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So, You Want to Build an ADU in California?

So, You Want To Build An Adu In CaliforniaFor a variety of reasons, thousands of California Homeowners are adding Accessory Dwelling Units to their property. Whether it is for housing adult kids, aging parents, or another source of income, these smaller homes can be built for a fraction of the cost of a new house and can be installed relatively quickly.

These units are viewed as part of the solution to California’s housing crisis and as a result we have seen laws passed over the last five years which have made it considerably easier to obtain permits while slashing local fees. Nevertheless, these projects are expensive, the rules can be complex, and the bureaucratic hurdles can be daunting.

ADUs can be attached or detached. They can be new builds or a conversion of an existing structure. According to a survey of ADU owners in Berkeley, the median construction price in 2020 was $150,000 or about $250 per square foot. Construction prices had risen dramatically since 2020, so the cost will be considerably more in today’s economy.

In support of these constructions, the law states that local governments retain some authority to set objective standards for such things as height limits, setbacks, parking requirements and landscaping, but if the ADU is no more than 800 square feet and16 feet high, set back at least 4 feet from the property line, it is eligible for a permit in any residential or mixed-use zone.

Local officials must act on a completed ADU application within 60 days or else it is automatically approved. At least that is what the law requires. A developer in Campbell who specializes in ADUs says that there is still “a ton of boxes to check” to get the project approved.

An ADU is still a complicated, costly project no matter how small it is because it requires a kitchen, a bathroom, a sewer connection and permits. As a builder in Los Angeles stated, “The stuff that you don’t see is the most important stuff-the foundation, the plumbing the electrical, what’s hidden behind the walls.”

The other key point to consider in a decision to add an ADU to your property is the increase in your property tax bill. Newly constructed ADUs are assessed at market value upon completion, which in California with a 1.25% tax rate, could raise your property tax on an ADU valued at $200,000 by $2,500 a year.

The idea of an ADU is a bit more glamorous than the reality when examining all the aspects associated with the build. But, for many Homeowners it had been the answer to otherwise unsurmountable problems. Weighing the pros and cons before embarking on a project this large, and consulting with local officials and contractors is essential to a successful outcome.

If you have been denied a loan from your bank or other lending institution, consider a privately funded loan from the investors at Sun Pacific Mortgage. Call us today at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see how we can help you with  your real estate financing needs.

Sonoma County May Real Estate Status

Analysts, Economists, and Industry Commentators have much, and sometimes divergent, opinions about the present and future of real estate in Sonoma County. They all agree, however, that sales data in the coming months should provide more concrete indicators of the market condition.

The experts have commented that when hot markets shift to cooler, the effects are typically reflected in reductions in multiple offers, overbidding, and the number of homes going into escrow. All these realities result in less appreciation, but historically, over the longer term, real estate remains an excellent and robust investment.

The monthly median home price, 6-month rolling average proves the point:

Image1 Analysts, Economists, And Industry Commentators Have Much, And Sometimes Divergent, Opinions About The Present And Future Of Real Estate In Sonoma County. They All Agree, However, That Sales Data In The Coming Months Should Provide More Concrete Indicators Of The Market Condition.
The average days on the market typically ebb and flow seasonally with spring often seeing the highest demand. Spring 2022 has just seen the lowest average days on the market ever recorded.

Image2 Analysts, Economists, And Industry Commentators Have Much, And Sometimes Divergent, Opinions About The Present And Future Of Real Estate In Sonoma County. They All Agree, However, That Sales Data In The Coming Months Should Provide More Concrete Indicators Of The Market Condition.The combination of quickly rising prices and the fastest mortgage rate increase in over forty years is going to affect purchase demand. As this phenomenon occurs, the private mortgage business picks up steam. Using this avenue of financing allows otherwise ineligible Buyers to get into the real estate market and profit from the appreciation which continues to rise.

Sun Pacific Mortgage, a family-owned and operated business located in Sonoma County, serving all of California, has been in the Private Money Mortgage business for over 34 years with impressive results and loyal, appreciative clients and investors. With our year of experience, we can close escrows in as little as a week. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to investigate the loan programs we have available in funding purchases and refinances or how we can help you start increasing your wealth. We look forward to your call.

Why is the Housing Supply So Low?

Why Is The Housing Supply So Low?
At the top of the question list for Buyers last year and this year is, “Why is it so hard to find a house to buy?”  Simply stated:  The number of Buyers greatly outstrips the homes available for sale. There are two main reasons the housing supply is low and what it may mean for you:

  1. New home construction fell behind for the past five decades except for 2008. Builders exceeded the average of new homes during these years of the housing bubble. As a result, an oversupply of homes caused home values to decline. That was one of the factors that led to the housing crash in 2008. Since then, the level of new home construction has fallen off, and for the last 13 straight years, Builders haven’t been able to construct enough homes to meet the demand.
  2. When the pandemic hit, the meaning of “home” became even more appreciated. With work and school moving into homes, there was a rush to find suitable housing for all the new activities happening in a sometimes- too- small space. At the same time, Sellers hesitated to put their homes on the market because of concerns about the pandemic. Not to forget mortgage rates dropping to the lowest seen in decades, adding to the urgency to buy now.

