Tuesday, December 4, 2007

Huge Resale Losses in Laguna Beach

Cal State Fullerton professor Michael LaCour-Little has done a study looking at recent sellers of O.C. homes who sold for less money than they paid. (And that’s losses without transaction costs figured in.) Laguna Beach was the top lower in Orange County with a staggering average of about $577,000 per money losing home sale.

He also found that 37.6% of all sales he tracked resulted in a loss and typical ownership tenure of losers was two years.

These deep losses weren’t the most startling result to LaCour-Little. Rather, he was startled by how the size and scope losses grew as the year progressed. For example, losing sales were slightly more than 20% of deals tracked in January but nearly 70% in October. “I didn’t expect to see so much of a time trend,” LaCour-Little said.

You can get the full story here.

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