Monday, December 14, 2009

Newport Beach, Laguna Beach, CDM and Newport Coast Lead County in Price Reductions

John Lansner's blog has a good posting identifying the communities with the greatest price reductions on MLS. Newport Beach is number 1, with the greatest price reductions and Corona Del Mar, Laguna Beach and Newport Coast are all right up there. What does this mean? It means that real estate agents in these areas generally are listing properties at unrealistic asking prices. If no one shows up to pay the initial asking price, the market is forcing price reductions. Buyers should beware of asking prices given this hard data - the true value of these properties is likely to be far, far below the asking price.

Thursday, December 3, 2009

1130 Summit Drive - Good Deal or Not?

Recently, 1130 Summit Drive was foreclosed upon and listed by its new bank owner. It is big, w/5 bedrooms, very nice inside, but no yard, on a very busy steep street and the house is all vertical - 4 stories up to the kitchen from the garage.

The bank wants $2.4 million - that's quite a steep price for a home in Arch Beach Heights, which is typically a low value area in Laguna Beach. Rumor has it that there were multiple offers a few weeks ago but even then the price didn't go that high. Now though, it looks like the house is under contract.

Oh yeah, the neighbor's house (1289 La Mirada St.), which is bigger and is uphill on a better and level street, was recently listed for $500,000 less. Not a good sign that 1130 Summit is worth anything near to the asking price, in my opinion.

What say ye? Is someone going to get a good deal or is the new buyer getting a load of trouble - a house that's going to sink underwater yet again in the future?