Check Out The North Bay Real Estate Trends

September 26, 2023 Ari Walker

Overbidding has become a common catch word in real estate, with resolute, prospective buyers showing over time that they’re willing to pay over asking price. The trend has accelerated in the last few years since the pandemic took hold.

In May 2020, 25% of the offers were over the listing price. Three years later, 55% of the bids were over. Listings are low all over California and across the nation, insiders have indicated. Therefore, home sales are fewer in numbers by about 20%. One North Bay County, Sonoma, knows the pain of the housing shortage, lacking about 38,000 units to provide adequate shelter for its residents. Still, home sales are still happening as the demand refuses to subside.

You just need to look at the median home price in the following cities to realize that the “supply and demand” principle is alive and well in the North Bay.

2023 Sonoma County median sales price

-Kenwood: $2.9M

-Sea Ranch: $1.3M

-Healdsburg & Bodega Bay: $1.2M

-Penngrove & Glen Ellen: $1.1M

-Sebastopol: $1M

-Sonoma: $987,000

-Santa Rosa: $943,000

-Petaluma East & West: $925,000 & $850,000, respectively

Source: Compass

As with the rest of the Bay Area, the North Bay real estate listings closed 2022 with an over 20-year low, according to Compass data. The heavy demand and lack of resale property has forced the average days on the market to plunge in a 3 ½-year period, from a high of 88 days in January 2020 to 40 in May 2023, according to the Compass analysis.

If you are looking to invest in North Bay real estate but cannot obtain a conventional loan, consider a private mortgage from Sun Pacific Mortgage. We have been lending in California for over 35 years and have thousands of happy homeowners who could never have achieved homeownership without our assistance. We’d be happy to help you too! Find us at www.sunpacificmortgage.com or call us at 707-523-2099.

The Hottest ZIP Codes in California Today

September 19, 2023 Ken Walker

We are all aware that the housing market has slowed considerably this year, especially if we compare it to the past pandemic fueled frenzy of 2020-2022. The obvious reasons for this slump are the high interest rates and low inventory in a very competitive market, but there are still some areas, even in California, where there is still heightened activity.

This month in the SFGate they reported on a survey that was done by Realtor.com recording the most recent hottest ZIP codes in the country’s various metro areas. The rankings were based on a combination of market demand measured by views on Realtor.com and how fast homes sold. The list includers only one hot ZIP code per metro area. In California Livermore was the hottest spot in the Bay Area and Bakersfield was the most desirable in the Central Valley.

Livermore’s 94550 ended up at No.44 on the list with a median list price of $1.4 million. Granted, the area isn’t exactly affordable, and yet homes attracted more than double the attention per property and spent less time on the market compared with the greater San Francisco metro area.

Another surprising city which made the list was Bakersfield’s 93309 which landed at No. 24. It had a median list price of $340,000 in June 2023, a much more affordable price in a much more affordable metro area in the state.

In 2022, the only California market to crack the top 50 was Eureka, which took the 28th spot. The medium home price at the time was $480,000, but this year homes in the area are staying on the market longer causing it to drop off the list.

Prices have risen dramatically in the past few years in California, and no ZIP code has made it to the top 10 hottest ZIP codes since 2019.

If you are a hopeful buyer in this stressful economy, and if you have tried to qualify for a convention mortgage and failed, don’t despair! Sun Pacific Mortgage has rescued thousands of buyers just like you over the past 35 years. We have a family of investors who are willing to offer you a privately financed loan allowing you to realize your dream of homeownership today. Give us a call at 707-523-2099 or find us online at www.sunpacificmortgage.com.

Are Higher Mortgages Here to Stay for the Foreseeable Future?

September 5, 2023 Ken Walker

An article in NerdWallet caught my attention recently. It stated that the era of low mortgage rates is over and embracing this reality will speed up owning a house that meets your needs.

