SWIFTEST REAL ESTATE CORRECTION EVER
The Market: The current correction in the real estate market is the swiftest decline in real estate history. There has been a 20% decline in home prices over only 2 years, usually it takes 4-5 years for prices to decline to this level.
The Reason: This is due to the lessening of funds available for prime loans backed by Wall Street securities and the sub-prime loan fiasco.
For Sellers: It is still a good time to sell a home. List price needs to re-evaluated and adjusted every month that a property stays on the market or it will languish as unsold inventory.
For Buyers: This is your market! Loan rates are at an all time low. The Feds announced recently that they are not going to reduce rates in the near future. Right now the prime rate is at 2%. Last year at this time it was at 5.25%. Money is available for lending, even interest only loans. Time to make your purchase before everyone else figures out that prices are great!
*By Pamela Horton, 6/28/08. Sources CAR, BankRate.com.
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COASTAL FORECLOSURE LISTING STATISTICS FOR:
Corona del Mar, Dana Point, Newport Beach, Newport Coast, Laguna Beach, San Clemente
Active Listings = 1,921, with Bank Conditions = 205
In Escrow Listings = 207, with Bank Conditions = 75
Sold from 01/01/08 = 743, with Bank Conditions = 121
**MLS 6/28/08
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR MAY 2007 COMPARED TO MAY 2008
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 1 - $2,400,000 - n/a - n/a
Capistrano Beach - 92624 - n/a - n/a - n/a
Corona del Mar - 92625 - 10 - $2,163,000 - 14.4%
Dana Point - 92629 - 16 - $832,000 - minus 17.5%
Laguna Beach - 92651 - 19 - $1,550,000 - 7.6%
Laguna Niguel - 92677 - 52 - $738,000 - minus 21.8%
Newport Beach - 92660 - 18 - $1,670,000 - 14.1%
Newport Beach - 92661- n/a -n/a - n/a
Newport Beach - 92663 - 11 - $1,200,000 - minus 29.6%
Newport Coast - 92657 - 6 - $1,694,000 - minus 43.3%
San Clemente - 92672 - 26 - $818,000 - minus 16.6%
San Clemente - 92673 - 24 - $810,000 - minus 6.6%*
Sales information provided by DQNews/LATimes, 06/28/08.
