There’s no doubt about it: the 2018 housing market has seen its ups and downs.
The year started with sky-high home prices, historically low mortgage rates and a definitive upper hand for sellers. In recent months though, home price growth has faltered, rates have risen to their highest point in nearly eight years, and favor has started to shift from seller to buyer.
Will these trends continue? Will housing experience the same wild ride in the new year? Here’s what experts predict will happen in 2019 real estate market:
Mortgage rates will continue rising.
“Despite steady climbing for the past two years, mortgage rates remain lower than they were during most of the recession and below average for the type of strong economic growth we’ve been experiencing. That will change in 2019, as the 30-year, fixed rate mortgage reaches 5.8% — territory not seen since the dark days of 2008 when rates were racing downward in response to the housing crisis.” — Aaron Terrazas, director of economic research for Zillow
Millennials will keep buying homes — despite those rising rates.
“The housing market in 2019 will be characterized by continued rising mortgage rates and surging millennial demand. Rising rates, by making housing less affordable, will likely deter certain potential homebuyers from the market. On the other hand, the largest cohort of millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand.” — Odeta Kushi, senior economist for First American
“Millennials will continue to make up the largest segment of buyers next year, accounting for 45% of mortgages, compared to 17% of Boomers, and 37% of Gen Xers. While first-time buyers will struggle next year, older Millennial move-up buyers will have more options in the mid-to upper-tier price point and will make up the majority of Millennials who close in 2019. Looking forward, 2020 is expected to be the peak Millennial home buying year with the largest cohort of millennials turning 30 years old. Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time.” — Danielle Hale, chief economist for Realtor.com
A proper home valuation will provide a comprehensive CMA (comparative market analysis) report complete with charts and diagrams illustrating recent Closed Sales, current Active Listings and Pending Sales in your community. It’s important to understand current values since Laguna Beach Homes vary greatly in price due to various factors. Location, curb appeal, community amenities, walkability, view and square footage all have a bearing on valuation. Understanding the local Laguna Beach Real Estate market is key and it’s important to work with a local Realtor who knows the nuances of the market “micro-climate”. A well-priced property will generate competing offers that can ultimately drive up your homes sale price.
Our free market analysis also takes into account the most actively searched prices and competing home values in your immediate area, providing you with a detailed valuation that puts it all in perspective. Our tried and true marketing plan will take the guesswork out of selling your property.
Sell Your Home with a Professional: Working with a skilled and knowledgeable Laguna Beach Realtor is truly necessary for the successful sale of your home. Selling a home in Laguna Beach requires a strategic market plan. Proper exposure beyond the MLS (area Multiple Listing Service), social media campaigns and networking with other local real estate agents is important. Our seasoned local Realtors will showcase your home and provide the highest level of exposure to attract qualified buyers. Contact us today to receive a Free Home Market Analysis to bring you up to date on Laguna Beach Home Values.
Laguna Beach Cottage for sale
Searching for a Laguna Beach Cottage for sale? This is a rare opportunity to purchase a charming remodeled cottage ideally situated in the heart of Laguna Village. On Saint Ann’s Drive, just steps to pristine beaches, world class dining, shopping and art galleries. Here you can leave your car at home and take advantage of all the enchanting delights the artistic town of Laguna Beach has to offer.
This darling seaside cottage is the perfect retreat. With vaulted, beamed ceilings, refinished original hardwood floors, a cozy fireplace and a desirable open floor plan. A bright and airy beach house with updated kitchen and baths and large windows that allow the ocean breezes in.
Beautiful designer upgrades and attention to detail including Dutch doors, sliding barn doors, air conditioning and lots of coastal charm. Surrounded by lush gardens, this home offers indoor / outdoor living with an expansive, private backyard complete with patio pergolas and garden shed. Ample parking with a large paved driveway can easily accommodate two large vehicles. In addition there is a spacious two car attached garage with a finished work space. No need to worry about maintenance with it’s newly installed, insulated roof and water heater. Relax in your low maintenance, water wise yard.
