Real Estate Guru: Answering Housing Market Questions

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Guest Opinion by Phil Immel

question: Dear Guru, how much value does an ocean view add to a home?

answer: Ocean views clearly add value at Dana Point and other coastal areas. How much? It’s very subjective and every house is different as each location is unique. This gives us a general idea of ​​the terminology for some of the places we hear. However, the only way to be certain is to visit the property with an experienced local agent. Some of the key terms you hear often include:

1. Peek-A-Boo View: Partial ocean view.

2. Unobstructed Views: This means that the roof of another house does not block the line of sight where the sea meets the land.

3. Catalina Island View: Can you see it end-to-end or partially? The island gives a picturesque perspective, with great daytime ocean views and especially backlit It complements the spectacular sunsets at . The more you see Catalina Island, the more valuable your home will be.

4. Whitewater View: Value increases when you see the magic of breaking waves. It’s mesmerizing and therapeutic. Plus, if you can see the waves crashing, chances are you can hear them too. Nature is the best!

5. Rock View: This is when the waves crash onto the rocks near the surfline. Large swells can hit rocks and splatter several feet into the air. Appetizing to say the least.

6. Sand View: Seeing the beach view with the ebb and flow of the tide also adds beauty and value.

7. Ocean or Harbor Views: Seeing surfers riding waves, yachts passing by and powerboats cruising creates a spectacular visual experience. Bringing the pristine beach lifestyle to life.

8. Whales, Dolphins and Birds: If your home faces the ocean, you can see migrating whales, dolphins at play, and pelicans flying in formation at eye level from your backyard. I can do it.

In summary, a better mix of views can improve your home’s value from hundreds of thousands of dollars to millions of dollars. When in doubt, have a licensed appraiser or coastal realtor confirm a more accurate value. Never mind Zillow’s “Zestimate” or technology site algorithms. Unlike investment or commercial real estate, residential property values ​​have an emotional value that exceeds their logical value by 20-50%.

Q: My wife and I recently had our first child and want to buy a house next year. Housing complexes are not suitable for raising children. I’ve read a lot of articles and listened to podcasts about real estate, but I’m totally unsure if I should wait a few years or start sooner. Guru®, what do you suggest?

A: Welcome to fatherhood. I am the proud father of her three children, all now adults. After 40 years of her representing first-time buyers, I sympathize with the current challenges young families face when searching for a home in California.

Orange County is one of the most expensive areas in the country to own a home, especially after a very vigorous price increase over the past two years. Post-pandemic, housing has increased by nearly 40%. why? Government efforts to reopen the economy have combined artificially low mortgage rates with a severe shortage of inventories.

Initial volatility in the stock and housing markets should stabilize later this year. In general, there is an overreaction to rate hikes, followed by a slight retreat. I will aggressively start buying homes while the market corrects. The headline is sensational. What’s happening is that overzealous agents and sellers are pricing listings so high that 25% of them are being reduced daily. It’s not the selling price. why? There are still 50% fewer listings in Orange County compared to pre-pandemic levels as there is still a historical shortage of active listings.

High demand and low supply keep the value stable. And it is expected to remain so for the time being. Foreclosure is virtually non-existent. Housing stocks have surged in recent years as the quality of loans has improved significantly due to a significant tightening in underwriting since the 2008 financial crisis. This is his 2008 reverse. Borrowers in financial trouble can sell their homes for a lot of cash. All the doomsday headlines in the media sell the paper, but remember to read the details and check for accurate data. This is because sellers have a better understanding of new markets and seasonality hits the latest months due to holidays. Mortgage rates will improve, but not return to 3%. Rents will continue to rise. At some point you have to dive in. Prequalify now, monitor your rates, and pull the trigger sooner or later. Get started today by interviewing talented and knowledgeable buyer agents. Good luck!

Have a real estate question? Email Phil Immel ([email protected]). Visit Guru has over 40 years of experience in listing and selling homes in South Orange County. A licensed real estate broker, Phil majored in real estate at San Diego State University and is also an expert in mortgages, titles, escrow, appraisals and negotiations.

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