Every week, Hillary Caston and her team at The Coastal Property Experts look for homes for sale that are of interest. Take a look at the Picks for 7-29-10. To see the full MLS listing information on any of these properties, go to: http://www.thecoastalpropertyexperts.com/Market-Snapshot-Report.php

This week, we highlight 6 homes: 2 Homes for sale in Laguna Beach, 2 Homes for sale in Laguna Niguel, and 2 Homes for sale in Dana Point.

Registered Users of the website get the first look at these properties. To get on the list, be sure to register after clicking on the “Search MLS Listings” button.

33932 Barcelona Pl, Dana Point, CA

33932 Barcelona, Dana Point Homes for Sale

Priced at $1,849,000

$307.81/Sq.Ft.

The layout of this home is a little “unique”; however, the extras on this Dana Point home for sale are incredible: gameroom,

Guest/Maid quarters, Photo Lab/Dark Room/ Wine Cellar

Workshop, Media/Music Room/Game Room, Unfinished

Basement, Exercise Room, Au Pair Suite, Pool&Spa,

4-car garage (which can fit an RV)  and more!

The home is 6007 SqFt and sits on a 9500 SqFt Lot.

32512 Azores Rd, Dana Point, CA

32512 Azores, Dana Point Homes for Sale

Priced at $1,699,000

$536.47/Sq.Ft.

Single Level Custom home in Monarch Bay Terrace.

More than 1/3 acre lot size with a 3167 SqFt Home

715 Marlin, Laguna Beach, CA

715 Marlin, Laguna Beach Homes for Sale

Prices at $2,130,000

$495.35/Sq.Ft.

4300 Sq. Ft. on a 9000 Sq. Ft. Lot

Ocean Views and a Master with Fireplace

232 Chiquita St., Laguna Beach, CA

232 Chiquita, Laguna Beach Homes for Sale

Short Sale Priced at $1,200,000

$571.43/Sq.Ft.

Ocean view remodel with 3 Beds/4 Baths

2100 Sq. Ft. on an R2 lot that has a 1/1 rear unit that currently rents for $1400/mo

31941 E. Nine Drive, Laguna Niguel, CA

31914 E Nine, Laguna Niguel Homes for Sale

Priced at $1,050,000

$ 368.42/Sq.Ft.

Gated community of Links Pointe with views of El Niguel Country Club Golf Course

4Beds/3Baths/2850 Sq. Ft. on a 7560 Sq.Ft.Lot

14 Palisades, Laguna Niguel, CA

14 Palisades, Laguna Niguel Homes for Sale

Priced at $1,195,000

$ 497.92/Sq.Ft.

Ocean views on a single loaded cul-de-sac

4 Beds/3 Baths / 2400 Sq. Ft.

In their first U.S. Foreclosure Sales Report, RealtyTrac reported that 31% of all residential home sales in the first quarter of 2010 were in some phase of the foreclosure process. These include homes for sale in default, where an NOD had been filed by the lender, or those that were already taken back by the bank and labeled “REO” or Real Estate Owned.

In comparison, the percentage of homes sold in the first quarter of 2009 that were in the foreclosure process sat at 37%. More than 1.2 million U.S. properties that sold in 2009 were in some stage of the foreclosure process.

On average, buyers who purchased a home for sale in a foreclosed status paid 27% below the average sale price of properties that were not in a distressed status.

The report noted that “Discounts on REOs are larger than discounts on pre-foreclosures, although discounts on pre-foreclosures appear to be trending higher as short sales become more common.”

There are a couple of points to keep in mind as you look at these numbers:

• The statistics reflect a large area: the entire country or an entire state. They are not broken down by County or City.
• In California, for example, the number of distressed properties in the Inland Empire where there was a large amount of investment owned properties, was higher than in some of the coastal areas such as Laguna Beach.
• In areas where there was a high percentage of vacant, REO homes and those in foreclosure, the banks may have been more motivated to close the sale on the property so that their exposure in the area was lessened.
• It may have been more financially beneficial to use the government TARP money to make deals in these higher-risk areas.
• The number of REOs may decrease in future reports. Lenders have indicated that they are more inclined to work with a short-sale home for sale  situation than to take on all the added costs involved in an REO, such as attorney fees.
• Sellers of non-distressed properties are becoming more educated about their need to price their homes according to where the market is today, not what it was a couple of years ago. Many realize that they are competing with distressed properties for buyer’s money. So, keep your eyes on both “regular” and distressed properties. After all, a good price is a good price, no matter what the situation of the seller!

 Read the full report:

In another, related report, the top 50 cities were listed that had the greatest price reductions…Orange County Homes and Laguna Beach Real Estate were not on that list! On average the top 50 areas included saw average reductions from 7%-26%. The city with the most drastic reductions, which is really no surprise, was Detroit. No ocean view there!

