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Health & Fitness

Home Buyers are Motivated but they are Not Gullible

   Yes we all know the homebuyers in Laguna Niguel and Dana Point are motivated by the low interest rates and increasing prices. The sooner one can buy a home the better. Adding to this is the fact that interest rates have been climbing in the last couple of weeks, almost a full point above the extreme lows. Inventory started out the spring at record low levels which really fueled the fire. At least in the home market under $800K it was brutal with properly priced homes receiving multiple offers.

   While I don’t think we are in a bubble (see my June blog) we are now experiencing the very predictable trend of seeing more “over-priced” listings. We saw the same trend in 2005-6. A certain amount of less motivated sellers or sellers who are boarder line underwater are listing 10-15% over the real market values. Home buyers however won’t be fooled. Today we have the most educated group of home buyers that there has ever been and they know what homes are worth, even in a rapidly rising market. This phenomenon of over-priced listings makes the buyers back off and wait. The last few weeks has finally begun to show a rising level of inventory on the market and fewer homes going into escrow. Closed sales numbers look great but of course June closings are reflecting April or May sales. With prices up double digits and increased interest rates home sellers should be reasonable not greedy. Over pricing your home, in any market, results in a lower sale price than a properly priced home will bring. It is still a great time to sell or buy a home.

   As of July 4th weekend there are 103 detached homes for sale in LN. Twenty-six are under 800K, thirty-three are from 800-1.2 million and forty-four are above 1.2 million. June saw twenty-three homes close under 800K which is 89% of the current inventory.

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   Dana Point currently has twenty-five homes under 800K, twenty-seven homes from 800 to 1.2 million and eighty-one homes over 1.2 million. June home sales under 800K in DP were twenty-one, which is 84% of the current inventory. In DP only seventeen homes over 800K closed in June.

Ron Buck, Realtor®

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

Ron Buck has been a real estate broker for 16 years with over 450 successfully completed transactions. He is a 11-year resident of Laguna Niguel and is an expert in south Orange County real estate. You can contact him at Ron@JonRonRealEstate.com or 949.456.0505.






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