Median Real Estate Prices in Orange County on the Rise-Is this the bottom of the Real Estate Market for Laguna Beach?
The Orange County Register reported this weekend that “We continue to marvel at the sales bump at the beach” The report by Jonathan Lansner goes on to say that the median selling price for Orange County’s beach city zip codes is $737,500, up 11.1 percent versus a year ago. Is this a signal for Laguna Beach Real Estate?
Sounds like good news…right?
Please remember; however, what we reported in an earlier post regarding the expectation of this very news and what the implications are. Everyone is craving that assurance that we have reached the bottom of the market and things are popping back up. This number reported by the OC Register is just one statistic. Even though it may be accurate, it is simply reporting numbers.
Understanding the type of inventory that is now available would be necessary to draw a conclusion as to the real estate market condition. Many of the homes that sold in the first quarter of the year were priced under $1 million, where buyers could get government incentivized loans at less than about $750,000. Be aware that the higher average price over last year could simply mean that the lowest priced units are now gone.
Possible good news is that the inventory at those lower levels may have been reduced, possibly allowing for some price stabilization at the lower price points, since the supply/demand ratio may now be a little tighter. Additionally, some have speculated that because of a real or perceived scarcity in the inventory of those lower-priced homes (I’m talking about those priced at $500K or less), there have been reports of “bidding wars” and multiple offers that have resulted in higher sales prices.
In Laguna Beach Real Estate, there are not many homes in those lower prices points….although there are some. The next area that we are looking at for some good prices falls within the $2million to $5million range. The challenge will be to those that are seeking financing as opposed to a cash purchase.
Financing is out there, and the lending climate for high dollar loans is changing somewhat, so find a lender or broker and get your financial ducks in a row as early as possible. Correct what needs to be corrected, save what needs to be saved, and then get ready to enjoy that Coastal Lifestyle that you’ve always dreamed of…at a bargain price!
