ProHousing Awards in California

October 3, 2023 Ken Walker

In June 2023, The California Department of Housing and Community Development (“HCD”) announced 18 jurisdictions to receive more than $33million as part of the first round of the Prohousing Incentive Pilot (“PIP”) Program funding.

The HCD is determined to alleviate California’s housing crisis by making additional community development resources available to local governments with the Prohousing Designation.

This award is paired with an impactful grant to create and conserve affordable housing. To date, the following cities have been awarded this distinction and funding: El Cerrito, Emeryville, Fresno, LA, Needles, Oakland, Rancho Cordova, Redwood City, Riverside, Roseville, Sacramento, Salinas, San Diego, Stockton, Ukiah, West Sacramento, San Diego, Yuba, Sonoma, Windsor, Long Beach, and most recently Santa Rosa.

The HCD is determined to alleviate California’s housing crisis by making additional community development resources available to local governments through PIP.

This designation gives these cities added points when competing for affordable housing, transportation, and infrastructure dollars, and allow their local governments to speed up the production of housing and further scale up its efforts to meet critical housing needs.

To receive the Prohousing Designation, cities and counties must demonstrate that they are promoting housing development in a variety of ways, including but not limited to streamlining multifamily housing developments, up-zoning in places near jobs and transit to reduce emissions, and creating more affordable homes in places that historically or currently exclude households of color and those earning lower incomes.

At a time in our economy when housing is so tight and homeowners are “mortgage-locked” into their existing houses, this government subsidy will help ease the pressure.

Real Estate is a good investment – as a buyer or investor – and this is a good time to buy a home.

Check Out The North Bay Real Estate Trends

September 26, 2023 Ari Walker

Overbidding has become a common catch word in real estate, with resolute, prospective buyers showing over time that they’re willing to pay over asking price. The trend has accelerated in the last few years since the pandemic took hold.

In May 2020, 25% of the offers were over the listing price. Three years later, 55% of the bids were over. Listings are low all over California and across the nation, insiders have indicated. Therefore, home sales are fewer in numbers by about 20%. One North Bay County, Sonoma, knows the pain of the housing shortage, lacking about 38,000 units to provide adequate shelter for its residents. Still, home sales are still happening as the demand refuses to subside.

You just need to look at the median home price in the following cities to realize that the “supply and demand” principle is alive and well in the North Bay.

2023 Sonoma County median sales price

-Kenwood: $2.9M

-Sea Ranch: $1.3M

-Healdsburg & Bodega Bay: $1.2M

-Penngrove & Glen Ellen: $1.1M

-Sebastopol: $1M

-Sonoma: $987,000

-Santa Rosa: $943,000

-Petaluma East & West: $925,000 & $850,000, respectively

Source: Compass

As with the rest of the Bay Area, the North Bay real estate listings closed 2022 with an over 20-year low, according to Compass data. The heavy demand and lack of resale property has forced the average days on the market to plunge in a 3 ½-year period, from a high of 88 days in January 2020 to 40 in May 2023, according to the Compass analysis.

If you are looking to invest in North Bay real estate but cannot obtain a conventional loan, consider a private mortgage from Sun Pacific Mortgage. We have been lending in California for over 35 years and have thousands of happy homeowners who could never have achieved homeownership without our assistance. We’d be happy to help you too! Find us at www.sunpacificmortgage.com or call us at 707-523-2099.

The Hottest ZIP Codes in California Today

September 19, 2023 Ken Walker

We are all aware that the housing market has slowed considerably this year, especially if we compare it to the past pandemic fueled frenzy of 2020-2022. The obvious reasons for this slump are the high interest rates and low inventory in a very competitive market, but there are still some areas, even in California, where there is still heightened activity.

This month in the SFGate they reported on a survey that was done by Realtor.com recording the most recent hottest ZIP codes in the country’s various metro areas. The rankings were based on a combination of market demand measured by views on Realtor.com and how fast homes sold. The list includers only one hot ZIP code per metro area. In California Livermore was the hottest spot in the Bay Area and Bakersfield was the most desirable in the Central Valley.

Livermore’s 94550 ended up at No.44 on the list with a median list price of $1.4 million. Granted, the area isn’t exactly affordable, and yet homes attracted more than double the attention per property and spent less time on the market compared with the greater San Francisco metro area.

Another surprising city which made the list was Bakersfield’s 93309 which landed at No. 24. It had a median list price of $340,000 in June 2023, a much more affordable price in a much more affordable metro area in the state.

In 2022, the only California market to crack the top 50 was Eureka, which took the 28th spot. The medium home price at the time was $480,000, but this year homes in the area are staying on the market longer causing it to drop off the list.