Even today, Buyers find themselves looking at scant inventory and higher prices. Offers exceed listing prices by a considerable margin. Basically, inventory is still low. Still, you shouldn’t put your plans to buy on hold because you are waiting for additional houses to hit the market. With prices continuing to rise and construction materials becoming ever harder to obtain, that could end up being a longer wait than makes sense.

If you need a loan today but can’t meet the stiffer qualifications of a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 or email us through our website at www.sunpacificmortgage.com, to discuss a Private Money loan mortgage. We have helped thousands of Californians over the past 34 years to purchase or refinance their own residence or a rental property. We can make your offer look better than others with a fast, all-cash close, often closing in 1 week to 1 month!

What Will the Housing Market Look Like as the Rates Rise?

What Will The Housing Market Look Like As The Rates Rise?

The short answer to this persistent question is, “Nobody knows.”  This statement comes from Edward Seller, Associate Vice President for Housing Economics at the Mortgage Bankers Association.

So, where does that leave the everyday Homebuyer with rents soaring faster and steeper than mortgages? One Redfin Realtor said that she hears people are more worried about the stock market, rather than mortgage rates because they believe housing will be a better investment. Many Buyers see that the time is right for going all-out in bidding for scarce housing right now before it gets worse.

This anxiety regarding the unpredictability of rising rates explains the reason the housing market has not cooled yet and explains the surge in Buyers trying to get ahead of those higher rates now.

But do you keep getting turned away by other Lenders? Sun Pacific Mortgage has the answer with our Private Money loan programs: home or land purchases, refinancing, and bridge loans for business or commercial purposes. We have hundreds of Real Estate Investors who can finance your housing loans even if you do not qualify for conventional lending. Even poor credit, bankruptcy and less-than-perfect properties are not show-stoppers for our mortgage qualifications. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to discover a possible road to homeownership for you in these unpredictable times.

 

Want To Get A Refinance Done?

Hold Onto That LoanHold Onto That Loan With Private Money

If you or someone you know are having a tough time getting that refinance or purchase loan done, give us a chance to help you hold onto that loan using our trusted Private Money programs – like we did below:

Recently Funded

9164Fca947Dad92045F690C60F4Cfb8B If You Or Someone You Know Are Having A Tough Time Getting That Refinance Or Purchase Loan Done, Give Us A Chance To Help You Hold Onto That Loan Using Our Trusted Private Money Programs - Like We Did Below:

We have helped many Borrowers get their loan done and funded fast!  If you or someone you know are having a tough time getting needed real estate financing – give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com.  We’ll let you know quickly how we can help you hold onto that refinance or purchase loan!

San Diego Housing Market Trends

San Diego Housing Market TrendsIn January 2022, San Diego home prices were up 19.3% compared to last year, selling for a median price of $811,000. The average days on the market was only 11 days as opposed to 17 days last year. The total number of homes sold this January was 933, down from 1063 last year.

It is obvious that the housing market remains hot in the San Diego area. According to Redfin many homes are still getting multiple offers, some with waived contingencies.

The average home is selling for about 3% above listing price and go pending in around 10 days. The “hotter” home can sell for about 8% above listing and go pending in around 6 days. The sale-to-list price for all home types was 103% in January.

The San Diego market reflects much of the rest of the California’s larger cities and their environs. Buyers are finding it difficult to lock in a deal and sellers are happy to have several offers from which to choose.

If you have been discouraged by failing once or more to secure a home with your offer, consider a private mortgage loan from Sun Pacific Mortgage. Your offer will stand out in the crowd as a “cash offer” with a very quick closing, both strong incentives in this market. We have been able to execute closings in as little as a week because of our inhouse operation.

Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to discover what we can do for you to strength your offers and get you into the home you have chosen.

Where Is the Real Estate Market Headed in 2022?

Where Is The Real Estate Market Headed In 2022 Bidding Wars. All-Cash Offers. Limited Supply. Sound Familiar? That’s Because These Are The Words Of A Song Being Sung Every Day In California.Bidding wars. All-cash offers. Limited supply. Sound familiar? That’s because these are the words of a song being sung every day in California.

After two years of unprecedented growth will there be a cool-down and possibly a fall in sales and prices in 2022? Will we ever return to “normal”?

Recently, several housing experts reported in USA TODAY that home sales are likely to be slightly lower in 2022 while home prices will continue to rise due to the ongoing housing shortage.

Another real estate brokerage firm had this to say:

“I don’t think we will see a correction, maybe a slowdown.”

A CEO of a realty company stated:

“I don’t see any sort of crash in the near future. No way.”

