Laguna Beach is a funky market - those who know its ins and outs can do very well, while others - even experienced real estate investors - can get burned if they don't know what they're doing. Laguna Beach is also a city that, to this point, seems to be holding up better than just about any other part of South County - that is, if you hold much stock in median prices.
525 Allview Terrace, Laguna Beach, Calif., 92651
Size: 2 beds, 2 baths, 1,550 sq ft (built in 1958)
MLS: L23207 (134 days on Redfin)
Asking price: $2,149,000
Asking price/ sq ft: $1,386
Income requirement: $537,250
Purchase price: $2,150,000
Purchase date: 10/28/2005
Other sales history: 1/9/1998: $550,000
4/12/1990: $560,000
ZipRealty price tracker: Price Reduced: 9/22/07 -- $2,195,000 to $2,149,000
2006 property taxes: $22,985
HOA dues: $50
Zestimate: $3,079,428
Lot Size: 4,100 sq ft
Type: Single Family Residence
Style: Contemporary
Area: North Laguna
From listing: Witness the transition from Diamond in the Rough, to Polished Jewel! Located behind the gates of a private community in N Laguna, this treasure offers sweeping ocean views and unmatched tranquility. All new Master bath w/ oversize tub. Glowing hardwood floors. New stainless steel appliances, Brazilian granite, and new fixtures throughout. Venetian plaster fireplace. Many additional upgrades. All in elegant North Laguna Beach with magnificent ocean vistas. BEST OCEAN VIEW FOR THE PRICE in N Laguna !
This listing may come as a shock to some who still believe in real estate's magical ability to perpetually increase in value, but I assure you, this is for real. High-end properties were still moving quickly a few years ago - and even a few months ago there was confirmation that the upper ends of the real estate market seemed to be virtually immune to the downward turn the rest of the market was experiencing. Perhaps those days are numbered.
This property doesn't look like much of a dud considering a potential sale at this price would only signify a $1,000 loss (asking price minus previous sales price), but if you factor in 6 percent selling costs, the loss would be a more noticeable $129,940. This house has already been on Redfin for 134 days without any takers. At least the asking price has been lowered a whopping $46,000.
Think that's crazy? Try this: The closest neighbor to the property we just finished profiling who is trying to sell their house is asking $2,079,000. They purchased in February 2006 (half a year after the other owners), but somehow think their property has appreciated by $329,000 in just two and a half years, at the same time as our subject property was seeing no gain.
Wednesday, September 26, 2007
Can you believe it?
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4 comments:
WOW Laguna beach going down too?
Best site about housing condition in Orange County, ever. It is better than the best Reporters from Orange County Register. Must read. No bias. No spin. No hidden Agenda.
Yes, Laguna Beach is going down. Slowly, but down. For instance, in August 2007 the median sales price was $1,638,000 (ridic, I know) but this was 3% lower than the median August 2006 price. In September 2007, the median sales price was $1,300,000, down 35.8% from the September 2006 price. It was a 20% decline from August 2007 to September 2007.
Median sales price has a lot of flaws to it. For the first time recently, I saw movement of $1,300,000 asking prices reduced to the $1,250,000 level. Prices are coming down, no doubt about it.
Golly, when you say "going down" you should qualify from what ridiculous "going up" elevator ride the market was and is.
This the the dot.com bubble made manifest on the housing scene. LB "shacks" for 1.5 mill--literally, with one tiny bath circa 1934?
The real term is "market correction." You know, like when that overpriced dress at Macy's starts out as $300 and is marked down with several cross outs until it is on that bargain rack for $15? Or even winds up at Marshall's discount store?
ps
This should frost the REAL (faux) housewives of Orange County.
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