1089 Miramar Street. Our early march price indicator. Do houses speak to you? This one should - and it should say something like "You are nuts if you buy a house in Laguna Beach and pay more than a 2004 price, because you will lose money starting the day you move in."Miramar was listed in August of 2007 for $1,549,000 and is in Arch Beach Heights, a nice area.
Several months and markdowns later, the asking price has been reduced to $1,150,000.
This is a $400,000 reduction (about 26%) and the place is not sold, so the ultimate selling price could well be less than 30% below the original asking price.
But wait, there's more.
The Miramar house was bought in May, 2005 for $1,195,000!! The flippers put additional money into it ($100K?) and now are all but guaranteed to sell the place for much less than the 2005 purchase price! With a 6% commission and assuming a $100K remodel, the loss could top $250,000!!! Laguna Beach home prices are coming down, and fast.
6 comments:
What do you think about this place?
http://www.redfin.com/stingray/do/printable-listing?listing-id=1538320
I think there's more value in the canyon properties. This property at this price does not excite me.
I think this property is in South Laguna, not in Laguna Canyon. It's been on the market now and then for a long time.
Oh, dear, that is possibly one of the ugliest fronts (or rears?) I have ever seen. I'd give 375K just to make it go away.
Before anyone rushes off and thinks they are going to get ocean view laguna homes, in move-in condition at fire sale prices...the fact is that this is not happening. I live down the street from this house, and follow the neighborhood market closely. They are not going to sell this house for 1150000, as is the case with a couple of other low-priced homes in the area. These are teaser prices to get some bids in. This house was never a $1.5M house - that price was simply the product of their unfortunate timing in the market. $1M is, and will continue to be, the absolute bottom for a 3-bed non-fixer. There are homes which are bouncing in and out of default, but they seem to find ways to either arrange a sale or find the money to bring their mortgage current. You can hope and dream that Laguna Beach will become cheap and affordable, but that is not going to happen - there's not enough of it to go around.
That comment about a one million dollar "floor" is so "last month".
Below a million in Arch Beach Heights, we are for a non fixer three bedroom......
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