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2023 California Housing Market Continues to Stabilize

May 2, 2023

Model house on a financial graph

Most housing analysts expected 2023 to be a rough year for the U.S. housing market. In fact, among the 29 major housing forecast models, 24 forecasted a national home price decline for 2023.

But, so far, that hasn’t proven to be true.

Through the first few months of 2023, the U.S. housing market continues to show signs of stabilization. Existing and new home sales have inched up a bit this year, and homebuilder confidence has improved. Firms like Zillow, CoreLogic, and Black Knight have all reported positive month-over-month home price increases this Spring.

What’s going on? For starters, a lack of homes for sale, coupled with the market entering its busier Spring period, has, at least for now, pushed the national housing market back into equilibrium.

Don’t misread the above statement and think that the housing market is normal just yet. Some housing markets are booming right now, while others, like San Jose, are still passing through a home price correction.  Even within a particular market, it can vary considerably.

According to Zillow, among the 1,563 California ZIP codes tracked, 6.7% saw home price increases between December 2022 and March 2023. The other 93.3% of California ZIP codes saw a home price decrease, if only slightly.

CoreLogic, a real estate research firm, expects U.S. home prices to rise 3% between January 2023 to January 2024. If CoreLogic is correct, then U.S. home prices would end 2023 back at price levels achieved at the height of the boom in June.

It is good to remember that the appreciation in California home values during the past 2 years was about 15%, so these slight declines should not deter buyers from jumping into the real estate market.

If you are looking for a private real estate loan, and can’t qualify for a conventional loan, look no further than Sun Pacific Mortgage. We have been lending to California real estate investors for over 35 years. Give us a call at 707-523-2099 or find us at www.sunpacmortgage.com.

 

Retreat of the California Seller’s Market

April 25, 2023

Buyer's Market

Real estate agents throughout the California regions are reporting a rapid shift in the market. Six months ago in quarter 2 2022, 95% of agents who were surveyed characterized their market as a seller’s market. In Q3, that number had declined to 51%, and in Q4 it fell to just 30% of agents.

Home Buyers in this wonderful state of California, are beginning to see more favorable conditions when it comes to pricing and competition for homes as the market continues to rebalance. This is in sharp contrast to the hot real estate and lending markets that we witnessed from 2020 to mid-2022, when agents consistently reported a buyer’s market at a rate of only 1%-2%.

An example of this market shift can be found in a study where 64% of agents say that most homes in their market are not getting multiple offers. This is reminiscent of the trend that began in Q3 2022.

Nearly 95% of all agents surveyed reported that the average days on the market for listings in their area is increasing. But because housing is retaining much of the staggering equity gains of the past couple of years, and the increasing interest rates affecting affordability, the situation isn’t a buyer’s paradise yet.

If you are planning to purchase or refinance your home but can’t qualify for a conventional loan, consider a private mortgage from Sun Pacific Mortgage (707-523-2099 – www.sunpacificmortgage.com). We have helped thousands of buyers just like you for the past 35 years with our family-owned company.

A Look at Northern California Real Estate in April

April 18, 2023

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If we look specifically at the Sonoma County Real Estate market from late 2022 through mid-April 2023, we can see that buyer demand seems to have rebounded from the historic mid-winter doldrums. The signs that things are looking up include the percentage of listings going into contract, overbidding picking up, and the days on the market decreasing.

The median home price in the 10 Northern California counties during the past 4 months through mid-March 2023 are indicative of a robust real estate market:

  • San Mateo County: $1,550,000
  • San Francisco County: $1,400,000
  • Santa Clara County: $1,393,000
  • Marin County: $1,248,500
  • Santa Cruz County: $1,150,000
  • Alameda County: $968,000
  • Sonoma County: $750,000
  • Monterey County: $702,500
  • Contra Costa County: $670,000
  • Solano County: $538,000

We have entered the seasonal period where inventory begins to pick up and some counties are even seeing selling prices exceeding asking prices.

If you need help with a mortgage loan because you need a fast closing or your credit is not up to par, give Sun Pacific Mortgage a call to see if you qualify for a private mortgage from us. You can reach us at 707-523—2099 or find us at www.sunpacmortgage.com.

Investing in Deeds of Trust Versus Banks

April 4, 2023

invest

Regulators seem to have helped avoid a global financial contagion after recent bank crises in the U.S. and Switzerland, but investors remain unconvinced that the global economy is sound.

With all the unrest in banks and the general economy, investors are once again turning to real estate as a safe haven for their money.  Real estate investments have polled consistently as the safest investment for those intent on growing and preserving their wealth.

A popular investment strategy among many investors has been the private money lending sector, or trust deed investing. With this type of financing, the investor lends a mortgage to an individual allowing he/she to purchase or refinance property.

Among the advantages of trust deed investing, is the passive nature of this investment. The lender becomes the recipient of monthly interest and/or principal payments without the hassle of rental problems.

