Crystal Cove Listing Fail

Recently, 2 Baffin Bay was listed for $2,995,000. Several open houses were held. Much gushing about the extra rooms in this home, which was renovated to add square footage. This was touted as a "GREAT VALUE IN CRYSTAL COVE" Hah. Right.

No sale. Fail. Now being rented out.

What does this mean? This is more evidence of weakness in Crystal Cove. This especially demonstrates the falling home values in the "Seabourne" models on the lower part of the hill. They are all pretty much the same - interchangeable comps. If the listing price was somewhere close to the real market value of this home, it would have sold.

Someone could conclude then that the value of this home is much less than $2.9 million. $2.5 million? $2.4 million? The real value of these single family homes is probably lower than the high priced condo sale that happened earlier in the year. Ooops - wouldn't want to be that buyer. Any thoughts out there?

Laguna Beach Foreclosures Skyrocket - More Downward Price Pressure Coming

The latest data from the OC Register shows a whopping 66% increase in Laguna Beach foreclosures. This means more distressed properties will hit the market. This means downward price pressure. If you buy, buy low so you don't end up underwater on the day you close!

Top of the World - Large Homes Sell at Less Than $400 Per Square Foot

Recent comps in the Laguna Beach Top of the World neighborhood indicate that the price per square foot for these larger family homes has dropped way below $400 per square foot.

3216 Tyrol - $358 sq/ft, sold on February 26, 2010
2556 Temple Hills Drive - $389 sq/ft, sold on April 16, 2010.
2255 Bridge Road - $358 sq/ft, sold on January 8, 2010.

Notably, only a few houses away from 3216 Tyrol is the above home on Park Place, which sold on April 9 for a whopping $571 sq/ft, a total of $1,620,000. There is virtually no difference in the non-ocean views between these two homes. If the Park Place home was valued even at $400 sq/ft, the price would have been $1,140,000. If that valuation is used, it is almost a $500,000 loss the very second the buyer took title to the house. Possibly, they are upside down right now, even before the housewarming party. I wonder if the new buyers were aware of these recent comps? They paid more than the house sold for in 2004, which can be used to judge value. LOL if they have to resell anytime in the coming years!