In February 2019, the Laguna Beach real estate market shifted to a buyer’s market in the $5MM+ luxury market.
This is the first time I have seen a buyer’s market in Laguna Beach since I began closely tracking Laguna Beach real estate inventory in March 2018, which means this could be the first buyer’s market in Laguna Beach for more than one year.
In February 2019, Laguna Beach listed 11 homes for sale in the $5MM+ range, and there was only one home sale in this same price band.
These numbers translate to an inventory of 11 months for the $5MM+ price range – an inventory so high it is considered a buyer’s market.
Reality Check: the average home buyer in Laguna Beach is spending between $1-$2MM on her home. So does a buyer’s market in the $5MM+ price range mean anything for the typical Laguna Beach buyer?
Conventional wisdom says, yes.
Typically when the real estate market begins to shift, it happens in the luxury market first. Inventory has been extremely low for the past year or more, even in the luxury market.
11 months of inventory in the $5MM+ range may signal an increase in inventory in the lower price bands as well, which would be great news for the average Laguna Beach buyer.
More good news for buyers is that home prices have been consistently falling. In February 2019, the average Laguna Beach home price dropped 26% from January.
The overall Laguna Beach market remained an Extreme Seller’s Market, with 2.6 months of inventory across the board.
In general, it’s a good time for Laguna Beach homeowners to sell. Although home prices have been falling, as long as inventory remains low, homeowners can still command competitive prices and expect their buyers to be in tip-top shape.
But that may not be the case for much longer.
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A second generation real estate broker living in Laguna Beach, CA. Need help with Orange County real estate? Call/ text 949-973-6478. Follow: @diglagunabeach