BLOG: Why the Best Laguna Beach Homes Never Hit the Market

You've been watching. You've set up alerts on every platform, refreshed Zillow more times than you'd like to admit, and still watched the properties you wanted disappear before you could even schedule a tour. That isn't bad luck. That's the Laguna Beach market working exactly as it does for buyers who are only looking in the places everyone else is looking.

Market Report

Monthly Economic Summary — August 2026

Mortgage rates spent August at the year's highs, and demand has slowed a bit as a result. We're seeing slightly fewer sales contracts each week, along with lower mortgage applications and credit checks. (Data for these three high-frequency indicators are in the slides below.)

The Optimistic Case for Rates

A month ago, markets priced roughly a 37% chance the Fed would raise short-term rates at its July meeting. That's now off the table. Heading into the September 16 meeting, futures indicate the odds of a hike essentially at zero.

Inflation data is still too high, but easing. The Cleveland Fed's one-year measure dropped from 3.04% in June to 2.39%, and core CPI came in at 2.47%.

Interest rates haven't caught up yet. The 10-year Treasury barely moved all month. The 30-year mortgage rate peaked at 6.85% on July 23 (a one-year high) before easing to 6.74%. The spread between mortgage rates and Treasuries is narrowing slightly; it normally runs closer to 1.7 points. If that spread keeps closing, mortgage rates could drift into the low 6s even without any Fed action.

Jobs Still Aren't Cooperating

The labor improvement we'd hoped for hasn't materialized. July payrolls lost 23,000 jobs. Unemployment fell to 4.1%, but only because the labor force shrank not because hiring picked up. The number that matters most for us is the hiring rate, which is still stuck at 3.4%. When companies aren't hiring, fewer people relocate for work, and that’s a limiter for home sales.

Wealth Effects Are Still Working in Our Favor

Beyond rates and jobs, wealth is a third driver of housing demand. The S&P 500 is up 19% over the past year, and business profitability remains high. These wealth effects show up as demand in certain markets, especially luxury-oriented ones.

Homeowners Remain in Strong Financial Shape

New consumer credit data from the New York Fed, also in the slides, illustrates just how strong a position American homeowners are in: very few mortgages in any stage of delinquency, very few foreclosures, and substantial headroom left on HELOCs. Bottom line: don't count on distressed inventory adding to supply anytime soon.

Mike Simonsen

Chief Economist | Compass International Holdings

Market Update

Should I use AI to come up with an offer price on a home?

I’m a big fan of AI and use it regularly. It is an excellent tool—but buyers should be cautious about relying on an AI-generated valuation when deciding what to offer on a home.

Compass recently introduced a disclosure explaining that AI-generated information may be inaccurate or misleading. That is especially relevant when it comes to property values.

Earlier in my career, I worked as an appraiser. Although “drive-by” appraisals were sometimes used for certain loan products, lenders typically relied on a full appraisal. The appraiser visited the property, measured it, evaluated its condition and studied the details that could not be captured from public data alone.

An AI valuation is somewhat like a drive-by appraisal—but with even less visibility. It has not walked through the home, experienced the view, evaluated the quality of the improvements or understood how one street may command a very different value from the next.

In more uniform housing markets, automated valuations may provide a useful starting point. But in Laguna Beach and other coastal communities, homes can vary dramatically by neighborhood, street, orientation, condition, architecture, privacy, parking and view. Many are truly one of a kind.

AI can analyze available data, but it cannot fully measure the emotional and financial premium buyers place on a spectacular view, an exceptional location or a home that rarely becomes available. Scarcity matters—and scarcity commands a premium.

Use AI as one source of information, not as the final authority. When determining an offer price, current comparable sales, firsthand knowledge of the property and experienced local judgment remain essential.

What's Your Home Worth?

Home valuations give you valuable knowledge that can help you plan for the future and make smart decisions. It’s good practice to stay informed about how much equity you have in your home and how much you may be able to borrow against it or sell it for.

My tool provides a more robust, accurate assessment than you’ll get from the major real estate portals. For the most precise valuation, reach out to discuss a customized Comparative Market Analysis or an appraisal.

