After what has been a rather stop-and-go season for real estate, it looks as though sales are on the upswing as the National Association of REALTORS® reports that pending home sales have rebounded in July, marking the fourth out of the last five months that pending home sales have seen gains. While pending home sales are looking up, local markets such as Newport Beach are also looking up amid a climbing inventory that is giving home buyers more leverage in finding that perfect home.
According to NAR’s Pending Home Sales Index, which is a forward-looking indicator based on contract signings, the amount of homes coming under contract climbed 3.3 percent to 105.9 in July. This was an increase from June’s index value of 102.5, but is still below last year’s value of 108.2.
At 105.9, however, the index is still considered to be in healthy territory. Any index above 100 is considered to be in above average activity. July marks the third consecutive month the pending home index has been in above average activity and is also at the highest level the nation has seen since August 2013 when the index was marked at 107.1.
“Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012,” said Lawrence Yun, NAR chief economist, of the favorable housing conditions the nation has seen as of late. “The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer.”
Newport Beach Home Buyers Looking at Favorable Housing Conditions
The ideal conditions that are helping the national housing market to grow and recover after a rough couple of years are being echoed in communities across Southern California as well, making now a great time to invest in the luxury market. One of the most affluent communities that is experiencing great buying conditions is Newport Beach. According to the latest data recorded by California-based real estate analytics company Altos Research, Newport Beach homes are falling in price, but gaining in inventory, giving home buyers the perfect opportunity to shop around for a great luxury home at a competitive price.
Altos reports as of August 29 that the median single-family home value in Newport Beach is $2,358,142. This value has been on a downward trend since early May, when prices reached a peak of about $2.43 million.
Prices for Newport Beach homes have likely been falling due to the uptick in competition between home sellers as more homes have been coming to the market since early March. Inventory has been on the rise since March 1, which has afforded home buyers a break in the pressure amid a severely limited inventory the community had been seeing in prior months. As of August 29, there are about 292 properties listed on the market in Newport Beach.
If you are interested in learning more about Newport Beach luxury properties, please don’t hesitate to consult with our team of expert property agents today.