Prices have risen dramatically in the past few years in California, and no ZIP code has made it to the top 10 hottest ZIP codes since 2019.

If you are a hopeful buyer in this stressful economy, and if you have tried to qualify for a convention mortgage and failed, don’t despair! Sun Pacific Mortgage has rescued thousands of buyers just like you over the past 35 years. We have a family of investors who are willing to offer you a privately financed loan allowing you to realize your dream of homeownership today. Give us a call at 707-523-2099 or find us online at www.sunpacificmortgage.com.

Are Higher Mortgages Here to Stay for the Foreseeable Future?

September 5, 2023 Ken Walker

An article in NerdWallet caught my attention recently. It stated that the era of low mortgage rates is over and embracing this reality will speed up owning a house that meets your needs.

Low rates were the norm for 11 years, as the 30-year mortgage remained below 5% from February 2011 to April 2022. Since that time, it has remained mostly above 5% averaging 6.72% in June 2023.

Some forecasters predict that rates will decline over the next 12 months, but they don’t foresee them dropping below 5% anytime soon. Buyers are tempted to be in denial, but the reality is higher rates are here to stay for the foreseeable future.

“People are still working through their five stages of grief on this mortgage rate stuff,” says Lisa Sturtevant, Chief Economist for Bright MLS, the real estate listing service for the mid-Atlantic region. “And I think you have to reach the stage of acceptance at some point that certainly rates aren’t going to come down to where we were back during 2020 and 2021.” (When the median 30-year rate was 2.99%.)

If you are ready to face the reality of the housing market today and don’t qualify for a conventional mortgage, consider a privately funded loan from family owned & operated Sun Pacific Mortgage. Call us at 707-523-2099 or find us at www.sunpacificmortgage.com.

What To Do with All That Equity?

August 29, 2023 Ari Walker

Even though home prices have moderated over the last year, many homeowners still have an incredible amount of equity.

A recent study done by CoreLogic estimates that most homeowners have more than $100,000 in equity. Selma Hepp, Chief Economist for CoreLogic says:

“While equity gains contracted in late 2022 due to home price declines in some regions U.S. homeowners on average still about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic.”

In California, we have had an even greater increase in home equity over the past couple of years. The equity you have built up over the years can be used to your advantage when your house sells, enabling you to purchase your next home, but there are other investments you can make with your equity.

Perhaps you have had an interest in starting a business, but never had the capital to get it started, or you own a business and would like to expand. You can put your equity to work for you by making improvements in your business or your home.

With new city regulations making it easier to obtain permits for ADUs, many homeowners are considering building an income property on their property. The equity in their present home makes it possible to create another source of income.

If you live in California and want to make your equity work for you, consider a business loan with Sun Pacific Mortgage. Give us a call at 707-523-2099 or find us at www.sunpacificmortgage.com.

Real Estate Returns To A More Normal Growth

August 22, 2023 Ari Walker

According to Danielle Hale, Realtor.com’s chief economist, the more bullish outlook predicted for this year’s real estate market has been revised to slip this year, but less than 1%. She expects home prices to rebound more convincingly in 2024.

Although the pace of growth will be nothing like sellers or buyers witnessed during the past couple of years, it will be the real estate market’s normal pace.

When Zillow polled 117 economists and housing experts, their consensus was that home prices would increase at an annual rate of 3.5% until 2027.

“A return to more normal growth would be welcome after the rollercoaster ride that home prices have been on lately,” Jeff Tucker, Zillow’s senior economist said in the survey release.

The annual return on single-family homes reached nearly 13% between 2021-2022. In California, the appreciation was even higher. That’s a sharp contrast to so-called “normal growth”, which averaged an annual increase of 4.8% between 1987-2000.

Although housing prices may be declining in certain areas of California versus last year, they have been up month over month for the last three months. Much of that increase is because of an imbalance in supply and demand. The number of previously owned homes on the market was at a record low in May, which helps to keep prices elevated.

Buyers are turning to new homes but with an eye to affordable ones. Buyers may find better deals later this year when price increases seen in spring and summer tend to slow down as the most popular time for homebuying winds down.

If you are looking to access the equity accrued during the past couple of months but have high debt-to-income ratios, can’t prove your income or need a fast close, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com. We have been in business for over 35 years offering private mortgages to prospective California homeowners, being a trusted source for alternative financing.

What is a Housing Market Correction?

August 15, 2023 Ken Walker

Crash, Bubble, Correction; these are all phrases you will hear tossed around when it comes to real estate. More popular in recent months is the term “correction.” Most real estate experts are describing the present condition of our market today as a housing market correction.

