Tuesday, January 22, 2008

Zillow Index Shows 14% Decline for Laguna Beach

Hot of the presses:

The Zillow index for Laguna Beach shows a decline of about 14% year over year. For someone with a $2,000,000 house value as of last January, the value has declined a whopping $280,000 in 12 months. You can view the index here.

Think about it. That's a $23,000 or so loss EVERY MONTH for a year. Yikes!! ....and the trend is down. Look out below for Laguna Beach home prices. This could be good for Laguna Beach real estate agents, as lower prices eventually will mean more sales, and right now there are pitifully few sales.


Anonymous said...

As soon as the value has declined it will increase after some time, to my mind. Homever, the figures a bit differ on Fizber, as I know.

Swim Mistress said...

Of course, the very wealthy will still be buying in Laguna and they have cash. On the other hand, the very wealthy are like everyone else -- they don't want to buy a depreciating asset. Something to factor in regarding Laguna: tightening lending standards, esp. for Jumbo loans, will spawn continued price weakening for a long time to come. I agree, one day, we will see appreciation, but not in a long time and it won't be as fast as during 2005-2006. But for many of the segments in Laguna Beach, prices will continue their gradual slump. One more thing to keep in mind about Laguna Beach -- the sale of a single $6 million home, or one for $30 million, for that matter, can skew the median, so one month, the median can go up, but not minus that pricey property.