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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?

Pre 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?

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.

The Six C’s of Private Money Lending

Private Lender Private Money, Also Known As “Hard Money,” Has Become A Popular Alternative To Conventional Loans, Especially During These Stressful Sellers’ Market Days Which We Have Been Experiencing For The Past Several Years.Private money, also known as “hard money,” has become a popular alternative to conventional loans, especially during these stressful sellers’ market days which we have been experiencing for the past several years.

Why is that? Because FAST is the name of the game in this dog-eat-dog market and private money can be available in as little as a week through some hard money lenders, such as Sun Pacific Mortgage. Unlike conventional lenders where the loan process can take months to get approved, Sun Pacific Mortgage has much less red tape and requirements for these private money loan programs.  Our 33+ years in business has allowed us the experience to become truly expert in the loan approval process, solving any bumps that come up along the way. Service all of California Home Buyers, Borrowers, Realtors, Conventional Lenders, Mortgage Brokers and Investors alike; Anyone who need a quick close or who has been turned down for a conventional loan.

Let’s examine six factors that influence a private money lender before entering a contract with a borrower:

  1. Collateral:  Lenders are in the equity business, not the real estate business. They will consider all aspects of the property (physical condition, its marketability, and its profit potential), but the loan-to-value (LTV) is of primary importance.
  2. Conditions:  To minimize risk, Lenders look at other property inventory and at the resale or rental value of the given home/land.
  3. Capacity:  Lenders must consider the ability of the Borrower to carry out the terms of the loan and their existing obligations.
  4. Capital:  Lenders expect the Borrower to have significant “skin-in-the-game” at the closing table.
  5. Character:  Many Lenders look at the character of the potential Borrower. They look for liens and judgments which could affect the property under consideration.
  6. Credit:  With asset-based hard money lending, credit isn’t the most principal factor, but it may affect the interest rate the borrower pays.

Using a reliable, experienced company like Sun Pacific Mortgage to either invest or borrow money through, has been a wise choice for thousands over the past 3 decades. Give us a call at 707-523-2099 to see what we can do for you. You can also find us at www.SunPacificMortgage.com.

Home Has Never Been More Important

Home Has Never Been More Important

If this year proved anything, it is the importance of our home. Never before have Californians spent so much time living and working in it. All the good, the bad, and the ugly was revealed to us as we spent our lives at home these past couple of years.

While most homeowners in both Northern California and Southern California may have understood the financial benefits of homeownership, they now understand that a home also brings feelings of gratitude, security, pride, and comfort. While the world around us has changed almost overnight, our homes were redefined.

A study from Unison reports that:

  • 91% of homeowners say they feel secure, stable, or successful owning a home.
  • 64% of Americans say living through the pandemic has made their home more important to them than ever.
  • 83% of homeowners say their home has kept them safe during the Covid-19 pandemic.
  • 70% of homeowners feel more attached to their homes than before the pandemic.

As one CEO stated:

“Aside from the financial factors, there are several social benefits of homeownership and stable housing to consider. It has long been thought that buying a home contributes to a sense of accomplishment. Still, most individuals fail to realize that homeownership can benefit your mental health and the community around you.”

If you have been contemplating jumping into the real estate market but have concerns that you will not qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com and find out what a Private Money loan could do to make your dream home come true. We have been in business for over 33 years helping folks just like you fulfill their desire for homeownership with our alternative programs.

Wine Country Real Estate Trends

Hero Sa Real Estate Courtesy Pam Golding Properties 1920X1280 Looking Back Over The 2021 Real Estate Market Is Mind Boggling. From Mid-March When We Were Told To “Shelter-In-Place” To The Rapid Acceleration Of The Market In May And Continuing Throughout The Remainder Of The Year We Experienced A Ride We Never Saw Coming.

Looking back over the 2021 real estate market is mind boggling. From mid-March when we were told to “shelter-in-place” to the rapid acceleration of the market in May and continuing throughout the remainder of the year we experienced a ride we never saw coming.

Frantic Buyers looked for properties in areas where they never dreamed of living before because of the transition to virtuality. With working from home becoming the norm, new possibilities opened, and Buyers rushed to snatch up more rural or country homes. The Wine Country was a first choice for many residents of Silicon Valley, San Francisco, the East Bay, and the Peninsula.

