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2021 Housing Forecast Looking Rosy

2021 Housing Forecast Looking Rosy 1

Most of us living in California will be happy to bid, “Good riddance” to 2020.  While much of the hallmarks of this past year will go away, the rising home prices in many California counties which became distinct characteristic of this past year, may be here to stay.

Realtor.com’s housing forecast predicts record-high prices will continue rising in 2021.  The frenetic pace of price growth seen in 2020 may slow somewhat, but prices are still expected to jump 5.7% next year.

According to Danielle Hale, Chief Economist at realtor.com:

“We expect affordability to become a bigger challenge.  It’s going to make housing more expensive. [But] home prices will rise slower than this year, on the upper end of what we consider normal price growth.”

However, higher prices aren’t likely to discourage determined buyers – as has proven this year with continued real estate sales throughout many busy counties including San Francisco, Los Angeles, Sonoma, Monterey and more.

Sales of existing homes are projected to increase 7% in 2021.  Besides those buyers who are looking for larger homes for work and school demands, there will be many baby boomers looking to downsize and apartment dwellers seeking homes of their own.

More homes are likely to become available in the last six months of 2021.  The increase in inventory will, most probably, be because of more sellers listing their properties as well as builders completing more new homes.

If you are a borrower who cannot qualify for a conventional loan and are looking to take advantage of the lower prices now as opposed to higher prices predicted in 2021, give Sun Pacific Mortgage a call at 707-523-2099.   We have been in the private money lending business for over 32 years and have helped thousands of borrowers just like you.  Don’t wait until you are priced out of the market, give us call now.

Brighten Up The Holidays With Our Loans!

Holiday Promo 1

Our private money programs can make your Holiday great!

– FAST funding.

– NO covid regulations.

– Credit problems not an issue.

Loan of the Week

Recently, a local Mortgage Broker in Sonoma County sent his Borrower’s loan to us, due to some credit issues that popped up at the last minute.

This Borrower needed 419k quickly to refinance his primary residence and pull cash out for debt consolidation.  For this million-dollar property, with an LTV of 32%, it took us less than 11 days to complete all the necessary paperwork and close his escrow.

 

If you have a client or know someone who needs a little more speed or flexibility in qualifying for a home loan, give us a call at 707-523-2099 or reply back by email and we can discuss your scenario.

Get Ahead Of The Home-Buyer Competition

Get Ahead Of The Home Buyer Competition

One phenomenon that has surprised many home seekers this year is the competition that awaits them when they begin their search.  With the pandemic restrictions, many assumed that the housing market would slow down, but that has hardly been the case, especially here in California.

California homebuyers’ demands have escalated for several reasons, primarily because of low interest rates and the need for more space now that families are home more, engaged in work and school.  Many of our homes’ shortcomings have been magnified with the increased time being spent there.

Finding your dream home today is more challenging than ever, and some shoppers are tempted to put their search on hold because of the stiff competition. The latest data from the National Association of Realtors found that in today’s market, the average house receives 3.4 offers before it’s sold.  This means that for every buyer who purchases a home, there are on average 2-3 buyers who need to begin their search all over again.

Experts anticipate home prices will continue to rise into 2021 along with interest rates as the economy strengthens.   With this scenario facing prospective buyers throughout California, they will most likely run the risk of finding a more expensive housing market when they start looking again.  The conclusion to be made with these prospective outcomes is that the winter of 2020-2021 is the right time to make your move!

If you find yourself needing a fast close to put you in a better position against your competition when making your real estate offer, consider a private money loan from Sun Pacific Mortgage.  We offer quick private money loans that will make your offer stand out in the crowd.  Give us a call at 707-523-2099 and see what we can do for you.

Let’s Get Your Loan Funded For The Holidays!

Let’s Get Your Loan Funded For The Holidays!

We’re Direct Private Money Lenders – The Guys in the White Hats

– Use our Private Money Programs and close fast.

– We’ve never run out of money after 32 years of being in business.

– We finance owner occupied and investment properties.

Recently Funded:

Finance Program:  Investment Property Purchase
Loan Size:  $363,250
Location:  Windsor, Sonoma County
Days to Close:  12
Why Needed Us:  Fast purchase of rental property to keep it from falling out of Escrow.

Finance Program:  Investment Property Refinance
Loan Size:  $760,000
Location:  Valley Village, Los Angeles County
Days to Close:  13
Why Needed Us: Property condition was poor, wanted to do upgrades.

