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Real Estate Market Report for San Francisco and Peninsula

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Despite the fear mongers’ warnings, life and real estate go on as before in San Francisco and the Peninsula when we are speaking of the real estate market. While there is no longer the frenetic pace of the past two years, buyers and sellers continue to engage in transactions with hefty profits. We have only to examine the past quarter of San Francisco sales to see that, while there has been a very slight slow down in business, homes are still selling above asking price for single-family residences.

Screen Shot 2022 08 26 at 12.54.32 PMThe Peninsula is also showing no backsliding when it comes to average sales vs. listing prices:

Screen Shot 2022 08 26 at 12.54.39 PMWith the year half over and the economy in flux, it is difficult to predict the future, but most economists are still recommending real estate as a safe investment vehicle to increase personal wealth.

If you need help finding a mortgage for California real estate because you have not qualified for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com.

North Bay Real Estate Trends for June 2022

Home Real EstateFor purposes of this report, we are including the counties of Marin, Mendocino, Napa, Solano, and Sonoma.

Inventory at end of June: 2,429 homes and condos (30% over last year; 19% over last month)

Nationally, listings are up 31% over the past year.

There were 1,310 sales in June, which was 30% below last year’s total sales and 12% below last month’s sales.

The ratio of listings whose price was lowered for each county reads as follows:  Sonoma 16%, Mendocino 22%, Napa 23%.

Those counties whose sales were more than the original listing price were as follows: Mendocino 26%, Napa 45%, Sonoma 61%.

Average sales price = $955,270 (+8% YTY)

Median Days on Market = 31 (-26% YTY)

Sales vs. List price = 102% (0% YTY)

What conclusions are we to take from this report? We are not in a free-fall, but real estate has cooled slightly off the frenetic pace we were on for the past couple of years. We are certainly not looking at another 2008, and for good reason. There is plenty of equity in existing homes and inventory is just not plentiful enough to satisfy the demand.

If you need help with your mortgage search, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com. We do fast, private loans considering loan-to-value rather than credit scores.

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.

 

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.

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.

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.

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.

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