Laguna Beach Home Buying Up 50% Over Year

Having struggled between ups and downs for most of 2009, the Laguna Beach real estate market is showing positive signs early in the year with a rise of 50% in home buying compared to the same period a year ago.

This time last year, only 14 homes were bought in Laguna Beach within the month, making it among the slowest real estate markets in Orange County. Today, however, the same period saw a total of 21 home sales.

The rise is unexpected considering the city's high median home price, which has always been thought to slow down market activity. At $1.2 million--188% of the countywide price--Laguna Beach has had considerable trouble getting sufficient buyers.

Pricing has also gone up in Laguna Beach, despite the growing number of short sales and distressed properties in the market. The median price is over 82% higher this week than it was a year ago, although the latter was still considered upscale in its time.

Countywide, home buying is up by 8% compared to a year ago. Beach towns, including Laguna Beach, were more than twice as active with a rise of 17%, a difference many experts take as a sign of recovering demand for luxury property.

However, real estate specialists do not expect such drastic increases this year, as the back inventory of short sales and foreclosures is expected to catch up in the coming months. While the market may stabilize, they say, it may take a year or two more before we see any significant recovery.

The numbers are provided by real estate information provider DataQuick, using home buying data recorded over the month ending February 5th. The report counted only business days, as weekends are generally slow in Orange County in terms of home sales.

 

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