Investing / Real Estate Investor

Reasons We Are Not in a Housing Bubble

Reasons We Are Not in a Housing Bubble

With home values appreciating by 10% in 2020, there has been some speculation that we might be in a housing bubble such as we were a decade ago.  California residents, fear not!  Here are some incredibly significant facts that this time is not like the past:

  • Housing supply is extremely limited:  If supply is low, prices naturally increase.  Normal months of inventory for the market is 6 months.  Between 2006-2008 the supply of inventory was just over 5-11 months.  Today it stands at 1.9 months – an historic low.
  • Housing demand is real:  In the mid-2000s, people bought houses based on an unrealistic belief that housing values would continue to escalate.  The mortgage industry fed into this craziness by making mortgage money available to just about anyone.  In the present real estate market, demand is real, not fabricated.  The health challenge has defined the meaning of “home” and people are re-evaluating their current home needs leading many to sell and move to larger properties.
  • This time households have plenty of equity:  In the mid-2000s, people were using their homes as ATM machines, leaving many homeowners with little or no equity in their homes at a critical time.  As prices began to drop, some homeowners found themselves in a negative equity situation.  Many defaulted which led to a flood of foreclosures.  Today according to Census Bureau data, more than 56.7% of all homes in this country have a minimum of 50% equity.

What can we take from this examination of the present housing market?  With California housing supply at an historic low, demand high and ample equity, homeowners living in pretty much every county of California do not have to fear that we will repeat the mistakes of the last decade.  According to the experts, the real estate market is not going to experience a repeat of the 2008 fiasco.

Investing / Real Estate Investor

California Counties Home Prices Continue To Climb

Bay Area Second Quarter Home Prices

The growth in prices for homes in these major metros has been astonishing compared to last December.  Homeowners who held onto their homes have been rewarded with hefty increases in sold prices.  Still, the supply of pending sales is down.  Let’s look at some of the major metro areas’ statistics:

  • Metro LA:  In December, average house prices fell 0.8% to $625,250 (still 13.7% higher than December 2019.   Home sales rose 14.3% from last month.
  • LA County: Average house prices rose 6.8% to $709,500 from $664,160.  Home sales were up 30.5% from December 2019.
  • SF Bay Area:  December average home prices were up 53.8% from December 2019 at $1,058,000.  Sales of houses rose 40.2% from December 2019.
  • San Francisco: Average house prices fell 6.9% to $1,581,000.  Sales increased 53.8%n from December 2019.
  • San Diego:  Home prices fell to a new median price of $730,000.  Sales rose 30.3% from December 2019.
  • Orange County:  Home prices rose 2.2% to $950,000.  Sales rose 25.1% from December 2019.
  • Sacramento:  Home prices fell 0.1% from the previous month to an average of $442,250.  Sales rose 1.6% from the last month.
  • Monterey:  Home prices fell 0.1% from the previous month to an average of $785,000.  Sales rose by 1.6% from last month.

Pending sales leveled off from the rampant pace in late summer, but overall, there was a significant increase in home values and a continued lack of inventory.

If you are looking to invest in real estate this year – as a home buyer or landlord – get ahead of the race by consulting a mortgage broker to see what you can afford and secure pre-approval.  If you want faster financing or don’t qualify for a conventional loan, Sun Pacific Mortgage is here for you with private financing.  Give us a call at 707-523-2099 to learn about our many lending programs that can help your dream of homeownership come true.

Investing / Real Estate Investor

San Francisco & North Bay Real Estate Market – review of Jan.2021

Real Estate Market Results for San Francisco Peninsula Areas

Sonoma, Marin, and Napa Counties have seen unprecedented sales numbers since the Spring of 2020. Pandemic conditions which resulted in remote working and distance learning has created a surge of demand for larger homes and bigger lots.

Many San Francisco and Silicon Valley homeowners have found the answers to their search for a more compatible living arrangement in the North Bay.  January real estate statistics present a picture of what happens when there is a rush on single family properties and extraordinarily little inventory.