Program:  Primary Residence Purchase
Loan Size:  $415,000
Location:  Pacifica, San Mateo County
Days to Close:  15
Why Came To Us:  Difficult to prove income as self-employed.

This Economy’s Recovery is a Surprise to Even the Most Experienced Economists

This Economy’s Recovery Is A Surprise To Even The Most Experienced Economists

Remember back in March when it was all gloom and doom relative to the economy?  The predictions were downright apocalyptic not just for California but most of America!  It was even going to be another Great Depression.  Fast forward to September…while the country is still a little unstable, it is evident that we will not face the total devastation projected by some soothsayers.  The Wall Street Journal just reported:

“The U.S. economy and labor market are recovering from the coronavirus-related downturn more quickly than previously expected…Business and academic economists polled by WSJ expect gross domestic product to increase at an annualized rate of 23.9% in the 3rd quarter.  That is up sharply from an expectation of an 18.3% growth rate in the previous survey.”

The question remains, what shape will this recovery take?  Historically, recoveries have taken the form of one of four letters:  V, U, W, or L

  • V-shaped recoveries are all about the speed of the recovery.
  • U-shaped recoveries are characterized by a sharp fall into a recession but remaining depressed for a longer period than a V, possibly even for several years.
  • W-shaped recoveries begin like a V-shaped recovery, but plunge into a second, often smaller depression before fully recovering to pre-recession levels.
  • L-shaped recoveries are the worst-case scenarios.  Although the economy begins to grow, it remains at a much lower base than before the recession and can last several years.  The 2008 recession was an example of this type of recovery.

The Wall Street Journal asked the same economists as in the previous survey which letter this recovery will most resemble.  The results give us reason to hope:

  • 68% believe it will be a V
  • 11.1% believe it will be a W
  • 3.7% believe it will be a U
  • 1.9% believe it will be an L

From this report we can see that while the economy has a long way to go, so far, we are doing much better than most experts predicted.  And one of the reasons we seem to be coming out of this recession so quickly here in California is the real estate market.  It is hot hot hot and continues to surprise everyone.

So, if you ever thought about adding real estate to your retirement portfolio, this may be the time to do it.  Give us a call at Sun Pacific Mortgage 707-523-2099 if you don’t quite qualify for a conventional loan or need a fast close.  We have helped thousands of buyers just like you over the past three decades.

Turned Down Elsewhere for Home Loan?

Turned Down Elsewhere For Home Loan

We are Direct Private Money Lenders – The Guys in the White Hats

We offer FAST private money financing for your real estate needs:

– Direct Lenders
– FAST Loans
– More forgiving qualifications with NO covid regulations.

Loan of the Week

A Broker from Santa Clara called us, requesting fast help with a client she had.  This particular Homeowner was looking for a fast refinance and cash-out of their primary residence, so they could purchase an investment property for 560K.

They were in Escrow and his loan had just fallen through, due to some trouble with proof of income.  He was about to lose out on a great investment purchase, so his Broker made the smart move and brought him to us for fast financing.

With an LTV of just 48%, in 9 days we had his refinance approved, through Escrow and his new investment property keys in hand!

 

Get trusted and friendly service from our family owned & operated company, in business over 32 years.

Call 707-523-2099 with your scenarios today.

Where Would You Move To?

Where Would You Move To

This is the question that is on many minds in the North Bay after several years of fires, evacuations, power outages, and poor air quality.  The answer isn’t easy.  With a global pandemic and economic upheaval facing us almost everywhere we turn, the solution might just be to stay put.  On considering the alternatives, most North Bay residents conclude that it’s hard to beat the beauty of the area they have come to know and love, as well as the community formed.

The “Great Reshuffle” prompted by the remote workers moving into the North Bay and the fire weary, longtime residents exhausted from the fire threats moving out has created a very active real estate market over the past couple of months.  The bottle neck continues to be the lack of inventory.

The only segment of the Sonoma County housing market that seems not to have been impacted by this lack of inventory is the luxury market.  Sales in the $2 million and above price range surged in the third quarter to 100.  The average was about 30 sales in the second quarter of 2020 as well as in the past four years.

While Napa County’s luxury sales for the third quarter didn’t show as much growth, it still managed to increase from 48 homes exchanging hands compared to an average of 26 over the past four years.

