Home >

The Housing Market in California Today

california neighborhood

A summary of the real estate market in California might read, “mixed bag”.  While home prices increased year-over-year in July, the number of homes sold fell by a whopping 31.1% and the number of homes for sale rose as compared to last year. According to the California Association of Realtors 30 counties recorded sales declined more than 30% from last year.

The Central Coast experienced the largest decline among major regions, with sales decreasing 37.3% from the previous year.  However, the good news for sellers is, median sales price continued to grow in nearly 80% of the California counties!  The final median home prices decreased by only 3.5% to $833,910 (meaning homes are selling for less than asking price) – but this median home price was 2.8% higher than last year at this time.

The report for August reads as follows:

  • Closed sales per day: 513
  • Pending sales per day: 306
  • New listings per day: 260
  • % Of active listings with reduced price: 41.6%
  • % Of homes closed above list price: 35%
  • Median days of the market for closed sales: 22

Currently, we see some markets cooling down.  It is good to keep in mind that all real estate is local and the national news headlines don’t necessarily apply to every market around the country. It would appear that in most of California it has gone from an extreme seller’s market to a more balanced one. One thing remains constant: real estate is now and always has been a sound investment.

If you are looking for a profitable place to invest your portfolio, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com and become one of our many private investors in Deeds of Trusts.  Earn upwards of 13% return on your investments in stronger real estate Notes.

Wine Country Trends in Real Estate for July 2022

2773005319 full

For purposes of this blog, Wine Country includes the counties of: Marin, Mendocino, Napa, Solano, and Sonoma.

  • Homes and Condos available for sale at the end of July= 2,697 (down 34% from July 2021; down 11% from June 2022) This has been the pattern for the past 3 months.
  • Inventory in the past 10 years has been more than 10,000 homes.
  • Sales= 1,169 (32% less than 2021; 7% less than June 2022)
  • Price reductions: Napa 15%; Sonoma 22%; Mendocino 45%
  • Selling more than original asking price: Sonoma 48%; Napa 35%; Mendocino 25%

Mortgage rates at the beginning of June reached 6.5%, but by July they were closer to 5%, which is not that far off the 4% we averaged for the past 13 years.

Some experts think that inflation may have reached its peak and is retreating slowly.  Buyers and Sellers alike would be pleased with this trend!

If you have been turned down for a conventional loan from a bank or mortgage broker, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see if a private loan is the solution to your problem.  We have been in business for 34+ years serving all of California and have thousands of Investors ready to help provide you with a fast refinance or purchase solution.

The Likelihood of Your Home’s Value Declining

Hard Money Bad Money Not So

In a recent article published in Fortune magazine, there appeared an interactive map of the nation. Each state’s local regions were rated as to the likelihood of real estate values declining over the coming 12 months. Here are the groupings the real estate research firm (CoreLogic) used for the June analysis:

  • Very High: Over 70% chance of a price dip
  • High: 50-70% chance
  • Medium: 40-50% chance
  • Low: 20-40% chance
  • Very low: 0-20% chance

These are the California regions which were rated and their categories:

Very Low: Chico, Modesto

Low: Riverside-San Bernadino-Ontario, San Diego, Redding, Napa, Merced, San Louis Obispo, Santa Maria-Santa Barbara

Medium: Santa Rosa-Petaluma, Stockton, San Jose-Sunnyvale-Santa Clara, Salinas, Bakersfield, Los Angeles-Long Beach-Anaheim

High: Sacramento-Roseville-Folsom, San Francisco-Oakland-Berkeley, Vallejo, Fresno

While the odds of home prices dropping remains low, the housing market is slowing down. The pandemic housing boom may be over, but that does not mean housing prices will drop precipitously, especially in California.

CoreLogic assessed factors like income growth projections, unemployment factors, affordability, mortgage rates, and inventory levels to determine the likelihood of regional home prices dropping. California overall does not appear to fare poorly compared to the rest of the country.  Real estate has continued to be the best investment over the long haul regardless of blips in the economy.

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.  We have been in business over 34 years now, offering private money loans and offering Notes for investors.   Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to find out what we can do for you.

