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Sonoma County May Real Estate Status

Analysts, Economists, and Industry Commentators have much, and sometimes divergent, opinions about the present and future of real estate in Sonoma County. They all agree, however, that sales data in the coming months should provide more concrete indicators of the market condition.

The experts have commented that when hot markets shift to cooler, the effects are typically reflected in reductions in multiple offers, overbidding, and the number of homes going into escrow. All these realities result in less appreciation, but historically, over the longer term, real estate remains an excellent and robust investment.

The monthly median home price, 6-month rolling average proves the point:

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The average days on the market typically ebb and flow seasonally with spring often seeing the highest demand. Spring 2022 has just seen the lowest average days on the market ever recorded.

image2The combination of quickly rising prices and the fastest mortgage rate increase in over forty years is going to affect purchase demand. As this phenomenon occurs, the private mortgage business picks up steam. Using this avenue of financing allows otherwise ineligible Buyers to get into the real estate market and profit from the appreciation which continues to rise.

Sun Pacific Mortgage, a family-owned and operated business located in Sonoma County, serving all of California, has been in the Private Money Mortgage business for over 34 years with impressive results and loyal, appreciative clients and investors. With our year of experience, we can close escrows in as little as a week. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to investigate the loan programs we have available in funding purchases and refinances or how we can help you start increasing your wealth. We look forward to your call.

Why is the Housing Supply So Low?

Why is the Housing Supply So Low?
At the top of the question list for Buyers last year and this year is, “Why is it so hard to find a house to buy?”  Simply stated:  The number of Buyers greatly outstrips the homes available for sale. There are two main reasons the housing supply is low and what it may mean for you:

  1. New home construction fell behind for the past five decades except for 2008. Builders exceeded the average of new homes during these years of the housing bubble. As a result, an oversupply of homes caused home values to decline. That was one of the factors that led to the housing crash in 2008. Since then, the level of new home construction has fallen off, and for the last 13 straight years, Builders haven’t been able to construct enough homes to meet the demand.
  2. When the pandemic hit, the meaning of “home” became even more appreciated. With work and school moving into homes, there was a rush to find suitable housing for all the new activities happening in a sometimes- too- small space. At the same time, Sellers hesitated to put their homes on the market because of concerns about the pandemic. Not to forget mortgage rates dropping to the lowest seen in decades, adding to the urgency to buy now.

Even today, Buyers find themselves looking at scant inventory and higher prices. Offers exceed listing prices by a considerable margin. Basically, inventory is still low. Still, you shouldn’t put your plans to buy on hold because you are waiting for additional houses to hit the market. With prices continuing to rise and construction materials becoming ever harder to obtain, that could end up being a longer wait than makes sense.

If you need a loan today but can’t meet the stiffer qualifications of a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 or email us through our website at www.sunpacificmortgage.com, to discuss a Private Money loan mortgage. We have helped thousands of Californians over the past 34 years to purchase or refinance their own residence or a rental property. We can make your offer look better than others with a fast, all-cash close, often closing in 1 week to 1 month!

What Will the Housing Market Look Like as the Rates Rise?

What Will the Housing Market Look Like as the Rates Rise?

The short answer to this persistent question is, “Nobody knows.”  This statement comes from Edward Seller, Associate Vice President for Housing Economics at the Mortgage Bankers Association.

So, where does that leave the everyday Homebuyer with rents soaring faster and steeper than mortgages? One Redfin Realtor said that she hears people are more worried about the stock market, rather than mortgage rates because they believe housing will be a better investment. Many Buyers see that the time is right for going all-out in bidding for scarce housing right now before it gets worse.

This anxiety regarding the unpredictability of rising rates explains the reason the housing market has not cooled yet and explains the surge in Buyers trying to get ahead of those higher rates now.

But do you keep getting turned away by other Lenders? Sun Pacific Mortgage has the answer with our Private Money loan programs: home or land purchases, refinancing, and bridge loans for business or commercial purposes. We have hundreds of Real Estate Investors who can finance your housing loans even if you do not qualify for conventional lending. Even poor credit, bankruptcy and less-than-perfect properties are not show-stoppers for our mortgage qualifications. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to discover a possible road to homeownership for you in these unpredictable times.

 

California Home Prices Got Pricier During 2021

why now california housing market featuredThe real estate market in California mirrored the rest of the country in 2021. Home prices increased by double digits in the more affordable areas, such as Sacramento and Riverside. The San Francisco Bay area had more modest increases, due in part to Buyers being anxious to relocate to more affordable, suburban areas. The San Francisco housing market saw the typical home value increase by only 9.3% compared to the statewide increase of 20%.

Overall, home prices in the state far outpaced the national median price. In October, the median sale price of a single-family home in California was $798,440, up 12.3% from last year. This new price was double that of the national median average of $353,900.