This lovely coastal cottage represents everything that makes our artsy Village of Laguna Beach unique and special. Stroll to downtown cafes, festivals and enjoy all that the Laguna lifestyle has to offer! This lovely Laguna Beach home for sale is a must see and checks off all the boxes on your wish list! Call Cynthia Ayers at 949-494-0490 for more information or to view the 355 Saint Ann’s Drive Cottage today
Laguna Beach Homes
Laguna Beach Homes: From Cottages to Castles, we have special and unique homes nestled in the scenic hillsides of Laguna Beach. This seaside town even has an annual celebration – The Laguna Village Charm House Tour – where every Spring locals and visitors get a rare peek inside some of the iconic homes in Laguna Beach. This year, “Laguna Charm House” tour guides lead guests through a tucked-away organic farm set in the lush Bluebird Canyon area overlooking colorful gardens with sweeping views of the blue pacific ocean. Just minutes from the downtown Laguna Village area, this hidden gem seemed worlds away from the bustling boutiques and restaurants that draw visitors from around the world. Other unique cottages and lovely hillside homes in Laguna Beach were open for viewing. If you are interested in a private tour of Laguna Beach Homes for sale or lease, contact us at www.LagunaCoastRealEstate.com and we will be happy to introduce you to this beautiful and special beach town.
Realtors bring Real Value
Now that you’ve decided to sell your home, there are a lot of decisions to make. Are there renovations to do before you list your home? Do you have realistic expectations of your market? Should you market on your own or list with a local realtor who can create a full market analysis and strategy? Navigating the highly competitive and complex Real Estate market can be daunting on your own… do you know the proper disclosures that will protect you against potential legal concerns? Do you fully understand the marketing, sale and escrow process?
Realtors bring Real Value – and there is a reason why it’s highly competitive in the real estate industry. Not only can listing with a Realtor help you ultimately get more money for your home, but realtors are equipped with the tools, knowledge, and experience that can streamline the sale process. They can guide you and help you better understand your current market, assess whether you need to do some renovations or just a few cosmetic changes, how to properly stage your home and determine the best strategy for your particular property.
Ready to list your home? The seasoned team at Laguna Coast Real Estate are at your service. Specializing in coastal properties in the Laguna Beach, Dana Point, Newport Beach and Laguna Niguel areas, this award winning team has successfully closed thousands of transactions. Representing coastal sales, luxury rentals and vacation/investment homes along the Laguna Coast, you can rely on this local team of Laguna Beach Realtors that command a global presence.
Leave the Winter Cold Behind by Living in Laguna Beach
It seemed like only yesterday that fall had arrived and now there are Christmas carols playing on the radio and shops have already brought out their Christmas decorations. That means winter is just around the corner. If you are not ready to face the cold winter months then we have a solution for you, an escape to Laguna Beach! Whether you come to rent a Laguna Beach House for short or long term, or if you wish to make a permanent move to the Laguna Coast, we have many wonderful options to introduce you to! Dream of a cottage on the beach or a stylish contemporary with a panoramic Catalina Island view? Let us give you a tour of all available homes on the market for rent or sale!
Laguna Beach is known all year round for their wonderful weather. Even in the coldest months of December thru February, the weather hardly ever drops to below 64 degrees in the daytime. If you don’t mind chilly water, there are still plenty of opportunities to frolic in the water.
Laguna Beach Properties
At Laguna Beach Real Estate, our agents will find you the home you need to escape the cold winter months. For more information, please contact our office today.
Why Real Estate is the BEST investment – Laguna Beach Homes
Purchasing real estate is the best investment you can make because owning your own property has tremendous benefits – especially a Laguna Beach home! Your rate of return when purchasing a house is higher than almost any other investment you can make. Homes traditionally appreciate about five percent a year nationwide and what we’ve experienced here along the Laguna Coast over the past few years was unprecedented – where appreciation rates have been as high as 25%!
Demand for housing in Orange County is staying strong – which has created a state of permanently higher prices. The median home price in December 2016 was $630,000 – the highest since the Recession and the highest median price for any month in over eight years – up 8.2% from December 2014. Regional home sales also increased around 9.8 percent to 20,890 transactions – the most for any December since 2009 – with Orange County recording the biggest percentage gains (according to CoreLogic).
Laguna Beach Home Values have grown at an even higher pace. Rated as one of the “Best Places to Live” (Sperling’s), the median listing price for a Laguna Beach Home was $1,965,000 (from end of Sept. 2016 to end of December 2016) with an 11% increase in median home sales in the past year.
Even if you consider real estate appreciation at a very conservative 5% – if you bought a $1,000,000 home (and put 20% down, an investment of $200,000) the property could increase in value $50,000 in the first year. That means you would earn $50,000 with an investment of $200,000, therefore your annual return of investment would be an impressive 25%. And, since both the interest on your mortgage and your property taxes are both tax deductable, the government is essentially subsidizing your house purchase!
Beyond the lucrative investment of owning this “tangible” investment that you can live in, your home is like an automatic savings account, accumulating savings in two ways: Each month a portion of your payment goes towards the principal (paying down the balance) and this appreciates over time. Plus, you get the benefit of any improvements you make (and most of these improvements are also tax deductable!).
