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2021 Housing Forecast Looking Rosy

2021 Housing Forecast Looking Rosy 1

Most of us living in California will be happy to bid, “Good riddance” to 2020.  While much of the hallmarks of this past year will go away, the rising home prices in many California counties which became distinct characteristic of this past year, may be here to stay.

Realtor.com’s housing forecast predicts record-high prices will continue rising in 2021.  The frenetic pace of price growth seen in 2020 may slow somewhat, but prices are still expected to jump 5.7% next year.

According to Danielle Hale, Chief Economist at realtor.com:

“We expect affordability to become a bigger challenge.  It’s going to make housing more expensive. [But] home prices will rise slower than this year, on the upper end of what we consider normal price growth.”

However, higher prices aren’t likely to discourage determined buyers – as has proven this year with continued real estate sales throughout many busy counties including San Francisco, Los Angeles, Sonoma, Monterey and more.

Sales of existing homes are projected to increase 7% in 2021.  Besides those buyers who are looking for larger homes for work and school demands, there will be many baby boomers looking to downsize and apartment dwellers seeking homes of their own.

More homes are likely to become available in the last six months of 2021.  The increase in inventory will, most probably, be because of more sellers listing their properties as well as builders completing more new homes.

If you are a borrower who cannot qualify for a conventional loan and are looking to take advantage of the lower prices now as opposed to higher prices predicted in 2021, give Sun Pacific Mortgage a call at 707-523-2099.   We have been in the private money lending business for over 32 years and have helped thousands of borrowers just like you.  Don’t wait until you are priced out of the market, give us call now.

Get Ahead Of The Home-Buyer Competition

Get Ahead Of The Home Buyer Competition

One phenomenon that has surprised many home seekers this year is the competition that awaits them when they begin their search.  With the pandemic restrictions, many assumed that the housing market would slow down, but that has hardly been the case, especially here in California.

California homebuyers’ demands have escalated for several reasons, primarily because of low interest rates and the need for more space now that families are home more, engaged in work and school.  Many of our homes’ shortcomings have been magnified with the increased time being spent there.

Finding your dream home today is more challenging than ever, and some shoppers are tempted to put their search on hold because of the stiff competition. The latest data from the National Association of Realtors found that in today’s market, the average house receives 3.4 offers before it’s sold.  This means that for every buyer who purchases a home, there are on average 2-3 buyers who need to begin their search all over again.

Experts anticipate home prices will continue to rise into 2021 along with interest rates as the economy strengthens.   With this scenario facing prospective buyers throughout California, they will most likely run the risk of finding a more expensive housing market when they start looking again.  The conclusion to be made with these prospective outcomes is that the winter of 2020-2021 is the right time to make your move!

If you find yourself needing a fast close to put you in a better position against your competition when making your real estate offer, consider a private money loan from Sun Pacific Mortgage.  We offer quick private money loans that will make your offer stand out in the crowd.  Give us a call at 707-523-2099 and see what we can do for you.

This Economy’s Recovery is a Surprise to Even the Most Experienced Economists

This Economy’s Recovery Is A Surprise To Even The Most Experienced Economists

Remember back in March when it was all gloom and doom relative to the economy?  The predictions were downright apocalyptic not just for California but most of America!  It was even going to be another Great Depression.  Fast forward to September…while the country is still a little unstable, it is evident that we will not face the total devastation projected by some soothsayers.  The Wall Street Journal just reported:

“The U.S. economy and labor market are recovering from the coronavirus-related downturn more quickly than previously expected…Business and academic economists polled by WSJ expect gross domestic product to increase at an annualized rate of 23.9% in the 3rd quarter.  That is up sharply from an expectation of an 18.3% growth rate in the previous survey.”

The question remains, what shape will this recovery take?  Historically, recoveries have taken the form of one of four letters:  V, U, W, or L

  • V-shaped recoveries are all about the speed of the recovery.
  • U-shaped recoveries are characterized by a sharp fall into a recession but remaining depressed for a longer period than a V, possibly even for several years.
  • W-shaped recoveries begin like a V-shaped recovery, but plunge into a second, often smaller depression before fully recovering to pre-recession levels.
  • L-shaped recoveries are the worst-case scenarios.  Although the economy begins to grow, it remains at a much lower base than before the recession and can last several years.  The 2008 recession was an example of this type of recovery.

