates and turns slowly.”

This is what we are seeing in the Bay Area as mortgage rates increase and inflation is climbing. Because of the sharp turn in the market, it is better to consider a three-month average than a single month’s data. The following data gives the Bay Area market results in each county for April, May, June:

Q2 2022 Medium Sales Price:

San Mateo: $2,200,000

San Francisco: $2,000,000

Marin: $1,995,000

Santa Clara: $1,880,000

Alameda: $1,460,000

Santa Cruz: $1,350,000

Contra Costa: $975,000

Napa: $973,000

Monterey: $875,000

Sonoma: $860,000

Solano: $625,000

With numbers like this, Bay Area properties are not likely to plunge into severe depreciation any time soon. Real estate continues to be the most stable of all investments according to the economists. Relax, no need to panic. This is just a part of the natural real estate market cycle we have experienced time and again.

Give Sun Pacific Mortgage a call at 707-523-2099 if you need a fast, Private Money loan or you are an Investor looking to maximize your returns, through Trust Deed investments.

The No.1 Reason Why the Housing Market Won’t Crash

The No.1 Reason Why the Housing Market Won’t Crash
A flaming-hot housing market saw an unprecedented 24% price increase since the outbreak of the virus last year. The market is just beginning to slow down a bit because Buyers are beginning to push back at the sky-high prices.

Some doomsayers would like you to believe that because housing went up too fast, it must now come down.  But that is in opposition to what the data demonstrates. When examined more carefully, the 2021 housing market and the 2008 housing bubble are very different bull markets.

Consider the complete and utter frenzy leading up to the financial crisis back in 2008. Homebuilders went on a building spree so that when the market started to slow in 2006, the surplus of new construction put negative pressure on prices.  It took years for housing to shake that glut.

How does that compare with 2021?  They are almost polar opposites.  Burned by the 2008 crisis, Homebuilders have been extremely conservative in recent years (2013-2021) averaging 1.2 million monthly housing starts as opposed to the 1.7 million per month leading up to the Great Recession. In fact, our nation is under-built by about 3.8 million single-family homes according to Freddie Mac.

The rush of Buyers during the pandemic only exacerbated the housing problem and between April 2020 and April 2021, housing inventory fell over 50% leaving us at a 40-year low.

Although the Fortune report quoted in this article is based on the entire nation, we have seen the extremes of this phenomenon in California. Sure, price growth may go flat here or even fall slightly, but a 2008-style crash is improbable without it.

If you are looking to invest your money in a more secure place than a volatile stock market, consider becoming a private investor with Sun Pacific Mortgage.  We offer private money mortgages to worthy Borrowers who need to close quickly or cannot qualify for a conventional loan.  All the Borrowers and loans have been carefully vetted before being promoted to our investor community.  Go online to www.sunpacmortgage.com to learn more about our programs.

Loan of the Week – Wrangling Up the Best

We’ve Wrangled You Up Our Hot Loan Program!We’ve Wrangled You Up Our Hot Loan Program!

See our recent blog about how Private Money could help aid your next Investment:
https://www.sunpacificmortgage.com/blogs/real-estate-voted-best-investment-eight-years-in-a-row/

Alt-A Hard Money By The Guys in the White Hats

Lower Hard money rates from 7% – 9% with this unique alternative finance program, for Borrowers and Buyers who are just shy of qualifying for conventional or traditional “A paper” loans:

  • Good credit (640 and above)
  • Below 60% Loan to Value
  • Property in good condition and location

Perfect example of why this popular program is so beneficial:

Broker reached out to us for his Home Buyer, who needed a 799k short term loan to buy an investment property in Mill Valley.  Underwriting was unable to provide final approval due to confusions about and LLC as the individual buying entity, despite great qualifications.

Buyer’s credit was over 750, he had a good down payment allowing for 56% LTV, he made great monthly income and had a lot of other real estate assets as well as excess funds in the bank. He was a perfect borrower – except he wanted to buy with his LLC – which is where we were able to wrangle up our unique Alt-A program and help!

If you have any question or scenarios for us, just call 707-523-2099 or visit our website at www.sunpacificmortgage.com.  We will let you know how we can wrangle up the right private money loan program to help.

Racing To Get You Fast Loans – Even When Turned Down Elsewhere!

Racing To Get You Fast Loans - Even When Turned Down Elsewhere!See our recent blog about The State of the Market:
https://www.sunpacificmortgage.com/blogs/current-state-of-the-market-a-message-from-the-broker/

The below Home Buyer was turned down less than 9 days to Close of Escrow.  Below is the thankful Agent’s email to us:

“A guy in a white cowboy hat gets a phone call from a frantic agent: HELP! My client’s loan got denied and it has to close on Friday! (Keep in mind it is currently Monday). He responded, ‘Well darn, I will get right on it’.

“The Sun Pacific Mortgage Team sprang into action! Loan approval was gotten in 36 hours and docs were in Escrow less than 24 hours later, just ahead of the deadline. WELL DONE Sun Pacific Mortgage, you saved the day with the fastest funding I’ve ever seen.  AMAZING JOB!”  Realtor, S.G.

 

In just 5 days, this Petaluma Homebuyer who needed a rush loan of 780k had her loan funded and new home keys in hand!

