Thursday, April 10, 2008

50 Percent Decline In Laguna


Arch Beach Heights is a good family neighborhood in Laguna Beach and has some of the lower end homes that were inflated during the bubble.
Take 947 Acapulco for example. It is a pretty much common 3 bedroom long narrow 2 story ABH home.
Present List Price: $1,049,000
Last Sale Price: $2,100,000 (July 2006).
The math is easy - if the seller (I assume a bank) gets the asking price, the total loss will exceed $1,100,000, including a 5 or 6% real estate agent commission.

This is a HUGE haircut - more than a 50% price reduction. And.....I'm thinking that this house may not even sell for less. $900K? $800K? There may be more value loss coming soon.....

5 comments:

Swim Mistress said...

From your lips to God's ears. Time to get that property off the books! Great find. ABH properties often have spectacular ocean views.

gman said...

What's ABH mean? Also, any comment on the positives/negatives of this neighborhood? Certainly a spectacular decline in value. I saw a similar property up the street from this one and the expansion potential seems to be limited.

gman said...

Wait, I see, it's "Arch Beach Heights." The post was broken up by the picture and I skipped over the first sentence. I'd still like to know the plusses/minuses of this neighborhood. Is it considered prestigious or pedestrian?

Swim Mistress said...

In the past, this neighborhood was a little cheaper than the rest of Laguna (except maybe South Laguna) because it's high up in a hill. Now, I think home prices are in line with much of the rest of Laguna. Most of the development took place in the 1970's up there. Back in the early 90's you could get the average home up there for around $350K. Being high up might be a minus, because you can't just walk to the beach from there. On the other hand, many homes have wonderful ocean views, which many homes closer to the beach lack. The homes are all squeezed together tightly, so you don't have a big lot and your home is likely to be two stories (or more). On the other hand, tiny lots make yard maintenance easier for those who don't care about a yard. It can also make life hard if you have a nightmare neighbor. There is a nice park at the top of this neighborhood on Balboa Avenue. From that park, there's a nice walk from ABH to Top of the World (another high-up neighborhood) , featuring great ocean views in spots. ABH is not prestigious like Emerald Bay, doesn't have the cachet of Woods Cove, but I'd take it any day if prices come down some more.

gman said...

Thanks!