The Wall Street Journal asked the same economists as in the previous survey which letter this recovery will most resemble.  The results give us reason to hope:

  • 68% believe it will be a V
  • 11.1% believe it will be a W
  • 3.7% believe it will be a U
  • 1.9% believe it will be an L

From this report we can see that while the economy has a long way to go, so far, we are doing much better than most experts predicted.  And one of the reasons we seem to be coming out of this recession so quickly here in California is the real estate market.  It is hot hot hot and continues to surprise everyone.

So, if you ever thought about adding real estate to your retirement portfolio, this may be the time to do it.  Give us a call at Sun Pacific Mortgage 707-523-2099 if you don’t quite qualify for a conventional loan or need a fast close.  We have helped thousands of buyers just like you over the past three decades.

What’s Happening in the Orange County Real Estate Market?

Whats Happening In The Orange County Real Estate Market

Orange County’s homebuying rebound continued in September with sales hitting a pace not seen since 2005. A study done by DQNews (a service that provides home sales and mortgage statistics for the U.S.) shows a market fueled by historically low interest rates, coronavirus-led urges for more space, and a limited inventory for house hunters to choose.

Some of the single-family-home data released for September 2020 is as follows:

  • Median Sales Price:  $875,000 (up 10.8% over 2019)
  • Homes Sold:  2,417 (up 30.6% over 2019)

Zillow reported for the week ending October 17 in Los Angeles and Orange Counties:

  • Newly pending sales:  Up 4.2% vs. in 2019
  • 12 days, escrow from listing vs. 24 days in 2019
  • Inventory:  down 24% over 2019
  • Median list price: up 13% over 2019

Market snapshots of median list prices for individual communities:

  • Costa Mesa: $943,000
  • Huntington Beach:  $819,000
  • Irvine:  $749,000
  • Laguna Beach:  $1,297,000
  • Newport Beach:  $2,230,000

If you are considering a home sale, now’s the time to do it so that you can sell for top dollar!  If you find that you fall short of meeting the new more stringent requirements to qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 to discuss a fast, secure way to insure that you are able to get into your next home.  Over the past three decades in California, we have helped thousands of folks just like you to achieve their dreams.

Sonoma County Coming Out on Top in Move North

Sonoma County Coming Out On Top In Move North

Most economist agree that the major difference in this recession versus previous ones is the robust real estate market.  A combination of low interest rates and built up equity has made the housing market a shining light in an otherwise unusual time period.  Combining these factors with the “work-from-home” phenomenon that has been taking over the country, you have the perfect storm for a house hunting blitz.

The North Bay especially has been the lucky recipient of this latest barrage of house hunters.  Home buyers are fleeing dense Bay Area neighborhoods for the Wine Country.  Local real estate agents say the demand is largely driven by buyers from San Francisco, the East Bay, Silicon Valley and even the Central Coast.

In February, the month prior to the temporary upending of the real estate market, the median Sonoma County home price was $641,250.  By the end of July, it was $720,000, a 36% increase over the same time last year.

The desire for home offices and room for distance learning is a huge motivator for many of these home buyers.  They are seeking rural settings, sweeping views and a swimming pool.  One such home on the market had 40 showings.  It was listed for $1.2 million in Sebastopol and over half the potential buyers were from San Francisco!  No surprise when you consider that price would barely cover your down payment for a similar home in The City.

Last month, a hilltop mansion in Sonoma sold to a San Francisco family for $14.75 million, one of the most expensive home sales in Sonoma County history.  But the greatest demand is for mid-priced homes ($500,000-$700,000).  This price range accounted for the highest number of sales of any price range in July.

As a local realtor pointed out in a recent article for the North Bay Business Journal, “It’s kind of like musical chairs, all of a sudden the music changed, and everyone’s looking for the next seat.”

Don’t get left without “a seat”, start your property search soon.  If you cannot qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099.  We have helped thousands of prospective buyers just like you with our temporary (or 15 year), fast (within just a couple of weeks or less than a month when super rushed) hard money loans.

