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Where Are the “Spillover Markets” in California?

Where Are the Spillover Markets in California

It is clear going into 2021 that the last year reshaped house-hunting patterns while driving a whole lot of buying activity.  The notable take-away when examining the areas of greater activity is that much of the action is taking place in locations close to larger metro regions, but with lower prices.  These have been dubbed, “Spillover Markets”, and have changed the looks of the status-quo.

According to realtor.com, several cities in California have made the “hot list” of smaller markets recording remarkable growth this past year:

METRO           MEDIAN DAYS ON MARKET      MEDIAN LISTING PRICE

Stockton                                 37                                                              $480,000

Vallejo                                     27                                                              $525,000

Sacramento                            36                                                              $599,000

Yuba City                                 53                                                              $445,000

Modesto                                  43                                                              $459,000

Fresno                                      38                                                              $365,000

 

This trend has created a dearth of homes for sale because of the buyers flooding in from the Bay Area armed with extra cash.  One expert estimated that at least 60% of the buyers are out-of-towners.  Not surprising when you look at the median listing prices above and compare them with San Francisco’s of around $1million.

If you need to move fast on your purchase in one of these “spillover markets” or anywhere else in California, give Sun Pacific Mortgage a call at 707-523-2099 to see how we can get you out of your metro home and into a quieter more peaceful home in the suburbs.  Our private money loan programs can be quite beneficial to making this happen.

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Carrying on the legacy of 33+ years of private money lending:

  • Credit Problems Okay!
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  • Jumbo Loans Provided!
  • Trusted By Over 10,000 Borrowers!

Loan of the Week

A Home Buyer was referred to us by his Realtor and conventional Lender in San Mateo County.  There was a credit problem that required a few more months of handling before this particular Buyer could qualify for a conventional loan.

So, they came to us for a short-term jumbo loan of 802,000.  Despite the size of loan, with a lower loan to value of 61%, we were able to quickly get the loan approved, funded and money to Escrow within just 7 days!

Call Us Today at 707-523-2099 or reply back here.  You’ll quickly hear back with a proposal as to what we can do for you.

 

 

 

Tax Benefits of Home Ownership

 

tax benefits of homeownership

What are the tax benefits of owning a home?  Plenty of California homeowners are asking themselves this question right about now as they prepare to file their taxes.  Let’s look at some of them:

  • Mortgage interest:  This deduction is itemized, so for this to work in your favor, all your itemized deductions need to be greater than the new standard deduction, which the Tax Cuts and Jobs Act nearly doubled ($12,400 for individuals and $24, 800 for married).  There are additional deductions for those aged 65 and older and head of household.  If your mortgage went into effect before Dec.15, 2017 you can deduct interest on loans up to $1milliion.  If acquired after this date, you can only deduct the interest on the first $750,000.
  • Property Tax:  This deduction is capped at $10,000 for those filing jointly, no matter how high the taxes are.  Remember that for some your property taxes may be included in your monthly mortgage payment.
  • Private mortgage insurance:  At the moment, this tax is deductible, but Congress needs to approve an extension for 2021.
  • Energy efficient upgrades:  Credits for solar electric and solar water-heating equipment are available through Dec.31, 2021.  The SECURE Act also retroactively reinstated a $500 deduction for certain qualified energy-efficient upgrades such as exterior windows, doors, and insulation.  This is a credit, so no worrying about itemizing.  However, the percentage of the credit depends on the expenditure.
  • A home office:  Unfortunately, if you are a W-2 employee, you’re not eligible for the home office deduction under the CARES Act even if you spent most of 2020 in your home office.
  • Home improvements to age in place:  These improvements need to exceed 7.5% of your adjusted gross income.  You will need a letter from our doctor to prove these changes were medically necessary.
  • Interest on a home equity line of credit:  You can deduct only up to the $750,000 cap, and this is for the amount you pay in interest on your equity line and mortgage combined.

The real benefit of homeownership here in California is in the wealth accrual v, but these tax benefits add up to savings that contribute to your overall wealth total.

