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The Housing Market in California Today

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A summary of the real estate market in California might read, “mixed bag”.  While home prices increased year-over-year in July, the number of homes sold fell by a whopping 31.1% and the number of homes for sale rose as compared to last year. According to the California Association of Realtors 30 counties recorded sales declined more than 30% from last year.

The Central Coast experienced the largest decline among major regions, with sales decreasing 37.3% from the previous year.  However, the good news for sellers is, median sales price continued to grow in nearly 80% of the California counties!  The final median home prices decreased by only 3.5% to $833,910 (meaning homes are selling for less than asking price) – but this median home price was 2.8% higher than last year at this time.

The report for August reads as follows:

  • Closed sales per day: 513
  • Pending sales per day: 306
  • New listings per day: 260
  • % Of active listings with reduced price: 41.6%
  • % Of homes closed above list price: 35%
  • Median days of the market for closed sales: 22

Currently, we see some markets cooling down.  It is good to keep in mind that all real estate is local and the national news headlines don’t necessarily apply to every market around the country. It would appear that in most of California it has gone from an extreme seller’s market to a more balanced one. One thing remains constant: real estate is now and always has been a sound investment.

If you are looking for a profitable place to invest your portfolio, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com and become one of our many private investors in Deeds of Trusts.  Earn upwards of 13% return on your investments in stronger real estate Notes.

Wine Country Trends in Real Estate for July 2022

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For purposes of this blog, Wine Country includes the counties of: Marin, Mendocino, Napa, Solano, and Sonoma.

  • Homes and Condos available for sale at the end of July= 2,697 (down 34% from July 2021; down 11% from June 2022) This has been the pattern for the past 3 months.
  • Inventory in the past 10 years has been more than 10,000 homes.
  • Sales= 1,169 (32% less than 2021; 7% less than June 2022)
  • Price reductions: Napa 15%; Sonoma 22%; Mendocino 45%
  • Selling more than original asking price: Sonoma 48%; Napa 35%; Mendocino 25%

Mortgage rates at the beginning of June reached 6.5%, but by July they were closer to 5%, which is not that far off the 4% we averaged for the past 13 years.

Some experts think that inflation may have reached its peak and is retreating slowly.  Buyers and Sellers alike would be pleased with this trend!

If you have been turned down for a conventional loan from a bank or mortgage broker, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see if a private loan is the solution to your problem.  We have been in business for 34+ years serving all of California and have thousands of Investors ready to help provide you with a fast refinance or purchase solution.

The Likelihood of Your Home’s Value Declining

Hard Money Bad Money Not So

In a recent article published in Fortune magazine, there appeared an interactive map of the nation. Each state’s local regions were rated as to the likelihood of real estate values declining over the coming 12 months. Here are the groupings the real estate research firm (CoreLogic) used for the June analysis:

  • Very High: Over 70% chance of a price dip
  • High: 50-70% chance
  • Medium: 40-50% chance
  • Low: 20-40% chance
  • Very low: 0-20% chance

These are the California regions which were rated and their categories:

Very Low: Chico, Modesto

Low: Riverside-San Bernadino-Ontario, San Diego, Redding, Napa, Merced, San Louis Obispo, Santa Maria-Santa Barbara

Medium: Santa Rosa-Petaluma, Stockton, San Jose-Sunnyvale-Santa Clara, Salinas, Bakersfield, Los Angeles-Long Beach-Anaheim

High: Sacramento-Roseville-Folsom, San Francisco-Oakland-Berkeley, Vallejo, Fresno

While the odds of home prices dropping remains low, the housing market is slowing down. The pandemic housing boom may be over, but that does not mean housing prices will drop precipitously, especially in California.

CoreLogic assessed factors like income growth projections, unemployment factors, affordability, mortgage rates, and inventory levels to determine the likelihood of regional home prices dropping. California overall does not appear to fare poorly compared to the rest of the country.  Real estate has continued to be the best investment over the long haul regardless of blips in the economy.

If you are looking to invest in real estate this year – by purchasing property or investing in deeds of trust for higher return – Sun Pacific Mortgage has the answer.  We have been in business over 34 years now, offering private money loans and offering Notes for investors.   Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to find out what we can do for you.

Real Estate Market Report for San Francisco and Peninsula

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Despite the fear mongers’ warnings, life and real estate go on as before in San Francisco and the Peninsula when we are speaking of the real estate market. While there is no longer the frenetic pace of the past two years, buyers and sellers continue to engage in transactions with hefty profits. We have only to examine the past quarter of San Francisco sales to see that, while there has been a very slight slow down in business, homes are still selling above asking price for single-family residences.

