Although the supply of properties exceeding $10,000,000 or more, imploded from 69 months in January to just 11 months in June, overpricing, extended time on market, and huge price reductions remain endemic features of Laguna’s ultra-high end. In the last 50 closings, the median $ per square foot was $2,775, the median price reduction was $2,498,000 or 15.3%, while the median days on market was 140 days.
The highest price reductions correlated highly with the longest time on the market: 66% of sales in the highest quintile of price reductions were also in the highest quintile for the longest time on the market. The lowest price reductions, also, correlated highly with the shortest time on the market: 44% of sales in the lowest quintile of price reductions were also in the lowest quintile of time on market. It would appear, over pricing makes a home illiquid, wastes time, and ends up netting the seller less even in luxury markets.
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