Predictions nationally see real estate prices appreciating only 5.7% in 2022 as opposed to the 15% appreciation of this past year, but the Wine Country could well be an exception. The lack of inventory and the lure of the country keeps calling, making North Bay prices continue to look inviting and worth the prospective battle to win.

If you didn’t find your new escape in 2021, it is not too late. Mortgage financing problems? Check out our website for all that we offer at www.Sunpacificmortgage.com or Call Sun Pacific Mortgage at 707-523-2099 to examine the private money loan programs available for hard-to-fund properties or Borrowers. With 34 years of experience behind us, we have seen it all and have found ways of helping thousands of our clients find the mortgage program that works for them.

Lately, one of our more requested loans is for a Bridge Loan, allowing the Seller/Buyer to purchase the new property before selling their present home. In the tight market we face today, contingency offers are less likely to be considered by Sellers. This is a short-term solution for Buyers.

2022 Housing Market Forecast for Single-Family Homes

2022 Housing Market Forecast For Single Family Homes

Good news and bad news were recently posted by the California Association of Realtors (C.A.R.) regarding the economic outlook on housing. The bad news: supply constraints and higher prices will bring California home sales down slightly in 2022. The good news: transactions will still post their second highest level in the past five years.

C.A.R. sees a decline in existing single-family home sales of 5.2% next year (416,800 units) down from the projected 2021 sales figure of 439,800.

The median home price is forecasted to rise 5.2% to $834,400 following a 2021 projected increase to $793,100 (20.3%).

According to C.A.R. President Dave Walsh:

“A slight decline next year from the torrid sales pace of the past year-and-a-half will be a welcome relief to potential homebuyers who have been pushed out of the market due to high market competition and an extremely low level of homes available for sale.”

Economists look for the cyclical effects from the latest economic downturn will wane, and a strong recovery will follow. Demand for homes will continue to outstrip available supply as the economy improves, resulting in higher home prices and slightly lower sales in 2022.

If you are thinking about refinancing or buying a home in 2022, but do not qualify for a conventional mortgage, give Sun Pacific Mortgage a call at 707-523-2099 to discuss our available privately funded loans. Or visit our website at www.sunpacificmortgage.com. We offer owner-occupied and investment property loans for purchase, refinance, and bridge loan.

SoCal Real Estate Cools Down—But Only a Bit

Socal Real Estate Cools Down—But Only A Bit

In recent months Southern California has seen a slight cooling of the cutthroat housing market. Perhaps it is due to home shoppers tired of losing bidding wars and who, subsequently, put their search on hold temporarily.

As one Realtor put it: “What we are seeing is just a minor slowdown. Buyers can just expect slightly less pain.”  Where once you might see 20 offers on a property, now you see 4. Better, but still not easy.

In October, home prices in the 6 counties of Southern California rose 14% from a year ago reaching an all-time median high of $690,000. Sales declined 6.6%, the first drop since June 2020.

Up until now, home prices were rising faster than they had for years for a variety of reasons:  low inventory, record-low mortgage rates and an influx of millennials into the market. The pandemic also drove more people to seek out more space, and first-time home Buyers left pricey city rentals for a home of their own.

Most economist don’t see these price increases continue at the pace we have been seeing over the past couple of years, yet most homes still sell above their list price.

Here is a snapshot of what we have seen in the market over the past year:

  • In LA County, the median home price rose 10.5% to $790,000, while sales fell 0.9%.
  • In Orange County, the median home price rose 15.7% to $920,000, while sales fell 13.6%
  • In Riverside County, the median home price rose 20.2% to $535,000, while sales fell 6%.
  • In San Bernadino County, the median home price rose 16.3%, while sales fell 5.3%.
  • In San Diego County, the median home price rose 13.8% to $740,000, while sales fell 12.4%.
  • In Ventura County, the median home price rose 10.7% to $725,000, while sales fell 6.5%.

If you are thinking of wading into the market this coming year, now that the frenzy has waned slightly, but have been turned down for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website www.sunpacificmortgage.com. We have helped thousands of Borrowers just like you achieve their dreams with a private loan from one of our many Investors.

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