Laguna Beach Real Estate

The Laguna Beach real estate market in chock full of luxury, custom and ocean view properties. Many home buyers have been watching as the general market takes price cut after price cut…but do such price cuts ever occur in a market such as ours, here with Laguna Beach homes?

It was reported by Matthew Woolsey of Forbes.com that owners of luxury, high-end homes have been in denial when it came to the question of whether or not their homes could possibly suffer the same type of financial fate as the broader market. As he stated, “…high-end home buyers were thought to have endless, deep pockets, further insulating the top-tier from the cratering economy.”

But, it seems, that the price insulation eroded after Lehman Brothers failed and Fannie Mae and Freddie Mac’s troubles were viewed in the full light of day and went into government conservatorship.

The real estate market in Laguna Beach has experienced its share of short sales, REOs and “regular” sales that are priced well below what we have seen in the last five years. In some cases, we are looking at homes priced where they were in 2002! And, just like many other real estate markets in Orange County, Laguna Beach homes for sale have their share of “shadow inventory”.

Homes labeled as “shadow inventory” are homes that are in some state of pre-foreclosure or are bank owned properties not yet on the market. The banks understand that when a homeowner becomes late by two or more months on their mortgage payment, the probability of that home becoming a “distressed” property increases. The lenders have a pretty good idea of how many additional homes will be entering our market at reduced prices in the coming months.

So do smart homeowners that want to sell their house now. They understand that in order to compete with the incoming inventory, they must price their homes competitively according to today’s economics and market…not the market of a few years ago. Because of this smart pricing, we are finding some well-priced “regular” sales (meaning that the property or owner is not in a distressed situation).

Just imagine if you could purchase the home of your dreams for what it was priced seven years ago. This was well before the peak of the market.

High-end homebuyers may be believed to have deep pockets, but they also have deep financial smarts. They understand that the right time to buy prime properties, or other smart investments, often comes when others are hesitant. When the price of a home in Laguna Beach gets to the point where it would almost be silly NOT to purchase it, contracts will be negotiated… and they are.

Here are the 9 top-priced luxury ocean view homes for sale in Laguna Beach right now:

 

 

 

 

3 Camel Point, Laguna Beach

Originally priced at $19,800,000

Currently priced at $17,499,000

Price per square foot = $2,692.15

MLS# L28718

 

 

 

 

31921 S Coast Hwy, Laguna Beach

Priced at $17,900,000

Price per square foot = $2,143.71

MLS# U9001960

 

 

 

 

18 La Senda, Laguna Beach

Originally Priced at $22,500,000

Currently Priced at $18,700,000

Price per square foot = $4,853.36

MLS# L29804

 

 

 

 

 

111 La Senda, Laguna Beach

Priced at $19,500,000

Price per square foot = $5,277.40

This is priced for the completed home to be built

MLS# L27344

 

 

 

 

 

31401 Mar Vista, Laguna Beach

Originally Priced at $28,000,000

Currently Priced at $22,950,000

Price per square foot = $2,025.06

Property under construction, Subject to Bankruptcy Court Approval

MLS# L28008

 

 

 

 

1031 Marine, Laguna Beach

Originally Priced at $17,500,000

Currently Priced at $15,900,000

Price per square foot = $3,382.98

MLS# L29273

 

 

 

 

2529 S Coast Hwy, Laguna Beach

Originally Priced at $34,900,000

Currently Priced at $29,900,000

Price per square foot = $3,707.38

MLS# U9002682

 

 

 

 

2665 Riviera, Laguna Beach

Originally Priced at $40,000,000

Currently Priced at $31,500,000

Price per square foot = $2,916.67

MLS# L29755

 

 

 

 

22 Emerald Bay, Laguna Beach

Currently Priced at $35,000,000

Price per square foot not calculated

MLS# U9005292

Following are the last 4 luxury ocean view homes in Laguna Beach that have sold (public records – does not include private sales) in 2009:

 

 

 

 

1885 Ocean, Laguna Beach

Originally Listed for $15,995,000

Sold for $13,500,000 on 9/30/2009

Price per square foot = $2,398.38

 

 

 

 

2317 S Coast Hwy, Laguna Beach

Originally Listed for $15,995,000

Sold for $14,400,000 on 8/20/09

Price per square foot = $1,600.00

 

 

 

 

 

1163 Marine, Laguna Beach

Originally Listed for $12,800,000

Sold for $10,000,000 on 3/13/09

Price per square foot = $3,125.00

 

 

 

 

31091 S Coast Hwy, Laguna Beach

Originally Listed for $10,950,000

Sold for $10,000,000 on 1/16/09

Price per square foot = $2,325.58

“Orange County is one of the fastest-moving markets in Southern California, with a hot seller’s market in homes priced at or under $899K, and only 11 months of Inventory on hand in homes priced above $900K….Not since December 2008 have listings been absorbed faster than they enter the market. The number of listings on the market was down to 3,290 in August 2009 from 3,453 in July. Listings sold were up to 3,568 units in August from 3,126 sold in July.”

Read the full report…”Heated First-Time Buyer Market Changes Strategies for Buyers and Sellers”

Many have speculated that this drive in sales at this price point is a result of the Buyers Tax Credit, which seems to have a good possibility of being extended.

What do you think? Has there been a shift in the market?

More and more we are hearing about celebrities choosing to spend their final hours at home.  Take for example the recent deaths of Patrick Swayze, who died of pancreatic cancer after a 20 month battle; the infomercial king Billy Mays who was found unconscious in his Florida home; Actress Beatrice Author who died in her Los Angeles home; New York DJ personality known as DJ AM found dead as a result of possible drug use; or the passing of Ted Kennedy who chose to die at his home in Massachusetts after his battle with brain cancer.

On one hand, this image can bring a sense of peace to the process of dying; however, for some people the thought of living in a house where someone has died makes them run the other way for personal reasons as well as spiritual reasons.

The California law states that death on a property need not be disclosed if it occurred more than 3 years prior to a sale. If the death occurred within 3 years, and the circumstances of that death are material, such as a gruesome or offensive death, or it affected the reputation of the property, it must be disclosed. Additionally, if a buyer inquires, the seller must disclose any known deaths that occurred in the property, regardless of the time.

But what is considered “material”? Would it make a difference if the death were a result of the natural progression of life or if it was the result of a murder?

What do you think? Would you live in a house that someone died in?

Hey there!

Thanks for visiting my blog. Come back often for stimulating discussions and the latest and best news and updates on the Laguna Beach Real Estate Market and Real Estate Market trends in the Southern California Coastal Communities.

Warm Regards,

Hillary Caston