Laguna Beach Has No "Affordable Inventory"

The South Coast has always been on the higher end of the Orange County real estate market, but recent reports have revealed just how high. Close to half of the new inventory to hit Laguna Beach, San Clemente and Dana Point are hardly considered affordable, and Laguna in particular has almost no affordable homes.

The report, published in the Orange County Register, considered homes priced over $750,000 too expensive for the average buyer. In the South Coast, 40% of new homes on the market had asking prices of at least $1 million.

Laguna Beach showed an especially high-end trend, with a mere 16 homes out of the 38 that hit the market in the past 30 days priced below $1 million. This compares to 29 for Dana Point and a more encouraging 140 for San Clemente.

Specialists expect these upscale homes to sit in the market for a long time as tough lending standards, particularly on the “jumbo loans” needed to afford them, continue to stall buyer activity.

According to real estate broker Steven Thomas, demand for million-dollar homes will continue to drop in the next few weeks, which means their values will drop as well. In the past two months, 130 upscale properties in the South Coast have had to reduce their asking prices.

Thomas adds that, on the other hand, demand is growing and will continue to grow for distressed sales of high-end homes. This includes short sales, foreclosures, and REO sales. With proper pricing, he says, these homes can attract multiple offers and slightly improve market activity.

 

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