Laguna Beach Housing Market: Two Markets, One Street

Prices are rising, yet some sellers are taking bigger discounts than a year ago. Here’s how both can be true. Laguna’s median sale price is up 16.5% from last year. At the same time, sellers above $2.5 million are taking bigger discounts than they were a year ago. Both of those are true, and the difference comes down to pricing.

What the numbers say

As of this week, homes above $2.5 million in Orange County are closing about 5% under list price. Below that line, the market is behaving completely normally. In Laguna specifically, there are roughly 175 active listings, and 122 of them have been sitting for more than 30 days. But the homes priced correctly are closing at 101.5% of asking.

There is no single “Laguna market”

Right now, Laguna has two markets, and they can be on the same street. One home is selling above asking in two weeks. The home down the road is on day 90 and about to cut its price.

A rising median doesn’t protect an overpriced home

The pressure isn’t limited to the lower end of the luxury range. A home in Three Arch Bay was listed at $22 million and closed at a little over $19 million. A rising median did not rescue that price.

Two kinds of sellers

There are two kinds of sellers in Laguna right now:

1. Sellers who price to where the market is. They attract strong early interest and control the negotiation.
2. Sellers who price to where they wish the market was. They sit, then cut, and they negotiate from behind on day 90.

Six weeks after listing, you’ll know exactly which one you were.

Frequently asked questions

Is the Laguna Beach housing market going up or down?
Both, depending on the home. The median sale price is up 16.5% year over year. Homes above $2.5 million in Orange County are closing about 5% under list.

Are Laguna homes selling above asking price?
Correctly priced homes are. They’re closing at 101.5% of asking, while many overpriced listings sit past 30 days.

How do I know what my Laguna home is worth right now?
A current, home-specific market analysis is the only reliable way. Citywide medians don’t tell you where your home sits in this split.

Find out where your home falls

Curious where the market actually is on your home? Send us a message and we’ll give you an honest read on pricing before you list.