South Orange County is expecting a strong market in 2003, say local Realtors.

"San Juan Capistrano is approximately 62 miles from Los Angeles, 65 miles from San Diego and less than a mile from the ocean," explains Realtor Andrew J. Budniewski, "The city borders San Clemente and Dana Point to the South, Laguna Niguel to the West and Mission Viejo to the North.

"San Juan Capistrano is built mostly over rolling coastal hills and is close to the beach but not on it," he continues. "Architecture is varied but much of it is still influenced from early California design; red clay tile roofs and exterior stucco walls. The most famous structure is the Mission at San Juan Capistrano. Founded by Farther Junipero Serra, the Mission boasts 500,000 visitors annually. According to the last census, there are 34,700 residents and they enjoy the use of 15 parks, two local golf courses, sports parks, celebration of the swallows return to the city, a major shopping plaza and many general activities. San Juan Capistrano enjoys the magnificence of the pleasant summers and moderate winters with offshore breezes."

Suggests Budniewski, "Many Realtors are anticipating a strong and steady real estate market in South Orange County for the year 2003. Fueled in part by an inventory shortage and favorable mortgage interest rates, a steady sales pace is expected with continual gains in home prices. A modest gain in home prices is anticipated but nothing like that of 2002's price appreciation levels. If the economy staggers, price softness could be in store but predictions cap that level at 10 percent or less.

"Affordability remains a concern as the recession may not be over quite yet," cautions Budniewski. "Job growth and personal income growth have appeared to become stagnant but there is no sense of panic as far as the real estate market in southern California is concerned.The economy of Southern California seems to have "weathered the storm" better than most parts of Northern California and the nation by absorbing most of the jobs recently lost and the real estate market has been one of the state's strongest industries in the past few years. There are no signs of an imminent collapse in the housing prices of Southern California. At the moment there are more buyers than sellers which will keep prices at or above current levels."

"San Juan Capistrano prices are still on an upward trend," says RealtorDebbie Ferrari, "They are not jumping leaps and bounds like they once did, but nearly every home that sells, sells for slightly more than the last one."

Advises Ferrari, "Buyers should be looking for homes only if they have started the process of being approved for a loan. And if they have a home to sell it should at least be on the market, and they should be willing to get a swing/bridge loan if they find a property they want to buy. Also, when deciding what to offer on a property, buyers should be looking at what else they can get in the amenities they need more than looking at past comparables for the neighborhood. It's nice to know what the neighborhood has done in the past, but you might miss out on a good value if you try to get the property for the last comp."

"Inventory is very low, at a total of just 108 condos and homes available for sale today," say Realtors David Avarelle and Silver Westrick. "Prices range from $135,000 for a one-bedroom condo to $7,794,876 for a nine bedroom nine bath 18,000 square foot estate. Prices continue to rise, though not as quickly as last summer. According to the National Association of Realtors, interest rates may be at or very near their lows for the forseeable future."

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Published: February 11, 2003

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