  • New escrows: 193 (down 27% from 1/2020)
  • New listings:  207 (down 45% from 1/2020)
  • Sold:  308 (up 34% from 1/2020)
  • Inv. As of Feb.1: 458 (down 28% from 1/2020)


  • New escrows:  106 (up 17% from 1/2020)
  • New listings: 106 (down 17% from 1/2020)
  • Sold:  140
  • Inv. As of Feb.1: 139


  • New escrows:  52
  • New listings:  55 (down 46% from 1/2020)
  • Sold:  69
  • Inv. As of Feb.1:  188

It is expected that the immense demand for homes from buyers coming from more urban areas of California will continue and possibly even escalate going into the first half of 2021.

If you need a fast close or do not qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 to obtain a privately funded mortgage.  We have helped thousands of folks just like you over the past three decades we have been in business in California.  Our private money financing can be quite beneficial.

Investing / Real Estate Investor

Real Estate Experts Biggest Housing Issues for 2021

Real Estate Experts Biggest Housing Issues for 2021

A survey was conducted in the fourth quarter of 2020 of real estate professionals to determine the biggest stumbling blocks to growth in 2021.The following are some of the key trends they see as potential difficulties:

  1. Inventory shortages:  With levels down 22% from the previous year, this was the main concern of 84% of those surveyed.
  2. Widely distributed vaccines to boost consumer confidence:  Even with the availability of the vaccine, the market could remain highly competitive given the starting point of the market going into 2021. Good for sellers, not so much for buyers.
  3. Low mortgage rates:  Renters are speeding up their home buying, and older adults are deciding to downsize sooner.  This will add to the buyers and sellers for 2021.
  4. A permanent move to remote work:  This factor was especially a weighted issue in California where the trend has been felt already in 2020.  The professionals see this as a continuing trend in 2021.
  5. Affordability challenges persist:  Finding down payments has been one of the biggest obstacles to homeownership.  This challenge will persist into 2021, although some experts are optimistic that expected tax credits may help.

Despite this mixed bag of good news/bad news, the experts remain largely confident that the real estate market for 2021 looks as promising as last year’s surprising outcome.

And for those who live in California or are considering to move to one of the beautiful coastal counties of California such as Monterey, Santa Barbara or San Diego, If you are looking for help in funding your real estate investment this year but are finding stumbling blocks when applying with conventional lenders, give Sun Pacific Mortgage a call at 707-523-2099.  We have helped thousands of borrowers just like you over the past 33 years to find private investors who are eager to invest in you and your dreams.

Investing / Real Estate Investor

What Does Low Inventory Housing Mean to You?

What Does Low Inventory Housing Mean to You

Lack of inventory has been the one constant throughout the real estate market for the past several years.  Depending on whether you are a buyer or seller, this will be a significant factor in how you deal with the process.

If you’re a buyer, it may take time to find the right home for you.  Be patient.  Once you do find your dream home, be ready to move quickly.  Get pre-approved for a mortgage, make a competitive offer, and prepare for a possible bidding war.  Know just how far you can safely go to secure a home and trust your real estate agent to have knowledge you might not have.  Also, consult with your local lender and determine the max amount you could afford for a purchase.

If you’re a seller, know that you are, in some ways, in the driver’s seat.  With the shortage of inventory, you are in a good position to negotiate the best possible terms.  You have the advantage of determining price, moving date, possible repairs, or anything else with the potential buyer.  Don’t be unreasonable but understand that you probably have the upper hand.

According to the experts, real estate will remain a strong factor in the economic climate going into 2021 and 2022.  If you are hampered by challenging circumstances, such as difficult to prove income, weak FICO scores, or are just in a hurry to close a deal, give Sun Pacific Mortgage a call at 707-523-2099.  We specialize in private lending mortgages for precisely these situations.

