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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.

The Six C’s of Private Money Lending

Private money, also known as “hard money,” has become a popular alternative to conventional loans, especially during these stressful sellers’ market days which we have been experiencing for the past several years.

Why is that? Because FAST is the name of the game in this dog-eat-dog market and private money can be available in as little as a week through some hard money lenders, such as Sun Pacific Mortgage. Unlike conventional lenders where the loan process can take months to get approved, Sun Pacific Mortgage has much less red tape and requirements for these private money loan programs.  Our 33+ years in business has allowed us the experience to become truly expert in the loan approval process, solving any bumps that come up along the way. Service all of California Home Buyers, Borrowers, Realtors, Conventional Lenders, Mortgage Brokers and Investors alike; Anyone who need a quick close or who has been turned down for a conventional loan.

Let’s examine six factors that influence a private money lender before entering a contract with a borrower:

  1. Collateral:  Lenders are in the equity business, not the real estate business. They will consider all aspects of the property (physical condition, its marketability, and its profit potential), but the loan-to-value (LTV) is of primary importance.
  2. Conditions:  To minimize risk, Lenders look at other property inventory and at the resale or rental value of the given home/land.
  3. Capacity:  Lenders must consider the ability of the Borrower to carry out the terms of the loan and their existing obligations.
  4. Capital:  Lenders expect the Borrower to have significant “skin-in-the-game” at the closing table.
  5. Character:  Many Lenders look at the character of the potential Borrower. They look for liens and judgments which could affect the property under consideration.
  6. Credit:  With asset-based hard money lending, credit isn’t the most principal factor, but it may affect the interest rate the borrower pays.

Using a reliable, experienced company like Sun Pacific Mortgage to either invest or borrow money through, has been a wise choice for thousands over the past 3 decades. Give us a call at 707-523-2099 to see what we can do for you. You can also find us at www.SunPacificMortgage.com.

What Will This Fall Be Like in the Real Estate Market?

What Will This Fall Be Like in the Real Estate Market

According to many experts, the California real estate market, along with the weather, is expected to cool off somewhat in the Fall.

We are more likely to see something a little closer to normal, and yet the market is likely to stay highly competitive because there will still be many more buyers than sellers.  This does not mean that home prices will fall, but the expectation is that going into the end of the year, prices will rise a more modest 5%-6% as opposed to the 17.2% annual rise in April.

While more Bay Area homes are likely to go up for sale during this second half of the year, the influx won’t be nearly enough to put a dent in this housing shortage, but it may help curb the wild price growth.

Sonoma County on down to San Francisco and Peninsula markets, demand is forecasted to stay strong even though many buyers are frustrated or simply priced out of the market.  More millennials are hitting their home buying years, and because builders haven’t been able to ramp up construction to meet the population growth, resales will continue to experience a healthy growth.

One Realtor explained what we in California might be facing:

“Don’t expect deals in the fall if you are house hunting in the most desirable part of a market or competing for a particularly nice house.  Homes that stand out for one reason or another are still flying off the shelf.”

If you are hoping to buy or access your equity this fall, but have been turned down for a conventional mortgage, give Sun Pacific Mortgage a call at 707-523-2099.  Or visit our website at www.sunpacificmortgage.com. We have been helping folks just like you for over 33 years, and we look forward to pairing you up with one of our many private lenders who can make your dreams come true.

Hard Money Myths BUSTED

Myth 1:   Hard Money loans are often predatory and come from dishonest lenders.

Nothing could be further from the truth.  

We have been doing hard money loans in California since 1988.  We have done thousands of loans and rescued hundreds of real estate agents and Brokers who had Buyers with difficulty getting a loan elsewhere.  We wouldn’t have lasted 29 years if we were doing anything dishonest or predatory. Myth Busted!

Myth 2: Don’t only the desperate seek out Hard Money, like a last resort type of loan?

Not at all.  Hard money is commonly used by people who have perfect credit or lots of income or equity, because it is very easy to qualify for and quick to close.  Further, banks will not lend on problem properties.  Hard money is available for that as well.  Myth Busted!

Myth 3: Hard money costs are too expensive and have high rates.

Borrowers use hard money as it fulfills a tremendous purpose in real estate buying these days.   People wouldn’t be using hard money if it was too expensive or the rates were too high.  

When you look at a hard money loan and #1. Discover it is the only loan you can get and #2. It accomplishes the purpose of why you needed a loan in the first place, then it is a good loan!  So…Myth Busted!

Myth 4:  There are no hard money loans for owner occupied properties.

This is false. We are always going to be do owner occupied loans as they are an important part in lending in today’s market. Myth Busted!

Call us at 707-523-2099 with any questions or mortgage scenarios you might have.  We are happy to help!

What’s New in Home Design for 2019?