Los Angeles Real Estate Market Report for September

Los Angeles Real Estate Market Report For September

The Los Angeles real estate market continues to be somewhat competitive even in these days of pandemic partial shutdowns.  Moving to the Los Angeles area is more attractive because of the work-from-home opportunities being afforded many employees.  Up until now residents could expect to spend a lot of time in their cars given that LA was named the 5th worst city for traffic in the United States.  Now that many workers can settle into a home office, commuting becomes less of a problem.

According to Realtor.com here are some Los Angeles, CA market statistics for the end of September 2020:

  • Median List Price:  $950,000 (up 5.7% over 2019)
  • Median Price per Sq. Ft.: $552.
  • Median Sales Price:  $850,000
  • Sales to List Price:  100%
  • Average Days on Market:  58

When you look at some of the more desirable neighborhoods in LA County a different picture emerges:


  • Median Sales Price:  $2,600,000
  • 306 homes for sale


  • Median Sales Price:  $1,400,000
  • 258 homes for sale

Sherman Oaks:

  • Median Sales Price:  $895,000 (12% down from 2019)

Silver Lake:

  • Median Sales Price:  $1,210,000 (up 41.8% from 2019)

(Note to explain the extraordinary uptick in price: This is a neighborhood that saw an influx of Millennials recently, although it has been a cultural destination for at least a decade.  New hotspots and restaurants have made this especially enticing to a new demographic.)

If you are looking to purchase or refinance in the LA area, but find that you fall short of qualifying for the more restrictive Covid-19 mortgage regulations, give Sun Pacific Mortgage a call at 707-523-2099.  Although we are located in Northern California, we are licensed for all of California and lately have been helping many Southern California clients with their hard money loans.

Real Estate Market Results for San Francisco Peninsula Areas – September 2020

Real Estate Market Results For San Francisco Peninsula Areas

While there was some slight fluctuation in sales pricing from August to September, asking and sales price were very much in line.  Below is a summary of 6 cities from the Peninsula, that represent the state of the real estate market in these San Francisco bay areas:

Menlo Park:

Average days on market- 28
Average sales price- $3,241,029 (down $354,912 from August)
List and sales price the same

Foster City:

Average days on market- 24
Average sales price- $1,905,324 (down $162,036 from August)
Sales price 1% above asking price


Average days on market- 19
Average sales price- $1,981,259 (up 4% from August)
Sales price 4% above asking price

San Carlos:

Average days on market- 17
Average sales price- $2,182,043 (down $54,704 from August)
Sales price 4% above asking price

San Mateo:

Average days on market- 20
Average sales price- $1,781,586 (down $90,215 from August)
Sales price 3% above asking price


Average days on market- 25
Average sales price- $2,909,842 (down $161,331 from August)
Sales price same as asking price

In reviewing these findings, we see that the shortage of homes for sales has resulted in a faster turn-around for listings.  While there has been some adjustment of pricing, over all the market has remained robust and indeed, even competitive.

So if you’ve considered selling in these areas, this is the time to reach out and find a local, qualified Realtor who can help walk you through the selling process smoothly. And if you are looking for alternative financing or a Hard Money loan to finance a future purchase, give Sun Pacific Mortgage & Real Estate a call at (707) 523-2099 for a free consultation.

Have Tax Questions About Selling Your Home?

Have Tax Questions About Selling Your Home

A recent article posted on Intuit’s Turbo Tax website addressed a series of questions and answers that every property seller should know before engaging in a real estate contract.

This is good information to be aware of, thus our sharing.  Providing answers to these questions is “out of bounds” for anyone without the proper legal credentials, which is why we are simply going to cite the post here and let the experts inform you of the regulations you should consider.

For those home owners in California who are considering moving from bigger cities such as San Francisco, Silicon Valley or even Los Angeles and want to settle down to more rural areas such as Sonoma County or even Napa County, this is some good information to know about when connecting up with your Realtor to sell.

Among the topics covered in this article are the following:

As you can see, answers to these questions can impact your tax obligations significantly.  They may either confirm your decision to sell or encourage you to wait.  Either way you will be making a more informed and sensible decision.

