Laguna Beach Has Fewer Distressed Homes

The number of short sales and foreclosures in Laguna Beach is down from two weeks ago, making it the fourth straight week of positive progress for the South Coast city, according to the latest reports from real estate firm Altera Real Estate.

Of the 332 homes listed in Laguna Beach this week, only 27 are classified as distressed. This brings the ratio to 8.1%, down slightly from 8.8% two weeks ago. Last month, 9.3% of the inventory were short sales or foreclosures.

Adding to the city’s positive streak is a 62% rise in home sales compared to a year ago, when the market was at its slowest. This is significantly higher than other beach towns, which rose a total of 13.4%, and all of Orange County, where home sales went up 4.6%.

Perhaps as a result of fewer distressed sales, Laguna Beach home prices are also slightly up from a year ago. The latest recorded median price is $1.09 million, still below its peak average of $4 million but a good 32.6% more than it was last year.

Experts view the drop in home prices as a positive factor, as high-end homes were among the slowest to sell in the city last year. As more homes went into distress, however, prices went down and market activity began to rise again.

Countywide, distressed homes are slightly on the rise, according to Altera realtor Steven Thomas. As of the latest report, 2,769 homes listed in Orange County were distressed: 396 foreclosures and 2,373 short sales, both up slightly from two weeks ago.

Thomas added that Orange County currently has a “deep seller’s market,” especially as interest in foreclosures and short sales rises. The current market time for distressed homes is a mere 1.14 months for foreclosures and 1.91 months for short sales.

 

Earlier in Laguna Beach Real Estate News:
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More Luxury Homes Hit Laguna Beach Real Estate Market
Oldest House In Laguna Beach To Be Rehabbed