You can also rent out the home as a vacation rental (an incredibly lucrative investment here in the resort town of Laguna Beach – we can show you how – Connect with our team to learn more!) or as a long term rental for investment purposes. This way your hard earned money is working for you instead of going into another landlord’s pocket.
Whether you are just beginning to consider the benefits of home ownership, are relocating and contemplating a purchase over renting for investment purposes, or if you are looking to upgrade to a larger property along the Laguna Coast, here are a few tips that will facilitate your house hunt and help you find the perfect home.
For many, the best vacations are days spent relaxing on a warm beach, and nights enjoying good food, drinks, activities, music, etc. This can all come at a hefty price, particularly for those who travel often. This is why many people opt to purchase a summer or vacation home. Laguna Beach homes offer everything you are seeking in a tropical getaway without having to travel too far. Here is what you will want to consider in order to decide if renting or buying is best choice for you.
The first big question is whether or not you can afford to purchase and maintain a Laguna Beach property. Many Laguna Beach rentals are vacation homes that are rented out when the owners are not using them. For this reason, you also need to factor in how much it will cost you to maintain the property or the price to hire a third party to do so.
Almost as important as finances is your schedule. If your job or lifestyle does not allow for you to travel often, a Laguna Beach rental may be more cost efficient than buying. This is also true if your schedule is not flexible enough for you to effectively maintain the property when you are not in it.
A vacation home, particularly a Laguna Beach property, is an amazing asset to have. However, if your family or your own interests are ever-changing or if you prefer to travel to different areas, you may want to consider renting versus buying.
Beach Rentals: Escape to Paradise
Have you been searching for the vacation of your dreams? The answer may be closer to home than you think.
Laguna Beach rentals are the perfect way to escape to a beach resort without ever leaving the country. From small, seaside condos to spectacular beach front houses, these turn-key vacation rentals can accommodate you and your sweetheart or the whole family. Beach Rental homes offer all the best amenities, with many located right in the heart of the Village area just steps from the sand. A Laguna Beach realtor from Laguna Coast can find you the perfect place in paradise.
Along the Laguna Coast, vacation hunters can enjoy a romantic trip to Laguna’s famed Artist Colony, or head further south to a stunning Monarch Beach home or in one of Dana Point’s cozier rentals near the Harbor. Relax by a crackling outdoor fire pit on a cool summer night or stroll through town and enjoy Laguna Beach’s thriving restaurant scene. Whether you want to kick back on the beach or head out for some fun, these vacation rentals do not disappoint.
Laguna Beach vacation rentals will provide you with all the luxury of a tropical resort right here in the US. Pack up the whole family and head to the beach for the rest of your summer vacation. These luxurious rentals are available in all shapes and sizes, with the perfect one just waiting for you and your family to arrive. Spend your extended vacation in a place that feels like home – the beach home of your dreams!
Let Laguna Coast Real Estate make your dream vacation come true by finding you the beach rental that suits your every want and need!
Do You Know What You’re Looking For in a Beach Home?
There are some major factors in choosing a home in a coastal city. If you know what they are and what you want in a beach home, then you’ll have a much easier time finding the home of your dreams. For the best buying experience, always work with a local real estate agent.
Location is at least as important for your beach home as your primary home, but there’s not necessarily just one right answer. You need to decide if you want to be closer to the beach or to the city center and the shops. Do you want to be in the thick of things, or would you prefer a more secluded location? How far are you willing to travel to get to certain amenities? Location also factors into price, so keep that in mind, too. Homes have a tendency to become more expensive the closer they are to the waterfront.
The true price of a beach home is more than just the purchase price. There’s time and money that goes into maintaining it as well. If it’s not your primary residence, then you might want a comprehensive security system to watch over it when you’re not around. Home insurance for beach homes is often pricier than other areas, and you might also be buying a home in an area with a HOA, whose fees need paying. Then there’s the maintenance of the home itself. Get the home inspected and find out if anything needs repairs whether any part of the structure is susceptible to saltwater corrosion, molds, or other problems that can come from being close to the ocean.
· Your Own Plans
If you’re buying the home with hopes to rent it out when you’re not using it, make sure to educate yourself on all applicable tax laws. At the same time, don’t buy more house than you can afford if your rental income isn’t as high as you would like it to be. Finally, if you want rent out the home, you’ll might want to look for a place with a more universal appeal, rather than one that’s tailored specifically to your tastes.