California North Bay Counties Yearly Real Estate Values Review

January 2, 2023 Loan Originator

Speaking to reporters in the last quarter, Federal Chairman, Jerome Powell, made it clear that going forward, the U.S. housing market would get “reset” by a “difficult correction.” We can see that happening in the counties listed below.

This a report based on home and property sales data from the week ending December 28, 2022:

Contra Costa County
Median List Price: $630,000
Average Days on Market: 81
Inventory: 951
Price increase: 4%
Price decrease: 39%

Alameda County
Median List Price: $962,000
Average Days on Market: 85
Inventory: 761
Price increase: 3%
Price decrease: 37%

San Joaquin County
Median List Price: $563,750
Average Days on Market: 86
Inventory: 1016
Price increase: 3%
Price decrease: 47%

Santa Clara County
Median List Price: $1,599,000
Average Days on Market: 90
Inventory: 749
Price increase: 2%
Price decrease: 36%

While some markets may be down double-digits, they are all still well above pre-pandemic home prices. Real estate remains the safest investment by far according to the experts.

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. Call us at 707-523-2099 or visit our website www.sunpacificmortgage.com to find out more.

Wine Country Real Estate Trends

December 29, 2022 Broker

As you may be aware of, across the country the inventory of homes for sale remain low on a year-over-year basis, as does sales volume. Buyer demand has dropped since rates passed 5.5 percent in mid-September. The news is not too different for the North Bay region, however, it does remain stronger than other real estate markets.

Here are some Housing Market statistics for Marin, Mendocino, Napa, Solano, and Sonoma counties:

Inventory of homes & condos at end of November: 2,426 (9% above Nov. 2021; 14% below Oct. 2022)
Median sales price: $735,000
Price reductions: Napa 33%, Sonoma 40%, Napa 38%
Sales more than listing price: Napa 28%, Sonoma 27%

Looking at Sonoma County only:

Inventory at the end of November: 617 (9% below Nov. 2021)
New sales: 285 (35% lower than Nov. 2021)
Average days on the market: 56
Median sales price: $803,000 (7% above Nov. 2021)
Homes priced above $1 million: 46%

While other “hot” markets are suffering much deeper cuts, the North Bay is slipping only slightly. It is still a good time to invest in California real estate as a Buyer or an Investor. Most experts are predicting at least a 7% increase in appreciation this upcoming year. While it is not the exceptional 15% increase we saw the past couple of years, it is still one of the best wealth sources available to serious Investors looking for a higher return.

With 35 years of experience, Sun Pacific Mortgage continues to offer private money loans and offering Notes for Investors in California. Give us a call at 707-523-2099 if you are interested in becoming a Private Money Lender or find us at www.sunpacmortgage.com.

Message To California Real Estate Investors

December 6, 2022 Broker

As professional investors you must be watching the financial news closely, ever in this ever-changing market. Well, so are we as lending professionals here at Sun Pacific Mortgage. There is a cadre of trusted and experienced economists and real estate authorities that have expressed their predictions and analyses regarding the state of the current real estate market. Some of the quotes I have come across in my research, I thought would be helpful in making your investment decisions:

Jeff Schween, Santa Rosa Fine Homes, Coldwell Banker

“Real estate markets are hyper-regional when it comes to market dynamics, which means one has to be cautious at putting much reliance on national news and fear mongers that make general statements about the marketplace. Sure, things are shifting all around and when they do it takes market participants a reasonable period of time to recalibrate their positions and the direction they take, but calamity is not in the data we are harvesting. We do believe that we will see interest rates climb further before they flatten out and whether or not they even return to the levels they are today is all the more reason to not let the cost of money be a deterrent.”

Lawrence Yun, Chief Economist, National Association of Realtors

In 2023, Yun foresees a slower price appreciation and corresponding increases in sales as the year progresses. “Next year, the annual median home price is expected to rise by only 1.2%. Home sales will pick up in the second half of 2023.”

Dollie Herman, Vice Chair of Douglas Elliman, one of the largest real estate firms in the US

“Obviously, everyone is experiencing a cooling of the market compared to 2021, but that is a bad comparison. Frankly, anything is going to sound horrible after last year, because that was not a normal year. You really have to look at the pre-pandemic numbers”

While acknowledging that rising interest rates are slowing down home sales, Herman noted that they are still well below the national historical average of 7.5%.

“I don’t see prices dropping significantly, and I think builders are holding back right now as well. I do think there will be more room for negotiation, especially as we get into the winter months, when things traditionally slow down.”

Real estate has been, and continues to be, one of the safest investments when considered as a long-term asset. Yes, it is slowing down, especially with the Holiday season upon us, but values though slightly decreasing are holding in a steady range.