Call us at 707-523-2099 with your questions or scenarios or visit our website at www.sunpacificmortgage.com. We work with many Real Estate Agents and Mortgage Brokers & Lenders, helping Buyers and Borrowers get their loans approved and funded fast.

Southern California Housing Market Update

Home prices in the first quarter rose 19.1% compared to a year ago and were 4.2% higher than in the fourth quarter of 2021. It appears as if the spike in mortgage rates during the first quarter has not dampened the market and, with more buyers than sellers, the market is still extremely hot.  The region saw double-digit price growth across the board, with Orange County again leading the way.

Of note is that home prices in Riverside County rose 10.7% compared to the prior quarter.  Rising mortgage rates and prices are certain to push affordability down even further, which is concerning. The question remains whether rising financing costs will start to slow the market. For the time being, this does not appear to be the case.

image1 1   In the first quarter of the year, the average time it took to sell a home in the region was 22 days, which was 6 fewer days than a year ago but 1 day longer than in the final quarter of 2021.  Homes in San Diego County continue to sell at a faster rate than other markets in the region. In the fourth quarter, it took an average of 16 days to sell a home there—two fewer days than it took a year ago.

The other four counties also saw the time it took to sell drop compared to a year ago, but market time rose very modestly in Riverside, Los Angeles, and San Bernardino counties compared to the fourth quarter of 2021.  Limited inventory combined with growing buyer demand is creating a very tight market. Any increases we see in the number of homes for sale in the coming months is not likely to be enough to satisfy buyers.

Despite low inventory levels and rising mortgage rates, the housing market continues to perform very well in Southern California. The spike in mortgage rates has yet to have a significant impact on price growth or demand; however, it will be interesting to check back in the second quarter because if there is an impact, that’s when we would likely see it.

If you find yourself wanting to purchase in California, give family owned and operated Sun Pacific Mortgage a call now at 707-523-2099 or visit our website at www.sunpacificmortgage.com. We can quickly get you pre-approved so you can present yourself as a serious Buyer when you make your offer to that Seller!  We have been a private mortgage lending company, servicing all of California for the past 34+ years – and are here to help get you that dream home!

Note:  Credit for this article goes to Chief Economist for Windermere Real Estate, Matthew Gardner who is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level.

Real Estate Continues to be the Best Investment

Even when inflation is high like today, Americans recognize owning a home is a powerful financial decision. Because inflation has reached its highest level in 40 years, it is more important than ever to understand the benefits of home ownership. Rising inflation means prices are increasing across every commodity, and that includes goods, services, housing costs, and more. When you buy a home, you lock in your biggest budgetary item each month.

For 9 years in a row Americans have chosen real estate as the best long-term investment. The following graph depicts the results of the latest poll conducted:

image1When inflation has risen in the past, home prices have risen as well. A house is an asset that typically increases in value over time even during inflation. According to Mark Cussen, Financial Writer for Investopedia:

“There are many advantages to investing in real estate…It often acts as a good inflation hedge since there will always be a demand for homes regardless of the economic climate and because as inflation rises, so do property values…”

Whether you are a first-time homebuyer or an investor looking to increase your family’s wealth or retirement fund, look no further than property.

If you like the idea of investing in real estate but dread the headaches inherent in becoming a property owner, consider becoming a private real estate investor with Sun Pacific Mortgage. Check out our website: www.sunpacificmortgage.com or call us at 707-523-2099. We are a family owned and operated company which has been in business for almost 34 years. We provide well-vetted opportunities, and you provide the funds to allow qualified borrowers to purchase or refinance their homes anywhere in California.

Current State of the Market – A Message from the Broker – June Edition

Over the last thirteen years real estate has been in a Bull market, which changed the way that we look at the 7-year cycle that previously rang true. This heating and cooling of the market, low interest rates, and removal of subprime loans has created something better and different than before.

Some of the gains have been:

  • Larger equity increases across the entire state
  • Record low default and foreclosure rates
  • High demand / Low Inventory
  • An increase in well qualified borrowers

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As we addressed in the first State of the Market, (which you can read here: pt. 1), top economic experts do not foresee a bubble situation. The market gains do not support it.

Now in June, Private Money Lending has remained unchanged. In fact, you could say that the miserabilism and rising rates have increased the benefits of our loan programs. Hard Money rates are constant and now overlap with conventional lenders who are tightening their lending requirements.

This has created a prime opportunity for Direct Private Lending and brought in a higher frequency of qualified Borrowers. So here is a recap of our last month:

  • In May, our investors helped fund over $18 million in loans at an average interest rate of 9.5%.
  • This is up from April’s $17 million at an average of 10.2%*.

*Note that lower rates are granted to Strong Borrowers with Low LTV.

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While talk of inflation, recession, and panicked markets continue to consume the energy of the media – remember that real estate continues to be strong. The last two weeks in our local market had some of the highest amount of new listings coming on the market in a very long time.  Buyers are flocking at open houses.  One we went to last weekend had over 30 buyers touring the house at the same time.

The market may be changing and look different, but there is a reason why mortgages are used to hedge problems in the economy. It’s because of the strength in real estate.

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