Low rates were the norm for 11 years, as the 30-year mortgage remained below 5% from February 2011 to April 2022. Since that time, it has remained mostly above 5% averaging 6.72% in June 2023.

Some forecasters predict that rates will decline over the next 12 months, but they don’t foresee them dropping below 5% anytime soon. Buyers are tempted to be in denial, but the reality is higher rates are here to stay for the foreseeable future.

“People are still working through their five stages of grief on this mortgage rate stuff,” says Lisa Sturtevant, Chief Economist for Bright MLS, the real estate listing service for the mid-Atlantic region. “And I think you have to reach the stage of acceptance at some point that certainly rates aren’t going to come down to where we were back during 2020 and 2021.” (When the median 30-year rate was 2.99%.)

If you are ready to face the reality of the housing market today and don’t qualify for a conventional mortgage, consider a privately funded loan from family owned & operated Sun Pacific Mortgage. Call us at 707-523-2099 or find us at www.sunpacificmortgage.com.

What To Do with All That Equity?

August 29, 2023 Ari Walker

Even though home prices have moderated over the last year, many homeowners still have an incredible amount of equity.

A recent study done by CoreLogic estimates that most homeowners have more than $100,000 in equity. Selma Hepp, Chief Economist for CoreLogic says:

“While equity gains contracted in late 2022 due to home price declines in some regions U.S. homeowners on average still about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic.”

In California, we have had an even greater increase in home equity over the past couple of years. The equity you have built up over the years can be used to your advantage when your house sells, enabling you to purchase your next home, but there are other investments you can make with your equity.

Perhaps you have had an interest in starting a business, but never had the capital to get it started, or you own a business and would like to expand. You can put your equity to work for you by making improvements in your business or your home.

With new city regulations making it easier to obtain permits for ADUs, many homeowners are considering building an income property on their property. The equity in their present home makes it possible to create another source of income.

If you live in California and want to make your equity work for you, consider a business loan with Sun Pacific Mortgage. Give us a call at 707-523-2099 or find us at www.sunpacificmortgage.com.

Real Estate Returns To A More Normal Growth

August 22, 2023 Ari Walker

According to Danielle Hale, Realtor.com’s chief economist, the more bullish outlook predicted for this year’s real estate market has been revised to slip this year, but less than 1%. She expects home prices to rebound more convincingly in 2024.

Although the pace of growth will be nothing like sellers or buyers witnessed during the past couple of years, it will be the real estate market’s normal pace.

When Zillow polled 117 economists and housing experts, their consensus was that home prices would increase at an annual rate of 3.5% until 2027.

“A return to more normal growth would be welcome after the rollercoaster ride that home prices have been on lately,” Jeff Tucker, Zillow’s senior economist said in the survey release.

The annual return on single-family homes reached nearly 13% between 2021-2022. In California, the appreciation was even higher. That’s a sharp contrast to so-called “normal growth”, which averaged an annual increase of 4.8% between 1987-2000.

Although housing prices may be declining in certain areas of California versus last year, they have been up month over month for the last three months. Much of that increase is because of an imbalance in supply and demand. The number of previously owned homes on the market was at a record low in May, which helps to keep prices elevated.

Buyers are turning to new homes but with an eye to affordable ones. Buyers may find better deals later this year when price increases seen in spring and summer tend to slow down as the most popular time for homebuying winds down.

If you are looking to access the equity accrued during the past couple of months but have high debt-to-income ratios, can’t prove your income or need a fast close, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com. We have been in business for over 35 years offering private mortgages to prospective California homeowners, being a trusted source for alternative financing.

What is a Housing Market Correction?

August 15, 2023 Ken Walker

Crash, Bubble, Correction; these are all phrases you will hear tossed around when it comes to real estate. More popular in recent months is the term “correction.” Most real estate experts are describing the present condition of our market today as a housing market correction.