Big, Fast, and Direct – Recently Helped Borrowers!

Wild Ride getting FinancingBIG And FAST With Our Private Money Loans!

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 Speed Lending, just like we did below:

Recently Helped Borrowers

image3

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 with your scenario and we will get back to you with how we can help!

North Bay Real Estate Trends for June 2022

Home Real EstateFor purposes of this report, we are including the counties of Marin, Mendocino, Napa, Solano, and Sonoma.

Inventory at end of June: 2,429 homes and condos (30% over last year; 19% over last month)

Nationally, listings are up 31% over the past year.

There were 1,310 sales in June, which was 30% below last year’s total sales and 12% below last month’s sales.

The ratio of listings whose price was lowered for each county reads as follows:  Sonoma 16%, Mendocino 22%, Napa 23%.

Those counties whose sales were more than the original listing price were as follows: Mendocino 26%, Napa 45%, Sonoma 61%.

Average sales price = $955,270 (+8% YTY)

Median Days on Market = 31 (-26% YTY)

Sales vs. List price = 102% (0% YTY)

What conclusions are we to take from this report? We are not in a free-fall, but real estate has cooled slightly off the frenetic pace we were on for the past couple of years. We are certainly not looking at another 2008, and for good reason. There is plenty of equity in existing homes and inventory is just not plentiful enough to satisfy the demand.

If you need help with your mortgage search, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com. We do fast, private loans considering loan-to-value rather than credit scores.

What Happened in the North Bay Real Estate Market in June 2022?

What Happened in the North Bay Real Estate Market in June 2022?The North Bay cities of Santa Rosa, Petaluma, Rohnert Park, and Windsor showed marked declines in homes and condo sales numbers compared to June 2021, but smaller declines from May 2022.  Here are some sample statistics:

Santa Rosa:

  • Available at end of June = 218 (-24% from June 2021; +28% from May 2022
  • New sales = 184 (-36% from June 2021; -11% from May 2022)
  • Median sales price = $750,000 (+6% from June 2021)
  • Days on Market = 29

Petaluma:

  • Available at end of June = 65 (+30% from June 2021; +30% from May 2022
  • New sales = 62 (-8% from June 2021; = to May 2022)
  • Median sales price = $947,000 (+6% from June 2021)
  • Days on Market = 21

Rohnert Park:

  • Available at end of June = 26 (-21% from June 2021; +1% from May 2022
  • New sales = 37 (-26% from June 2021; -21% from May 2022)
  • Median price = $733,000 (+32% from June 2021)
  • Days on Market = 22

Windson:

  • Available at end of June = 45 (+32% from June 2021; +55% from May 2022)
  • New sales = 27 (-31% from June 2021; -23% from May 2022)
  • Median price = $800,000
  • Days on Market = 24

The rise in mortgage rates has triggered some slowdown in the market, but at this time most economist see this as a “housing correction” not a “housing bust.”  They view the continued lack of available homes for sale to be the factor keeping prices from drastically falling currently.

If you are looking to buy in this ever-changing market, but cannot qualify 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 Borrowers like you in California for more than thirty-four years.

 

We Get Loans Done With Wave-Breaking Speed!

We Get Loans Done With Wave-Breaking Speed!

Our Private Money loan programs offer:

  • Quick Loan Approval
  • Fast Closes!
  • Difficult-to-prove-income OK
  • Credit not an issue
  • See below for our wave-breaking speed, loan of the week!

Local Loan of the Week

Program: Owner-Occupied Bridge Purchase
Loan Size: 739k
Location: Sonoma County
Days to Fund: 6 days!
Why Came To Us: Homebuyer was in Escrow when their conventional Lender turned them down due to last minute debt to income ratios being too high. They needed some wave-breaking speed to fund their purchase, otherwise lose their large deposit and miss out on their dream home.  Within just 6 days, their loan was approved, funded, and keys in hand to their new home!  Needless to say, Buyers were relieved and very appreciative.

Continuing our 34+ year Private Money Lending legacy, we are here if you need us! Visit our website at www.sunpacificmortgage.com or call today: 707-523-2099 with questions or scenarios and we’ll let you know what we can do to help you, a family member, or a friend.