For detailed information please refer to the original post here:  https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6tbMe3Dy?&cid=em_44867_6306_001_2019__DT_

North Bay Area August Real Estate Report

North Bay Area August Real Estate Report

And we thought we had seen it all…but, no, there was more!  How about record-breaking heat, more fires, unhealthy air, and a pandemic?  Despite it all, the real estate market in Sonoma, Marin, and Napa counties have continued to thrive and even grow!

Here are the statistics for single family homes as recently reported in the Press Democrat, by local Realtor Jeff Schween, on September 13, 2020:

Sonoma County

New listings:  356 (down 25% from 2019)

Escrow openings:  585 (up 32% from 2019)

Closings:  534 (up 33% from 2019)

Homes for sale at end of August:  650 (down 43% from 2019)

Absorption rate:  82%

(Note:  Absorption rate is calculated by dividing the number of homes sold by the number of homes available at the end of the month)

Marin County

New listings:  198

Escrow openings: 247 (up 49%mfrom 2019)

Closings: 258

Homes for sale at end of August: 287 (28% down from 2019)

Absorption rate:  89% (one of the Bay Area’s hottest)

Napa County

New listings:  97 (down 38% from 2019)

Escrow openings: 173

Closings: 154

Homes for sale at end of August:  262

Absorption rate:  59% (this indicates an increase in values will follow)

The reasons for this healthy increase in the North Bay real estate market are probably three-fold:  more work-from-home opportunities, desirability of wine country, and more affordable housing than other local urban areas.

So, despite some of the disasters that have occurred in our northern counties, they still appeal to a myriad of homebuyers.  Sun Pacific Mortgage has seen an increase of borrowers who need a fast close for their property purchase.  The lack of inventory makes each escrow a sprint to the finish.  We have been known to finish many of our loans in as little as a week!  If you find yourself in a time crunch to close your deal, or just want to look better than the next guy when presenting your offer, give us a call at 707-523-2099.

Santa Rosa Sees New Interest from Buyers

Santa Rosa Sees New Interest From Buyers

Santa Rosa Sees New Interest from Buyers

Local Sonoma County Realtor, Jeff Schween, published an article in the Press Democrat on August 16, 2020 summarizing today’s happenings in the Santa Rosa real estate market.  He says we are seeing a shift in affluency from larger metro markets to nearby suburbia.  In the past, buyers looking to relocate stayed near their current residence.  This does not appear to be the case during this pandemic.  He goes on to state some surprising data to support his observation.  Here are some statistics from the MLS used to substantiate the claim that Metro Bay Area has discovered Suburbia North Bay:


  • Active Listings: 324 single-family homes (11% less than July 2019)
  • Pending Contracts: 245 (45% increase over July 2019)
  • New Listings: 195
  • Completed Sales: 231 (38% increase over July 2019)
  • Months’ Supply of Inventory (MSI): 1.4 [Note: 4.0-6.0= balanced market]

Here was the summary breakdown by neighborhood:


  • Active Listings: 152
  • New Escrows: 95
  • Completed Sales: 93 (a record for this submarket)
  • MSI: 1.6


  • Active Listings: 52
  • New Listings: 32 (26% less than July 2019)
  • Completed Sales: 37
  • MSI: 1.4


  • New Listings: 19
  • Active Listings: 55
  • New Escrows: 28
  • Completed Sales: 15
  • MSI: 3.7


  • New Escrows: 59
  • Active Listings at end of July: 46
  • New Listings: 54
  • Completed Sales: 63
  • MSI: 0.7


  • Active Listings at end of July: 19
  • Completed Sales: 23
  • New Listings: 19
  • New Escrows: 27
  • MSI: 0.8

From this well-documented report on the activity in Santa Rosa in July, it is apparent that folks have discovered our “Paradise” and are actively looking to migrate North!

Good news/ Bad news:  we can look for home prices to rise and supply to be lower than preferred.

If you have been considering a change of scenery and live in any one of these coveted areas of Santa Rosa, now is the time to contact your real estate agent.  We are already seeing bidding wars in some areas.

If you are looking to buy but find yourself just short of meeting the restrictions of a conventional loan or need a quick close, give Sun Pacific Mortgage a call at 707-523-2099.  We have been in business in Santa Rosa or 32 years and have maintained a sterling reputation based on our honesty and helpfulness.

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