Laguna Beach Real Estate Magazine
February 2023 | Edition #92
Low Supply Intersects Low Demand
The Laguna Beach sold median declined $270,000 in February, settling at $2,630,000. Dollars per square foot declined 121, finishing at $1,378. Days on the market plunged 70% to just 25 days.
Volume, also known as the number of closings, was very low. February volume, at 12, was tied for the lowest I have ever documented. For context the 5-year median monthly volume is 34. In fact, the most recent 3-month, 6-month, and 12-month volumes were all the lowest I have ever documented. As best I can tell, the Laguna Beach real estate market has not been this slow since the Great Recession in 2009.
As of March 1, the number of listings active on the market was just 104. For context, that is less than one third of the number of active listings on the market in August 2019 and 42% lower than the 5-year median.
What is going on? Why are supply and demand so low? It’s high mortgage rates. Want-to-be sellers are not listing because they have locked in super low rates on their current house. If they sell and pay off the existing mortgage, the payments on the replacement mortgage will be much higher. Payment shock is also scaring away buyers.
Call me whether or not you are looking to buy or sell.
Laguna Beach Real Estate
February 2023 At-A-Glance
SOLD MEDIAN $2,630,000 - 270,000 | $ PER SQ FT $1,378 - 121 | SUPPLY 8.6 MONTHS + 2.8 | CLOSING RATIO 92% - 31
Laguna Beach Real Estate
Price Forecasts
Short-Term PENDING INDICATOR Forecast for March: Down Signal
Short-Term SPREAD INDICATOR Forecast for March: No Signal
Long-Term PRICE INDICATOR Forecast for 2023: No Signal
Laguna Beach Real Estate
February 2023 Sales Data
Balanced Market 5 to 7.9 Months
Laguna Beach Real Estate
February 2023 Laguna Beach Real Estate Closings
Laguna Beach Real Estate
Median Value of Homes Sold by Year
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