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Granny Flats in California are Gaining in Popularity

California Granny Flat

In order to put a dent in California’s housing shortage, state and local lawmakers have eliminated a substantial amount of red tape to allow homeowners to build second residences on a property.

We are seeing reduced building impact fees, reduced parking and setback requirements and the waiver for owner-occupancy on site. All these changes have been made to encourage ADU construction throughout the state to combat the state’s ever growing housing shortage.

Because we have had home construction lagging population growth, California’s Statewide Housing Plan calls for an acceleration of new home construction over the next eight years with a target of 2.5 million homes. This target is broken down as follows:

  • 643,352 very-low-income homes
  • 384,910 low-income homes
  • 420,814 moderate-income homes
  • 1,051,177 above-moderate-income homes

Some roadblocks that have been experienced include restrictions on drilling a new well (Sonoma County) and making your new build all electric (Marin County).  There are still issues with material shortages that make for slow-going in the building process.

Most builders of an ADU would definitely do it again in spite of all the difficulties they experienced in the build.  Roadblocks encountered differ from county to county. For instance, Sonoma County allows you to go right to the county website and choose preapproved plans. Their permitting process is more streamlined because they want more rentals.  In Napa County supervisors launched a $5 million forgivable loan program for residents who build ADUs and rent them below market value. There are other programs in the North Bay Counties that exist to encourage the ADU build out.

If you are considering an ADU for your property and have sufficient equity in your home, you might want to investigate a refinance with extra cash out or even a 2nd mortgage with Sun Pacific Mortgage.  We are a private lender with 35+ years of experience in California real estate lending. We offer fast, flexible and expert alternative financing. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com.

May your New Year Sparkle Brighter with Private Money

New Years 2023 Ari Ken

Avoid any loan slows or mortgage disapprovals by working with us, to help you or someone you know get a fast Private Money loan that’ll make your New Year sparkle brighter!

Loan of the Week

Program: Primary Residence Rush Refi
Loan Size: $775,000
Loan to value: 57%
Location: Santa Clara County
Why Came To Us:  Mortgage Broker brought us his Borrower as their debt to income ratio was slightly too high, to do the refinance with his conventional programs. This is where our fast, flexible and expert Private Money financing became the answer!  Within 11 days we helped this Broker and Borrower get the loan funded.

 

If you or someone you know need a FAST mortgage or are just fall short of qualifying for a conventional loan, we could help.

Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see what we can do help make your New Year sparkle brighter!

California North Bay Counties Yearly Real Estate Values Review

North Bay Counties Yearly Real Estate Values Review

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

Sonoma County Real Estate Report for MarchAs 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

Message To California Investors

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.

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Recently Funded

Program: Rental Property Purchase
Loan Size: 960k
Loan to value: 69%
Location:  San Diego County
Why Came To Us: Debt to income ratios high, as owned multiple investment properties – but all with great rental income returns.

Program: Owner-Occupied Financing
Loan Size:525k
Loan to value: 53%
Location: Monterey County
Why Came To Us: Wanted to consolidate debt on high rate credit cards and business bills, to improve credit.

Program: Primary Residence Refinance for Business Purpose
Loan Size: 1.02 million
Loan to value: 58%
Location: Orange County
Why Came To Us: Borrower needed fast financing to pay for ongoing property renovations.

 

If you or someone you know are in need of a FAST mortgage loan, or are having difficulty getting real estate financing elsewhere, visit our website at www.sunpacificmortgage.com or give us a call at 707-523-2099.  We’ll quickly let you know what we can do to help!

Real Estate Trends for 2023 as Predicted by the Experts

Real Estate Trends for 2023 as Predicted by the Experts

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.

Press Democrat Report on Sonoma County Real Estate

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.

The Ever-Changing California Real Estate Market

California Real Estate Remains Best Long Term Investment 1

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

Why Cash Out Refinances

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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