As we continue to watch the real estate market to determine if now is a good time to buy a home, let me share some current information with you to help you decide if it is time to buy a Laguna Beach Home or other property in South Orange County, California.
A recent report by First American CoreLogic list California as #5 of the list of states where mortgages are “underwater”, indicating that 35% of homes with a mortgage in the state have mortgage balances greater than the homes current value. The list is as follows:
- Nevada – 65% underwater
- Arizona – 48% underwater
- Florida – 45% underwater
- Michigan – 37% underwater
- California – 35% underwater
Now, before you are tempted to enter a doom-and-gloom state of mind about the nation’s economy, be sure to note what all these states have in common. Do you know?
For those that have been following real estate for the past 8 years or so, you will recognize that these are the same 5 states that had the greatest gain in value during the housing boom. Nevada, Arizona and Florida had a lot of investor activity; Michigan has been affected by a loss in their jobs base; and California had a combination of heavy investment activity in the inland areas and current job struggles in some sectors.
This works out to about 5.3 million U.S. household with mortgage at or close to being underwater, owing at least 20% more than their home is worth. However, this same report also indicates that nearly 24 million U.S. homeowners have no mortgage at all.
But as you breakdown the numbers, you will also see that certain cities and certain price points may be toying with the idea of stabilizing. It is this part of the information that may help you decide if it is time to get off the fence if you are considering properties in Laguna Beach. From a report issued by the reporting agency, Altos, Laguna Beach Condos may be worth watching.
As stated in relation to supply and demand, “Home sales have been exceeding new inventory for several weeks. However because of excess inventory, prices have not yet stopped falling. Should the sales trend continue, expect prices to level off soon and potentially to resume their climb from there. Watch prices as the market transitions from a Buyer’s market to a Seller’s Market.”
Translated, that means that people are buying Laguna Beach Condos. It is still a buyer’s market, but as the number of condos available changes, where there are fewer available and more willing buyers, the market trend could shift to favor sellers.
I’m also attaching a few properties of interest to this blog entry. From an interesting Tri-plex opportunity for the investors among you, an Auction-ready estate, to beautiful, deeply discounted resort-styled properties.
To look at more details on any of the homes, visit our website at: http://www.thecoastalpropertyexperts.com/available-listings.php
So what do you think?….could the purchase of a Laguna Beach Condo be a good investment right now?
Until next time…
360 Y Place, Laguna Beach
This is a single family detached home that is shown as a triplex that
has been used as a single family home for the last 10 years.
Perhaps you could put it back into use as a triplex rental…or
continue to use it as your own single family home.
Either way, this short sale property has just been reduced and
is now less than $1million – currently priced at $990K
28 Monarch Beach Resort, Dana Point MLS# U9003719
AUCTION! This short sale is in the Must Sell Auction Program and could fulfill
your dreams of resort-style living for a reduced price of $1,699,000.
Located adjacent to the St. Regis Monarch Beach Resort, you have
direct access to all resort amenities including golf, pools, golf, fitness,
Spa Gauchin and restaurants. Luxury living…bargain priced!
31423 Coast Hwy #55, Laguna Beach MLS# L31206
Attached condo just reduced $100K to $1,499,000 enjoys fabulous
Catalina Island and Ocean views. Located in Laguna Royale.
625 Avenida Acapulco, San Clemente MLS# S594287
An entertainer’s delight, this remodeled Palacio Del Mar home
has been reduced $124,000 and is now listed at $1,175,000.
1987 Port Trinity Circle, Newport Beach MLS# L24556
Originally priced at $5,200,000, this home is now listed at $3,995,000.
Located on a double lot of 17,000 square feet, in one of the most sought
after cul-de-sacs. Retractable glass walls open completely to reveal a
resort-style backyard.
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