Newport Beach a Good Spot for Foreclosure Deals

Buyers looking for good deals on foreclosed property may want to look into Newport Beach, one of the most affluent cities in Southern California, according to reports from real estate information provider RealtyTrac.com.

RealtyTrac showed that Newport Beach currently holds a good inventory of distressed homes, including pre-foreclosures, bank-owned homes, and foreclosure auctions. Many are spread across various upscale neighborhoods typical of California coastal living.

A total of 68 new foreclosures were added to the market this week alone, half of them located in ZIP code 92660, just north of Corona del Mar. The area is the city’s biggest division and is known for its relatively large inventory of homes below $1 million.

Corona del Mar, a small coastal village famous for its cliff-top views, has the second highest number of foreclosures with 27 new ones added this week. Prices remain relatively high, however, as average home prices remain above the $2-million mark.

Foreclosure buyers in Newport Beach can get as much as 40% off the market price, well above the nationwide average of 11% to 30%. Throughout California, over 17,000 foreclosures have been sold in the past month, with an average price just under $400,000.

Several factors contribute to the city’s active foreclosure market, but experts have narrowed it down to three main causes: a cooling local economy, a rise in energy costs, and higher mortgage interest rates, all of which make it hard for homeowners to keep up.

Experts agree that this is also a great time to for non-distressed home sales, both for investors and residential buyers, as home prices are still fairly friendly and a market recovery is highly likely in early 2010.

 

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