Wednesday, December 31, 2008

How NOT to Lose at Least $500,000 in 2009

As we enter the new year in this receding real estate market, it is hard to predict when the turn around will come. thing I can do after following the Laguna Beach and Newport Coast real estate market for over a year is offer my opinion on what NOT to do.

So here's some invaluable advice that could save you $500,000 in 2009 if you are planning to buy in Crystal Cove, CA.

1. Do NOT buy 100 Sidney Bay Drive for the asking price of $2,495,000. In my opinion, this condo will be worth less than $2,000,000 some time in 2009 (if not now).
Jacquiline Thompson is the listing agent and it is listed on as a condo, not a detached single family residence. The neighboring property at 106 Sidney Bay Drive was, according to, repossessed in 2008 on a mortgage having a value of roughly $150K less. What does this mean? The market has gone down since then. There's no way in my opinion that 100 Sidney Bay is worth more. Look for 100 Sidney Bay to sell for less than $2,000,000 in 2009, in my opinion.

2. Do NOT buy 88 Sidney Bay Drive for $2,488,888 - it is in the same club as 100 Sidney Bay Drive. Look for the value of these condos to go down significantly in 2009, in my opinion. The same could be said for the other homes in Crystal Cove - they could be positioned for a major hit in 2008, some losing a million or more dollars.

Friday, December 26, 2008

Laguna Beach Median Home Price Tanks in November

Dataquick's latest numbers are out in the OC register and on
The drop in Lagnua' median home price is quite astounding. It is now $970,000, down a whopping 47% from last year. To all of those people who thought high end areas were "immune" - here is your dose of reality. I've skipped open houses for the last 3 weeks and am glad I didn't buy a home last year - my losses would have already been staggering. Happy holidays to all out there. Peace.

Sunday, December 7, 2008

2616 Victoria Drive Buyer Pays too Much....Loses At Least $1,000,000 in a Few Weeks

We've written about 2616 Victoria Drive before - It recently sold for about $3,000,000. At the time we were very skeptical that the buyer overpaid.

Now, with the auction of 2626 Victoria showing that a completely new house just 2 doors away drew a maximum bid of only $1,500,000, the value of 2616 Victoria Drive has been shown to be shockingly lower.

So in sum, in my opinion, the damage is as follows:
1. The buyer of 2616 Victoria Drive has just lost more than $1,000,000 in a few weeks. That was a fantastic buying decision.
2. Gee, I want to use the same real estate agent who advised the buyer on the value of this house! NOT! (Does anyone know more about this transaction gone wrong?)

Wednesday, December 3, 2008

Top Of The World 37% Price Reduction

Top of the World (TOW) is a great family neighborhood in Laguna Beach. It is located far up on coastal mountain adjacent to downtown Laguna Beach. It features its own sought-after elementary school located right in the neighborhood. Home values in TOW have been impacted in a big, big way.

Take 3241 Rimcrest Circle, Laguna Beach, for example. A 2400 square foot home in pretty good condition. Listed for sale at about $1,600,000, it sold for only $1,009,000! This is a huge 37% drop from the listing price to the sale price. Laguna Beach home prices continue to weaken in a big way, as evidenced by this sale - at only $420 per square foot.