More huge losses for recent buyers in Crystal Cove?

Asked by Mr. Blue, Laguna Beach, CA Tue Feb 16, 2010

Looks like recent buyers on Sidney Bay Drive have lost big time. More detail is available on the Bluemove Blog.
The question in my mind is what will happen when the current wave of purchasers is exhausted? Are we due for another big step down that will cause recent purchasers to lose hundreds of thousands of dollars?

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Mr. Blue’s answer
Mr. Blue, Home Buyer, Laguna Beach, CA
Tue Mar 9, 2010
Despite all of this tired hype from the previous answers, I hope someone gets an idea that it would have been nice if buyers agents could save buyers from buying a home and losing hundreds of thousands of dollars in A FEW MONTHS. No amount of "owning a house is long term thing, blah, blah, blah" can make that right.
0 votes
Tanya Taylor, Agent, Newport Coast, CA
Tue Jul 16, 2013
Any one following the market today in Crystal Cove will attest to the fact that if you hold on to real estate for the long term it will appreciate. 124 Sidney Bay just came on the market today and it is absolutely gorgeous with beautiful ocean views. $2.8 million.
0 votes
Thom Colby, Agent, Irvine, CA
Wed Feb 17, 2010
Blue -

I agree with Thadeus. If a buyer is purchasing a property to make as their home, they need to stay there for a number of years. The value will always experience ups and downs over several decades. One problem we have in CA is buyers believe (wrongfully so) that when they do buy, values will go up, up, up! Not true. The other misbelief most CA homeowners have is their home is an ATM and they can pull money out whenever they want - also not true. In CA, homebuyers tend to finance as much of the purchase price as possible and that's why we're in the situation we are. I suspect many folks in this subdivision have paid cash, many have small mortgages and some have pulled every dime out of their properties, plus have an adjustable mortgage, and are probably facing huge increase in their payments.

I would certainly expect someone who bought in a higher-end area such as this would certainly have had the where-with-all to understand the market and its up/down cycles.

Just for "grins" I looked at that entire subdivision and, of 500 properties, only 7 are in pre-foreclosure, and only 3 have actually been foreclosed upon. This is far better than the National or California averages.

Best of luck,

Thom Colby
Broker / REALTOR
Orange County, CA
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Thadeus Brew…, , Scottsdale, AZ
Tue Feb 16, 2010
I would say that too much weight is placed on real estate being like a traded stock today. Originally real estate was meant to be a long term investment. This will ride thru ups & downs in the economy. I think home ownership is about more than how much equity I have each day. I would like potential homeowners to look at the tax benefits & freedom of homeownership today.
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