Home price gains have been working their magic across the country, making the luxury market even more exclusive. Orange County was recently found by the National Association of REALTORS® to be the third-most-expensive housing market in the country, with two other Southland territories placing in the top 10.
According to NAR’s second quarter report, the median sold home price in Orange County rose to $691,900 coming behind only the San Jose and San Francisco metropolitan areas for the highest home prices in the country. Orange County wasn’t the only Southland market to make the top 10. San Diego came in fifth with a median sold price of $504,200 while metro Los Angeles ranked ninth with $420,300 as its median sold home price.
With five of its major metropolitan area ranking in the top 10, California dominated NAR’s list of most expensive housing markets. Even beyond the top 10, California had a strong presence with the relatively inexpensive Inland Empire sitting at 21st, beating out strong markets like Miami, Austin and Chicago.
Newport Beach Luxury Real Estate Market Decelerates
In addition to reporting the priciest housing markets in the country, NAR’s second quarter report also analyzed home price gains, which have been cause for concern among many California home buyers as of late. Prior to the second quarter, home prices had been increasing at what was considered an unsustainable rate and was taking a toll on home sales in markets throughout the country, stalling the national housing market.
NAR reports that in the second quarter, the national housing market saw home price gains in the double digits in only 19 of the 173 metropolitan areas the study looks at. This was a decrease from the first quarter of 2014, which recorded double digit increases in 37 metro areas and the fourth quarter of 2014 had 43 areas post double digit increases.
In Orange County, these stalls in the national housing market have been reflected in local luxury communities such as Newport Beach. After seeing an increase in the median single-family home price throughout much of the year, home prices took a turn downward in early June. Altos Research, a California-based real estate analytics company, reports that as of August 8 the median single-family home value in Newport Beach is $2,372,981.
Despite this deceleration, fervor remains strong for Newport Beach homes. Altos uses a unique figure known as the Market Action Index to measure buyer and seller activity in a particular market. From a neutral value of 30, Altos indicates whether trends are moving up in favor of home sellers or down in favor of home buyers. With an MAI of 30.52, Newport Beach is just slightly in favor of home sellers indicating that demand for homes is higher than the amount available, which is a factor that may help to home prices to recover in the coming weeks.
If you are interested in learning more about luxury real estate in Newport Beach, please contact our team of property experts today.