While there is no official definition of what makes a housing market correction, it is generally described as a condition when homes get too expensive, or consumers can no longer afford them. At that time buyers stop purchasing real estate and the market must adjust to spur buying activity once again. Much like the old adage, “What goes up, must come down.”

A housing market correction is when home prices experience a moderate decline following a period of rapid growth. The purpose of a correction is to naturally adjust prices in line with affordability, demand, and supply, thus restoring a more sustainable and balanced state to the market. The length of time the market remains in this correction condition may be anywhere from a few months to a year or more.

A housing market correction and a housing crash are not the same thing. With a correction, things are simply coming back into balance. Prices may fall slightly, whereas in a crash, prices fall more significantly and usually unexpectedly.

It is expected that there will be a mild price softness through the end of this year. This is described as a 0.6% dip in the typical sales price in 2023 compared to 2022.

Because of the limited housing supply, we may not see substantial home price declines even though affordability is far below recent norms.

If you or a client are hoping to purchase or refinance during this correction phase, but can’t qualify for a conventional loan, Sun Pacific Mortgage is here to help with a privately funded loan. Simply give us a call at 707-523-2099 or find us at www.sunpacificmortgage.com.

Bay Area Peninsula Real Estate Market Report – 2nd Quarter 2023

May 30, 2023 Ari Walker

Bay Area Peninsula Real Estate Market –

2nd Quarter 2023

Once again, the real estate market on the Peninsula saw ups and downs. The good news (or bad news depending on your perspective) is that this month saw more ups than downs for the average sales price paid by home buyers versus the asking price.

Menlo Park:

$3,537,875
Down 1% from asking 25 days on the market

San Carlos:

$2,341,714
Up 4% from asking 17 days on the market

Foster City:

$2,347,500
Up 4% from asking 36 days on the market

San Mateo:

$2,019,863
Up 1% from asking 36 days on the market

Belmont:

$2,395,000
Up 2% from asking 24 days on the market

Burlingame:

$3,450,820
Up 1% from asking 32 days on the market

If you are looking to buy a house in California and would like to create a stronger purchase offer – to beat out multiple offers – consider the fast Private Money options. These can offer 10 day closes or less! And Private Money, also known as Hard Money or Alternative financing, is more forgiving on its qualifications so any possible issues with property condition won’t be an issue with this type of financing. Could be that step up you’ve been looking for to buy in this market! Visit our website at www.sunpacificmortgage.com or call today (707) 523-2099.

San Francisco Real Estate Market – Start of 2nd Quarter 2023

May 23, 2023 Ari Walker

The real estate market in San Francisco saw a slight downward motion at the beginning of Q2 of 2023, for single-family residences. However, the condo market saw a slight uptick.

Average Sales for Single Family Residences:
April: $2,148,830
March: $2,295,548
Down: $146,718
Average Days on the Market was 30 days.

Average Sales for Condos:
April: $1,378,035
March: $1,244,057
Up: $133,978
Average Days on the Market was 54 days.

If you are looking for a profitable niche for your retirement, look no further than investing in California real estate. You don’t need to be a landlord to get in on this valuable asset, you can invest in Deeds of Trusts, for higher returns. Sun Pacific Mortgage & Real Estate is one such company, licensed Brokerage since 1988, that offers regularly available Deeds of Trusts throughout California and Hawaii. Call 707-523-2099 or check out the investor webpage for further information and a contact form: https://www.sunpacificmortgage.com/invest-in-trust-deeds/

Honolulu Housing Market Trends

May 16, 2023 Ari Walker

In March 2023, Honolulu home prices were up 9.0% compared to last year, selling for a median price of $594,000. On average, homes in Honolulu sell after 78 days on the market compared to 56 days last year. There were 316 homes sold in March 2023, down from 467 last year.

Between January 2023 and March 2023, 40% of Honolulu homebuyers searched for homes outside of Honolulu, while 60% looked to stay within the metropolitan area. San Francisco homebuyers were the top metro who searched to move to Honolulu.

Looking at all of Hawaii, in March 2023 there were 5,062 homes for sale, down 10.6% year over year. The market remains in the seller’s court, much like the rest of the mainland.

For Homebuyers, Homeowners, Real Estate agents and conventional Mortgage Brokers, Sun Pacific Mortgage & Real Estate’s fast, alternative Private Money mortgage programs can be of great benefit to today’s real estate market in Hawaii.

This type of real estate loans can provide 10 day closes or less! There is no debt-to-income ratio requirements nor credit requirements! Financing is offering in each of the main areas of Hawaii, including: Hawaii County, Honolulu County, Kauai County, and Maui County.

If you are shopping for a second home in one of these counties or want to pull cash out of real estate for some business purpose, give us a call at 707-523-2099 or email us through our website at www.Sunpacificmortgage.com

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