There are fewer places that luxury home owners would rather be than Southern California. As property investments are amping up for 2015, it seems that statement is true for investors as well. Chicago-based real estate investment company Strategic Hotels & Resorts pointed to this fact just a few weeks ago when the company paid an astonishing $360 million for the Montage Laguna Beach luxury resort.
Headed by Chairman and President Raymond “Rip” Gellein, Strategic has been working to increase it’s portfolio of properties to include the highest end of luxury resorts that are out there. With 2015 shaping up to be a great year for the real estate market, other industries such as corporate travel are expected to swell as well, making properties such as the Montage Resort prime real estate for investors. This is a marked turnaround for luxury resorts, which suffered greatly during the height of the recession, and a strong step in the direction of recovery and profitability for the luxury market.
Perched on a bluff overlooking the Pacific Ocean and minutes away from fine dining and shopping amenities, Montage is a property that more than fit the bill and is situated within a prime real estate region as well.
“The Southern California market generally, and the coastal Orange County market specifically, have been among the highest-rated markets in the country and are poised to continue their strong growth,” said Gellein in a statement.
Laguna Beach Luxury Home Values Trending Up
For many Laguna Beach luxury home owners, the increase in investor activity as of late likely comes as no surprise as the community is perennially attractive to a multitude of home buyers. According to Altos Research, a California-based real estate analytics company, the high desirability of homes in the community have helped values to increase throughout the winter months.
As of January 30, the median single-family home value in Laguna Beach was marked at $2,979,000, just over what it was about a year ago. Throughout the year home prices have been on a little bit of a roller coaster, falling gradually until about November when prices started to head back up. With the current median value eclipsing the last year’s high value by about $10,000, Laguna is showing a gradual pace of home price increase that is crucial in a healthy, growing market.
Helping to drive this price growth is the seller-favored Market Action Index, which is a unique measure of buyer and seller favor that operates on a scale with a neutral value of 30. The current MAI of 34.26 indicates there are slightly more home buyers than sellers on the Laguna Beach market, which is creating a demand for homes.
Given the limited inventory reported by Altos of about 162 properties, buyers are putting out more money to ensure they are scoring the home of their dreams.
If you are looking for the perfect Laguna Beach home, please don’t hesitate to contact our team of luxury property experts. We’d love to help you in your search.