My Laguna Beach Real Estate Market Report for January 2019 reviews Laguna Beach housing data through December 2018.
2018 Showed Lowest Annual Sales in Laguna Beach Since 2011
December 2018 had the lowest number of Laguna Beach home sales in all of 2018, at 13 residences sold (June 2018 was the highest with 41 homes sold in June).
In all of 2018, Laguna Beach had a total of 354 homes sold. This is the lowest number of home sales since 2011 (2011 had a total of 329 home sales in Laguna Beach).
Hope for Buyers of Laguna Beach Real Estate?
With an average home sales price in Laguna Beach of $3,249,075 for 2018, and a median sales price of $2,251,417 for the year, it is no surprise buyers have had trouble breaking into the Laguna real estate market.
The average and median for 2018 mentioned above can be a bit misleading, however, because some of the highest valued properties in the globe sit right here in our community.
For example, in December 2018 the two highest home sales in Laguna Beach were $19,000,000 and $17,500,00, respectively (both located on Montage Way).
The $19,000,000 property was purchased by billionaire Mark Cuban.
These high-priced homes skew the average and median sales price; in reality, the most common price range in terms of number of homes sold in Laguna Beach in 2018 was in the $1,500,000 – $2,000,000 range.
In December 2018, the highest number of homes sold was in the $5,000,000+ range. This strong number of home sales reflects the falling prices in the luxury market of Laguna Beach real estate.
What Do the Numbers Reveal?
Although the global economy has been shaky, home prices have been high, and buyers have been wary, it seems the real estate market is beginning to make a shift.
Although inventory was still low in December (overall, 1.09 months of inventory), every single home sold in December in Laguna Beach was sold below asking price.
Home owners are no longer commanding earth-shattering prices, and this should bring some hope for buyers.
The second highest number of homes sold was in the $1,000,000 – $1,500,000 range – a price band more typical of the majority of Laguna Beach home sales.
Further, there was no absorption in the $2-$2.5MM and $3-$3.5MM price bands, in December 2018. Absorption refers to the rate at which homes were sold in a given time period. In each of these price bands, there were 5 active listings (a total of 10) that went unsold.
The average days on market for homes sold in December was 199 days, but this number is also skewed by the two very expensive luxury homes that sold in December, which tend to sit on the market much longer than the average home: 3 Montage Way (sold for $19MM) was on the market for 333 days, and 25 Montage Way (sold for $17.5MM) sat on the market for 1,437 days.
The average days on market for the entire year of 2018 in Laguna Beach was 106 days.
There could be several reasons for this, but it is likely the homes listed in these price brands were simply priced too high for the current market.
I am Here to Help
For help buying or selling a home in Orange County, please contact me today by clicking the button below.
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