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Upcoming Bargains on Santa Monica Homes for Sale and Other Affluent Neighborhoods

By: PRLog
PR Log - Mar 08, 2012 - Santa Monica real estate agents at Grimson Rosal (GrimsonRosal.com) are advising their clients of two recent housing market trends that will impact the prices of homes for sale in Santa Monica and surrounding neighborhoods.

Fixed-Rate Mortgages on the Rise

The first trend for home buyers to watch is the rising rate of mortgages. At the end of the month of February, mortgage rates on fixed-rate, 30-year mortgages finally started to rise after weeks of falling prices. Not only did rates rise for 30-year mortgages, they also rose for 15-year fixed loans. Adjustable-rate mortgages still appear to be falling, possibly due to the fact that they were largely to blame for the housing market meltdown and consumers and banks alike now tend to avoid them.

Meanwhile, the rate of seriously delinquent loans, which is defined as loans that are at least 90 days past due, is starting to fall. At the end of 2011, seriously delinquent loans were at their lowest rate since the start of 2009.

Strategic Defaults Also on the Rise

While mortgage rates start to climb back up, they are being matched by strategic default. A “strategic default” is when a homeowner intentionally falls into default because the home is worth less than what he or she owes. In other words, these homeowners find that it makes better financial sense to bail out on the home loan and seek a new residence than to continue to pay on an upside-down loan.

Strategic defaults are especially prevalent in upscale California zip codes, including Beverly Hills, Santa Monica, and other western Los Angeles areas. According to the real estate agents at Grimson Rosal, there will soon be Santa Monica homes for sale that are upscale foreclosure properties of this type.

In Beverly Hills, this is already happening. There are nearly two hundred “distressed” properties in Beverly Hills, but at the moment only twelve are actually for sale. In upcoming months, more and more of these properties will enter the market, meaning that upscale home buyers looking for a bargain will be able to find a dream home at an amazingly low price.

Two Trends Together

With the mortgage rate still relatively low but on the rise and the number of distressed properties about to enter the market, now is definitely the right time for buying a luxury home in Santa Monica or the surrounding area.

For more information about the homes for sale around the area, contact Santa Monica real estate company, Grimson Rosal, through its website at GrimsonRosal.com.
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Grimson Rosal in West Los Angeles specializes in Santa Monica real estate. We assist each of our Santa Monica homes for sale clients as if they were our only customer and grow long term partnerships. Asset investing for homeowners: www.GrimsonRosal.com.

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