It behooves one to keep abreast of what is truly happening and not listen to bad news. Also, being more conservative while continuing to invest in Deeds of Trusts by investing in lower LTVs and diversifying more.

Real Estate Trends for 2023 as Predicted by the Experts

November 29, 2022 Broker

Experts are starting to make their 2023 home price predictions. Most agree homes will continue to gain value, just at a slower pace. Over the past couple of years home prices have risen at an unsustainable rate.

Historically, home values have appreciated at a rate near 4%. For 2023, the average of six major forecasters (Fannie Mae, SPSS, Freddie Mac, MBA, and Zelman) are calling for an increase of 2.5%. The exception is Zelman who is calling for depreciation of almost 3%. Much of the optimism is based on the economics of supply and demand. It is still a seller’s market, and in that scenario, home prices tend to appreciate.

If you are looking for a predictable monthly income with possible double-digit returns, consider becoming a member of our team of private Investors at Sun Pacific Mortgage. Our Trust Deed offerings allow you the opportunity to earn upwards of 13% on your capital. They are ideal for passive investors seeking to add and diversify their income streams. Payments are deposited monthly making it a truly hands-off passive investment opportunity. Check us out on our webpage: www.SunPacificMortgage.com or call us at 707-523-2099.

Orange County Housing Market Report

November 3, 2022 Broker

Home prices and sales are moderating in Orange County. Following a two-year frenetic housing market, the market is finally cooling. The median house price fell 2.5% from July to August 2022, yet the median price was still 9% higher than a year ago.

Because fewer people are looking for a home, houses are staying on the market longer, giving the serious buyer more options. The median sales price in Orange County for August was $1,200,000 and the median price at the same last year was $1,100,000. This price represented a 16.8% increase year-over-year.

Orange County is the most expensive real estate market in Southern California. On average, homes in Orange County sell after 39 days on the market compared to 30 days last year. The market here, as in most communities, is shifting from hot to more balanced conditions.

As the market continues to normalize, a year-over-year price drop may occur later this year in the Orange County housing market. Given the huge amount of appreciation over the past couple of years, homeowners and investors have little to be concerned about.

If you are looking to build your personal wealth, consider becoming a Private Investor with Sun Pacific Mortgage. Having been in business for 34+ years, we are always looking for new Investors to join our team. We offer regular trust deeds that can help you make up to 9-13% return on your investment. Give us a call at 707-523-2099 or fill out the form on our Investor website page here: https://www.sunpacificmortgage.com/invest-in-trust-deeds/

Press Democrat Report on Sonoma County Real Estate

October 25, 2022 Loan Originator

In an article that appeared in the local Sonoma County newspaper on October 14, 2022, Sara Edwards, their business reporter, had some interesting highlights to share regarding the real estate market today.

Some of her points included:

Santa Rosa had the highest number of home sales in 2021
Sebastopol was the most expensive
2,2440 homes sold in Santa Rosa in 2021=39% increase from 2019
Sales in other local cities never surpassed 1000 homes
More housing divisions that have been under construction are now getting completed in Santa Rosa
Multiple buyers and offers, along with a lack of inventory contributed to increased sales prices.
Sebastopol’s highest median sales price in 2021 was $1,095,000
Sebastopol is the only city to have a median price over $1 million.
Cotati and Rohnert Park were tied with the lowest median home sales price at $635,000

All of Sonoma County saw a frenzied housing market for the past two years, and while the market has somewhat cooled down, prices are not tanking. The multiple offers are few and far between but offers still come in above asking.

Knowing that homeownership is a great hedge against inflation, we can expect that California’s market will fair far better than other parts of the country.

If you are interested in becoming an investor or need to purchase or refinance, give Sun Pacific Mortgage a call at 707-523-2099 or find us at www.sunpacificmortgage.com. We offer fast, private loans for owner-occupied, non-owner occupied, commercial and land deals.

U.S Housing Market Experiencing One of the Most Dramatic Shifts in its History

October 18, 2022 Loan Originator

Even Federal Chair, Jerome Powell, went so far as to call it a “difficult correction.”

While the speed and breadth of the slowdown have some Americans worried about a repeat of the 2008 housing bust, John Paulson, the hedge funder who famously pocketed $4 billion betting against the U.S. housing market in 2008, is among those who believe history isn’t repeating itself.

Paulson believes that the underlying quality of the mortgage industry today is far superior to the subprime mortgages that flooded the market in 2008. Thanks to the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the stability of the U.S. financial system and the quality of our mortgages is ensured.

As a result of this act (CFPB), banks and financial firms are not highly leveraged. This phenomenon would be seen as unacceptable in today’s market and this law prevents banks from making specific types of risky investments.

