Laguna Beach Seeing Fewer Short Sales

Housing may still be down for most of the Orange County South Coast, but things aren’t looking too bad for Laguna Beach. For the past two weeks, it has had the lowest share of distressed homes in the South Coast compared to nearby Dana Point and San Clemente.

Of the 21 listings added to Laguna Beach in the last 14 days, only two were short sales, accounting for just 9.5% of new inventory. This compares to 13.6% (3 of 22) for Dana Point and a much heavier 27.9% (12 of 43) for San Clemente.

Overall, 17 new short sales were added to the South Coast listings in the said period, out of 86 total homes. This comprises 19.8% of the new inventory, leading many experts to rethink the possibilities of a market recovery in the upscale area.

The South Coast has recently been noted for its high percentage of distressed luxury homes. Just last week, reports showed that 95 South Coast homes valued over $1 million were either in default or foreclosure, divided almost equally between the three cities.

Part of the reason for the fall of upscale homes, according to experts, is the lack of buyers to match the growing inventory of properties. With average home prices reaching $4 million or more, more homeowners are competing for a smaller pool of capable buyers.

The same holds true countywide, as more and more short sales are recorded particularly in the high-end coastal areas. Orange County also ranks high nationwide in terms of homeowners whose debt on their home is more than the property’s market value.

 

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