While there is no official definition of what makes a housing market correction, it is generally described as a condition when homes get too expensive, or consumers can no longer afford them. At that time buyers stop purchasing real estate and the market must adjust to spur buying activity once again. Much like the old adage, “What goes up, must come down.”

A housing market correction is when home prices experience a moderate decline following a period of rapid growth. The purpose of a correction is to naturally adjust prices in line with affordability, demand, and supply, thus restoring a more sustainable and balanced state to the market. The length of time the market remains in this correction condition may be anywhere from a few months to a year or more.

A housing market correction and a housing crash are not the same thing. With a correction, things are simply coming back into balance. Prices may fall slightly, whereas in a crash, prices fall more significantly and usually unexpectedly.

It is expected that there will be a mild price softness through the end of this year. This is described as a 0.6% dip in the typical sales price in 2023 compared to 2022.

Because of the limited housing supply, we may not see substantial home price declines even though affordability is far below recent norms.

If you or a client are hoping to purchase or refinance during this correction phase, but can’t qualify for a conventional loan, Sun Pacific Mortgage is here to help with a privately funded loan. Simply give us a call at 707-523-2099 or find us at www.sunpacificmortgage.com.

North Bay Real Estate Statistic Comparing March 2021 to June 2023

August 8, 2023 Ken Walker

In the July 24, 2023 issue of the North Bay Business Journal, there were several charts comparing the state of real estate in four North Bay Counties: Napa, Solano, Marin & Sonoma, between March 2021 and June 2023.

While listings may be shrinking and the median days on the market may be lengthening, the median price of homes has maintained almost all the appreciation it acquired over the past two years.

NAPA

New Listings: Mar.2021=178, June 2023 =130
Total Listings: Mar.2021 =353, June 2023 =356
Median Sales Price: Mar.2021 =$1,359,000, June 2023 =$1,697,500
Median Days on Market: Mar.2021 =60, June 2023 =66

SOLANO

New Listings: Mar.’21-504, June ’23-388
Total Listings: Mar.’21-651, June ’23 823
Median Sales Price: Mar.’21-$521,975, June ’23-$626,000
Median Days on Market: Mar.’21-26, June ’23-37

MARIN

New Listings: Mar.2021 =356, June 2023 =264
Total Listings: Mar.2021 =466, June 2023 =543
Median Sales Price: Mar.2021 =$1,350,000, June 2023 =$1,425,500
Median Days of Market: Mar.2021 =41, June 2021 =53

SONOMA

New Listings: Mar.2021 =690, June 2023 =440
Total Listings: Mar.2021 =1104, June 2023 =1035
Median Sales Price: Mar. 2021 =$822,000, June 2023 =$1,124,000
Median Days on Market: Mar.2021 =42, June 2023 =47

Whether you are a potential home buyer or you are an investor looking for a solid real estate investment to grow your wealth, Sun Pacific Mortgage family team could be the perfect match for your needs.

As an Investor, you can co-invest or individually invest for higher returns, as high as 12% at times. We have been in business for over 3 decades now, offering private mortgages to those in need of fast mortgages and to borrowers who don’t qualify for a conventional loan because of a variety of reasons. Email through our website, give us a call at 707-523-2099 or find us at www.sunpacmortgage.com.

Hawaii Real Estate Trends – Getting Ahead

August 1, 2023 Ari Walker

With increasing environmental awareness and commitment to sustainability, we might see more eco-friendly building materials and energy-efficient home designs becoming popular in Hawaii.

Smart home technology and connected devices may become more widespread in homes across Hawaii, offering residents greater convenience, efficiency, and security.

With a continued focus on sustainable development, innovative architectural styles, and balanced growth, the Hawaii real estate market is undoubtedly set to maintain its position as a desirable and competitive landscape for years to come.

The current trends in the Hawaii real estate market include increasing home prices, low inventory, a high demand for properties, a shift towards remote work, and a growing interest in eco-friendly homes.