The National Association of Realtors (NAR) forecast calls for median price gains of between 5% and 7% this year. This increase contrasts to the 2021 increase we saw of a 20% average rise.

If you want to take advantage of the housing boom, but don’t qualify for a conventional mortgage, give Sun Pacific Mortgage a call at 707-523-2099 to discuss a private money loan or visit our website at www.sunpacificmortgage.com. We are a family-owned and operated business serving only California for 34 years. We offer fast mortgages for owner-occupied and non-owner-occupied residences, as well as business purpose loans. Our mortgages are usually completed in 7-30 days making a Buyer’s offer look exceptionally good to a Seller.

Home Has Never Been More Important

Home Has Never Been More Important

If this year proved anything, it is the importance of our home. Never before have Californians spent so much time living and working in it. All the good, the bad, and the ugly was revealed to us as we spent our lives at home these past couple of years.

While most homeowners in both Northern California and Southern California may have understood the financial benefits of homeownership, they now understand that a home also brings feelings of gratitude, security, pride, and comfort. While the world around us has changed almost overnight, our homes were redefined.

A study from Unison reports that:

  • 91% of homeowners say they feel secure, stable, or successful owning a home.
  • 64% of Americans say living through the pandemic has made their home more important to them than ever.
  • 83% of homeowners say their home has kept them safe during the Covid-19 pandemic.
  • 70% of homeowners feel more attached to their homes than before the pandemic.

As one CEO stated:

“Aside from the financial factors, there are several social benefits of homeownership and stable housing to consider. It has long been thought that buying a home contributes to a sense of accomplishment. Still, most individuals fail to realize that homeownership can benefit your mental health and the community around you.”

If you have been contemplating jumping into the real estate market but have concerns that you will not qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com and find out what a Private Money loan could do to make your dream home come true. We have been in business for over 33 years helping folks just like you fulfill their desire for homeownership with our alternative programs.

SoCal Real Estate Cools Down—But Only a Bit

Socal Real Estate Cools Down—But Only A Bit

In recent months Southern California has seen a slight cooling of the cutthroat housing market. Perhaps it is due to home shoppers tired of losing bidding wars and who, subsequently, put their search on hold temporarily.

As one Realtor put it: “What we are seeing is just a minor slowdown. Buyers can just expect slightly less pain.”  Where once you might see 20 offers on a property, now you see 4. Better, but still not easy.

In October, home prices in the 6 counties of Southern California rose 14% from a year ago reaching an all-time median high of $690,000. Sales declined 6.6%, the first drop since June 2020.

Up until now, home prices were rising faster than they had for years for a variety of reasons:  low inventory, record-low mortgage rates and an influx of millennials into the market. The pandemic also drove more people to seek out more space, and first-time home Buyers left pricey city rentals for a home of their own.

Most economist don’t see these price increases continue at the pace we have been seeing over the past couple of years, yet most homes still sell above their list price.

Here is a snapshot of what we have seen in the market over the past year:

  • In LA County, the median home price rose 10.5% to $790,000, while sales fell 0.9%.
  • In Orange County, the median home price rose 15.7% to $920,000, while sales fell 13.6%
  • In Riverside County, the median home price rose 20.2% to $535,000, while sales fell 6%.
  • In San Bernadino County, the median home price rose 16.3%, while sales fell 5.3%.
  • In San Diego County, the median home price rose 13.8% to $740,000, while sales fell 12.4%.
  • In Ventura County, the median home price rose 10.7% to $725,000, while sales fell 6.5%.

If you are thinking of wading into the market this coming year, now that the frenzy has waned slightly, but have been turned down for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website www.sunpacificmortgage.com. We have helped thousands of Borrowers just like you achieve their dreams with a private loan from one of our many Investors.

Real Estate Market for SFO October 2021

California Trust Deed Investing

Another stellar month for San Francisco real estate in October. Despite all the naysayers’ predictions that the market was on its way down, all markers indicate a continued upward trend. Here are the results for last month’s single-family residence in San Francisco:

  • Average List Price:  $2,093,971
  • Average Sales Price:  $2,358,448 ($2,131,959 in Sept.)
  • Average Sq. Ft. Price:  $1,093.37
  • Average D.O.M: 19
  • All Sold Properties:  709 (575 in Sept.)
  • SFR Sold:  303
    • 36 below price
    • 11 for listing price
    • 256 above listing price
  • One SFR sold for $1,506,248 OVER listing price

With the holidays approaching, we usually don’t expect many homes coming up for sale, but since it appears that we are constantly in new territory when it comes to the real estate market lately, we could see a significant reversal of the norm.

If you are looking to sell/buy anywhere in California, give Sun Pacific Mortgage a call at 707-523-2099 to discuss the many lending programs we offer for purchasing, refinancing, and bridging on owner-occupied and investment properties. Or visit our website www.sunpacificmortgage.com to learn more!

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