Source: Stephen Thomas - Orange County Housing Report
Due to fewer pending sales, the overall housing market is not as hot as it used to be. Active inventory remains high, and demand is beginning to mute, as it normally does around this time of year. However, exceptionally low interest rates have improved affordability. For a $650,000 loan at 5% (a common rate several months ago), the monthly payment was $386 higher than it would be now for the same loan at 4%.
Looking at pending sales statistics, it appears that this new affordability has not been a catalyst for strong sales this year. Comparing this year's current market to the market of two years ago when it was a hotter market leaning towards favoring sellers, we see that demand (pending sales) is down 15% compared to 2017, inventory is up 26% (15% up from just last year), and closed sales are down 16% compared to 2017.
Long story short, while affordability has increased lately, there is an underlying issue buyers have with today's market that is keeping them picky and cautious. Handsome appreciation in home prices may be the culprit, with prices locally rising up to 70% in certain local areas since 2012. These prices combined with having plenty of inventory to choose from may be contributing to buyer pickiness. With this sluggish demand trend expected to continue throughout the second half of 2019, sellers should expect fewer closed sales and a market where pricing will be absolutely crucial to find success.
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JUST SOLD
in Laguna Beach
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1098 Wykoff, Laguna Beach
Represented Seller
Sale Price: $1,450,000
3bd, 3ba, 1,634 sqft
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31984 Coast Highway, Laguna Beach
Represented Buyer
Sale Price: $1,195,000
2bd, 2ba, 980 sqft
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21711 Wesley Dr #B, Laguna Beach
Represented Buyer & Seller
Sale Price: $655,000
2bd, 1ba, 900 sqft
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Lower Three Arch Bay, Laguna Beach
Representing Buyer
List Price: $5,900,000
3bd, 2ba, 3,418 sqft
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Laguna Niguel
Representing Buyer
List Price: $1,078,000
4bd, 3ba, 2,552 sqft
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CURRENT LISTINGS
Laguna Beach
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31012 Aliso Circle - $2,579,000
3 bd, 3 ba, 2,301 sqft |
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MARKET STATISTICS
Laguna Beach
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Active - 324
Pending - 55
Sold in June - 34
Sold in July - 27
June
Under $1,000,000 - 4
$1,000,000 - $2,000,000 - 14
$2,000,000 - $3,000,000 - 8
$3,000,000 - $5,000,000 - 7
$7,400,000 - 1
July
Under $1,000,000 - 3
$1,000,000 - $2,000,000 - 12
$2,000,000 - $3,000,000 - 1
$3,000,000 - $5,000,000 - 7
$5,000,000 - $10,000,000 - 2
$11,750,000 - 1
$13,000,000 - 1
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