Laguna Beach Luxury Homes Becoming More Affordable

Prices of luxury homes in Laguna Beach are seeing record lows as coastal Orange County struggles with falling market values, according to recent data. In Laguna alone, home prices were seen to fall by several millions in one go.

Last month, 291 million-dollar homes in Dana Point, San Clemente, Laguna Beach, and Newport Beach had to lower their asking prices in the past 30 days, some by $1 million or more.

Villa Rockledge, a historical property in Laguna Beach with a private beach vista, recently went from around $35 million to just under $35 million. Agent Carter Weir explained that the reduction would boost activity to the home listing.

A 13,000-square-foot property, a piece of the former “Western White House” in San Clemente, suffered a similar drop, falling from an original price of $15 million to less than $10 million after two large price cuts.

Real estate consultancy Real Data Strategies confirmed the downward trend. Research from the Brea-based firm showed that homes valued at $1 million or more had gone down by an average of 85.6% from July 2008 to June 2009, while homes priced below $500,000 were slashed down by over 92%.

Agents have related the trend to a similar recession in the 1990s, where coastal homes devalued by up to 50% before evening out. Many expect luxury homes to drop by a further 30% or more from their peak in the 2004 housing boom before hitting rock bottom.

Steven Thomas, an Aliso Viejo-based broker, agrees that prices are coming down but says that luxury homes have a naturally long market time. While the average OC home takes about 2.5 months to sell, he says, million-dollar homes often spend at least seven months on the market.

 

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