The "immune" cities are not immune. Price have rolled over and are screaming downward. Lansner's blog has posted Dataquick numbers through January 15.
Laguna Beach median home price - down 23% to $1.176M
Corona Del Mar median home price - down a whopping 50% to $1.25M
Newport Coast median home price - down a whopping 57% to $1.88M
Buying anything but the cheapest condo in these cities carries with it a ton of down side risk. Losing $20,000 to $40,000 per month in home value is one realistic scenario. Any real estate agents out there with any comments? If you go to an open house this weekend, throw these numbers around for mild amusement!
Saturday, February 7, 2009
Monday, February 2, 2009
Home Values Plummet in Supposedly "Immune" High End Cities
Recent data shows that home values in SoCal's high end communities only recently began dropping. But the drops are huge. The LA Times has a good article about it. One couple lost $400,000 in only a few months. Laguna beach home prices and Newport Beach home prices are following suit. Uninformed buyers are really at risk. Pound your agent for comps and analyze everything out there before you make an offer. Take the comps and SUBTRACT for the declining market to get to your offer price.
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