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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...

California Real Estate Market Is Heating Up

Laguna Niguel Real Estate Market is Heating up Ron Buck, Realtor®, blogged several times in 2012 about the low housing inventory in Laguna Niguel. It is still the nemesis of home buyers today as well but also a blessing to the home sellers. Of course we are just now approaching the listing season. For reference, during the peak years of 2005 and 2006 we reached close to 450 active homes on the market. As of today we hit 117 active listings, up from 95 in January. After the national media declared a bottom to prices in March 2012, retail buyers decided it was a good time to buy. Investors were buying a year or more earlier. Summer brought us low inventory and multiple offers. Inventory declined in the fall because good homes got snapped up so quickly. Home prices went up from 5% to 15% by the end of the year depending on price and neighborhood. Most Realtors® I speak with think we are going to see another 15% appreciation in 2013. Ron Buck, Realtor, knows that these price increases started at the low end, as they always do, and are working their way up. As of today, Ron Buck, Laguna Niguel Realtor, reports that there are only two detached homes active below $500,000, and there are only 49 homes active between $500k and $1 million. Follow Ron Buck’s advice! Today buyers must be prepared, have solid financing, if not cash, and be quick. Oh yes, it also helps to use a sharp Buyers’ Agent, as Ron Buck, Orange County Realtor, who will properly advise you and write a...

Real Estate Season – Back To School

If you have been busy with summer vacations, kids’ swimming lessons and visiting family you may not be up to date on real estate in Laguna Niguel or the OC in general. You may have caught the news release from NAR (National Association of Realtors) which gave much-improved real estate statistics. Numbers of homes in escrow and the number of homes closed are both up from a year ago. In fact the stocks for new home builders went up with the news as well. At the risk of sounding like a broken record the inventory is down 40% from the beginning of the year. Ron Buck, Realtor®, says, “Remember that the numbers reported in the media are 30 to 60 days old. I think the most recent NAR numbers were for July figures.” To really get the facts call a full time Realtor® like Ron Buck who is in the market every day. “We Realtors feel the pulse of the market and deal with the issues of inventory and interest rates every day. We interview buyers coming through open houses, fight the battle with appraisers and underwriters, advise sellers how to position their product on the market for a good sale and watch the inventory numbers like a heart monitor.” Adds Ron Buck, Laguna Niguel real estate expert. In Ron Buck’s sixteen years of residential real estate he has always noticed that August seems to be the slowest month of the year for real estate activity. The reason is obvious. Families usually want to be moved and in their new homes before school starts and many other potential buyers...

Laws of Nature

  Have you ever noticed this natural law? Whenever I order coffee to go there is about a 90% chance that the hole in the top will line up perfectly with the seam in the cup. Hence the stains on my dress shirt. I would expect 10% maybe but why 90%? It is a little-known law of nature. Have you ever noticed that when you feel it is safe to buy real estate again, so does everybody else? It must be a law of nature. Actually, it is said that fear of loss is the greatest motivator. During the summer of 2011 I, Ron Buck Realtor and Owner of JonRon Real Estate, was showing fantastic homes to prospective buyers and begging them to buy. There was very little competition and decent selection. Most buyers were afraid of a possible 5% drop in the market. Now, after the “business channel” proclaims a bottom to the real estate market things are quite different. When a super-nice property comes on the market today we see utter chaos. This week I, Ron Buck,  represented a buyer making an offer on a home in the $600,000 range. Believe it or not, there were 16 offers in 2 days. The listing agent expected maybe three and I guessed five or six. It must be a law. (A tip: Hire the best agent you can if you are a buyer right now.) Here is another law you will deal with now whether you like it or not. There are no appraisal comps. Don’t be angry, just remember this principle: Appraisers always deal with history. Realtors® always...

Real Estate Density in Laguna Niguel

No I am not speaking of the beginner Realtor®. I am speaking of population Density, people per square mile. Believe it or not, Orange County is one of the most densely populated areas in the country behind New York City and Los Angeles. In the past Orange County residents could make money by continually purchasing new- build homes. Now that land is so scarce more of us will be remodeling. In fact I am seeing a wider spread between resale homes that are original and those that have been refurbished. That is why flips are so popular even if the upgrades are inexpensive. This week I drove my daughter across country to grad school and was reminded just how large the United States land mass really is. Once out of the Los Angeles basin, and with the exception of Denver, the density is extremely low. One hour out of Chicago all one sees are massive corn fields. Eastern Colorado was like a ghost town. Hardy people work those lands for sure. We all know location is the key and that is why Laguna Niguel is a fantastic place to live. Even newcomers, once they get used to the smaller lots, come to appreciate our open space and proximity to the coast. It is not hard to see why our values stay strong. Laguna Niguel is a wonderful place to live – and to be a...

Real Estate Variety in Laguna Niguel

Laguna Niguel boasts a variety of real estate lifestyles, from entry-level homes to high-end luxury estates; from one bedroom condos to panoramic ocean-view properties. Sorry, there are no horse properties or high rises. See Nellie Gail for the horse properties and check out Irvine for high rise living if that floats your boat. For the upper-end custom homes we have several gorgeous communities in the southern end of Laguna Niguel. Monarch Point is on the west side of Niguel Summit with awesome ocean views, and at the foot of the summit we have the guard-gated community of South Peak. South Peak still has some buildable lots. On the southeastern side of the city one can buy beautiful custom homes in Ocean Ranch Estates or even larger homes on larger lots in Bear Brand Ridge. For those who would rather downsize and not have the maintenance, Laguna Niguel has many condo and townhome complexes at reasonable prices. Along both sides of well known Laguna Niguel Country Club one can purchase a condo with a two-car garage and watch the golfers from the balcony. Some buyers like the secure feeling of a guard- gated community. There are quite a few in Laguna Niguel. Most guard-gated communities are manned 24 hours a day and record the license plate of any visitors. Some of my clients would rather live in ungated tracts, though, so friends can visit without screening. Once you have lived in a home with a panoramic view like I have, you become spoiled and Laguna Niguel has plenty to spoil you with. If you are new to the area you...