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…

Location: 1818 Temple Hills Drive, Laguna Beach, CA  92651

Currently priced at $4,299,500

4200 Square Feet

4 bedroom / 5 bath

HUGE lot of approximately 21K Square Feet

Are you interested in a viewing appointment or more information? Contact us: 949-922-8490 Hillary Caston

OR visit the website www.TheCoastalPropertyExperts.com

Listed by John McMonigle of Coldwell Banker Previews International;

Loved by Hillary Caston of The Coastal Property Experts

Contact me and I’ll tell you what makes this home so great. Don’t settle – get the home you deserve!

Supported by a canyon and fronted with a southwest Pacific panorama, this Temple Hills home envelops a classic Laguna lifestyle. Encompassing a 21,000-plus sq foot estate-sized lot, the Cape Cod-style residence offers 4,200 sq. feet of living accommodating 3 bedrooms and 5 baths; inlaid wooden flooring, wainscot finishing, crown molding, built-ins and interior doors with custom casework. A chef s kitchen serves marble counters, upgraded appliances, an island and custom cabinetry; an adjoining Butler s pantry flows to banquet-style dining with a marble hearth and silk wall treatments. A second level master retreat delights with extended white water ocean views, private balcony and custom cabinetry; dual master baths present marble vanities and separate dressing/closets with attached office. An English garden with pool and spa offer year-round outdoor living and entertaining; formerly a tennis court, the space – with city approval – retains a hidden 8 foot fence for unrivaled privacy.

This is a beautiful, showpiece home for sale in Orange County. Laguna Beach real estate at its finest!

http://www.TheCoastalPropertyExperts.com

Don’t miss these hidden treasures! Laguna Niguel Homes for Sale. If you think that you should buy a short sale to get the best deal you are only partly right. You always need a great short sale negotiator – Heck, when purchasing a home, you always need a great negotiator…period! Find out why Hillary Caston, Laguna Beach real estate agent has clients coming back to her over and over again to help negotiate their home purchases. Go with the best….or you may find yourself being fed to the sharks!

Call Hillary direct at: 949-922-8490

25081 Calle Playa B-Laguna Niguel-CA

24905 Via Kristina-Laguna Niguel-CA

24905 Via Kristina-Laguna Niguel-CA-Bank-Owned Property-Kitchen

136 Costa Brava-Laguna Niguel Short Sale-Living Area with View

136 Costa Brava-Laguna Niguel Home for Sale-Kitchen

Boston Fed President, Eric Rosengren said that he believes mortgage rates will rise about three-quarters of a percent to about 6 percent as a result. Things may be a little “wobbly” at first; however, there is an acknowledgment by Fed Vice Chairman Donald Kohn that “We are still in unchartered waters…We will need to be flexible and adjust as we gain experience.”

It is anticipated that the Fed is unlikely to step in again unless a renewed crisis occurs, such as a sudden and destabilizing rise in mortgage rates. There seems to be an indication that the Feds would like to move away from their reliance on unconventional policy measures.

In a policy statement issued after the Fed’s December meeting, the central bank reiterated plans to finalize the program by the end of March and was planning to continue to close down other emergency measures as scheduled.

Said Torsten Slok, senior economist at Deutsche Bank,” That was a fairly strong signal that they will not continue the purchases later on”.

Read the full story…

So, let’s take a look at what options are still currently available for folks interested in purchasing a home in the Orange County Real Estate Market in the next few months:

• Home prices that have been adjusted lower from their market peaks
• Low interest rates
• Tax Credits for both first time home buyers and existing homeowners
• Buyer protection programs offered by some banks and some Real Estate Groups, such as California Association of Realtors
• A large inventory of homes from which to choose – with many custom homes in the Laguna Beach Real Estate Market

Everyone seems to be in agreement that we need to get the inventory of distressed homes off the market before we see overall market recovery in prices. The question is, are you ready to be one of those new homebuyers that will benefit from the current market and the government incentives?

Take the time to review your personal financial situation, talk to your lender, and be certain that you are not missing a rare opportunity. Don’t be concerned if you are not quite ready to make that purchase, find out what you need to correct, improve, or save, in order to get yourself ready to purchase that home you’ve had your eye on.

Until next time…

It was recently reported that actress Halle Berry listed her Beverly Hills home for $5 million. There is no story of woe in this selling…just possibly an example of a smart business decision.

Note that Berry purchased the home in 2001 for $2,275,000 and is now selling it – just 8 years later for $5,000,000…more than doubling her money….in this economy!

True, we don’t know what this home will finally sell for. However, take note that she is following a time tested wealth building plan. Purchase low, sell high. Following the “rule of 72” – this transaction puts her rate of return in the 9% range, doubling her investment in roughly 8 years.

Not bad.

So, what could you buy in Laguna Beach today for less than $ 2.5Million?

The answer is – lots! To see all Laguna Beach Home listings – Click Here.

Currently, there are approximately 128 properties listed in Laguna Beach priced between $1million and $2.5 million.

Could one of these homes be your opportunity to double your financial investment while you enjoy a lifestyle investment in Laguna Beach?

Members of our team attended the National Association of Realtors Conference in San Diego this weekend. One of the keynote speakers was Condoleezza Rice, former United States Secretary of State. Her speech was an inspiring reminder of what makes our nation so special. She said we, as a nation, are special in that we share an optimism that things once believed to be impossible, turn into things that become inevitable.

