First Half 2021 vs. First Half 2020

When compiling year-over-year statistics, economists tend to work in single-digit percentages. For example, the U.S. GDP growth over the past few years has bounced between 2% and 3%. People start to panic when inflation goes over 5%. Most investors would agree that the stock market has had a fantastic run in recent years with the S&P 500 growing by about 8% per year. If you are fortunate enough to have a 401K, you would be delighted if it averaged 9% growth over the years. These are normal numbers that people are accustomed to digesting.
What we’ve seen in 2021 for home sales in Laguna Beach is not normal. It was not even unusually strong. “Unprecedented,” a word we have heard over and over again during these past 18 months doesn’t come close to putting it into perspective. It’s a once-in-a-lifetime phenomenon. Before you look at the comparison below, keep in mind that 2020 was a robust year for home sales, but here you go:
                                                    2020                2021         % Change
Units Sold                                      149                  290         95%
Average Price*                         $2,757             $3,462         26%
Median Price*                          $1,995             $2,593         30%
Average $/Foot                        $1,045             $1,380         32%
Median $/Foot                            $959             $1,239         29%
Avg. Days to Sell                           147                    76         -49%
Med. Days to Sell                            73                    25         -66%
Total Sales*                         $419,820      $1,003,967         144%
*Times 1,000
It seems impossible that the volume of real estate transactions would nearly triple from one year to the next, but that is what we just experienced. There seem to be three major factors driving this behavior: 1) low interest rates; 2) the tectonic shift of being able to work from home, and; 3) the greatest transfer of wealth in history.
If you are a homeowner in Laguna Beach, congratulations; If you started out in 2020 with a home worth $2 million, your net worth just increased by $600,000 without lifting a finger. The flip side of that coin is that buyers simply have to accept the current realities and pay what the market dictates…or (sadly) live somewhere else. That is a tough pill to swallow.
At Cove Canyon Realty, we love to delve into the statistics and collaborate on winning strategies in real estate. Please consider us when you have any real estate needs.

Recent Blog Posts

Stay up to date on the latest real estate trends.


Stalemate is a situation in the game of chess where the player whose turn it is to move is not in check and has no legal move. The game ends in a draw. Since the start… Read more

Prices Chase Away Home Buyers?

This was the sub-heading of a Daily Pilot article I came across as I was sorting through old archives in a home I recently purchased in Laguna Beach. The article was p… Read more

First Half 2021 vs. First Half 2020

OFF THE CHARTS When compiling year-over-year statistics, economists tend to work in single-digit percentages. For example, the U.S. GDP growth over the past few years … Read more

2020 Hindsight

2020 Hindsight I know I’m one of the lucky ones. No one in my immediate family has been directly affected by COVID 19, although my father’s 92-year-old twin brother an… Read more

Proposition 19 – What Is It?

Proposition 19 recently passed, amending California’s Constitution by expanding qualifications for the transfer of a property’s taxable value. Beginning April 1, 2021,… Read more

One Bonkers Year!

This year has simply been bonkers. And we still have over a month to go! The news of Kobe and Gianna was swept away by the tsunami of events that followed: the pandemi… Read more

So. Orange County Coastal Sales: First Half 2020

SOUTH ORANGE COUNTY COASTAL HOUSING IN DEMAND Despite the economy being shut down for the majority of 2020, housing along the coast of South Orange County has done exc… Read more

Silver Lining in Housing Market

I think we can all agree that a bit of good news is welcome. My gig is working in the residential real estate market, particularly along the coastal towns of South Ora… Read more

Is It a Good Time to Sell/Buy?

Without repeating all the worn-out rhetoric about the COVID-19 pandemic, I thought I would share my actual experiences with regard to conducting a real estate practice… Read more

Let's Talk

You’ve got questions and we can’t wait to answer them.