Newport Beach Home Prices Down Over Year

Newport Beach joins the rest of coastal Orange County in its market slowdown as home prices went down slightly on a year-over-year basis, dropping from a median of $1.44 million in May 2009 to $1.18 million this month, according to data from real estate data provider Zillow.com.

There are currently 915 Newport Beach homes for sale, 193 of which are distressed (listed as short sales or foreclosures). Of these, none are new listings - all the homes on the market have been there since last April.

On the bright side, the median is higher than it was a month ago, posting a 12% increase. Experts attribute the rise to increased buyer activity resulting from the home buying season, as well as the recently ended tax credit program which further boosted interest in the past few months.

Foreclosures are also less rampant this month compared to last, dropping an encouraging 26.7% from April. This doesn't include, however, the large number of homes awaiting a foreclosure notice, which is expected to enter the market later this year.

Despite the home price drop, Newport Beach remains one of the priciest cities in Orange County, its median price several times higher than the countywide average of $430,000. While this has contributed to the slow buyer activity, many see it as a sign that the city remains a prime spot for real estate, whether for residential or investment purposes.

Buyer activity is expected to go up in Newport Beach in the next few weeks with prime mortgage rates on a downward trend. Throughout California, rates for 15-year and 30-year fixed-rate mortgages are down to 4.47% and 4.98% respectively, although these may be higher with the non-conforming mortgages often required for Newport Beach homes.

 

Earlier in Newport Beach Real Estate News:
Newport Wins Award for Best Beaches
Newport Beach Home On Private Island Hits Market for $28 Million
Old Newport Beach Building To Be Transformed