Since 2016, Sonoma County has shown consistent growth in the housing market for the Fall quarter.  The median price now stands at around $715,000.  Some San Francisco and South Bay buyers are finding this price point attractive when compared to their rents.

At the time of writing this blog, a few weeks of possible fire threats remain, and this continues to fan the “fire fatigue” experienced by many in the North Bay.  As one agent who was burned out of her home in the Tubbs Fire of 2017 put it, “There are problems in every other area you can think of, and most I have talked to don’t want to leave friends and families.”

So, what can we expect for the North Bay housing market during the last quarter of 2020?  It is anyone’s guess, but Sun Pacific Mortgage has been here for three decades and we are continuing to see a strong need and demand for hard money lending throughout these trying times.  If you are looking to refinance, needing a bridge loan, or purchasing property without meeting the stricter guidelines for Covid-19 mortgages, give us a call at 707-523-2099.  While we can’t make the fires go away, we can make your mortgage woes less worrisome.

Want Your Loan Funded?

Want Your Loan Funded?

We are Direct Private Money Lenders – The Guys in the White Hats

Our Private Money programs can help your Borrowers and Buyers who’ve been turned down elsewhere!

Call 707-523-2099 with your scenarios today.

Loan of the Week

We were recently contacted by a Broker who had a Borrower in need of a fast loan.  He was in Escrow to purchase a home for himself and his family in Morgan Hill, Santa Clara County for a 60% LTV loan of 985K.

The Borrower had just been turned down by his other Lender due to some property condition issues.  He didn’t want to lose out on this house, so his Broker reached out to us for a fast private money loan.  Within just 13 days, this Borrower was a happy new Homeowner!

Sonoma County Coming Out on Top in Move North

Sonoma County Coming Out On Top In Move North

Most economist agree that the major difference in this recession versus previous ones is the robust real estate market.  A combination of low interest rates and built up equity has made the housing market a shining light in an otherwise unusual time period.  Combining these factors with the “work-from-home” phenomenon that has been taking over the country, you have the perfect storm for a house hunting blitz.

The North Bay especially has been the lucky recipient of this latest barrage of house hunters.  Home buyers are fleeing dense Bay Area neighborhoods for the Wine Country.  Local real estate agents say the demand is largely driven by buyers from San Francisco, the East Bay, Silicon Valley and even the Central Coast.

In February, the month prior to the temporary upending of the real estate market, the median Sonoma County home price was $641,250.  By the end of July, it was $720,000, a 36% increase over the same time last year.

The desire for home offices and room for distance learning is a huge motivator for many of these home buyers.  They are seeking rural settings, sweeping views and a swimming pool.  One such home on the market had 40 showings.  It was listed for $1.2 million in Sebastopol and over half the potential buyers were from San Francisco!  No surprise when you consider that price would barely cover your down payment for a similar home in The City.

Last month, a hilltop mansion in Sonoma sold to a San Francisco family for $14.75 million, one of the most expensive home sales in Sonoma County history.  But the greatest demand is for mid-priced homes ($500,000-$700,000).  This price range accounted for the highest number of sales of any price range in July.

As a local realtor pointed out in a recent article for the North Bay Business Journal, “It’s kind of like musical chairs, all of a sudden the music changed, and everyone’s looking for the next seat.”

Don’t get left without “a seat”, start your property search soon.  If you cannot qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099.  We have helped thousands of prospective buyers just like you with our temporary (or 15 year), fast (within just a couple of weeks or less than a month when super rushed) hard money loans.

Direct Lenders – Sun Pacific Mtg!

Direct Private Money Loans We Have Our Own Investors

Direct Private Money Loans – We Have Our Own Investors!
The Guys in the White Hats

Recently Funded:

Location:  Santa Rosa, Sonoma County
Loan Program:  Investment property refinance
Loan Size: $1,020,000
Days to Close:  16
Why Needed Us: Property needed renovations and didn’t conventionally qualify.

Location:  No. Hollywood, Los Angeles County
Loan Program:  Business Opportunity
Loan Size:  $475,000
Days to Close:  15
Why Needed Us: Needed fast capital to support family-owned business

Location:  Concord, Contra Costa County
Finance Program:  Primary Property Refinance
Loan Size:  $560,000
Days to Close:  15
Why Needed Us:  To pay off medical expenses and other debts

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