As we move into the second half of the year, one thing is clear: the current California real estate market is a “one off”. Both buyers and sellers are affected by the mix of conditions we are experiencing today. Here’s a look at four key components that are shaping this unique market:
- A Shortage of Homes for Sale: Even though parts of the country may be experiencing small gains in the number of homes available for sale, inventory remains a challenge, especially here in California.
- Buyer Competition and Bidding Wars: Buyers are having to go above and beyond to make sure their offer stands out from the crowd by offering over the asking price, all cash, or waiving some contingencies. The average number of offers for the average home for sale was 5 in May.
- Home Price Appreciation: According to CoreLogic, national home prices rose 15.4% year-over-year in May, making it the highest gain since November 2005.
- A Rise in Home Values and Equity: As reported in CoreLogic, homeowners with mortgages (62% of all properties) have seen their equity increase by 19.6% year-over-year and have used this leverage to move into their dream homes or accomplish other life goals.
Bottom line? Whether you are looking to buy your new home in Monterey County or move from busier urban life of San Francisco to Sebastopol, downsize your Santa Cruz home as your kids finally moved out – there’s no time like the present to buy or sell!
We have helped thousands of borrowers in our 33+ years in business. If you or any of your clients fall short of qualifying for a conventional loan or just want fast real estate financing, then Sun Pacific Mortgage can help with our private money lending. Give us a call at 707-523-2099 or check out our website at www.Sunpacmortgage.com to discover what we can do to make your next move easier and possible.