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385 Flora, Laguna Beach Homes for Sale

385 Flora, Laguna Beach

Listed for $1,875,000

Enjoy this fully remodeled Tuscan home in the village close to the beach and shopping. Features include gourmet kitchen, great room, library or office, 2 car garage is now a fifth bedroom. Read More…

825 Buena Vista, Laguna Beach Homes for Sale

825 Buena Vista, Laguna Beach

Listed for $2,450,000

In the Village with amazing coastal white water views, Catalina and city lights! Stunning remodeled home features 3 or 4 bedrooms and 3 baths. Prime location overlooking Laguna Village and coastline.  Read More…

1402 Emerald Bay, Laguna Beach Homes for Sale

1402 Emerald Bay, Laguna Beach

Priced at $3,995,000

Experience the Emerald Bay lifestyle while maintaining the ultimate in privacy from this beautiful remodeled ocean view home. Situated on an oversized lot (approx 10K sq. ft) and resting on one of Emerald Bay’s quiet, cul-de-sac streets. Read More… 

31351 Holly, Laguna Beach Homes for Sale

Are you sorry that you missed the $8000 Tax Credit?

For example, the average interest rate in the Month of April, prior to the deadline, was 5.34%. A borrower with a 30 year fixed rate on a $280,000 mortgage would pay $1561.82 per month. If that same borrower were to purchase in May with an average interest rate of 4.625%, that payment would be $1439.59 per month. This is an annual savings of $1467 which over 30 years result in savings of over $44,000. That’s quite a bundle!

“In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” said Lawrence Yun, chief economist for the National Association of Realtors.

Borrowers who wanted to take advantage of the credit have now purchased. Some describe these as “borrowed buyers” who would have normally purchased over the course of the summer months, concentrating buying activity into a set amount of time. This concentration resulted in an increase of 30% in home sales for the month of March.

For now, with the interest rates as low as they are, there is still a good incentive to purchase which will soften the landing for the tax credit expiration. And there are Laguna Beach Homes for Sale which could become great values with favorable prices and low interest rates.

However, there is still the question of that “shadow inventory”, the millions of foreclosures that need to be sold but haven’t yet been listed. That number could be as high as 4.5 million homes owned by banks and individuals that are waiting for the right time to enter the market.

When they do, the normal supply and demand factors will come into play to determine price. As prices rise, inventory will increase which could drive the prices down as supply outpaces demand. As the inventory decreases, prices will creep up again until demand is met. This cycle could result in a sawtooth recovery of home prices – moving up and down until inventory is stabilized.

For buyers looking for a bottom in the market, it may be wise to watch for several dips and be ready to take advantage of the right home at the right price. As always, get your financial ducks in a row before you find the home of your dreams. If you are going to use bank financing, get preapproved now. It is always best to be ready so when that home you want enters the market, you will be able to act.

And for Laguna Beach Homes for Sale, you just may be able to find a home priced less than $1 million that could qualify for favorable financing. Imagine, investing and living a Laguna Beach Lifestyle!

Until next time…