Government Programs Can Help Laguna Beach Homeowners

Housing experts and agents remain optimistic that government aid can turn Laguna Beach real estate around, even as the city hits one of its roughest patches since the economic crunch hit California.

Last week, real estate data provider DataQuick showed that Laguna Beach home sales dropped a steep 28% over the year, the lowest year-over-year drop seen in over ten years. New home sales were particularly low, hitting a bottom not seen since the 1960s.

However, many Laguna Beach realtors believe that the government has some powerful solutions to boost market activity in the South Coast city, most of them aimed helping home buyers and sellers.

The White House is set to launch two new programs next week to address the housing market’s deepening problems. One involves a refinancing program by the Federal Housing Administration (FHA), while the other will focus on emergency lending for unemployed borrowers.

The new efforts tackle what many believe to be the roots of the current problem: the depreciation of homes and rising unemployment. Refinancing can help homeowners benefit from the historically low rates currently on offer, while emergency loans offer a lifeline for borrowers forced into default by job loss.

Many also suspect that the Department of Housing and Urban Development (HUD) is planning another extension of the homebuyer tax credit, which has greatly spurred market activity nationwide and helped distressed markets like Laguna Beach.

While full economic recovery may still be at least two years away, experts maintain high hopes that Laguna Beach and other hard-hit areas of Orange County can count on the new programs to help it through another tough year.

 

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