Newport Beach Still One of the Priciest Neighborhoods in the U.S.

Despite the setbacks and market slowdowns caused by the real estate crisis, Newport Beach on Orange County remains one of the most expensive neighborhoods in the U.S., according to an annual price comparison index by real estate firm Coldwell Banker.

Prices have dropped both in Newport Beach and the rest of O.C., but both the city and the county have retained their status as America's priciest neighborhoods. Newport Beach is ranked among the top 10, along with several other southern California cities.

Experts believe that the reason Newport Beach has not suffered as badly as other areas is that residents of high net worth have always viewed local properties as potential investments. With prices going down, investors simply snapped them up to take advantage of the buyer's market.

As of September 2009, there were over 830 homes on the market in Newport Beach, selling for an average of $1.5 million, a figure that had remained stable since August. There were also more than 300 foreclosures listed, with a median selling price of just over $900,000.

Prices vary by ZIP code throughout the city, but August 2009 figures show that values range from $832,000 to $4.3 million. All ZIPs, however, are down from their averages from the previous year, with some of the priciest ZIPs falling by over 100%.

Despite the high figures, however, Newport Beach homes are still going for 20% less than they were in 2006. This has attracted many residential buyers as well, especially as the $8,000 tax credit for first-time buyers came into effect. Many are expecting the prices to eventually rebound and are planning to resell when the time comes.

 

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