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Health & Fitness

Don't Be Fooled By National Statistics! Real Estate Is Local

National real estate statistics don't apply to Laguna Niguel.

I was showing homes to an investor recently and he gave me a list of reasons why home sellers (even short sellers) should take his 80 percent cash offer. He told me that inventory was increasing dramatically in our area. He also believes that home prices will come down more. That may be a national statistic but it is not what we are experiencing. 

Well, would you believe inventory in Laguna Niguel for all homes listed went down 6 percent in the last week, and inventory is only up 15 percent since the end of January?

For sure some equity sellers are opting to rent out their homes or pull them off the market. The recent remarkable change has been in the lower price ranges of detached homes. As of this moment there are only 12 detached homes with three or more bedrooms under $500K for sale and only 23 detached homes under $550K for sale in Laguna Niguel.

Find out what's happening in Laguna Niguel-Dana Pointwith free, real-time updates from Patch.

Investors and first time buyers are grabbing the good deals. (See my blog on PE Ratios). 

Here is a tip for conventional home buyers putting less than 20 percent down. You may pay your mortgage insurance up front at a substantial discount. By doing this you will have more purchasing power. Hint: get the seller to pay your closing costs.

Find out what's happening in Laguna Niguel-Dana Pointwith free, real-time updates from Patch.

Many potential home buyers are frozen in their tracks, worrying that prices will come down. Did you know that interest rates have come down a full point in the last six months?  This drop in rates is equivalent to a price drop of 10 percent. If you plan to stay in your home for more than 5 years it just makes sense to consider buying this year.

Don’t forget that when you are offering on a short sale, the bank taking the loss will have the final say on price, no matter what price has been agreed to by you and the seller. 

 

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