What’s New in Home Design for 2019

A recent article based on the remodeling and design platform, Houzz, forecast some trends to look for in the coming year.  With HGTV shows continuing to capture our imaginations and wallets, we might want to know that we are in step with the design world.

Here are some examples of the forecasted changes:

  • Full-height backsplashes extending all the way to the ceiling behind open shelving and range hoods is one of the newer concepts being adopted in kitchen design.
  • Although Living Coral was chosen to be Pantone’s color of the year, the experts see moodier colors, like navy and forest green, as the shade of choice for homeowners.  People are becoming more comfortable experimenting with rich or darker colors.
  • Open spa-like bathrooms are making up 80% of the remodels according to Houzz.  Soaking tubs was the most popular option even if it meant stealing space from the closet or bedroom.
  • Moving from white to black kitchens is another popular choice for 2019.  White kitchens have made it difficult to keep clean if you have children and/or dogs, so remodelers are opting for the “tuxedo” kitchen with contrasting black cabinets and white walls.
  • Free-standing padded dining benches have replaced the built-in, more expensive benches of the past.  These new benches can provide flexible seating and hidden storage.
  • A four-wall accent color is replacing the bold-colored feature wall.  It even includes the trim and molding. This trend seems to be happening in smaller rooms, like a bedroom, study or media room.

These six examples of home remodeling choices are some of the possible options you may want to experiment with in the new year.  If you need funds to finance your DIY efforts, and if you do not qualify for a conventional loan, Sun Pacific Mortgage is here with a Hard Money loan to support your artistic endeavors.


Selling Your Home in Today’s Market

selling home in todays market

It is never a fun adventure to sell your home, especially while you’re still living in it.  And in today’s market, where multiple offers are not the norm they once were, it is even more important to observe some basic rules.

Keep your home pristine!  Not just “picked up”, but sparkly clean.  It should look like a model home where no one lives.  I know this is well-nigh impossible, especially with kids in the house, but it’s worth some effort.

Pay attention to your yard.  There should be no leaves, no weeds, and no spider webs in the corner of the porch or patio.  Spruce it up with some colorful plantings, even in the winter.

Leave when you have showings.  That means pack up the kids and pets and just drive around, if that is what it takes to clear out of the house.  There are legitimately people who are allergic to or fearful of dogs or cats and may not even enter the property if they are present, so it is important to take them with you.  Otherwise, you may lose a potential buyer!

You may get a ridiculous offer.  Don’t be tempted to give away the farm to clinch the deal.  Remember you’re just selling your house. Be open to negotiating, but don’t allow desperation to cloud your judgement.

These ideas are meant to make selling your home an easier process, one as painless and as fast as possible while still getting the most money for your house.

If you are not working with a licensed Realtor, contact one from a local real estate company.  And if you are considering buying another home in California, then contact a licensed and experienced Lender who can help you take advantage of any existing home equity to purchase another home prior to selling your current house.  This could be beneficial to you and your family.

Good luck to you!

Refinancing and the Holiday Season

Refinancing and the Holiday Season2

With so much going on during the holidays, why would any sane person consider refinancing?  Well, it might make more sense than it appears at first glance.

One of the main reasons might be to pull out cash for end-of-year expenses, or to free up your cash-flow and get yourself on a better financial footing for the next year.  In 2017 the average American household carried $15,675 in credit card debt.

With a fast Hard Money Refinance, you could pay off debt and use the remainder of the proceeds to pay cash for holiday expenditures rather than incur more debt.  The interest rate on your refinance would surely be less than the interest rate on your credit cards!

Other benefits to consider when refinancing at the end of year:

  • Some of your closing costs would be deductible on this year’s taxes
  • Your next payment on the new mortgage won’t be until February, 2019.  This lag time will give you even more of a cushion to help recover from holiday expenses.

Choosing a Hard Money Lender like Sun Pacific Mortgage, you could conceivable close your refinance within 15 days, and be on your way to a more relaxing end of the year.  Santa’s helpers are awaiting your call at 707-523-2099. Happy Holidays!


Where Is The Real Estate Market Headed?

Where Is The Real Estate Market Headed

What’s one to believe about the real estate market today?  There are so many conflicting headlines that even the savviest investor is confused.  Let’s look at some hard statistics which may enable us to come to our own rational conclusions:

We know home prices have appreciated year-over-year for the past 76 straight months.  Does this mean we are on the edge of another housing bubble? Not if the lack of homes for sale persists.  Demand is strong as many renters have experienced when they start to look for their dream home. There hasn’t been the stabilizing 6-month backlog of housing inventory in over 5 years, which has kept prices up while inventory has been down.