If the borrowers are thoroughly vetted, as they are with Sun Pacific Mortgage, the negatives are few. And if the investor opts for a servicing company to handle the collection of funds monthly and any legal issues that might arise, the investor can sit back and enjoy the financial benefits of a high interest loan without the problems associated with other real estate investments.

Our investors are the backbone of our business. The appreciation felt is mutual. While we continue to supply them with profitable opportunities to place their finances in safe real estate investments, they continue to grow their wealth and diversify their portfolios.

If you are interested in becoming an Investor through our family owned & operated company of more than 35 years, call us at 707-523-2099 or reach out through our website at www.SunPacificMortgage.com

A Tale of 2 Housing Markets in California: Why Some Homes Still Cause Heated Bidding Wars While Others Sit Unsold

March 28, 2023

Why Some Homes Still Cause Heated Bidding Wars While Others Sit Unsold

Came across this very interesting & informative article by  Clare Trapasso earlier this month, and feel impelled to share:

Homebuyers who are closely watching the correction in the real estate market might believe now is a good time to pounce. After all, homes are sitting on the market for longer, those maddening bidding wars have dried up, and wild offers over the asking price are things of the past, right?

Well, not exactly. It all depends on what they’re hoping to purchase.

Those searching for a home are seeing plenty of fixer-uppers, homes lacking curb appeal, and those in less desirable areas sitting on the market for longer and undergoing price reductions. But well-appointed, well-situated turnkey homes are still selling fast, often receiving multiple offers, and even selling over the asking price. It’s as if the housing slowdown hasn’t affected these properties much at all.

“If it’s a good home in the resale market, it’s selling quickly,” says Ali Wolf, chief economist of the building consultancy Zonda. “The buyer who is buying today is not the same buyer buying 12 months ago. If [they’re] paying this much, it needs to be a nice home.”

Competition for turnkey homes in good school districts remains fierce.

“If the house is perfect, the odds of someone else wanting it are high, too,” says Geena Peoples, an Austin, TX–based real estate agent with The Juice Group at Compass.

Home prices are still much higher than they were before the COVID-19 pandemic. And while mortgage rates have fallen a bit of late, they’re still substantially higher than they were at this time last year, jumping to just over 6% for 30-year fixed-rate loans, according to Freddie Mac.  So, buyers don’t have much room in their budget for costly repairs.

“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing,” says Realtor.com® Chief Economist Danielle Hale.

During the pandemic, just about everything was selling for more money than ever before because homebuyers didn’t have much to choose from.  Even fixer-uppers in the right markets were hot commodities. Buyers and investors could snap up these properties and still be able to afford the work they needed.

“Back in 2021, you could list just about anything and there would be a line out the door,” says Peoples. She used to see dated homes with cracks in the foundation and the walls on the market, and buyers would still pounce on them. But those days seem to have ended, at least for now.

There you go, some information to consider when advising your Home Buyers and Borrowers on what’s the best move for them to get a new home loan to buy or to refinance, throughout California!

What’s Happening in the North Bay Real Estate Market?

March 21, 2023

What’s Happening in the North Bay Real Estate Market?

I always find that knowing what’s happening with the real estate market is beneficial towards assisting Homebuyers and Borrowers make better decisions.  Keeping abreast of this information is also helpful when working with licensed peers, to better work together to help clients.

The following report includes both single-family and condominiums in some popular counties:

Marin County:

  • Inventory was 46% (211 homes) below January 2022, but only 4% below December 2022.
  • New sales were 21% (99 homes) below January 2022 and were 29% above December 2022.

Napa County:

  • Inventory was 43% (78 homes) below January 2022 but 3% above December 2022
  • New sales were 9% (43 homes) below January 2022 and were 54% above December 2022

Mendocino County:

  • Inventory was 8% (210 homes) below January 2022 and 13% below December 2022
  • New sales of 36 homes in January 2023 were slightly above the sale of 35 homes in January 2022 and slightly below the December 2022 level of 37 homes.

Lake County:

  • Inventory was 13% above the inventory in January 2022 and 2% below the inventory last month of 357 homes.
  • Closed sales in January were 39% below January 2022 and 32% below December 2022

Solano County:

  • Inventory was at 436.
  • 223 homes sold and closed in January 2023 while historically 500 sales occur per month.

What we can conclude from this report is that while sales and inventory are well below the levels of January 2022, they definitely look better for most counties than December looked.

Real estate experts expect the Spring will bring better reporting numbers with more inventory and more buyers looking for a less competitive market than they experienced during the last couple of years.

I look forward to a busy 2023 in the real estate and lending markets. Hope you do too!

Visit our website at www.sunpacificmortgage.com for more information about what we do and what we offer.

A Look At The Real Estate Market in California

March 14, 2023

california housing marketCalifornia’s housing market continued to improve in January as buyers gained more confidence in purchasing a home and the affordability outlook improved slightly. Monthly sales may have been nominal for the past few months, but the market appears to be heading in the right direction. Home prices are expected to remain soft and less expensive homes will be easier to sell, especially in the San Francisco Bay Area according to the California Association of Realtors’ chief economist.

