Laguna Beach Real Estate Market Forecast 2023

Laguna Beach Real Estate Market Forecast 2023

Sugary white beaches and rugged cliffs define the stunning coastlines of Laguna Beach, while an atmosphere of artistic culture lends the town a romantic, bohemian aura. Known as one of the world’s most lavish resort communities, Laguna Beach has a full dance card when it comes to luxurious destinations and fine dining. Art takes center stage here, and Laguna Beach is known as an artist’s colony of sorts. Perhaps the pristine coastal landscape and sparkling ocean views inspire creative souls to put brush to canvas, but whatever the case, this haven boasts over 70 art galleries and hundreds of working artists.

Properties here are equally inspired. Beachfront estates sport private beach access, elegant architectural lines, breathtaking vistas, and spectacular amenities, like balconies made of glass. This upscale market is known for luxe details and a competitive edge, with estates here widely considered some of the most coveted in the nation. But how will past trends and market activity stack up in the coming months? Read on to find out how the Laguna Beach market is projected to change and learn what you can do to benefit.

The current market

The market in Laguna Beach over the last year has been much like the rest of the nation – high prices, low inventory, fast-moving sales, and multiple bids. Because inventory has been at a record low, buyers have been more motivated than ever to offer above the asking price in order to have a chance at winning the multiple-bid game. Cash has reigned, and buyers have foregone home inspections as a way of sweetening their offers. Inventory has been snapped up at an alarming rate, which in turn has driven the demand and the prices to impressive heights.

Regarding the cost of living, Laguna Beach is 82% higher than the California average – and this should come as no surprise, considering the abundance of luxury homes and the attention to resort-level amenities in this coastal oasis. Given Laguna Beach’s affluent nature, cash offers may mean interest rates will not greatly affect the luxury market here.

Rising interest rates

The industry has been buzzy with speculation over the Federal Reserve’s rising interest rates, and the market is finally seeing some of the proposed changes. The Fed initially opted for the increase in an effort to manage inflation and equalize an unbalanced economy. As the strong seller’s market of the last year reached record highs, concern grew over how the economy could sustain such incredible growth. Property prices soared to unprecedented levels, and sellers seemed to have a monopoly on a market that couldn’t keep a supply of inventory. Listings barely made it onto the multiple listing service before contingent and sold notices popped up.

The interest rate raises, which have been incremental, brought a measure of equilibrium back to the market, and movement has begun to slow to a more sustainable pace. For those who plan to finance their home purchase, the new interest rates can have a significant impact, while those with cash in hand to buy a property outright may find themselves with the real estate opportunity of a lifetime.

Market forecast for 2023

With the interest rates rising and property inventory stabilizing, experts agree that 2023 will certainly bring industry changes. Housing prices are down in general across the country, but certain spots are projected to drop more, including a few California cities. In fact, real estate agents predict home prices in California will drop by 9% over the next year, shifting the market from the seller’s hold to more neutral territory – however, currently, Laguna Beach is not included on the major drop list.

Laguna Beach saw rapid sales last year, and this year those numbers are down slightly, as is the speed with which properties are moving. This is perhaps the most significant change 2023 will bring – prices will drop, inventory will rise, and the time spent on the market will increase. Whereas last year saw homes flying off the market in under 30 days, 2023 expects to see something closer to a buyer’s market. At the very least, 2023 is shaping up to be a more balanced market, with homes most likely sitting for about three months. A seller’s market generally sees homes selling in under three months, while a full-on buyer’s market finds properties sitting for six months, so 2023 will likely land somewhere in the middle.

Investors with cash funding may want to get their financing portfolios in order – those with cash at the ready may be in a prime position for great deals and eager sellers. With no need to manage interest rates or the accompanying mortgage rates, cash buyers are once again king of the market.

Your real estate agent will help you navigate

The real estate market is historically complex, but guidance from a professional can transform the buying and selling process. Working with a knowledgeable real estate agent benefits your property acquisition experience in countless ways. Whether you are selling your home or are looking for a new property, or perhaps are planning to do both simultaneously, a savvy agent can make your process smoother, easier, and considerably more lucrative.

Statistics show that more than 87% of buyers choose to work with a realtor and are more than pleased with the decision. Agents spend their careers studying market trends and contracts and provide an incredible foundation of expertise and wisdom regarding how to navigate the market. With all the changes the real estate industry and the economy have seen of late, working with a reputable agent is more important than ever.

Your agent can help you streamline your selling process and design a specific system to maximize your profits. From staging and curb appeal to negotiating a killer deal and handling the nuances of closing paperwork, an agent brings an unparalleled level of professionalism and sagacity to every client. Make finding an agent your first step, and you’ll be able to tackle the Laguna Beach real estate market, no matter what the forecast.

Are you interested in exploring the Laguna Beach housing market? Contact Danielle Wilson today to begin touring Laguna Beach real estate.

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