February 2016 Laguna Beach Real Estate A Broker’s Take audio and video text
The Laguna Beach real estate market has resumed its historic up trend, yet is severely and chronically overpriced.
After a brief pull back early last year prices are now breaking out to new highs. The highest annual median price ever recorded was in 2014 at $1.785 million. Although the 2015 price did decline by 5% to an even $1.7 million. Over the most recent 3 and 6 month periods, the median price has clearly exceeded the 2014 highs at 1.86 million and 1.825 million, respectively. The house behind me --
1101 Marine Drive -- just sold last month for a record $45,000,000. This is a bull market.
Despite these price improvements, many sellers are listing their homes well above the current market. At $2.69 million the median listing price of all active homes is over eight hundred thousand dollars higher than the median closing price of all homes sold in the most recent 3 and 6 months periods. Said another way: sellers want over 44% more for their homes than buyers are willing to pay.
Price reductions are common: 83% of all of the 430 homes sold in 2015 and so far in 2016 have needed to reduce their selling price before closing. Many homes are languishing on the market unsold: of the 199 homes currently listed for sale, 97 of them have been on the market for over 100 days, and 56 have been on the market for over 200 days. One home has been on the market for 1,342 days.
Overpricing in any market can have painful consequences. Buyers will pay the market price, but will not, in masse, overpay for a home – even in Laguna Beach.
Hello, my name is Boyd Roberts. I am an independent broker, highly experienced, and a problem solver. I can help you negotiate this bull market and add tremendous value to your real estate purchase or sale. Call, text, or email me, today.
CA BRE Broker’s License
Created March 2016 on Crescent Beach near 1101 Marine Drive. Boyd Roberts is solely responsible for all content. All data/statements/opinions/conclusions are taken from sources deemed reliable (Laguna Beach Real Estate February 2016 Sales Report and the California Regional Multiple Listing Service, Inc.), but are not guaranteed, and are not a forecast of higher or lower prices. This information is for your personal, non-commercial use. Copyright 2016. All Rights Reserved.