1089 Miramar Street. Our early march price indicator. Do houses speak to you? This one should - and it should say something like "You are nuts if you buy a house in Laguna Beach and pay more than a 2004 price, because you will lose money starting the day you move in."Miramar was listed in August of 2007 for $1,549,000 and is in Arch Beach Heights, a nice area.
Several months and markdowns later, the asking price has been reduced to $1,150,000.
This is a $400,000 reduction (about 26%) and the place is not sold, so the ultimate selling price could well be less than 30% below the original asking price.
But wait, there's more.
The Miramar house was bought in May, 2005 for $1,195,000!! The flippers put additional money into it ($100K?) and now are all but guaranteed to sell the place for much less than the 2005 purchase price! With a 6% commission and assuming a $100K remodel, the loss could top $250,000!!! Laguna Beach home prices are coming down, and fast.
