Homes Under 1M Sell Faster in Laguna and South Coast

Laguna Beach real estate may still be stuck in a slow phase, but homes priced below $1 million are becoming a strong force in the local market, data from San Diego-based firm Altera Real Estate showed this week.

Broker Steven Thomas from Altera said that the lower ranges are “hot” in the Orange County market this month, and the lower the price brackets are, the more activity they tend to have. And as the housing crisis continues, more homes are expected to fall into this range in the near future.

Laguna Beach is known for its seven-figure home values, with its average home price of $4 million putting it among the most expensive in Southern California. Lower-range homes are rare in the city, but have been growing since the sub-prime crisis struck.

According to online listing service Redfin.com, the O.C. South Coast—composed of Laguna Beach, Dana Point, and San Clemente—has a total of 268 homes selling for $750,000 and below, and 116 priced at $500,000 or lower.

Laguna Beach has a far smaller share of low-end homes compared to the other two cities, with only 18 homes in the $750,000 range and a mere 8 homes under $500,000. For all three, the bulk of cheap properties comes from short sales and foreclosure auctions, which have gone up considerably county-wide.

Although price cuts have been on the rise in the South Coast for the past few months, the drop is still slower compared to other Orange County areas. Experts see this as a sign that coastal areas are still among the most stable in the state, and that they may be among the first to recover from the housing crash.

 

Earlier in Laguna Beach Real Estate News:
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