North Bay Real Estate Market and the U.S.Economy

North Bay Real Estate Market and the U.S.Economy

The red-hot North Bay real estate market has responded to the climbing interest rates and growing inflation by slowing sales. For rates to go from 3% to 6% is a shock to the market. The current market still favors Sellers, however.

In the North Bay year-over year property sales in May were down in Sonoma County by 22% (385 homes sold); Napa County 12.1% (105 homes sold); Marin County by 10.1% (178 homes sold). In Solano County sales rose 5.8% with 328 homes sold in May. This increase was not a surprise to CAR Chief Economist, Oscar Wei, who knows that Solano County is the most affordable county in the North Bay.

There is a definite shift in the market. Buyers are realizing that they don’t need to put in an offer on the first thing they see, and there is a decrease in multiple offers and homes selling for more than the asking price. It is note-worthy that the economists see this as a shift to a more balanced market rather than a crash like we witnessed in 2005 to 2012.

In May, 16% of homes in the three counties sold at reduced prices, and by late June that number jumped to 19%. There is a slowdown of both the low end and the high-end Buyers. People are still buying, just not at the frenzied rate they have been in recent years.

Different demographics have influenced the real estate market in recently, but that could be changing. With baby boomers becoming seniors who may be more reluctant to downsize because of higher interest rates, much of the market will belong to the millennials.

We know that there will always be a demand for housing in the North Bay. So, while things may not be as hectic as they have been for the past 3 years, we can relax a bit and welcome the more stable, balanced market that we are experiencing today.

Whether it be a Buyers’ or a Sellers’ market, Sun Pacific Mortgage is here to offer our privately funded loans to those borrowers who need a fast close or have been turned down for a conventional mortgage. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see what we can do for you.

Loan of the Week – Wrangling Up the Best

We’ve Wrangled You Up Our Hot Loan Program!We’ve Wrangled You Up Our Hot Loan Program!

See our recent blog about how Private Money could help aid your next Investment:
https://www.sunpacificmortgage.com/blogs/real-estate-voted-best-investment-eight-years-in-a-row/

Alt-A Hard Money By The Guys in the White Hats

Lower Hard money rates from 7% – 9% with this unique alternative finance program, for Borrowers and Buyers who are just shy of qualifying for conventional or traditional “A paper” loans:

  • Good credit (640 and above)
  • Below 60% Loan to Value
  • Property in good condition and location

Perfect example of why this popular program is so beneficial:

Broker reached out to us for his Home Buyer, who needed a 799k short term loan to buy an investment property in Mill Valley.  Underwriting was unable to provide final approval due to confusions about and LLC as the individual buying entity, despite great qualifications.

Buyer’s credit was over 750, he had a good down payment allowing for 56% LTV, he made great monthly income and had a lot of other real estate assets as well as excess funds in the bank. He was a perfect borrower – except he wanted to buy with his LLC – which is where we were able to wrangle up our unique Alt-A program and help!

If you have any question or scenarios for us, just call 707-523-2099 or visit our website at www.sunpacificmortgage.com.  We will let you know how we can wrangle up the right private money loan program to help.

Are We Looking at Deceleration or Depreciation?

You are probably well aware that houses have skyrocketed recently, but did you know that this has been true for the past 122 consecutive months? Much of this increase was due to the abundance of Buyers and the lack of Sellers. Experts are forecasting ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing, just not as fast as they have been.

Mark Fleming, Chief Economist at First American, identifies a key reason why home prices won’t depreciate or drop:

“In today’s housing market, demand for homes continues to outpace supply, which is keeping the pressure on house prices, so don’t expect the prices to fall.

Experts are forecasting ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing, just not as fast as they have been. The graph below shows home price forecasts from seven industry leaders. Note that none are forecasting prices to fall. 

Are We Looking at Deceleration or Depreciation?Looks like Investors and Buyers alike remain in an outstanding position to make substantial profits from their investments.

Having been in business for 34+ years, we are always looking for new Investors to join our team. Real estate continues to be one of the strongest investments, so if you or someone you know are interested in making up to 9-13% return on investments, 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/

Posts navigation