The Laguna Beach real estate market, one of the most expensive residential sections of the Orange County housing market, has hit a substantial snag in the most recent tracking period. Not only are fewer Laguna Beach homes for sale being sold, inventory of Laguna Beach properties is backing up for nearly a full year. According to an August 23, 2010 report from the Orange County Register, "From a Laguna Beach perspective, the latest Orange County home inventory report from Steve Thomas at Altera Real Estate -- as of August 19 -- shows these conditions vs. countywide trends ... The newest "market time" of Laguna Beach -- Thomas' math that tracks theoretical time it would take to sell all listed homes at the pace of new escrows opened -- is 11.31 months. That is +7.4% (or roughly 23 days) in a year. Over two years, it's -39% or 213 days. "Market time" of Laguna Beach is +223 days vs. Orange County's overall time to sell. The community's share of its new deals in escrow involving distressed properties -- foreclosures or short sales -- is 8% or -24.63 percentage points vs. countrywide share. Note that this community has 1.2% of all the deals in escrow countywide -- and 0.8% of all distressed deals in the works. Meanwhile, the city has Laguna Beach has 3.5% of the entire supply of resale residences that are listed for sale in Orange County."
The Laguna Beach housing market, which may be reeling primarily as the result of the expiring federal housing tax credit, saw a decline of home sales in the month of July along with a lower median price (although still well above one million dollars for a single family home). A second report from the Orange County Register, dated August 15, 2010, stated that "For the 22 business days ending July 27-- DataQuick's freshest stats -- Laguna Beach homebuying patterns showed: Homebuying -37% vs. a year ago. Laguna Beach's median selling price was $1,112,500 -- that's +147% vs. countywide pricing. A year ago, that Laguna Beach home-price "premium" was 173% vs. the countywide median selling price."