581 Diamond Street Update - Foreclosure Confirmed

Had time Saturday for some open houses. I stopped at 581 Diamond even though it wasn't held open because I saw a legal notice on the front door. Sure enough, it was a foreclosure notice. So it is confirmed - it is a foreclosure seller who is trying to unload the property with an asking price more than $1,000,000 LESS than the prior sale price, which was only only last year. I wonder if this is a sign that banks will price cut much more this year, which will put severe downward pressure on prices on Orange County home prices and by default, Laguna Beach home prices.

Severe Price Cut Shows Real Recession in Laguna Beach Home Prices

Happy new year(?)

The lack of many sales in the last half of 2007 has left BlueMove and everyone else without much information on the real valuation of Laguna Beach home prices.

Well, wonder no longer. Someone wants to sell and that someone is probably a bank that now owns 581 Diamond Street, Laguna Beach, California. A 4 bedroom, 4 bathroom, 2100 sq. ft. home. This home was just listed in the MLS.

Asking Price: $1,449,500
Prior Purchase Price: $2,144,641 (August 2007)
Prior Purchase Price: $2,600,000 (April 2005)

If the house were to sell at the asking price, the total loss from the peak would be about $1,250,000, including real estate commissions. If the home sells, it could show what it takes to actually sell a mid level house in Laguna Beach in today's market. Such a price, a 50% loss, is a wipe out, wash out and a blow up.

More to come on local listings. In the meantime, it is scary how fast prices are falling! OC home prices are going down.