One note to keep in mind as you look at price reductions. There are always 2 reasons for the price reductions. 1) Economically, the market has determined that the home is worth less than what seller has priced it at and 2) The seller decided to initially price the home at a higher rate than what the current market deemed appropriate – this is more a case of seller denial of current market conditions rather than an indication of overall market conditions.

It’s a very slight difference in perception, so just be sure that you don’t simply get caught up in the statistics and numbers. They can be used as a guide, but in the end, what you determine to be the perfect home and the perfect price is up to you.

As always, I invite you to allow me help you with any questions that you have. Those that have worked with me know that I’m a no B.S. straight shooter. If a home that you are interested in is overpriced – I will tell you. Similarly, if a great deal is out there I will enthusiastically share it with you!

Just Contact Me!

Until next time…

All have come onto the market in the past 2 weeks and have already dropped in price! These are priced between $875K and $1.1Million.

For all Orange County Real Estate, click through to the website

29672 Novacella, Laguna Niguel

Originally Priced $1,199,000

Reduced to $1,045,000

4 Beds / 3 Baths with a pool

3400 Sq. Ft. on a Cul-de-sac

MLS# S624640

27696 Manor Hill Rd., Laguna Niguel

Short Sale

Originally Priced $ 1,149,000

Reduced to $1,099,000

4 Beds / 4 Baths

3573 Sq. Ft.

MLS# S624005

35 Brownsbury Rd., Laguna Niguel

Originally Priced $ 895,000

Reduced to $ 875,000

Located in Ocean Ranch

4 Beds / 4 Baths

2784 Sq. Ft.  with Main Floor Master with Fireplace

MLS# S623963

14 Saint Paul Ln, Laguna Niguel

Originally Priced $ 949,000

Reduced to $899,000

Owner may carry with 10% and good credit

3 Beds / 4 Baths

2784 Sq. Ft. in Beach Brand Ocean Ranch

MLS# S624397

According to the California Association of Realtors (C.A.R.), the median price of a home in May increased 23.2%, while home sales increased 1.2%. It will be interesting to see the June numbers now that the Tax Incentive Adjustments have been made. Many believe that these numbers will show an expected decrease.

“Home sales posted their third largest increase on record for May, due in part to first-time home buyers who timed the open and close of escrow in order to capitalize on both the federal and state tax credits,” said C.A.R. President Steve Goddard. “May also marked the fifth month of double-digit gains in the median price, indicative of strong buyer demand relative to the supply of homes for sale. With a 4.6-month supply of homes for sale, unsold inventory continues to be well below the long-run average of seven months, and will continue to drive price appreciation over the next several months.”

Here are some Quick Facts for Home Sales in the State of California:

• Existing, single-family home sales increased 1.2 percent in May to a seasonally adjusted rate of 552,800 units on an annualized basis compared with May 2009.
• The statewide median price of an existing single-family home increased 23.2 percent in May to $324,430, compared with May 2009.
• C.A.R.’s Unsold Inventory Index remained unchanged at 4.6 months in May.

When looking at Peak Prices vs. Current Prices for May of 2010, here are the stats for our area:

“The number of escrows opened in May fell 16.9 percent compared with April. This was consistent with our expectation that activity may decline once the federal tax credit deadline had passed, “said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Although there may be a lessening of demand compared with the first half of this year, the number of escrows opened on a year-to-date basis is about the same as last year, and sales for all of 2010 will be on a par or slightly below last year.”

How Long Are Homes on the Market Before they Sell?

The CAR report shows that the average time on the market for the median priced home sits at 4.6 months. However, with homes for sale in Laguna Beach, you have to remember that the median price of a home in this area sits closer to $1 million dollars, so the average time on market is going to be higher than the median for the state.

Unsold inventory*:

 *The Unsold Inventory Index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

How Do Mortgage Rate Compare to Last Year?

Mortgage rates, as a comparison, during May 2010 averaged 4.89%; compared with 4.86 in May 2009.

Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for the month of May could be exaggerated due to compositional changes in housing demand.

How Do Laguna Beach Homes for Sale Compare with other Cities in the State?

Statewide, the 10 cities with the highest median home prices in California during May 2010 include:

• Manhattan Beach – $1,555,000
• Los Altos – $1,500,000
• Saratoga – $1,435,500
• Palo Alto – $1,293,500
• Palos Verdes Estates – $1,262,500
• Newport Beach – $1,100,000
• Los Gatos – $1,087,500
• Laguna Beach – $960,000
• Mill Valley – $945,500
• Lafayette – $928,500

 Disclaimer

* Based on closed escrow sales of single‑family, detached homes only (no condos).  Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home.  Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.

