$320K Newport Beach Home Breaks Market Records

A bank-owned property in Newport Beach generated a lot of buzz last week for its unusually low selling price: a mere $320,000 in a market where the average home sells for at least a million dollars.

The Colonial-style condo is located on 300 Cagney Lane in Versailles, a well-known gated community in West Newport. It was originally listed at $330,000 and spent only 11 days in the market-a remarkable feat considering the average market time for Newport Beach is a sluggish 9.63 months, according to recent Zippys data.

The 2-bedroom home, built in 1971, offers 921 square feet of living space and above-average amenities, including a spa, sauna, community pool, and underground parking. Hoag Hospital, a top-ranked medical facility, sits right next door.

Other two-bedroom units in the complex were selling for over $400,000, so the buyer-a 24-year-old man with “impressive FICO scores” and a 20% down payment-gets an “instant equity” of $80,000, according to real estate agent James Hoppe.

Hoppe added that one-bedroom units were going for a lot less and may decrease even more, as more default notices are issued and the market gets flooded with attractively cheap properties.

Adding to the appeal of the home, he said, was the fact that it was “fee simple”-that is, the buyer would not be paying for leased land.

The condo's listing agent, Sarah Lynch, said the price has broken records at least in recent local history. She said that while home was sold to a first-time buyer, she has been getting more cash offers on lower-end Newport Beach condos-mostly investors taking advantage of the market, she added.

 

Earlier in Newport Beach Real Estate News:
Newport Beach Home Prices Up Over Year
Newport Beach Among O.C.’s Slowest Markets
Newport Beach ZIP Sees Sales Spike as Prices Plunge