Newport Beach's top Realtor firm releases its forecast for the 2010. Newport Beach Real Estate is still a long way from the pre recession peak but the has been off to a good start in 2010. But will it continue to rise ...
Online PR News – 28-January-2010 – – Newport Beach may have hit a rough patch in 2009, but it has clearly hung on to its spot as one of the most valuable areas in Southern California real estate. While still a long way from its pre-recession peak, Newport Beach real estate is off to a good start in 2010 with home sales, home prices, and market times all showing positive improvements in the first few weeks of the year.
Real estate experts and economists expect to see a much higher demand for Newport Beach homes in 2010, as more people gain buying power and properties remain below market value. While residential sales and first-time home buyers are expected to increase, much of the activity will come from investors who are attracted to the low prices and high potential gains.
Distressed homes will also continue to play a big role in the Newport Beach real estate market recovery, as it has in the past few months. Short sales, pre-foreclosure sales and bank-owned homes accounted for much of the active inventory in the tail-end of 2009, causing a widespread drop in home prices but at the same time reviving buyer activity. Some reviews have even dubbed Newport Beach the most improved city in O.C.
Despite the distressed inventory, however, Newport Beach real estate will stay on the high end of the Orange County market. With average prices reaching $2 million as of late 2009, Newport Beach homes are comfortably above the countywide average of $439,000. This puts it right up with Laguna Beach and other South Coast cities in terms of home values, but does not slow down home sales as it does with the latter.
The inventory of homes for sale has also gone up across both distressed and regular home sales. Close to 200 home sales have been completed in the past three months, a rise of almost 50% compared to the same period a year ago. The ratio of distressed homes - defined in reports as those in pre-foreclosure, bank-owned, or already up for auction - has also gone down and is expected to drop even more in the coming weeks.
Also cited in forecasts is a slow but steady move towards a seller's market. The past year has been a buyer's market for Newport Beach real estate, meaning there were more homes up for sale than there were buyers to snap them up. While the inventory will remain relatively large this year, buyer activity is expected to go up particularly as buying season starts this spring.
A small but noticeable portion of the buyers' crowd will consist of those buying their first homes. Experts agree that 2010 is a good year for young families to invest in Newport Beach real estate, as prices are still below average and values are set to increase in the coming months. This is part of the reason why single-family homes are the biggest sellers in Newport Beach, as well as the rest of Orange County.
Market times are another important factor to watch for in Newport Beach real estate. Like most upscale communities, Newport Beach homes take longer than average to sell because of their high asking prices. For buyers, this means more leverage to negotiate lower prices, as most sellers would rather slash the price than wait out the market for a few months. Working with experienced Newport Beach realtors can help both investors and first-time buyers get the most competitive deals on Newport Beach homes.