Friday, May 30, 2008

Sales of Family Homes Approaching Standstill in Laguna Beach

If you follow the market, you already know this. The market is getting slower and slower and slower. Less sales. Many listings of family homes are retreads of failed 2007 listings. High prices and no takers. (and I'll say that the few takers near asking prices are simply misinformed or completely uniformed buyers)'s Feb-April 2008 home data for four bedroom homes shows only 5 selling during that period. In 2007, 11 four bedroom houses sold during the same time. This is about a 68% decrease from 2007. Another indicator that big price drops are ahead - sooner or later, more people will want to sell and laguna beach home prices will drop further.....

Thursday, May 22, 2008

Existing Home Prices To Continue Decline Well into 2011

Ivy Zellman is Mr. Blue's favorite housing analyst. She's got Wall Street cred and a track record of predicting things that will happen. Tells the home market future, she does.

In her most recent article in Builder magazine, entitled False Hope, Ivy says the worst is yet to come and, most significantly, existing home price declines will continue into 2011. This is quite different from the local Laguna Beach real estate agents, most of who are talking upturn this year. Of course, most couldn't hold a candle to Ivy, so I listen with amusement. I feel sorry for their clients who may put their life savings on the line buying a house for the wrong price. Ivy knows her stuff. And this stuff says Laguna Beach home prices will continue to fall.

Wednesday, May 21, 2008

Flipper Smackdown - 1283 Starlit Drive

1283 Starlit Drive was featured on Bluemove in February. It is a somewhat remodeled home located way back in bluebird canyon with no ocean view.

My sage advice then? I said I was waiting for the $900K offers to roll in. I think the seller is a reader - today the listing price was lowered to .....$899K.

This is $400K lower than the original asking price, of $1,299,000, which is a 30.8% reduction.

The last purchase price, in 2007, was $1,100,000, so even if this home sells, the seller will see a big haircut.

This is the latest evidence that true market values are much less than most list prices in Laguna Beach. Laguna Beach home prices still have some settling to do.

Monday, May 5, 2008

Major Comp Killer in South Laguna - Pre 2004 or 2003 Prices Have Arrived!

32039 Virginia Way sold on April 8, 2008 for a paltry $1,125,000. Nice ocean views, 4 bedrooms and 2,650 square feet.

Activate Calculator.

WOW, that's $425 per square foot.
Not only that - the last sale price was $1,500,000 in April of 2004. That's right. The new sales price is LESS than 2004's sale price.
Ocean close in Laguna. How can similar homes now appraise for more? They can't. It will be an interesting summer. Laguna Beach home prices continue to spiral down.

Next time you see a real estate agent, ask him/her about this sale. Of course, they probably will claim ignorance. Give a client an accurate picture of the market? Not likely.