Tuesday, January 1, 2008

Severe Price Cut Shows Real Recession in Laguna Beach Home Prices


Happy new year(?)
The lack of many sales in the last half of 2007 has left BlueMove and everyone else without much information on the real valuation of Laguna Beach home prices.

Well, wonder no longer. Someone wants to sell and that someone is probably a bank that now owns 581 Diamond Street, Laguna Beach, California. A 4 bedroom, 4 bathroom, 2100 sq. ft. home. This home was just listed in the MLS.

Asking Price: $1,449,500
Prior Purchase Price: $2,144,641 (August 2007)
Prior Purchase Price: $2,600,000 (April 2005)

If the house were to sell at the asking price, the total loss from the peak would be about $1,250,000, including real estate commissions. If the home sells, it could show what it takes to actually sell a mid level house in Laguna Beach in today's market. Such a price, a 50% loss, is a wipe out, wash out and a blow up.

More to come on local listings. In the meantime, it is scary how fast prices are falling! OC home prices are going down.

3 comments:

Swim Mistress said...

Thanks so much for your blog. That is a great house in Laguna. Still too expensive, though. If I'm thinking of the right property, it has nice ocean views, too. I'm hoping that prices continue to fall there, so I can return to where I grew up.

Aaron said...

From the listing "NOTE: THE GUEST COTTAGE AND ALL OTHER FEATURES OF THE HOME MAY OR MAY NOT BE TO CODE OR PERMITED. BUYER TO VERIFY SUCH STATUS IF A FACTOR IN THE PURCHASE OF THE HOME." Buyer beware!

Swim Mistress said...

There's a lot of that going on in Laguna Beach. People build out places and rent them out to tenants. It's not at all unusual in that town.