Investing / Real Estate Investor

Investing In Deeds Of Trust Brings Higher Return

Investing In Deeds Of Trust Brings Higher Return

To many a naysayer’s surprise, the 2020 real estate market boomed.  Prices rose, sales increased, and investors continued to grow their wealth.  In a recent article I found in Realtor Magazine, Lawrence Yun, Chief Economist at NAR, stated that even as early as August, 6 million existing and new home sales were recorded in the United States.  From our own data reports on various counties in California, we have seen exponential sales growth from San Diego to Mendocino and beyond.

Just looking at San Francisco County for December, we find double the number of properties listed since 2019.  In addition, more than half the single-family homes sold last month closed well over asking price.  With inventory remaining low for the foreseeable future, prices should continue to rise ensuring a healthy accumulation of investors’ wealth.

We have found similar data in December for the San Francisco Peninsula where homes only stayed on the market anywhere from 18-38 days and prices rose again month-to-month.

In Orange County September sales of existing single-family homes was up 30.6% over last year and the median price rose 10.8%.

In Los Angeles County for the month of September the median sales price increased 5.7% over 2019.  In Marin County, Napa County and Sonoma County for November the data was even more encouraging.

At Sun Pacific Mortgage we see investors more eager than ever to supply private money to borrowers seeking a loan.  And why not?  Surely real estate has proven to be the best long-term (and even short-term) investment for many portfolios. A trust deed investment means that you are not involved in the day-to-day operations of your property with all the headaches that can bring.

Unlike the stock market where you are never certain where your capital is from day to day, real estate has proven over the decades to be a solid investment, and remember, it is the only one you can live in!

So give us a call at 707-523-2099 or reach us through our website at  We’ll be happy to explain how we work and how you could start earning greater returns on your investments.

Investing / Real Estate Investor

Real Estate Continues To Be A Great Investment

Real Estate Continues To Be A Great Investment

For a variety of reasons, the predicted recession of 2020 never affected the real estate market segment anywhere in the United States, but particularly in California.

Back in March there was much “gloom and doom” with a tsunami of foreclosures expected as we sheltered in place.  Instead, a housing boom has emerged in many of the top counties of California including Sonoma County, San Francisco and the Peninsula areas of San Mateo & Santa Clara Counties.  All with appreciation exploding and homes being swept up in record time!  You just need to ask a homebuyer from this past year how easy it was to find and procure a home, given the stiff competition and lack of inventory.

We have definitely seen a V-shaped recovery in the real estate market as opposed to the other shaped recoveries, i.e., U-shaped, W-shaped, and    L-shaped.   Even early in the pandemic, the WSJ polled its economists and found that 68% predicted a V-shaped recovery for real estate.  Nevertheless, some naysayers persisted in believing and predicting a real estate crash akin to the last one.  And yet August sales for both existing and new homes hit their highest mark since 2006.

This winter, when we generally expect to see a slowdown in real estate sales given the holidays and bad weather, instead we saw an increase of 30% in mortgage applications for home purchases.  Also surprising was the increase of 11.4% in home values nationwide and an even greater increase in California.

While the stock market has seemed like a dizzying rollercoaster ride this past year, the real estate market has had a steady ascent.  Investors looking for a haven for their wealth, have turned to the real estate market in greater numbers than ever.

If you have ever thought about adding real estate to your retirement portfolio, this may be the ideal time to do it. Want more than 7-9% return on your investments? Deeds of Trust can help you achieve this!

Give us a call at 707-523-2099 to become one of our trusted private money investors.  It’s a great way to expand your wealth in property and become a land baron without the hassle of being a landlord/landlady.  We have 3 decades of experience as a family-owned-and-operated private money broker while maintaining a sterling reputation with buyers and investors alike.

Investing / Real Estate Investor

How Did North Bay Real Estate Market End The Year?

