Inventory Drop Forces Down Laguna Beach Home Prices

The continued drop in local inventory has put pressure on the Laguna Beach housing market, particularly in the luxury sector. This week, several multimillion-dollar homes in the city saw significant price reductions, with some falling by up to $2 million.

The biggest drop was on a property on Sunset Ridge, North Laguna, which fell from $6.9 million to $4.9 million-a cut of over $1.9 million. The 4-bedroom, 7,200-square foot property, which includes an ocean view, has been on the market for over seven months.

Another home went from $4.5 million to $3.9 million, a fall of more than $500,000. Located in the prestigious Emerald Bay community, it includes 5 bedrooms and 3,000 square feet of living space. The home has been on the market for two and a half months.

In Three Arch Bay, another high-end neighborhood, a home originally pegged at $3.6 million is now going for $2.9 million, a difference of roughly $700,000. Offering 3 bedrooms, 4 baths and unique ocean views, the home has been for sale for 1,087 days, or roughly three years.

In all, about 40 Laguna Beach homes priced $1 million and up had to reduce their price by mid-September, according to reports from real estate company Altera Real Estate. Other South Coast cities are seeing similar reductions: in the same period, 17 million-dollar homes in Dana Point and 11 in San Clemente had to pull down their prices as well.

Experts believe that the figures reflect a need for more affordable inventory. According to Altera broker Steve Thomas, there are still lots of buyers in the South Coast, but there are not enough homes that fit their budgets. The price reductions, however, can pull up the demand in some of the high-end areas, he added.

 

Earlier in Laguna Beach Real Estate News:
Government Programs Can Help Laguna Beach Homeowners
Montage Resort Plans $400 Million Utah Expansion
Emerald Bay Home Slashes Price By $1 Million