Laguna Beach Real Estate: What the Tax Credit Means

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) May 17, 2010 -- The home buyer tax credit was a welcome change for the Laguna Beach Real Estate market, boosting buyer interest in perfect timing with the spring home buying season. Home prices and mortgage rates rose, and the slow market started showing more promise. But now that the program is over (except in particular sectors), speculators and experts are wondering whether the activity will wane and home prices will plunge back down.

The good news is that home buyers do not seem to be deterred by the tax credit expiration. According to a recent survey by Prudential Real Estate and Relocation Services, 65% of people looking for new homes said they will push through with their purchase even after the incentive has passed. This is encouraging considering 90% of them also said they believe the program has helped home buyers and the industry alike.

The program, which ended April 30, offered tax credits of up to $8,000 for people buying their first homes and $6,500 for repeat buyers. To get the credit, a buyer must sign the contract by April 30 and close by June 30. The dates had already been moved back from last year, so the chances of another extension are rather slim. The deadline was extended only for military personnel currently in service, who will remain eligible until 2011.

The Prudential research also showed that consumers remain optimistic, if a bit unsure, of real estate values after the credit. Forty-six percent expect prices in their area to go up next year, while 12% predicted a decline. In Laguna Beach real estate, prices have been on a general downward slope, although they remain among the highest in Orange County. Median prices are currently around $2 million, way above the O.C. average of $439,000.

So is it still a good time to invest in Laguna Beach real estate? Many experts believe so, pointing to lower-than-average mortgage interest rates and relatively affordable homes. Most lenders are still offering rates below 5% on conventional (as opposed to sub-prime) loans, which can be attractive for first-time home buyers. And with the growth potential of Laguna Beach real estate, buying a home now can also mean significant profit later on.

The number of distressed homes in Laguna Beach can also serve as a selling point for the South Coast city. Although generally deemed negative, distressed properties, particularly short sales and foreclosures, attract certain buyers with their below-average prices and, for investors at least, the promise of a quick profit. There are fewer distressed homes in Laguna Beach real estate today, but they continue to draw much-needed market activity.

Experts advise potential buyers to do their research before buying and to work with a Laguna Beach real estate agent to ensure a successful purchase. While there are several promising homes in the market and DIY purchases are becoming more common, working with a professional can mean more leverage in negotiations, more efficient pap

Laguna Beach Real Estate     Laguna Beach real estate agen     Laguna Beach real estate marke