Across the country, homes within the median price range of the market have seen a significant runup in value. Limited inventory and a stronger economy have continually been factors that have worked to put home buyers in a frenzy and have given them the power to offer more money for the right home.
With home sales still lagging in the traditional sector of the market, the luxury market has continued to defy expectations with strong sales and tempered home price growth. According to the research center at Redfin, home prices in the luxury sector grew only 0.9 percent in the first quarter of 2015. This was a stark difference from the first quarter of 2014, which saw luxury prices balloon a whopping 16 percent. Meanwhile, the bottom 95 percent of homes saw an appreciation rate of 4.3 percent.
Despite the slower rate on the national level, several cities saw vast price increases as their luxury markets grow. Los Angeles, which has been a luxury market mainstay for sometime, topped out the study with the highest average price sale on the luxury level of $5,290,000. This value represented a year-over-year gain of 14.4 percent in luxury home values.
While the luxury market in San Francisco may have moderated, the traditional side of the market is still seeing rapid increases.
Newport Beach Home Values Level Out
While Los Angeles may be king for home price increases, in the Southern California region, luxury buyers are still flocking to Newport Beach to take advantage of the solid real estate market here. According to Altos Research, a California-based real estate analytics company, home prices have leveled out after climbing for much of the winter months and well into spring. The current median single-family home value is $2,581,077.
Despite the price growth over the last few months, Newport Beach is still very much on neutral ground for home buyers and sellers. Altos measures supply and demand levels through a unique value known as the Market Action Index. This value uses 30 as a neutral point and indicates a strong supply with lower values and a strong demand with higher values.
With a current MAI of 31.82, Newport Beach is quite close to neutral but perhaps showing a little favor to sellers with its slight edge over 30. A slightly lean toward the seller-side is a sign of a positive market as there is enough demand to keep home values appreciating, but not so much that the market becomes unlivable.
As if tempering home values weren’t beneficial enough to home buyers, the market is looking even more welcoming with an increase in home inventory. Altos reports there are 256 homes on the market as of June 5. More homes are expected to come to the market as the season wears on, which will help with the demand shown by the Market Action Index.
If you are interested in learning more about Newport Beach homes please contact our team of luxury property experts today.
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(all data current as of 11/24/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.