At Sun Pacific Mortgage, we adhere to the Dodd-Frank regulations. Any loan is thoroughly screened and only those who have sufficient equity and proof of the ability to repay the loan get presented to our team of Investors.

If you are looking for a profitable return on your investments in these uncertain times, give Sun Pacific a call at 707-523-2099 to discuss becoming part of our team of private investors, or visit our website at www.sunpacificmortgage.com. We have been engaged in private lending to Californians for 34 years and are one of the only private lending companies that still offer owner-occupied, consumer purpose mortgages.

California’s North Coast Home Prices Rise in August

October 11, 2022 Broker

In August home prices ticked up in Napa, Sonoma, and Solano counties, but Mendocino Lake and Marin counties along with San Francisco trended downward as compared to July.

The median price for a single-family home sold across the nation in August was $440,000, while the median in California was $839,500. For the North Bay, the median was $738,000. Inventory remains low on a historical basis. At times the number of homes for sale has exceeded 10,000 for Marin, Mendocino, Napa, Solano, and Sonoma counties. Multiple listings for August show North Bay inventory was at 2,747 homes for sale, 14% below a year ago.

Find a comparison chart of the North Bay counties prices and annual/monthly changes below:

If you are looking to offset your losses experienced in the latest stock market tumble, consider becoming a Private Money Investor with Sun Pacific Mortgage. Hundreds of our investors are enjoying the benefits of being a passive homeowner collecting 8%-13% on their investments in California real estate. To learn more, call today (707) 523-2099 or visit our website at www.sunpacificmortgage.com.

The Ever-Changing California Real Estate Market

October 4, 2022 Loan Originator

The changes in the real estate markets, throughout California, have been one of the biggest news stories in recent months. The news reports slowing sales and rising inventory, but prices still rising year over year. Home prices are indeed higher than a year ago but peaked in May and have softened since then.

What the experts are not predicting however, is a crash. They all agree that this slow down will not be a repeat of 2008. Homeowners in Northern California as well as Southern California have lots of equity and have legitimately qualified for their home loans. We don’t have any of the crazy lending we had leading up to the 2008 mortgage crash. Because most Homeowners refinanced at great rates, they have lower monthly payments too.

What we are seeing is an increase in inventory with homes staying on the market longer and asking prices adjusting from the aspirational prices that Homeowners hoped to achieve in the past couple of years.

Homebuyers are seeing new opportunities with more homes to choose from, and Sellers are willing to make more repairs.

The best advice to Buyers who are hoping to purchase a home in some of the hottest California Markets, such as the Bay Area Peninsula counties, Sonoma County, Orange County and others, is to assess how long they plan to live in their new home. With an historical 8% inflation rate, we see home values moving up over time. If a Buyer finds a home that fits their needs and they are comfortable with the payment, they shouldn’t be concerned if home prices dip a little as long as they are higher when they go to sell.

If you or your client, have been turned down for a conventional or traditional loan, you may want to give us a call here at Sun Pacific Mortgage & Real Estate – also known as The Guys in the White Hats: 707-523-2099 or visit our website at www.sunpacificmortgage.com. We are family owned & operated and have been providing fast, cash-like mortgages for over 34 years in California. We specialize in owner-occupied mortgages which have become more difficult to obtain recently.

Your Asking Price Matters More Now Than Ever

September 27, 2022 Broker

We are aware of the housing market slowdown from the frenzy we saw over the past two years. But what does that mean if you’re thinking about selling your home?

Because real estate prices are still appreciating although at a slower pace and mortgage rates are rising, there are more homes on the market. This new market requires sellers to be incredibly careful about how they price their home.

During the pandemic, sellers could price their home higher because demand was so high, and supply was so low. This year, things are shifting, and that means sellers need to rethink their strategy. The price set for homes sends a message to potential Buyers. If you price it too high, you run the risk of deterring Buyers.

If you need to lower your price later to attract more Buyers after it has sat on the market for a while, it can be seen as a red flag. Some Buyers will wonder what that means, and it can be a serious “turn-off.” Your Real Estate Agent is the best able to give you a true picture of what the market looks like in your area to help you set a suitable selling price.

Real estate experts have a saying: “If it’s sitting there, there are three reasons: price, price, price.” That may not have been the case a few months ago, but today’s Buyer is savvy enough to know that the market is not what it was for the past couple of years. Buyers will not be as quick to jump without negotiating.

So, if you are a Buyer in today’s market but are finding it difficult to obtain a loan or want to make a stronger offer with a quicker close, consider a short term private loan from Sun Pacific Mortgage (707-523-2099) or visit our website at www.sunpacificmortgage.com. We have helped thousands of Buyers like you for over 34 years in California. We can help get you into a mortgage fast and with far fewer hurdles to jump over – our average days to close is just 2 weeks!

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