This is what we have been saying for a while. While the majority of homes that sold during previous months may have been priced in the $200-$500K range (just as an example), homes now may be selling in the $500K+ range. The lower price ranges may reflect a 1500 square foot home where now the homes may be 2000+ square foot in size. So to some extent, you are not comparing apples to apples.

 Read the Full Story:

Until Next Time…

We have talked often about getting your financial ducks in order before hitting the pavement to find your Laguna Beach Dream Home for Sale. It’s always nice to look and dream about a life at the beach. But it’s even nicer to make that dream a reality.

I know that it’s hard to look past the forest of economic news that is in front of you and see the opportunities. But the fact remains that we are seeing prices of Laguna Beach Homes for Sale that were last seen in 2002! Plus, the interest rates remain at historically low levels.

Lenders are more cautious with some of their underwriting criteria for various reasons. Don’t let this keep you from doing what you can to position yourself to grab your dream home when the right opportunity and circumstances collide.

One of the entry level thresholds of obtaining a loan has always been your credit score. Understanding what is factored into this score will help you to create habits that will give you the best chance at the highest score available for you. Here are just a few tips:

• Bill payment history accounts for about 35% of your FICO Score. Paying your bills on time each month is important.
• Outstanding debt accounts for about 30% of your FICO Score. This is an interesting mix. The lenders want to see that you have other credit and you know how to use it wisely, but they don’t want you to use too much of it by maxing out your cards. Most experts advise to use less than 30% of the total credit limit. For example, if you have a credit card with a $5000 limit, then keep your balance at or below $1500. Unfortunately, if you have a card that you max out but pay off in full each month, it doesn’t always reflect in your favor on your report, even though paying the balance in full each month is a good practice. If you plan to apply for a loan in the near future, start getting your credit balances down to favorable levels.
• Credit history accounts for about 15% of your FICO Score. So if you are just starting out, you won’t get too many points here. However, it is a small percentage of the total score.
• The remaining 20%…well, that’s still a bit of a mystery!
• Don’t apply for too much credit in a short period of time since it may look as if you are desperate. If you are shopping for a loan, you get a little break since credit pulls from mortgage companies over a period of several days will count as a single credit inquiry.
• If you have been approved for a home loan, don’t make any major purchases, additional credit inquiries, or changes to your credit report. Lenders are pulling credit reports for approved borrowers right before they fund the loan (which could be after you have signed loan documents and think that it’s all over but the singing). Don’t get caught with your household belongings in the moving van and no place to go!

The good news is, wherever you are at right now in terms of your credit score, credit scores are salvageable. With the right information about what will give you the most bang for your buck, and a little determination, you can get your score to a level that the banks will approve.

Take action today with the following steps:

• Get a copy of your credit report. Call your lender and have them pull it for you or get a copy from the credit companies for free.
• Take the time to review the information to make sure that it is accurate.
• Correct any errors by writing to the credit bureaus and notifying them that there is an incorrect item on your report.
• Finally, make a list of steps that you will take to improve your score (i.e.…start paying bills on time, reduce the balances to less than 30% of the limit per company)
• Take action on the steps, little by little, consistently, each week.

Remember…nothing happens until something moves…so, get moving!

See you at the beach!

Until next time…

1) Information on 8 Home for Sale in Laguna Beach that have had significant price reductions since they were first listed. Many of these are priced under $1 Million which can be considered a fabulous deal for this coastal beach community in Orange County.

2) From our archives of information, we pulled up an article from 2008 discussing what real estate REO and Short Sale investors were looking for at that time…what they considered to be a bargain when buying a home for sale.

Price Reductions: If you would like to see details on any of these Laguna Beach Homes for Sale, click through to the website.

Discover What Some Real Estate Investors Consider to be a Bargain:

I have often mentioned that we are seeing prices in Laguna Beach that haven’t been seen since 2002 – this is good news for buyers. Add to that, historically low interest rates and you should keep your eyes open for your next home.

I ran across an interesting article that appeared in Investor’s Business Daily in July, 2008. The article was titled “Investors Hunt for Bank-Owned Property Bargains in Packs”. The article explained how investors were pooling their money to buy defaulted loans in bulk directly from the banks rather than trying to negotiate properties just one a time, a process which they felt was too pricey, and too slow.

The interesting thing was what these investors were looking for in regards to price rollbacks. It stated, “Some want only homes with prices cut to 2001 sales values…People who have cash positions now are going to do very well….”

So where are these investors looking? “Some investors say a key to this type of purchase is focusing on spots with strong rental markets. Some buy strictly in the Sun Belt – Texas, Florida, California – citing the region’s long-term desirability”

Location is always important in real estate. You may be able to get a lot of house in a place such as the Inland Empire; however, the better value may be near the coast.

