Corona del Mar is a stunning area with beautiful soft beaches and sky high palm trees and can boast some of the most impressive real estate in the Newport Beach area. Many of the homes that are on the market at the moment are high on the price range and despite there having been a reported 8% drop in the asking price of properties since just last month, the median price for one of these properties is $1,745,000.
As one of the loveliest parts of Newport City, Corona del Mar is many people’s dream and this has been heightened by such television hits as The OC. Many have turned their dream into reality. Some of these people are now finding that the current slump in the property market and the drop in employment opportunities are making times more than a little difficult and the increase in foreclosures in the area is proof that things are not necessarily going well for everyone.
Coronal del Mar is a superb city to retire to and many of the residents are over the age of 65 and are obviously not affected by the high rate of employment that is currently plaguing many industries. They are also less likely to be caught unawares by the rise in fuel prices as, although this will affect them in the long run regarding commodity price increases, they are often not dependent on their vehicles for long journeys and commuting. Mainly they are used for shorter shopping trips etc. Their financial situation tends to be much more stable and you will find that the retired population in a high end of the market area such as this have made sound financial plans for their retirement. This means that the 20% of the population of the city who are over the age of 65 are unlikely to become a statistic on the foreclosure graph. This is quite a high percentage of the residents and may well become even higher as the area becomes a no go area for professional couples and individuals due to the increase in unemployment.
It is a fact that somebody is buying the property in Coronal del Mar, as, although taking a dip at the beginning of the year, property prices per square foot are remaining reasonably stable compared to many other areas in the West.
This belief in the property market and understanding of the buying clientele has encouraged entrepreneurs to start investing their money in the land which builders have previously bought but not had the courage to develop. The land is being bought up at a relatively low price and being held in waiting for the worst to pass. Such is the belief that the storm in this area is going to be a gentle one. Some reports are that it could be a perfect storm for those investors who have the capital, time and strong will to sit it out. The builders are in two minds. Many are happy to see their land go for a low price and will compensate through tax. Others I am sure must be just a little dismayed to see their land being sold on to a business entrepreneur at a much reduced rate, knowing that in a short time it will probably be back on the market giving a healthy return to its short term owner.
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