Laguna home prices 6th in state

California’s housing market is showing marked signs of recovery — and median home prices in Laguna Beach are now among the highest in the state, according to figures released today by the California Assn. of Realtors.

Home sales increased 20.1% in June in California compared with the same period a year ago, while the median price of an existing home declined 26.4%, the association reported.

Property values in Laguna Beach have held steady or increased slightly as values plummeted over the past year, according to various sources. Property values in nearby Laguna Hills, Dana Point and Lake Forest were among the cities showing the highest increases in home prices over the past year.

The realty association report indicates an increase in sales, possibly driven by a combination of lower prices and mortgage rates.

“Many first-time buyers, especially those who were previously priced out of certain areas, are realizing that tax credits from both the state and federal governments, increased affordability, and low interest rates are creating a prime time to purchase a home,� said association president James Liptak. “June marked the 10th consecutive month of positive sales gains, and the fourth month of rising median home prices.

“The statewide median price for existing condos increased for the third consecutive month in June, while sales climbed 27% compared with last year,� said Liptak. “Both of these trends are indicative of increased interest in condos on the part of first-time and other buyers.�

Statewide, the 10 cities with the highest median home prices in California during June 2009 were: Beverly Hills, $1,775,000; Manhattan Beach, $1,475,000; Burlingame, $1,475,000; Los Altos, $1,398,000; Saratoga, $1,375,000; Laguna Beach, $1,265,000; Palo Alto, $1,192,000; Santa Monica, $1,022,000; Cupertino, $1,020,000; Mill Valley, $1,009,000; and Los Gatos, $857,500.

Statewide home resale activity increased 20.1% from the sales pace recorded in June 2008, although June sales . decreased 6% compared with the previous month, according to the California Assn. of Realtors. The median price of an existing, single-family detached home in California during June 2009 was $274,740, a 26.4% decrease from the revised $373,100 median for June 2008 — but 4.2 percent higher compared with May’s $263,600 median price.

“Shrinking inventory in the lower end of the market is impacting prices, as many distressed properties are receiving multiple bids,� said the association’s chief economist Leslie Appleton-Young. “The year-to-year price declines are diminishing, and are at the lowest level since March 2008.

“Although another surge of foreclosures is expected later this year, demand remains strong, so the market may be able to absorb more distressed properties without significantly impacting the median price,� said Appleton-Young.

Highlights of the California Assn. of Realtors resale housing figures for June 2009:

 Thirty-year fixed-mortgage interest rates averaged 5.42% during June 2009, compared with 6.32% in June 2008, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.93% in June 2009, compared with 5.15% in June 2008.

 The median number of days it took to sell a single-family home was 44.3 days in June 2009, compared with 49 days (revised) for the same period a year ago.

In a report covering localized statistics generated by the state realty association and DataQuick Information Systems, 20 of the 376 cities and communities reported an increase in their respective median home prices from a year ago.

Statewide, the cities with the greatest median home price increases in June 2009 compared with the same period a year ago were: Laguna Hills, 20.6%; Diamond Bar, 6.2%; Santa Monica, 5.9%; Upland, 5.7%; Thousand Oaks, 4.7%; Placentia, 2.9%; Big Bear Lake, 2.5%; Lake Forest, 2.4%; Walnut, 2.1%; and Dana Point, 1.4%.

For sales and price tables, visit: https://car.org/newsstand/newsreleases/junesalesandprice/.