Sunday, May 2, 2010

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!


Anonymous said...

A broken clock is always right at least twice a day.......

You seem to have missed the data on recent sales in Crystal Cove.

In fact, the price per sq. ft. is increasing not declining. Several sales in the 5M+ and one recent one in 11M.

Looks like the "dumb money" is back in the game, and you will be sitting on the sidelines watching and wondering why you are not making money.

Oh yea, that 1.2% at BofA looks real good!

Mr. Blue said...

Dear Anon, whenever you have some real information to post, we are waiting. Save the hype for your unsuspecting clients.....