Newport Beach ZIP Sees Sales Spike as Prices Plunge

Affordability may be relative (or even laughable) in cities like Newport Beach, but one of its ZIPs, 92663, is catching experts' attention with its significant home price declines and the resulting spike in home sales.

The neighborhood, which includes Lido Isle and part of the Back Bay area, has long been thought one of Orange County's most desirable. From most homes, one can walk to shops, malls, restaurants, and of course, the beach.

Median prices in the area were last shown at $962,500, about half the median for the rest of the city which is currently at $2 million. While still way above the countywide average of $450,000, this is unusually cheap for a Newport Beach property.

The low prices are attributed to the price cuts that had to be made on homes that were taking a long time to sell. Realtor Andrew Karigan says that while the difference between the latest list price and the selling price is only around 10%, most homes in this ZIP sell for as much as 29% below the original listing price.

Experts are particularly impressed with the ZIP's quick rise in overall performance, going from a mediocre 42nd place in the Zippy rankings in late 2009 to second place in the latest polls. Median sales price went up 38% over the year, while home buying went up by 79%.

According to Karigan, the market for this part of Newport Beach is mostly well-off individuals looking to take advantage of the price dips. Most of the buyers in recent months have been well-off retirees, business executives, and investors, usually looking for a second home or vacation property.

 

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