Oakland saw the biggest increase in demand. Alameda County, which includes Oakland and Berkeley, saw a 24% increase to $1.05M. in November. The move-in ready homes with work-from-home space and backyards often saw 12 or more offers.

Sacramento was one of the most sought-after destinations for Buyers who looked for more space and affordable prices. A single-family home’s median price rose 22.3% from 2021. This area tends to have bigger and newer homes compared to the coastal cities to the west.

In November 2021, Los Angeles saw their median home price rise from $730,000 to $810,000. The luxury market in Southern California near Montecito shot up 43% to $6.46M over the previous year.

Inventory remains low throughout California and anything that comes on the market tends to be snatched up quickly by Buyers afraid of losing out on finding a home.

So, what’s in store for California in 2022? According to most experts, home prices will grow half as fast as they did in 2021. With construction still lagging in the state, don’t look for housing demand to lessen. Availability will remain a negative factor for the foreseeable future.

If you need help getting a mortgage quickly to snag your dream home in California, give Sun Pacific Mortgage a call at 707-523-2099 or email us through our website at www.Sunpacificmortgage.com   We offer fast, Private Investor mortgages that will give you a leg-up in today’s competitive market.

Zillow Predicts the Wildest Home Price Swing Coming

Zillow Predicts the Wildest Home Price Swing Coming

Buyers are depleted, stretched, and disheartened after bidding often over the past year and falling short. Over the past 12 months U.S. home prices are up 18.8% – an increase larger than any 12-month period leading up to 2008.

Unfortunately for Homebuyers, but good news for Real Estate Investors and Homeowners, Zillow’s latest forecast has the year-over-year rate of increase in property values at 22% followed by only a subtle slowdown. By February 2023, Zillow forecasts that the rate of increase will be 17.8%. Not good news for those Buyers desperate to find affordable housing.

As Buyers are getting locked out of mortgages due to increased rates and the Private Money mortgage Lenders are becoming increasingly important to Borrowers. In California, where the housing crisis is at its worst, Sun Pacific Mortgage has seen business double in the past 12 months, largely because we offer – FAST, cash-like mortgage solutions to beleaguered Borrowers. Unable to compete with wealthy Real Estate Investors snatching up properties, Private mortgages give the “little guy” a chance to win in the David vs. Goliath war being waged.

Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see what we can do to make your offer stand out in the crowd. We have been helping thousands of Californians just like you for over 34 years.

Should Inflation Stop You from Buying a Home in 2022?

Should Inflation Stop You from Buying a Home in 2022A high inflation rate means prices rise across the board so it is reasonable for someone to say “Yes”, but while home prices aren’t an exception, this should not be the reason keeping you from buying a home in 2022. We are aware of the appreciation that has occurred in the real estate market for the past couple of years, and the experts say we can expect that increase to continue in 2022, though maybe not as dramatically.

In this period of record-breaking, rising consumer costs, homeownership offers the one fixed overhead expense you can rely on with a fixed mortgage. As James Royal, Senior Wealth Management Reporter at Bankrate stated:

“Sure, property taxes will rise, and other expenses may creep up, but your monthly housing payment remains the same.”

With rent control going away, renters are in an even more precarious position. Ali Wolf, Chief Economist at Zonda, explains:

“You want to think through where you can put your money, so it does not lose value. Housing is commonly looked at as a good inflation hedge…”

Even if you cannot qualify for a conventional mortgage through the normal channels of banks and other lending institutions, there is still the private mortgage lending arena to consider. Sun Pacific Mortgage offers private money mortgages to Borrowers and Buyers who otherwise might not be able to qualify for a loan. Whether your FICA score is too low, or your property doesn’t meet the federal requirements, or you need to close in under a month, give us a call at 707-523-2099.  You can also reach out through our website at www.Sunpacificmortgage.com.  We have helped thousands of other Borrowers and Buyers just like you over the past 34 years we have been in business in California.

Real Estate Voted Best Investment Eight Years in a Row

Real Estate Voted Best Investment Eight Years in a Row

Despite the present inflationary economic state that the country is wrestling with today, most Americans agree that Real Estate shines as the most secure place to protect your wealth.

Inflation has reached its highest level in 40 years. We have all painfully experienced the increases in goods, services, housing costs, and more. The only one of these items that can have a locked-in price is housing because your monthly payment is shielded from escalation. James Royal, Senior Wealth Management Reporter at Bankrate, explained it like this:

“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise, and other expenses may creep up, but your monthly housing payment remains the same.”

Home ownership eliminates the dread that today’s renters are suffering because of huge jumps in rents. Various cities in the country have seen increases as much as 50%!

As a homeowner, you have seen the record-breaking increases in appreciation just over the past couple of years. As prices rise, so does the value of your home, making buying a home a great hedge during periods of inflation.

In short, when you lock in a mortgage payment, you shield your housing cost from increases, and you own an asset that typically gains value with time.

