Laguna Beach Has Highest Concentration of $1M Defaults

Mortgage defaults are up significantly on the Orange County South Coast, but experts are particularly curious about the market in Laguna Beach, where close to half of the homes at risk of foreclosure are priced over $1 million.

Of the 77 Laguna Beach homes in default as of December 10th, 36 are on sale for $1 million or more. The city’s average selling price, including both regular and distressed home sales, is currently $4 million.

The two other South Coast cities, Dana Point and San Clemente, have 114 and 227 homes in default respectively. However, million-dollar homes make up a much smaller part of the figure—only 23 for Dana Point and 39 for San Clemente.

Laguna Beach also has the largest share of short sales over $1 million, with at least 7 homes listed as short sales this past week. The most expensive is 24 Lagunita, a luxury home valued at $8 million. The rest are priced between $1 million and $2 million.

Recent polls show that most people expect these homes to sit on the market for a long time or not sell at all, as there isn’t much demand for million-dollar homes to begin with. Laguna Beach has been one of the slowest O.C. markets since the second half of 2009.

The South Coast, one of the most prestigious yet hardest-hit areas in Orange County, has a total of 418 homes in default as of December 10th. Approximately 23% of these are in the $1-million range. Laguna Beach has more than twice the concentration at over 46%.

The list is provided by the Foreclosure Center of real estate information provider Trulia.com. It takes into account properties that have received their first notice of default, which is the first step towards foreclosure.

 

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