Demand for homes in Southern California is incredibly high, so high that Orange County in particular needs to have 7,000 new homes added to its landscape per year to keep up with the influx of buyers. According to the state Legislative Analysts’ Office, who reported during the week of March 16 that throughout the entire state home building would have to increase by 100,000 to meet demand needs.
Demand won’t likely decrease anytime soon, which is causing a major increase of home values that are in some areas pricing even luxury buyers out of the market. According to the report, Californians spend an average of 27 percent of their income on housing costs, which is about 4 percent more than the average American. And in areas like Orange County, home owners experience an average of a 10 percent longer commute than the national average.
“The state’s high housing costs make California a less attractive place to call home, making it more difficult for companies to hire and retain qualified employees, likely preventing the state’s economy from meeting its full potential,” the report said.
Newport Coast conditions reflect the rest of Orange County’s
Newport Coast is one community that is showing these trending signs of high demand and price fluctuation. Pair this with low inventory and conditions are already tight before the true start of the housing market season has even gotten underway.
According to Altos Research, a California-based real estate analytics company, the median single-family home value in Newport Coast was reported at $4,841,765 as of March 20. This is the highest median value reported in the past 12 months, with the seven-day average reported at an even higher price of nearly $5.26 million.
These incredible price points are largely influenced by the disconnect between the amount of available homes and the buyer activity in the region. Altos uses a unique figure called the Market Action Index, which measures from a neutral value of 30 whether conditions are trending in favor of home buyers or sellers. After several weeks of inclines that started in the final days of February, the index was reported at 33.37 on March 20.
About a year ago the index was reported at 28, just a few points below neutral territory and into the buyer’s zone. The index fell to its lowest reported value in the past 12 months in April 2014 of just below 25, showing that there were not many buyers interested in the market.
Today, more people are confident in the housing market and are vying for a piece of real estate in Newport Coast. There are about 55 properties available, which have been listed for an average of 180 days. Home buyers will likely see conditions tighten in the coming weeks and months as demand heightens even more.
If you’re interested in learning more about luxury homes in Newport Coast, give us a call today. Our experienced team of real estate agents is here to assist you in finding the most exquisite property.
Check out these available homes in Newport Coast between $3.5 million and $4.5 million
$3,630,000 : 15 HIDDEN PASS, Newport Coast5 beds, 5 baths
$3,678,888 : 7 Torrey Pine Drive, Newport Coast4 beds, 4 baths
$3,995,000 : 2 Sunrise, Newport Coast5 beds, 6 baths
$3,788,000 : 122 SIDNEY BAY Drive #21, Newport Coast4 beds, 5 baths
$4,288,888 : 3 Star Catcher, Newport Coast6 beds, 6 baths
See all City of Newport Coast Luxury Homes For Sale.
(all data current as of 6/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.