Laguna Beach Suffers Biggest Drop in Mid-Spring Home Sales

Home sales for Laguna Beach ZIP code 92651, which includes high-end communities Emerald Bay and Arch Beach Heights, dropped 67.6% in the past two weeks, the biggest plunge recorded in Orange County for mid-May.

Meanwhile, Garden Grove (ZIP code 92843) showed the highest increase in buyer activity, posting a 100% rise in the same period. Garden Grove is located a good distance inland from Laguna Beach, just north of county seat Santa Ana.

Although it doesn't signify a trend, the numbers reinforce current beliefs that affluent coastal towns are suffering the real estate slowdown, while those in the mid- and north county are relatively sheltered.

Home prices are believed to play a role in the differences in buyer activity, especially in Orange County where price medians cover a wide range. In Laguna Beach, for example, homes went for an average of $1.15 million in the past month, while those in Garden Grove averaged $389,500. The countywide median is currently $430,000.

Throughout Orange County, sales are down 18.3% over the past year, and prices are 22.3% lower than they were a year ago. However, if activity continues until the end of the month, May could be the second month in a row where sales topped 2,000. Until April, O.C. sales fell short of the mark for seven consecutive months.

Experts believe sales activity may be nearing its bottom, if it hasn't already been reached. And while it may take a while for buyer activity to regain its pre-recession state (sales averaged 3,793 per month since 1988), many agree that Laguna Beach and the rest of O.C. are on a steady track to market recovery.

 

Earlier in Laguna Beach Real Estate News:
Montage Resort Plans $400 Million Utah Expansion
Emerald Bay Home Slashes Price By $1 Million
Laguna Beach Market Times Rise To 14.5 Months