What about pricing and appreciation?  Certainly, home prices have appreciated over the last 76 months, driven mainly by supply and demand.  This has affected the starter-home market more than any other because of the increased competition for these homes. Senior Economist, Aaron Terrazas wrote on Zillow that “home values are still expected to appreciate at double their historic rate over the next 12 months”.  This wouldn’t appear to herald a real estate crash any time soon.  

Those who have been in real estate for as long as we have can all agree on the fact that real estate ebbs & flows.  Keeping abreast of the market in your area is what is important, so you can decide if the price is right to buy now or if you make an offer slightly under asking to still get an accepted offer.  What about listing your home and for what price? These are questions to be posed to licensed and experienced Realtors who know the market and have your best interests in mind.

Here’s to making the real estate market work for you!

To read full article:  https://www.keepingcurrentmatters.com/2018/08/29/top-3-myths-about-todays-real-estate-market/

To Buy or Not To Buy?: That is the Question

To Buy or Not To Buy?: That is the Question

Although not as existential as Hamlet’s query, this is a life changing decision facing many Californians today. Ultimately, the answer depends on several real-life factors: your finances, your long-term plans and the real estate market in your area.  Some of the questions you might want to ask include:

  • What can you afford?
  • How much do you have for a down payment?
  • How long do you plan to stay in the house?
  • Are you looking for stability or flexibility?
  • Do you want to be responsible for maintenance and repairs?
  • What are your financial, career and family goals?

Of course, the other choice you have is to continue renting.  A wise next step in your decision-making will include a Pros & Cons List of renting vs. buying.  It can look something like this:

Pro Buying:

  • Builds equity and credit
  • More stability (especially with schools)
  • Some tax benefits
  • Can “nest”, improving or upgrading to your tastes
  • Social benefits of a stable neighborhood

Con Buying:

  • Requires substantial money, paperwork upfront
  • Additional expenses beyond mortgage payment
  • Responsible for repairs and maintenance
  • Moving costs

Pro Renting:

  • Fewer upfront costs
  • Mobility
  • Not responsible for maintenance/repairs
  • No property tax bills

Con Renting:

  • Landlord can raise rent or sell the property
  • Choices may be limited
  • Might mean moving several times
  • Don’t build equity
  • No tax benefits

To summarize:  Homes typically increase in value (approximately 7.2% in California in 2017) thereby increasing your retirement fund, whereas, every penny spent on rent is gone forever.  Your homeowner costs are more predictable and stable than renters’ expenses, since a landlord can raise your rent in accordance with the rent control laws in your city every year.  If you own a portion of your mortgage, interest and property tax is deductible. There may be a small renters’ deduction if you rent.

To help evaluate your choices regarding buying/renting there is a helpful calculator available on Zillow: https://www.zillow.com/rent-vs-buy-calculator/  

When you reach the decision to buy, but find you do not qualify for a conventional loan, you need a fast loan or stronger offer over others, Sun Pacific Mortgage will be here to help you achieve your dream!  We have unique alternative financing options through our Hard Money lending programs.

Call us at 707-523-2099!

How To Significantly Increase The Value of Your Rental Property

increase rental property value

One of the best ways to insure the value of your rental property and increase your cash flow is to maintain and manage it well.  As a landlord you should be vigilant that your property does not depreciate because of your inattentiveness. Markets may fluctuate, and while this is something you don’t have particular control over, you can ensure that your property does not lose any value because of neglect.  

Here are some time-proven and relatively low-cost improvements that should increase the rental value and rentability.:

Landscaping Refresh:  

If the prospective renter sees a tidy, colorful front yard, it helps sets the stage for a more positive reaction to the interior.  A new mailbox or a freshly painted one can be a big plus.

Thorough Cleaning:

If painting the entire house is financially prohibitive, a good scrubbing inside and out will go a long way to say “this landlord cares”.  In particular, making sure the front door is welcoming and fresh. A newly painted door gives the impression that you have renovated the house for the next tenant.

Clean the Floors:

Cleaning the rugs, either by yourself or professionally, makes the house smell clean and will have an impact on the overall appearance of the home.  Any repairs required of other types of floors, regardless of cost, shouldn’t be ignored.

Appliance Upgrades:

One of the most important aspects considered by a prospective renter is  the kitchen, and more specifically, the appliances. If a good cleaning doesn’t bring them up to par, replace them!  It will get you a better renter and a better price. The other room where you don’t want to spare any elbow grease is the bathroom.  Tenants appreciate an up-dated, clean and bright bath.

Now that we have examined the extensive “To Do List” for attracting responsible renters, let’s take a look at how you will finance these improvements.  

The first avenue would be to look into a conventional loan or home equity loan, but if, for whatever reasons, you do not qualify for a conventional loan, consider a Hard Money loan from Sun Pacific Mortgage.  

We have been in the business of hard money refinancing and lending for investment property owners for over 30 years.    Please call us at 707-523-2099 with any of your questions or scenarios.

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