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Is There A Real Estate Bubble?

Is There A Real Estate Bubble?

As a working Realtor® Ron Buck often hears from home buyers that have NOT purchased yet that there is a real estate bubble which will pop and when it comes down again they will buy. Is this true? In 2005 the OC Register said that prices had to go up because so many people were moving into Orange County and the demand was strong enough to see another 30% increase. Well, Ron Buck, and all of us, know that was wrong. But ever since then Ron Buck, Realtor’s crystal ball has been a little cloudy. Here are a few differences that Ron Buck sees. By 2005 the housing market had returned from the crash of the mid 90s. Ron Buck’s area. South Orange County, had been beaten up by a county bankruptcy, high interest rates, and layoffs in the space industry among other things. Ron Buck’s area had been way behind the bay area in prices and the market needed to rise. Home owners that had been under water once again had equity and there was a lot of pent up buyer demand. The same is true now. Then the mortgage industry came up with more “creative financing” to keep the fever burning and fuel the Wall Street craving for loans to package. The last two years of that bubble saw price increases which were fueled by zero down, 120% and neg-am mortgages. This resulted in many new home owners with no chance of gaining equity or even keeping there homes long term. What is the difference today? What is Ron Buck seeing? Real estate investors, cash buyers and...

Lantern Bay Villas in Dana Point

10 Things to Know About Lantern Bay Villas – Dana Point 1. Resort style living just a stone’s throw to the famous Dana Point Harbor 2. There are six models of condos from 1742 to 3032 sq. ft. 3. Largest model, the Constitution, has three bedrooms & 3000 sq. ft. 4. It is a gated neighborhood famous for its views of the harbor and ocean 5. The HOA fees include the guard gates, pool, spa, tennis, club house, elevators, fire insurance and building maintenance. 6. It is one block away from the Lantern Bay Village shopping center which has a major grocery store and many other essential shops. 7. It is a short three block walk to the famous Doheny State Park 8. Dana Point Harbor also provides rentals for wave runners and small sail boats. 9. Walking distance to old town Dana Point and fantastic dining. 10. Home prices currently range from in the $600s to about $1.4 million and the largest model with a super panoramic view just closed escrow this spring for $1.3 million. Remember, a bare ground ocean front lot in Orange County is worth upwards of four million dollars and ocean views increase property values from 25 to 100% depending on quality of view. Currently Dana Point has 36 attached homes for sale and 116 detached homes for sale. There are only 32 detached homes for sale in DP under $1.2 million (27% of the inventory). Laguna Niguel currently has 109 detached homes and 51 attached homes for sale. Fifty-eight (53% of inventory) of the detached homes in Laguna Niguel are priced under $1.2...