Foreclosures Hit Newport Beach Coasts

The foreclosure wave in Orange County has abated in most residential neighborhoods but has started hitting its more expensive areas, including coastal cities like Newport Beach, according to industry reports issued earlier this month.

The data showed that foreclosures rates fell 12.5% in areas with relatively inexpensive homes in 2010's first quarter compared to the last quarter of 2009, but rose by about the same level for affluent neighborhoods in the same period.

Real estate information provider DataQuick sets the divide between affordable and expensive homes at $500,000. They base their data on median home prices, which is the midpoint between the least and most expensive homes in a given ZIP code.

Of O.C.'s coastal cities, the highest increases in foreclosure rates were seen in Huntingon Beach, Newport Beach, Laguna Beach, Dana Point, and San Clemente. These areas are all known for their million-dollar homes and wealthy population.

Newport Beach reported the biggest gain in its 92660 ZIP code, which includes the Back Bay area. Eight homes in this neighborhood were foreclosed on during the first quarter, compared to only six in the last months of 2009.

Real estate experts agree that the trend is moving towards the higher price ranges, and in the case of Orange County, toward the coastal areas. Luxury home realtor Steve High says the rates of default are the highest he has seen in the past 25 years.

High added that the foreclosure wave may still not have peaked for oceanfront homes. In an interview with a local paper, he said many luxury homeowners are several months behind and will be at serious risk of foreclosure if they do not get current.

 

Earlier in Newport Beach Real Estate News:
Corona del Mar Homes Hardest To Sell In O.C.
Corona Del Mar Home Sells At $12 Million Cut
Newport Beach Makes California Top 10 Gains List