A Perfect September Day in Laguna Beach

September is my favorite month here. The summer crowds have thinned, the light turns golden earlier in the day, and the ocean is at its warmest. If you've ever wondered what daily life actually feels like in Laguna Beach, this is the month that answers that question most honestly. Here's exactly how I'd spend a perfect day.

Five Things I'd Do on a Perfect September Day in Laguna Beach

So what does a September day here actually feel like for someone who lives it?

September in Laguna Beach sits in a sweet spot that visitors rarely plan for and locals quietly love. The summer season winds down after Labor Day, which means shorter lines, easier parking, and a more relaxed pace along Coast Highway. The water is still warm from months of summer sun, and the afternoon light has that particular softness that makes the cliffs and coves look almost painted. It's the kind of day that makes you understand, without anyone having to explain it, why people choose to build a life here.

Morning coffee and a walk at Heisler Park. I'd start at Jedidiah Coffee Company for a coffee to go, then head straight to Heisler Park. The bluff views at that hour, with the morning light coming off the water, are genuinely hard to describe. The park runs right along the coast and gives you a clear look at the coves below. In September, it's peaceful in a way that July simply isn't.

The Laguna Beach Farmers Market on a Saturday. If your perfect day falls on a Saturday, the Farmers Market runs from 8:00 AM to 1:00 PM downtown. Local produce, fresh flowers, handmade goods, and a real sense of community in one place. It's one of those weekly rituals that reminds me why I love this town.

A few hours at one of the coves. Laguna has over 30 named beaches and coves. In September, I'd pick a smaller one, Crescent Bay or Wood's Cove, and spend a few hours in the water or just reading on the rocks. The ocean is warm, the crowds are manageable, and you can actually hear the waves.

A walk through the galleries on Coast Highway. Laguna Beach has been an artists' colony since the early 1900s, and that identity is still very much alive. A slow walk through the galleries along Coast Highway, or a stop into the Laguna Art Museum, gives you a feel for the creative culture that shapes this community. On the first Thursday of the month, the Art Walk brings the whole street to life in the evening.

Dinner at The Cliff as the sun goes down. There's no better way to close a day here than a meal at The Cliff, perched right on the coast with a panoramic view of the Pacific. Fresh seafood, open-air dining, and a sunset that does all the talking. It's one of those experiences where you set your phone down and just stay present.

What makes September specifically the right time to visit Laguna Beach?

September offers a combination that's hard to find in other months. The water is at peak warmth, the summer event season is winding down, and the town settles into a rhythm that feels more like real local life than peak-season tourism. Crowds are lighter after Labor Day, and the galleries and restaurants are easier to enjoy at a slower pace. For anyone considering a long weekend on the Southern California coast before the holiday season, September in Laguna Beach is genuinely one of the best windows of the year.

If this kind of lifestyle speaks to you, and you've started wondering what it would actually look like to wake up here every day, I'd love to talk. Reach out and I'll share what I know about the neighborhoods, the market, and the opportunities that don't always make it to the public listings.

My passion is this town. Your experience starts with a conversation.

Did You Know?

Canada (16%), Mexico (14%), China (11%) and India (9%) are the largest source of foreign buyers in the US. 53% of Florida buyers reside outside of the US.

Buyer Needs:

1. Buyer Need: 3 bedroom home in Woods Cove or Village on large private lot, up to $4m. Buyer happy to do some work/updates.

2. Buyer Need: Condo in CDM or LB, 2+ bedrooms, 2 car garage, newer construction up to $2.5M

3. Buyer Need: Big view property in North Laguna or Woods Cove/Upper Diamond with studio/workshop plus 2 car garage, turn key preferred, up to $10M.

4. Buyer Need: 2+ bedrooms, South Laguna, ocean view, up to $2.5M

5. Buyer Need: $1.5M - $2.5M Dana Point

Call me for Exclusive Property Listings

949.310.3754

Kelly Perkins

DRE# 01932146

REALTOR®

M: 949.310.3754

kellyperkins@compass.com

kellyperkinsrealtor.com