subject: Understanding Laguna Beach Real Estate Market Trends [print this page] Savvy investors and serious homebuyers will always see the positive leading and concurrent indicators that give them a good measure of the prospects and trends in the Laguna Beach real estate market. Over the last 5 years, Laguna Beach real estate has had its share of peaks and dips. With the volatility in the economy, most homebuyers are having second thoughts about their plans to make major purchases within the next few months. There is a growing inclination to just stay on the sidelines until the situation in the market becomes settled.
The prevailing sentiment about Laguna Beach real estate has always has been largely subjective. Serious homebuyers and investors will have to make their decision based on their budget, their motivations or goals, aversion to risk and needs. On a positive note, leading indicators point to a more stabilized market in the next few months. And it is still a buyer's market even in upscale markets like the Laguna Beach real estate market. There are still a significant number of plush beach houses and mansions in gated communities with price tags that can go as low as 50 percent of their original market value.
Prevailing Rates Remain Affordable
Buying activities will remain sluggish as the depressed condition in the Laguna Beach real estate market continues. And while mortgage rates gradually edge up, the overall level will remain low with mortgage rates for fixed rate 15-year and 30-year mortgages well below 5 percent. This is also the case for adjustable variable loans.
This makes Laguna Beach real estate an ideal choice for long term investors and home buyers who are looking to hold on or stay on the beach house or mansion for 5 years or more. On the other hand, fix-uppers are well-advised to stay clear of mid-range and high-end property segments as price levels will remain well below their real value for the next several years.
Early Signs of Competition
There are now early signs and leading indicators that show that the situation in Laguna Beach real estate is about to change anytime soon. With relatively low price averages, serious homebuyers and moneyed individuals from Latin America, Europe and Asia have been driving the home sales in gated communities and other upscale markets in the US in the last several months. Price averages are not expected to remain at their levels for long and, with the existing trend, it would be wise to explore the buying options before prices start to pick up.
Better and More Varied Choices
While the high-end and plush residential enclaves in Laguna Beach are always associated with beach houses and mansions, there are also some ideal choices for first-time buyers and young couples. These home buying choices provide flexibility when it comes to location and floor size, and most of these residences are normally located near schools and other public amenities.