How Did North Bay Real Estate Market End The Year

Recession?  What recession?  This word has alluded the real estate market since early spring.  We have only to look at December’s North Bay market numbers to see that there has been little to no effect on the real estate segment in Sonoma, Marin, and Napa Counties.  Here is proof based on data points from the North Bay MLS as it relates to single family homes:


  • Sold:  355 (up 35% from 2019)
  • New Listings:  179
  • Closed Escrows:  421 (up 31% from 2019)
  • Remaining listings December 31:  500 (down 22% from 2019)


  • Sold:  146 (up 68% from 2019)
  • New Listings:  57
  • Closed Escrows:  238 (up 35% from 2019)
  • Remaining listings December 31: 154


  • Sold:  79
  • New Listings:  38 (down 22% from 2019)
  • Closed Escrows:  128 (up 42% from 2019)
  • Remaining listings December 31: 183

These statistics would seem to confirm the trend toward deurbanization that we have witnesses since the spring this year.  More homeowners in the core Bay Area metropolises are seeking space and homes that allow for work-at-home and remote schooling.   Add to this wish list the desire for more outdoor space and you have the directions to the North Bay real estate market.

If you are thinking of making a move anywhere in California, but cannot qualify for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099.  We have helped thousands of folks just like you over the past three decades to obtain private money loans and land their dream homes.

Investing / Real Estate Investor

Sonoma County Real Estate Kicks Off In 2021

Sonoma County Real Estate Kicks Off In 2021

If there was ever a question regarding the health of Sonoma County’s real estate market, it was answered during the 2nd week of January 2021.

Based on information obtained from MLS data, here are some solid facts to confirm the upward trajectory of the market just as the year is jetting into 2021:

  • Active Listings:  557 over the 554 the previous week.
  • Sold:  78 over the 71 the prior week.
  • Coming Soon:  20 over 17 in the previous week.
  • Santa Rosa Active Listings:  256 which is just about level with the previous week of 257.

With strong demand from buyers, sellers can be assured of a quick close to their listing.  Call your real estate agent soon to get started on your way to finding a path to financial security and a better life.

And, for anyone who is having slow mortgage approval through conventional lending institutions, private money could be the temporary solution!  Our family company of 33 years has various private money loan programs and we stand ready to answer any questions and get you fast financing to buy that home.

Investing / Real Estate Investor

Housing Market Forecast: What’s Ahead in 2021?


Even the experts were surprised by the growth in the California housing market during 2020.  Almost every county had rising real estate values & sales including Sonoma County, Napa, Marin, Monterey, San Mateo and San Francisco. The big question now is:  What will the market look like in 2021?  Here are some of the facts that drove the market this past year and how they may play out in 2021:

  • One of the driving forces this year has been the low interest rates.  The good news is that rates will remain low for the foreseeable future.
  • Home sales are predicted to grow by 7% in 2021.  Some of this increase will be the result of a stronger inventory supply.  Homeowners who hesitated to sell this year will feel more confident once the pandemic restrictions are loosened.
  • Home prices are projected to appreciate 3-4%.  The somewhat slower pace of appreciation compared to 2020 may be the result of a more balanced market.  When inventory rises, prices will accelerate at a steadier pace. And with many new homes being in both Northern California and Southern California, you can bet this will be the case.
  • Foreclosures should not lead to price declines.  The new year 2021 should see some improvement as businesses get back to a more normal condition.  Experts don’t expect to see the foreclosure crisis we saw in 2008.   According to Lawrence Yun, Chief Economist at NAR:
    “Any foreclosure increases will likely be quickly absorbed by the market.  It will not lead to any price declines.”

Despite everything that happened this year, the real estate market not only survived but thrived and played a big role in our California economic recovery.  The next 12 months are just as promising.  Buyer traffic is predicted to stay high and inventory levels are expected to rise.

If you saw your FICO score decline during these past months, or are self employed with difficult to prove income or having some other difficulty with mortgage approval to or refinance property, give Sun Pacific Mortgage a call at 707-523-2099.  We offer private money financing on real estate to borrowers who want fast financing or do not qualify for conventional loans at the moment.  We may be able to help you, too.

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