California is a mecca for sought after real estate -- and why wouldn't it be? While the large state has plenty of positives outside of the coastline, odds are when one thinks of living in the Golden State, sunny beaches come to mind. If buyers are looking for luxury, charm, surf, sand, and a city that boasts incredible dining and shopping -- look no further than Newport Beach, CA.
The median listing price for homes in Newport Beach in the fall of 2020 was $2.6 million according to realtor.com. The median sale price was a cool $2.4 million. That's well above what the average American spends on a home during their lifetime. So, why is Newport Beach worth it?
Why Newport Beach?
Redfin comments that the housing market in Newport Beach is only somewhat competitive and we can't help but wonder if that's because of the high prices. Even so, several homes get multiple offers and if a buyer wants to live in this gem of a town -- it's always best to be on top of the market and the trends surrounding it.
Newport Beach is the city of Newport Beach itself but is also synonymous with two of its neighborhoods; Corona Del Mar and Pelican Hill. Nestled between elite-artsy Laguna Beach and surf-hub Huntington Beach while bordering tech and business haven Irvine -- Newport Beach has location appeal unlike most other towns. The town also boasts a large harbor filled with more than its fair share of luxurious boats, yachts and the famous surf spot "The Wedge". Newport offers something for everyone which is why buyers who can afford it have no problem paying close to a thousand dollars for each square foot of their home.
Families looking to settle down seek out areas like Newport Beach because their public and private is one of the top in the country. From Preschool to High School, through Newport-Mesa Unified School District, students have the best of American education. There are many opportunities for extra-curriculars through various programs by the district and other funding.
Realtor.com states that Newport Beach is a seller's market and that there are more buyers than home's available. Newport Beach is almost always a seller's market regardless of the economy or market trends. Once people have secured themselves a home in this gem of a town -- rarely do they ever leave.
The Key Players
The Balboa Peninsula, "The Peninsula", is a strip of land hosting most of the areas most sought after real estate. Currently listed homes on the peninsula range from around $2.6 million to 32 million dollars (Zillow.com). The peninsula puts owners right in the heart of boating, nightlife, fantastic restaurants -- all the best Newport has to offer.
Corona Del Mar is eclectic but only in the best way. CdM as it's often referred to, is a seamless blend of Laguna Beach and Newport (which it bridges). Corona del Mar is walkable in it's downtown areas and holds several quaint restaurants, coffee shops, and boutiques. This charm has made CdM popular and it's average home price is over three and a half million dollars. If vintage-esque homes that all but lack luxury are what your buyer is looking for, look no further.
Pelican Hill above the Newport Coast and hosts magnificent views, world-class golfing and shopping, and the overall aura of high-class. Homes in the area typically range from 5-20 million dollars but it is far from unusual if a home is upwards of thirty million.
How Will This Market Hold?
Newport Beach is one the rare areas where buyers have the option of bay-front, oceanfront, or beachfront homes. This isn't to neglect homes that aren't exactly waterfront -- we wouldn't want to forget the gated communities (many on golf courses) and eclectic but still grand neighborhoods that makeup this fantastic town.
Few homeowners move from Newport Beach and surrounding areas and many say it's safe to assume that the housing market in Newport Beach won't falter much and prices will only continue to soar with continued limited availability.
With the current coronavirus pandemic at hand there are also many who are anxiously watching the housing market. Mortgage rates are lower than ever which typically makes home prices lower. A local real estate company has noticed a small pause in home prices and is anticipating that home prices will drop as the impact of Covid on the economy and the housing market is fully realized (medium.com/@traviswhitenewportbeach).
Time will tell the longevity of the housing market in Newport Beach, but for now -- it's doing just fine. Like most of California, especially coastal CA, will likely continue to bask in the sun.
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