In the past, the entry level cost of a home in this area has pushed people further inland for a home purchase. What was true in the past may not be true today if you are paying attention to the prices.

Keep your eyes open for your opportunity and if our team can be of assistance to you, give us a call.

Here are just a few homes new to the Laguna Beach Real Estate market since the beginning of the month. Do any of these spark your interest?  2 Emerald Bay Beauties, a Plantation inspired REO in “The Loop”, and an Ocean Close lot with approved plans for a Gregg Abel cottage reminiscent of “Old Laguna”.

Click here now to see all the details for these homes!

21056 Laguna Canyon Rd, Laguna Beach:

Listed at $969,000

Large, 13,740 Sq. Ft. Lot, with main house and studio apartment

200 Fern St., Laguna Beach:

 Listed at $899,000

Secluded lot with plans in Woods Cove

1316 Cerritos Drive, Laguna Beach:

 Listed at $1,149,000

4 Bedroom Temple Hills Home

3035 Bern Drive, Laguna Beach:

 Listed at $1,329,000

Single Story pool home with views on a 28,350 sq. ft. lot

974 Del Mar Avenue, Laguna Beach

Listed at $1,995,000

Panoramic Views from this 3300 Sq. Ft exquisite home

723 Emerald Bay, Laguna Beach

Listed at $3,995,000

Soft European influences adorn this 4 Bedroom home

73 Emerald Bay Drive, Laguna Beach

Listed at $10,995,000

5 Bedrooms / 7 Baths and prime Main Beach location

Newly constructed in 2008

31302 Monterey Street, Laguna Beach

REO Listed at $1,400,000

Period charm throughout this 2222 Sq. Ft. Home for Sale

Included in H.R. 5623, the Home Buyer Assistance and Improvement Act that is headed to President Obama’s desk for signature, is an extension to September 30, 2010 for those transactions to close escrow and qualify for the tax credit. Many buyers were experiencing delays in getting their loans finalized. Part of this was attributed to the increase in the number of loan applications and lenders being short-staffed; while others are entangled in the short sale process which often involvs a little more time than a traditional equity sale. See More….

Other items that the Bill provides include:

• Enhanced information sharing that would prevent prisoners from claiming the Homebuyer tax credit;
• Applying a bad check penalty to electronic checks payable to the IRS;
• Modifying the Travel Promotion Act of 2009 to extend the authority of the Department of Homeland Security to implement fees that they project will reduce the deficit by $95 million over 11 years.

To read the full text of the Bill: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.5623

If you would like a complete property profile, simple CONTACT US - be sure to reference the MLS# and we will email a complete Agent Report to you.

Duplex in Capistrano Beach

This could be an opportunity to live in one unit and rent out the other. There have been over $220K in upgrades done to the upper level.

Capo Beach Duplex for Sale on the Sand

MLS# S621982

$4,399,000

8 Beds / 6Baths / 3491 Total Sq. Ft.

Duplex on the sand

Cape Cod Style Home in Monarch Beach

Cape Cod Style Dana Point Home

MLS# S621806

$975,000 – $1,075,000

3 Beds / 4 Baths / 2302 Sq. Ft.

Just steps to the sand in Dana Point

Short Sale in Monarch Beach

Dana Point Short Sale in Monarch Bay

MLS# U10002765

4 Beds / 4 Baths / 3312 Sq. Ft.

Short Sale $1,950,000

Cape Cod Style Home and Guest Casista on 16,500 Sq. Ft. Lot

Short Sale in Laguna Beach:

Laguna Beach Commercial Zoned Home for Sale

MLS# S621296

4 Beds / 3 Baths / 2898 Sq. Ft.

Short Sale $1,900,000

Historic Storybook Castle – zoned commercial, currently used as a residence. Enjoys Mills Act property tax reductions.

Please let me know if you need additional information on any of these properties. I would be happy to send you a property profile report.

22825 Channel View, Laguna Niguel Homes for Sale

22825 Channel View, Laguna Niguel 

 Price Range $2,499,000 – $2,899,000

6 Beds / 7 Baths with 6694 Sq. Ft.

29 Coronado Point, Laguna Niguel Homes for Sale

29 Coronado Pointe, Laguna Niguel

Priced at $1,111,000

This is an REO with US Bank

Assessed Value is $1,416,891 from about 2006

4 Beds/4Baths with 3429 Sq. Ft.

21 Le Conte, Laguna Niguel Homes for Sale

21 Le Conte, Laguna Niguel

Priced at $2,699,900

This is a Fixer with great potential and incredible

Ocean and city lights views

6 Beds / 6 Baths with 4820 Sq. Ft.