California home sales inched up in January for the second straight month as prices moderated somewhat. Sales of single-family homes were up 0.4% from December. The median time to sell a home in California was 33 days in January 2023, compared to the 12 days in 2022.

January’s statewide median home price was $751,330, down just 3% from December 2022. Given the huge appreciation homes acquired over the past couple of years, this decline could be viewed as negligible.

All in all, real estate through California remains a strong investment – for personal home buying, 2nd home buying, purchasing rental properties or even investing in Deeds of Trusts.  Anyone needing fast financing or having difficult qualifying for home loans elsewhere, should check out Private Money or Hard Money loans.  These fast and alternative mortgages from Sun Pacific Mortgage have assisted over 10,000 Borrowers over the past 35 years.

Give us a call at 707-523-2099 to see how we might be able to assist you personally or assist a client or visit our website at www.sunpacificmortgage.com.  We are also open for seasoned Private Lenders and individuals interested in investing in Deeds of Trust, earning higher returns.

Fastest Funder In The West – Loan of the Week!

March 9, 2023

Fastest Financing in the West KenCowboy Ken to the Rescue

The quicker the close, the lower the stress. Get Fast Private Money loans for you or someone you know and leave the competition in the dust!

  • Fast Approvals
  • Trusted by over 10,000 Borrowers
  • Credit Problems OK
  • Financing up to 2+ million

Loan of the Week

Program: Owner-Occupied Purchase
Loan Size: $787,000
Location: Sonoma County
Reason Came To Us: Borrower was turned down last minute due to a credit issue popping up, requiring a few more months of handling.  He was in Escrow already, with closing date just 9 days away.  We jumped right onto it and with our FAST Private Money program, had this funded in just 7 days!

At Sun Pacific Mortgage, Broker Cowboy Ken and his team have you covered with our Direct Private Money Programs. Saddle up and give us a call today at 707-523-2099 or visit our website at www.sunpacificmortgage.com with any questions or specific scenarios. We will quickly let you know what help we can provide to you!

Big, Fast, and Direct – Recently Funded!

March 2, 2023

image6 1Our Private Money Loans Do BIG and FAST!

End the wild ride and get real estate financing with one of our Direct Private Money Programs.

Purchase or Refinance mortgage taking too long?  Or being turned down at the last minute?  Let us help you or someone you know fulfill the need for BIG and FAST lending, just like we did for the Borrowers below:

Recently Funded

Program: Investment Property Cash-Out
Loan Size: 885k
Location:  San Luis Obispo County
Why Came To Us:  Difficult to prove income as self-employed.

Program: Property Purchase
Loan Size: 904k
Location: Marin County
Why Came To Us: Debt to income ratios above conventional financing requirements.

Program: Owner-Occupied Business Purpose Refinance
Loan Size: 725k
Location:  Solano County
Why Came To Us: Had a business loan coming due and wanted extra capital for company expansion.

We look forward to helping you or someone you know with our BIG and Fast Private Money programs.  Call us at 707-523-2099 or visit our website at www.sunpacificmortgage.com and we will get back to you with how we can help!

What Are Experts Saying About the California Housing Market?

February 21, 2023

What Are Experts Saying About the Housing Market?

Here are some of the latest quotes by the economic experts regarding the housing market in the U.S.:

“There are growing signs that housing market activity may be closer to a trough. The decline in mortgage rates over the past couple of months has led to a small improvement in affordability and a rise in home buyer sentiment, albeit from a record low. Corroborating this, mortgage applications for home purchase have ticked higher in the past couple of months, which should feed through to higher sales.” Sam Hall, property economist at Capital Economics.

Let’s be clear: Even if home sales have indeed bottomed out, it doesn’t guarantee that home sales will have a swift recovery. This is what we can expect when home prices soared 41% in just over two years and mortgage rates doubled in a 12-month span.

Just because U.S. home sales might be nearing a bottom doesn’t mean we should be looking at the bottom for U.S. home prices.

“Affordability will remain stretched. We think house prices will need to fall another 6-7% to bring affordability back to a level that will support more normal levels of demand.” Capital Economics researchers.

The reason the housing market activity could be on the mend is because affordability has “depressurized” a bit lately. Over the past two months, the mortgage rates decreased, and incomes increased, helping to “depressurize” the market. Recently, Mark Zandi told Fortune:

“Housing demand is close to a trough; housing supply has yet to hit bottom; and house prices have a way to go before reaching their nadir. The reason: housing affordability remains out of balance.

In short, real estate remains a solid investment for anyone looking to grow their wealth for retirement. Whether you are a buyer or an investor, you can never go wrong with Sun Pacific Mortgage’s private loans to help you along the way. Visit our website at www.sunpacificmortgage.com or give Sun Pacific Mortgage a call at 707-523-2099 to discuss our available privately funded loans or how you can become part of our Team of Investors.

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