If you are looking for some tax benefits and wealth accrual in your future, but do not qualify for a conventional loan, call Sun Pacific Mortgage at 523-2099 to discuss the possibility of private funding.  We have a 33-year history of helping thousands of folks just like you achieve their dream of homeownership.

Note: For exact deductions for 2021 you want to consult with your licensed CPA or tax representative.

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Call Us now at 707-523-2099 or email back any questions or scenarios.  We will quickly let you know how we can help!

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Where Are All the Houses for Sale?

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In today’s market it is harder than ever to find a home to buy.  Even before the health crisis there was a shortage of homes on the market, but when the stay-at-home order was imposed, many prospective sellers decided to wait which resulted in making a bad situation even worse.  Experts agree that this is the biggest challenge facing an otherwise hot market.  Danielle Hale, Chief Economist at realtor.com explains it this way:

“With buyers active in the market and seller participation lagging, homes are selling quickly and the total number available for sale at any point in time continues to drop lower.  In January as a whole, the number of for sale homes dropped below 600,000 [total US].”

While this may be the “state of the union”, it is only amplified in California.  In fact, many homes are simply selling faster than they’re being counted as current inventory.  It is somewhat reminiscent of last spring when toilet paper was flying off the shelves faster than it could be restocked.

Hale goes on to say:

“Time on the market was 10 days faster than last year meaning that buyers still have to make decisions quickly in order to be successful.”

While some California home sellers will feel comfortable listing their homes in the first half of 2021, others may want to wait until the vaccine is more widely distributed.  With this mindset, if you want your home to shine, you may want to get it on the market earlier rather than later in the year.

Sellers want to sell as quickly as possible, for the best price, and with little to no hassle.  If this describes your hoped-for selling experience, today’s market is the right time.  When demand is high, and inventory is low, you have the optimal climate for a successful sale.

If you are needing a fast bridge loan to make your real estate dream a reality anywhere in California, consider calling Sun Pacific Mortgage at 707-523-2099.  We offer a program that solves the problem and can be solved in record time, sometimes in less than 5 days!  This could make the difference between competing in today’s market or sitting on the sidelines.

The Legacy Continues – Helping Home Buyers

Carrying on the Legacy

Carrying on the legacy of 33+ years of private money lending:

  • Credit Problems Okay!
  • FAST Financing!
  • Jumbo Loans Provided!
  • Trusted By Over 10,000 Borrowers!

Loan of the Week

A Home Buyer was referred to us by his Realtor and conventional Lender in San Mateo County.  There was a credit problem that required a few more months of handling before this particular Buyer could qualify for a conventional loan.

So, they came to us for a short-term jumbo loan of 802,000.  Despite the size of loan, with a lower loan to value of 61%, we were able to quickly get the loan approved, funded and money to Escrow within just 7 days!

Call Us Today at 707-523-2099 or reply back here.  You’ll quickly hear back with a proposal as to what we can do for you!

Why Borrow Private Money for Real Estate?

Stay Calm Amid the Storm

Borrowers have several options when looking for a mortgage.  But, if you have specific issues that make qualifying for a “normal” mortgage, there is one very suitable solution: private money or “hard money”.

Private lending exists for several reasons, among them consider the following:

  • Speed of Closing:  Conventional mortgages usually take between 45-90 days to fund because of the necessary paperwork and property examinations required.  Private money lenders can complete a transaction in 7-10 days because the property itself is the main criteria used to determine loan eligibility.
  • Easy Application Process:  Personal financial data has less effect on obtaining a private mortgage loan since it is mainly the property, or collateral, that is the basis for decisions in private lending.
  • Other Money Resources Are Not Available:  A borrower may not qualify for an institutional mortgage because of low credit scores, too much debt or the property itself is labeled “distressed”. With private money this isn’t the case.

Non-bank lenders are much like the original mortgage bankers – many are locally owned and family-run businesses, like Sun Pacific Mortgage in California.  Smaller lenders such as ours face fewer federal regulations and can still welcome borrowers with credit issues.  This type of originator is transforming the mortgage loan process and powering a more competitive market – which is much needed in today’s popular real estate market in top counties of California such as Sonoma, Napa, Marin, Santa Clara, San Mateo, etc.