Screen Shot 2022 08 26 at 12.54.32 PMThe Peninsula is also showing no backsliding when it comes to average sales vs. listing prices:

Screen Shot 2022 08 26 at 12.54.39 PMWith the year half over and the economy in flux, it is difficult to predict the future, but most economists are still recommending real estate as a safe investment vehicle to increase personal wealth.

If you need help finding a mortgage for California real estate because you have not qualified for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com.

Southern California Housing Market Trends 2022

Southern California Housing Market Trends 2022

Southern California set or matched price records for the first half of 2022. Here are some statistics which tell a story of the continuing interest in California real estate:

  • Los Angeles County: the median price rose 8.1% to $860,230 in June
  • Orange County: the median price rose 11.2% to $1,265,000 while sales decreased by 36.1% (the highest decline in sales of all 6 counties).
  • Riverside County: the median price rose 12.2% to $645,000 while sales decreased by 27.4%.
  • San Bernadino County: the median price rose 12.6% to $490,000 while sales decreased 27.5%
  • San Diego County: the median price rose 9.8% to $950,000 while sales decreased by 30.5%
  • Ventura County: the median price rose 10.7% to $930,000 while sales decreased by 22.6%

According to Zillow, the median home price in California is $800,172, and has risen an impressive 18.5% year-over year. California Homebuyers are still paying above listing price for homes, but they are paying less compared to what Buyers were paying last month and last year.

If you are one of the eager Homebuyers who have been competitively forced out of the market because you could not obtain your mortgage fast enough, consider a privately funded loan from Sun Pacific Mortgage. We have been known to have money available in as little as a week and offer the next best thing to an all-cash offer. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com, we look forward to assisting you no matter where in California you are wanting to buy.

What Happened in the Bay Area Real Estate Market During the 2nd Quarter?

What Happened in the Bay Area Real Estate Market During the 2nd Quarter

As one Realtor put it, “If the stock market is like a jet skier on a triple espresso, the real estate market is like a giant cargo ship that decelerates and turns slowly.”

This is what we are seeing in the Bay Area as mortgage rates increase and inflation is climbing. Because of the sharp turn in the market, it is better to consider a three-month average than a single month’s data. The following data gives the Bay Area market results in each county for April, May, June:

Q2 2022 Medium Sales Price:

San Mateo: $2,200,000

San Francisco: $2,000,000

Marin: $1,995,000

Santa Clara: $1,880,000

Alameda: $1,460,000

Santa Cruz: $1,350,000

Contra Costa: $975,000

Napa: $973,000

Monterey: $875,000

Sonoma: $860,000

Solano: $625,000

With numbers like this, Bay Area properties are not likely to plunge into severe depreciation any time soon. Real estate continues to be the most stable of all investments according to the economists. Relax, no need to panic. This is just a part of the natural real estate market cycle we have experienced time and again.

Give Sun Pacific Mortgage a call at 707-523-2099 if you need a fast, Private Money loan or you are an Investor looking to maximize your returns, through Trust Deed investments.

San Francisco and Bay Area Real Estate Report for May

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Even though we have been bombarded with negative headlines for over a month, the housing market in the North Bay has remained strong. San Francisco Bay Area has seen over 30% growth for residential real estate since the pandemic! That is huge! It has been on a 10-year bull run. Even though real estate markets have historically been on a 7-year cycle, this wild ride has been constant for 13 years! Hard to believe? Look at the statistics for single-family home sales for May:

San Francisco:

Avg. sale price: $2,410,387 (April $2,502,144)
Avg. list price: $2,148,931
Avg. Days on Market: 18
Homes sold: 282

Menlo Park:

Avg. sale price: $4,009,035
Avg. Days on Market: 10 (9% over asking)

Foster City:

Avg. sale price: $2,529,181
Avg. Days on Market: 11 (18% over asking)

Belmont:

Avg. sale price: $2,925,721 (15% over asking)
Avg. Days on Market: 10

San Carlos:

Avg. sale price: $3,052,856 (13% over asking)
Avg. Days on Market: 7

San Mateo:

Avg. sale price: $2,302,186 (15% over asking)
Avg. Days on Market: 11

Burlingame:

Avg. sale price: $3,289444 (9% over asking)
Avg. Days on Market: 9

 

Most analysts believe that the secondary and tertiary markets will be hit harder going forward, and that prices will begin to come down slightly for every market. Sellers will need to get realistic about our new normal and Buyers will need to be patient. Buyers will still need to pull the trigger on homes they love when the opportunity arises.

