July Laguna Beach Real Estate Sales drop 40% from June
Category : Laguna Beach Real Estate
But this month, we’ve dropped to 20 closed home sales and 16 homes going into escrow. A 40% drop from last month. Drops in sales volume are usually seen in July but not quite as dramatic as this.
Now remember that a closed sale went into escrow typically 45 to 60 days ago. So the slow down actually started in the May/June timeframe. So we had a good spurt in ‘offers to buy’ from the last few months of last year through May.
I was fortunate enough to help 2 couples buy homes and land. Also, I arranged 2 rentals as well. I love people’s excitement when they get a deal for the home there planning to live in for a long while. We’ve looked hard, developed great relationship and are really happy that the hard work paid off.
I wish I could give a good summary of the trends there is ‘no rhyme nor reason’ in the statistics. There all over the place each month.
Summary for the month of July:
There are 400 homes on the market and now holding steady after a big rise at the beginning of the month.
20% of the sellers have made price reductions this month.
7 properties sold for less than a $1m and 3 of them were foreclosures and 1 was a short sale.
8 properties sold between $1m and $2m. They averaged approximately $600 a sqft, were on the market for an average of 100 days and sold for about 20% off of the original list price.
4 properties sold between $2m and $3m and one was a short sale. Some big price drops in this range with the average being a 30% from the original list price. One property was originally listed for $3.6m and sold for $2.9m.
Lastly, one home sold for $5m
So again – Up, down, sideways. Even as I write this 6 properties just went into escrow in August.
But when others zig, you zag, and therein is the opportunity.
Lots of great listings, jumbo loans are really cheap (but you have to have a good size down payment) and much more plentiful, and a great opportunity to negotiate a great deal.
My recommendation is if you’re at the lower end price ranges and you see a deal go for it. If your at the higher end, watch the prices closing for some downward pressure, and get ready for a super house in the best place in the world.