If a fast alternative loan is what you are looking for, give Sun Pacific Mortgage a call at 707-523-2099 and discuss your situation with our experienced family staff.  We have helped thousands of borrowers over the past 33 years, and we are here for you today.

Why Cash-Out Refinances?

Why Cash Out Refinances

A recent report in Quarterly Refinance Statistics, which covered refinances through 2020, stated that the dollar amount of cash-out refinances was greater in 2020 than in recent years.

In another article published by Freddie Mac a report stated the following:

“Americans treated their homes like ATMs last year, withdrawing $157.7billion amid a cash-out refinancing spree not seen since before the 2008 financial crisis.”

This information should not raise horrible memories of the housing crash we experienced in 2008, though.  In this article the facts behind the 2020 refinancing phenomenon are vastly different from those of 2008 as listed below:

  1.  Americans are sitting on much more home equity today.  In 2006 the tappable equity (amount of equity available for homeowners to use and still have 20% equity left in their home) topped out at $4.6 trillion.  Today that number is $7.3 trillion.  This is the largest number of tappable equity ever recorded and includes an 18% increase since the end of 2019.
  2. Homeowners cashed-out a much smaller amount this time.  In 2006, Americans cashed out a total of $321 billion, equaling 7% of the total tappable equity in the country.  In 2020 the $153 billion that was cashed out represented only 2% of all tappable equity.
  3. Fewer homeowners tapped their equity in 2020 than in 2006.  Freddie Mac reports that 89% of refinances in 2006 were cash-out.  In 2020 that number was only 33%, leaving tappable equity in a better position.

Today’s cash-out refinance situation in no way resembles the situation of 2006 which preceded the housing crash.  Recently, the reasons for cash-out refinancing seen by our family company here at Sun Pacific Mortgage, have ranged from investing in rental properties, consolidating debt to improve one’s credit score, getting financing for business capital, and home improvements to name a few.

If you have substantial equity in your home, owner-occupied or investment property, give us a call at 707-523-2099 to discuss the wide range of programs available for short-term private financing.  Make your money work for you with a short term private money loan from us.

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Our Private Money loan programs offer:

  • Quick Loan Approval
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  • Difficult-to-prove-income OK
  • Credit Problems OK

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Contact us here, or give us a call at 707-523-2099 with any questions or scenarios and we’ll quickly respond with how we can help.

Sonoma County Real Estate Snapshot In March

Q4 2019 Sonoma and Napa Counties Real Estate Reports

Living in Sonoma County has proven to be more difficult over the last year due to the restrictions imposed, however, that has not stopped or slowed down the continued good health in the real estate market here!

The following data regarding single-family residences obtained from the county’s MLS will shine a light on just how “healthy” the market has managed to remain through all the other obstacles it faced:

  • Average sold price/square foot: $504 (+18% Year To Year)
  • Median price: $740,000
  • Average price:  $945,000

Individually, towns within Sonoma County have had some record-breaking numbers to mention:

  • Town of Sonoma:  $773psf (+55% YTY)
  • Sonoma coast: $836psf (+38% YTY)
  • Russian River area: $458psf (+31% YTY)
  • Petaluma West Side: $595psf (+29% YTY)
  • Northwest Santa Rosa: $441psf (+23% YTY)
  • Southwest Santa Rosa: $451psf (+23% YTY)
  • Cloverdale: $372psf (+22% YTY)
  • Southeast Santa Rosa: $423psf (+11%YTY)
  • Petaluma Eastside:  $442psf (+11%YTY)
  • Cotati/Rohnert Park: $390psf (+8%YTY)
  • Healdsburg: $757psf (+7%YTY)
  • Northeast Santa Rosa: $447psf (+6%YTY)
  • Sebastopol: $520psf (+4%YTY)
  • Oakmont: $377psf (-1%YTY)
  • Windsor: $331psf (-14%YTY)

It was certainly hard to predict last year at this time that the housing market would look like this today!  What will tomorrow bring to the market?  Stay tuned!

If you are looking to cash in on this hot market, but cannot qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 and find a program that may get you into your new home through private funding.  We offer financing for owner-occupied residences as well as non-owner occupied for over 3 decades now.

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