To many a naysayer’s surprise, the 2020 real estate market boomed. Prices rose, sales increased, and investors continued to grow their wealth. In a recent article I found in Realtor Magazine, Lawrence Yun, Chief Economist at NAR, stated that even as early as August, 6 million existing and new home sales were recorded in the United States. From our own data reports on various counties in California, we have seen exponential sales growth from San Diego to Mendocino and beyond.
Just looking at San Francisco County for December, we find double the number of properties listed since 2019. In addition, more than half the single-family homes sold last month closed well over asking price. With inventory remaining low for the foreseeable future, prices should continue to rise ensuring a healthy accumulation of investors’ wealth.
We have found similar data in December for the San Francisco Peninsula where homes only stayed on the market anywhere from 18-38 days and prices rose again month-to-month.
In Orange County September sales of existing single-family homes was up 30.6% over last year and the median price rose 10.8%.
In Los Angeles County for the month of September the median sales price increased 5.7% over 2019. In Marin County, Napa County and Sonoma County for November the data was even more encouraging.
At Sun Pacific Mortgage we see investors more eager than ever to supply private money to borrowers seeking a loan. And why not? Surely real estate has proven to be the best long-term (and even short-term) investment for many portfolios. A trust deed investment means that you are not involved in the day-to-day operations of your property with all the headaches that can bring.
Unlike the stock market where you are never certain where your capital is from day to day, real estate has proven over the decades to be a solid investment, and remember, it is the only one you can live in!
So give us a call at 707-523-2099 or reach us through our website at www.Sunpacificmortgage.com. We’ll be happy to explain how we work and how you could start earning greater returns on your investments.