Newport Communities Have the Most Price Cuts in O.C.

Home buyers looking for major home price reductions should definitely consider Newport Beach: three of its main neighborhoods emerged in a recent study as having the most price cuts in the past six months.

Balboa Island and the Peninsula area topped the list, both with 41% of active listings having slashed prices at least once in the said period. Of these, the average home has had to lower its price by 9% in Balboa Island and 15% in the Peninsula area. The average prices after the cuts are $2.09 million and $4.77 million respectively.

Corona del Mar, a high-end seaside community, came in fourth with 37% of its homes for sale having had price cuts. The average price cut is 12% of the original, and the average price after the cut is around $2.5 million.

Seal Beach, located west of Newport, ranked third with 38% of homes on the market having cut prices. The average reduction, however, is relatively low at 8%, and the post-reduction average price is only around $486,000.

Of the top five areas in the list Irvine is the only non-coastal ZIP. The city came in fifth on the list with a share of 36%, and a slightly lower average price cut of 7%. Post-reduction prices averaged just below $740,000, making it fairly strong nonetheless.

Countywide, the past six months have seen a general reduction in home price cuts. The portion of reduced-price homes has gone down consistently since its June 2009 peak of 30.1%, dropping to 28.6% in July, 29% in August, 26.8% in September, 26.7% in October, and only 25.1% as of November 1st.

 

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