Despite California's now-famous affordability problem, buyers are still flocking to its coastal communities like Capistrano Beach to enjoy the incomparable views, weather and lifestyle, say local Realtors.

"Part of the Orange County coastal communities, Capistrano Beach is located south of Dana Point and north of San Clemente," explains Realtor Andrew J. Budniewski. " The homes of Capistrano Beach are situated above the Pacific Coast Highway and offer many homeowners great ocean views. The residents enjoy the anonymity of Capo Beach compared to its more famous neighbors of Dana Point and San Clemente.

He predicts, "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. Job growth and personal income growth have appeared to become stagnant but there seems to be no sense of panic as far as the real estate market is concerned.

"The economy of Southern California seems to have "weathered the storm" better than most parts of Northern California and the nation. SOCAL has been able to absorb most of the jobs recently lost and the real estate market has been one of the states strongest industries in the past few years. In review, 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."

Says Realtor Liana Norman, "Interest rates lowered once again causing another jump in the real estate market. Properties under $500,000 are sold in a matter of weeks, and, in most cases, days.

Norman advises, "Here you will find a range of homes from condo's in the mid $200,000's to bluff homes in the millions. You can still purchase a single family detached home in Capistrano Beach under $400,000..but hurry, prices are still rising! San Clemente and Dana Point are highly sought-after areas for those wanting to be close to the beach! The market in these areas is still strong."

"Capistrano Beach homes still command top dollar, but the escalation has slowed down a bit," say Realtors Drew and Linda Hartanov. "High-end homes with unrestricted ocean views are still the premier properties and continue to attract the discriminating buyer. Property prices increased rapidly for the last two years. This community attracts many who want to live in a beach area as well as an area that, for the most part, is without a home owner's association. The market in this area is remaining relatively "status quo". Homes that are priced realistically are still selling, although they are staying on the market longer."

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Published: June 19, 2003

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