The highest demand in Hawaii real estate can be found in areas such as Honolulu, Oahu, Maui, and Kauai. These areas are popular due to their natural beauty, job opportunities, and a range of amenities. Additionally, remote workers are seeking properties in areas with good internet connectivity and close proximity to outdoor activities.

Single-family homes, luxury properties with ocean views or beach access, and eco-friendly homes with sustainable features are among the most sought-after property types in the Hawaii real estate market. Remote workers and families are also looking for properties with ample living and outdoor space, updated home office areas, and proximity to schools, shopping centers, and recreational areas.

So, if you want to get a step up in the Hawaii real estate market, consider a Private Money loan which is fast, alternative, forgiving, has no credit requirements, no DTI requirements and can work with difficult to prove income. Call Sun Pacific Mortgage & Real Estate at 707-523-2099 or reach out via our website as www.Sunpacificmortgage.com

Some Rules of Real Estate Investing

July 25, 2023 Ken Walker

Real estate is the only investment where you can actually borrow other people’s money to purchase and own an income producing property. As long as you have positive cash flow overall in your portfolio, you can buy as much income property as you can. Leverage is a very powerful concept and real estate is probably the best place to leverage your investment capital because it’s a hard asset while fulfilling a need called housing. The following are some hard-earned rules presented by Marco Santerelli of Norada Real Estate, that we felt were informative enough to share:

Be informed regarding the market. There is a lot of truth in the saying, “The more you learn, the more you earn.”
Set investment goals, not wishes. You are far more likely to achieve financial independence if you write down clear, specific, and detailed goals than not doing anything at all.
Never speculate. Always invest with a long-term perspective in mind.
Don’t chase appreciation. It will happen in the right market and the right neighborhood because real estate is a hard asset made up of commodities and over time it will appreciate because of inflation.
Keep in mind that the equity growth in the property will always far surpass the cash flow.
Don’t be married to any particular market. Each and every market is local and will move up and down completely independently of one another due to various local factors.
Always first choose the market, the city, the town that you want to focus on based on the health of that market and the local economy.
It [can be] wise to have a management company handle your real estate investments. It can be a tough, full-time job and your time is more valuable and should be spent on things more important to you.

If you are looking for a pathway to passive real estate investing, give Sun Pacific Mortgage a call. We offer trust deeds in well vetted properties in California and Hawaii. As little as $100,000 can have your earning interest as high as 12% or higher.

You can find us at www.sunpacificmortgage.com or call us at 707-523-2099.

Sonoma County Real Estate Trends – End of 2nd Quarter 2023

July 18, 2023 Ari Walker

Surprisingly enough, median home sales prices have been climbing – especially over the past couple months of Quarter 2. They are presently only a little below the peak prices hit in the spring of 2022.

The number of new listings remains the lowest in 20 years, a victim of the “mortgage lock-in” effect. With many homeowners enjoying rates below 3%, they are not looking to sell their homes only to buy property with double the mortgage rate.

The average number of days a property stays on the market is the lowest we have seen in 20 years – a phenomenon expected with so few homes available on the market.

With so few homes available, homes have continued to sell above asking. With the lowest inventory available in years, finding a home has become incredibly difficult for buyers.

The 3-month rolling average for a single-family residence in Sonoma County is $840,000. This number reflects the smallest year-over-year decline in the Bay Area.

From all the information we are getting from the experts, don’t expect the mortgage rates to decrease any time soon. In fact, most of the experts are forecasting a steady increase in the rates. For those buyers who are “waiting out” this rate tsunami, you might want to jump in before it gets even worse.

If you have tried and failed to obtain a mortgage for any reason, or need a faster home loan to beat out the other multiple offers, or don’t want to sell your current house prior to buying a new home, consider alternative financing with a privately funded loan. At Sun Pacific Mortgage we offer several programs to borrowers who need to purchase, refinance, or need bridge loans. Give us a call at 707-523-2099 or find us at www.sunpacmortgage.com.

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