1130 Summit Drive - A New Low Comp Killer For Laguna Beach Luxury Housing

I've written about 1130 Summit Drive before. It is a newer modern house with ocean views but no ocean access. A rumor posted by a reader on this blog indicate that it has been sold for $2.38 million. If true, this represents a huge reduction from its original list price, which was $5,000,000 in 2007. According to the prior link, it was Lee Ann Canaday trying to get that price from someone. Didn't work.

The sale price would be more than a 50% reduction from the $5,000,000 price that turned out to be completely unrealistic.


All in all, once the sale is confirmed, this will be a comp for Laguna Beach at $496 per square foot. There are a lot of houses out there priced way above that at $700 or $800 or $1000 per square foot. I'd advise a healthy dose of caution when dealing with listing agents claiming homes can be valued at these prices, especially homes with views, but no ocean access. I personally think the buyer paid a little too much, but everyone has their own way to value things.

Sale of Repo at 1130 Summit Drive Fails - it Falls Out of Escrow

We've written about 1130 Summit Drive, which supposedly (according to comments posted on this blog) garnered offers in the neighborhood of $2 million and perhaps one offer with a higher amount that was chosen to go into escrow.

Well, so much for that - the home presumably fell out of escrow and was relisted at the end of December and the price was reduced by about $35,000, to $2.37 million.

Does anyone know what happened? Problems with the buyer? Cold feet? Something wrong with the house?

At a minimum, this price reduction may impact the home in escrow next door at 1289 La Mirada Street. This older home in need of updating is one lot up the hill but on a better, flat street, but now it may be worth less than its lofty listing price of nearly $2 million, given that the 1130 Summit Drive house is moving downward in the direction of that price. They are virtually the same square footage Both of these homes are in Arch Beach Heights area of Laguna Beach, which is one of the less desirable areas in Laguna Beach and is not known as an area packed with really expensive homes. I wonder if the La Mirada buyer will get cold feet.

The listing broker for both homes is the same - Prudential California Realty. I wonder if this broker will tell the buyer of the La Mirada home about the failed sale of the neighboring house? Or will the buyer's agent be smart enough to find out about it? This failed sale may provide a very relevant comp data point for the La Mirada house. And that comp data point has fallen in value judging from the recent price reductoin......tick, tick, tick.....will another price reduction come? Probably..........

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?