As an example, if you would have suggested in the 1940’s that the Berlin Wall would someday come down you would have been ridiculed. If you had suggested that the flag bearing the half moon and sickle would one day be lowered forever, people would have had you committed. If you would have suggested that a man or woman of color would hold high positions of power in the United States, some would have said “never”. But look at how far we as a nation and as a world have progressed.

The impossible became the inevitable.

So what does this have to do with the properties in Laguna Beach, or the real estate market? Well, maybe nothing. But, just maybe it offers an opportunity to view the current economic climate with optimism. A chance to remember that beyond every seemingly dark cloud lies a rim of light, hope…and opportunity.

Will this market and Laguna Beach real estate recover? With as much resilience as we have as a nation and a world, the answer is yes. This is another cycle in a cyclical industry. There is an adjustment occurring in the world economic landscape. The real question seems to be whether you will allow yourself the freedom of optimism and hope. Will you allow yourself to take advantage of the inevitable opportunities when others believe that everything is impossible?

Take a look back at some prices in the Laguna Beach Real Estate Market. At any given stage, there were surely people that believed that it was “impossible” for prices to go higher; then it was “impossible” that prices would go lower…but in each instance, the impossible became the inevitable. 

There really is no blanket right or wrong answer as to whether you should buy a house right now or wait. Each person is at a different stage in their personal financial cycles. However, many of you are in a position to take advantage of favorable home prices in areas that you only once dreamed of living in such as Laguna Beach real estate and the coastal areas of Orange County. However, the news coming from mainstream media may convince you to second guess your instincts. What if you’re wrong and the market goes down another ten percent?

Well, as someone once said, it’s better to be a year too early than a year too late.

I encourage you to evaluate information from all sides when considering properties in Laguna Beach. Personally, I know that our clients are smart. They have the ability to evaluate risk and reward based on their own portfolio and goals. I am always happy to have a conversation with you about how a purchase in South Orange County and Laguna Beach real estate can fit into your overall goals; however, as your consultant I am also not afraid to advise you if you should wait. As I’ve said, each person’s personal financial picture is different so there is no simple right or wrong answer.

As always, feel free to contact me. You can open your own Listing Book account to the right and search the Multiple Listing Service (MLS) for properties or visit our website for more information: http://www.TheCoastalPropertyExperts.com

Until next time….

It’s the end of another great week here in beautiful Laguna Beach! 

It seems that I continue to get the same question from my clients and friends, and that is: Should I Buy a House Now or Wait?

 While I don’t claim to hold a crystal ball, and cannot see the future of the economy,

I can give you the Top 5 reasons to buy a California home right now.  Consider

this as you enjoy your weekend and as always, feel free to call me with any of your

real estate questions!

The National Association of Realtors is running advertising right now asking the question, “Why are you sitting on the fence?” For the cynical out there, you may be thinking that this is a shameless way for the Real Estate industry to drum up business. After a few lean years real estate agents are hungry for a sale, you may think.

Well, while it may be true that some agents have dropped a few pounds and have had to tighten their belts just like everyone else, the good agents are keenly aware of the great deals that are out there. They are on the phone, sending emails, and educating their clients about what is happening in the industry and in the real estate market.

There are fantastic deals available, and the smart money is investing in these deals as a way to expand their wealth base and take advantage of the opportunities right now, while others are still sitting on the fence.

Is this the bottom of the real estate market? Well, nobody knows for certain, and pundits on both sides of the issue make a strong case for whether or not we have seen the bottom. While it’s interesting to hear what “they” have to say, at the end of the day it is your family’s financial well being and quality of life that should determine if you are ready to buy a home. Most often, the bottoms are not recognized until we are well on our way back up and many opportunities are missed.

Affordability: Across the nation for various reasons, prices have declined.  The counties that experienced the greatest increases in prices are now experiencing drops in prices which are starting to look like great buying opportunities.

Low Interest Rates: True, lending standards have tightened up; however, there are still loans to be made. Buyers are taking advantage of conforming and FHA loans where rates can still be found in the 5% interest range. With FHA financing available in the Orange County area, the increased loan limit of $729,750 is looking especially attractive. Even borrowers with a credit score as low as 580 can consider a home purchase in today’s market. It is best to talk to your lender or mortgage broker to get the most recent information on the loans available to you.

Government Incentives:  Don’t miss out on this one. Many homeowners have claimed that it is the $8000 tax credit offered for 2009 that prompted them to take the step into home ownership. This tax credit expires December 1, 2009 so don’t wait if you want to qualify for this benefit.

Mortgage Protection Programs: For those that may be concerned with the viability of their employment, there could be a program to assist with your mortgage payment if you become unemployed. The California Association of Realtors (C.A.R.) offers the Housing Affordability Fund Mortgage Protection Program for first time home buyers who lose their jobs due to layoffs. There has also been mention of some lenders that are offering similar programs so be sure to ask your loan specialist about this option. Also, another insurance program that has always been available is through disability insurance which applies if you become disabled. Be sure to check out all your insurance and “safety net” options so that you can weather out the storm of any unforeseen event.

Choosing to live the life you want in an area you choose: Do you love your neighborhood, your school district, your commute, your view, your community, the size and “feel” of your house? If you cannot answer with a strong “Yes!” to any of these questions, then now may be the perfect time to step up and live the life you’ve always dreamed of. For the coastal communities of Orange County and Laguna Beach, that means waking up to the smell of the ocean and cool ocean breezes; a year-long temperate climate; great restaurants, entertainment and schools; a short drive or walk to the beach to surf or sun. It’s a lifestyle choice…is it yours?

As always, feel free to request a Market Snapshot of the areas that interest you most!