If you are interested in getting into this strong wealth builder but have been disqualified for a loan now that rates have risen, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website www.sunpacificmortgage.com. We have been in business supporting California Homebuyers for 34 years with private mortgages. Our investors are standing by ready to make your dreams of home ownership come true.

Real Estate Continues to be the Best Investment

Even when inflation is high like today, Americans recognize owning a home is a powerful financial decision. Because inflation has reached its highest level in 40 years, it is more important than ever to understand the benefits of home ownership. Rising inflation means prices are increasing across every commodity, and that includes goods, services, housing costs, and more. When you buy a home, you lock in your biggest budgetary item each month.

For 9 years in a row Americans have chosen real estate as the best long-term investment. The following graph depicts the results of the latest poll conducted:

image1When inflation has risen in the past, home prices have risen as well. A house is an asset that typically increases in value over time even during inflation. According to Mark Cussen, Financial Writer for Investopedia:

“There are many advantages to investing in real estate…It often acts as a good inflation hedge since there will always be a demand for homes regardless of the economic climate and because as inflation rises, so do property values…”

Whether you are a first-time homebuyer or an investor looking to increase your family’s wealth or retirement fund, look no further than property.

If you like the idea of investing in real estate but dread the headaches inherent in becoming a property owner, consider becoming a private real estate investor with Sun Pacific Mortgage. Check out our website: www.sunpacificmortgage.com or call us at 707-523-2099. We are a family owned and operated company which has been in business for almost 34 years. We provide well-vetted opportunities, and you provide the funds to allow qualified borrowers to purchase or refinance their homes anywhere in California.

North Bay Real Estate Statistics for May 2022

Sonoma County Coming Out on Top in Move North

With interest rates rising and inventory falling, it is no surprise that we found this May very different from last May.  Here’s a snapshot of what happened in three of the North Bay counties last month in single-family residence sales:

Sonoma County: 

  • 492 Sold (22% fewer than 2021)
  • 416 New Listings (40% fewer than 2021)
  • 396 Closed Escrow (30% fewer than 2021)
  • 504 Homes left at end of May

Marin County:

  • 231 Sold
  • 185 New Listings (37% fewer than 2021)
  • 230 Closed Escrow
  • 174 Homes left at end of May (16% fewer than 2021)

Napa County:

  • 103 Sold
  • 87 New Listings
  • 117 Closed Escrow
  • 195 Homes left at end of May (17% fewer than 2021)

Marin County remained the hottest of all 7 North Bay counties.  The experts expect more inventory to appear from now until the end of August, which might improve the picture to a degree in spite of expected increases in interest rates.

If you are looking to purchase or refinance in these tight markets and have been turned down for a mortgage at a bank or lending institution, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com.  We offer privately funded loans based on equity, not credit scores.  As an added bonus, we are FAST!  Most loans fund in less than a month.  Buying and refinancing can be a torturous process, or it can be smooth sailing with Sun.

Why is there a housing shortage?

housing shortgageOne of the hottest topics in the world of real estate today is the shortage of available homes.  There are just too many Buyers and not enough Sellers.  This means good news for Sellers, not so much for Buyers.  But as life begins to return to normal, that may begin to change.

If we look for the root cause(s) of this shortage, we find the factors that contributed to this problem and what the future might hold as a remedy.

Where did the shortage come from?  Don’t blame the rush of Buyers wanting more “home office friendly” dwellings.  This low supply was a product of the lack of new homes built over the past decades.

Historically, builders completed an average of 1.5 million new housing units per year.  However, the building gap in the U.S. totaled more than 5.5 million in the last 20 years.  To correct this shortfall, new construction would need to accelerate to more than 2 million housing units per year, according to The National Association of Realtors.

When we look at existing homes, the latest reports indicate a positive housing supply growing gradually month-over-month showing that things are beginning to shift.  Some experts are optimistic enough to say that we may have turned the corner.

Here in California, it is still a great time to sell.  Growing companies, families wanting more house and space for joint work-live situations, Californians who moved away starting to move back, these are all reasons real estate remains strong and more homes are being built!

If you are hesitant to put your home on the market because you fear you will not find a replacement, consider a Bridge Loan from Sun Pacific Mortgage.  Accessing your present home’s equity, you would be poised to present a very strong offer on your new property.  This very popular private money loan would allow you a quick close with a cash offer, something every Seller is looking for at this time.

Give us a call at 707-523-2099 or email us through our website at www.sunpacificmortgage.com to see what we can do for you to ease the tension of selling and buying in these competitive times.

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