If you have found it impossible to obtain a conventional mortgage, give Sun Pacific Mortgage a call at 707-523-2099 or visit www.sunpacificmortgage.com. We have been serving Borrowers in California for over 34 years. Whether it is your own home, an investment property, or land, we offer firsts, seconds, bridges, and refinances. And on top of that, we’re really fast (sometimes we get a loan completed in as little as 1 week)!

San Diego Housing Market Trends

San Diego Housing Market TrendsIn January 2022, San Diego home prices were up 19.3% compared to last year, selling for a median price of $811,000. The average days on the market was only 11 days as opposed to 17 days last year. The total number of homes sold this January was 933, down from 1063 last year.

It is obvious that the housing market remains hot in the San Diego area. According to Redfin many homes are still getting multiple offers, some with waived contingencies.

The average home is selling for about 3% above listing price and go pending in around 10 days. The “hotter” home can sell for about 8% above listing and go pending in around 6 days. The sale-to-list price for all home types was 103% in January.

The San Diego market reflects much of the rest of the California’s larger cities and their environs. Buyers are finding it difficult to lock in a deal and sellers are happy to have several offers from which to choose.

If you have been discouraged by failing once or more to secure a home with your offer, consider a private mortgage loan from Sun Pacific Mortgage. Your offer will stand out in the crowd as a “cash offer” with a very quick closing, both strong incentives in this market. We have been able to execute closings in as little as a week because of our inhouse operation.

Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to discover what we can do for you to strength your offers and get you into the home you have chosen.

Wine Country Real Estate Trends for January 2022

Wine Country Real Estate Trends for January 2022

Looking at the trends for the beginning of the year it is clear that inventory is declining while prices keep rising-an expected outcome based on the principles of supply-and-demand.  The following is a snapshot of Sonoma County and 3 specific cities in the North Bay that illustrate this development:

Sonoma County:

  • 260 homes in inventory at end of January (51% below 1/2021)
  • 310 new sales (27% below 1/2021)
  • Days on market: 30 (Rohnert Park) to 103 (Cloverdale)
  • Median price for closed escrows: $750,000 (14.5% up from 1/2021)
  • Homes sold for 98% of original price

Santa Rosa:

  • 85 homes left at end of January 2022 (66% down from 1/2021)
  • 148 new listings (22% down from 1/2021)
  • 135 closings
  • Median price for closed escrows: $705,000 (14% above 1/2021)
  • Average days on market: 54

Petaluma:

  • 29 homes in inventory at end of January (6% below 1/2021)
  • 29 new sales (33% below 1/2021)
  • Median price for closed escrows:  $827,000 (11% down from 1/2021)
  • Average days on market: 38

Rohnert Park:

  • 8 homes in inventory at end of January (50% down from 1/2021)
  • 21 new sales (55% down from 1/2021)

Note: This was the 20th month in a row that sales were in excess of inventory at the beginning of the month making this the tightest market in the North Bay.

  • Median price for closed escrows: $650,000 (17% above 1/2021)
  • Average days on market: 30

Real Estate is always fluctuating but no matter what, there are always Sellers and Buyers around – especially in California!  So, as a Real Estate Agent, a Mortgage Broker or even Lender, knowing that Private Money financing can be beneficial to those Buyers & Borrowers who need a FAST loan or are turned down elsewhere, we could help!  Check us out online at www.Sunpacificmortgage.com and reach out with questions or scenarios through there or by phone at 707-523-2099.

Pre-Qualification or Pre-Approval?

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If you’re ready to make your dream of owning a home a reality, or if you are ready to upsize or downsize, you know the importance of getting pre-approved for your mortgage loan.  But what is the difference between pre-qualifying and pre-approval?

Before you embark on your house hunting journey, determine what you are comfortable spending, both in a down payment and monthly mortgage payment plus other fees.  What you qualify for and what you are comfortable with are not necessarily the same.

Prequalification is an early step in your home-buying journey.  This just gives you an estimate of what you might be able to borrow based on information you provide about your finances and a credit check.

Preapproval is as close as you can get to confirming your creditworthiness without having a purchase contract in place.  If you are preapproved you will receive a preapproval letter, which is an offer (but not a commitment) to lend you a specific amount.  This approval is usually good for 60-90 days, and a smart step to take when you are ready to put in an offer on a home.  It shows the sellers that you are a serious homebuyer and that you will be able to complete your purchase of the home.

In today’s market, where houses are flying off the shelf and sellers are being bombarded with multiple offers, being preapproved is a huge plus in your offer process.  It also will save you time by only looking at homes that you can afford.

If you get declined for your preapproval, don’t despair!  Ask the Lender to explain why you were declined.  If your credit score was too low, or you have difficult to prove income, bankruptcy, etc. which is somehow not qualifying you for a home loan at this time, then Sun Pacific Mortgage can rescue your homebuying efforts based on your loan-to-value.  We offer private money loans that are equity based and not based on a credit score.

Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see if we can come to your rescue when things look bleak with your mortgage search.

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