Price Drops Seen for Newport Beach Luxury Homes

Online, February 24, 2010 (Newswire.com) - Home buyers looking into the luxury market should definitely consider Newport Beach--a city well known for its pricey homes, high-end living and laid-back beach vibe. A slow economy and sluggish market activity have driven down home values across the city, and many Newport Beach Luxury homes have had to be repriced. Price cuts of up to 30% have been observed, and experts believe the trend will continue well into 2010.

Newport Beach is located in coastal Orange County, one of the most upscale areas in Southern California. Once dubbed the most expensive city in the United States to live in, it continues to be a symbol of luxury living for home buyers and sellers alike. With home values averaging $2 million even during its slowest years, Newport Beach is among the most stable cities in the county in terms of economy and the real estate market.

In 2008, the average price for Newport Beach luxury homes was $1.8 million, well above the countywide average of $436,000. Detached single-family homes remain the most valuable with a mean price of $2.1 million, but townhouses and duplexes aren't far behind at $1.2 million and $1.6 million respectively. Attached homes comprising five or more units are less common but are far more affordable, averaging a mere $772,000.

One of the major draws of Newport Beach is its key location. Residents get quick access to the beach, parks, malls and restaurants, while also staying close to essentials like schools and offices. From many Newport Beach luxury properties, one can simply walk to the beach or the nearest park, or take a quick drive to the famous Fashion Island. Many excellent schools and universities are also accessible, as well as important business hubs.

Families are particularly attracted to Newport Beach because it offers a calm and friendly environment that's hard to find on the California coast. Most Newport Beach luxury properties are located in guard gated neighborhoods, so residents get to enjoy peace and quiet despite being so close to everything. And in true California fashion, these neighborhoods boast upscale amenities such as spas, pools, and private beach access.

Of course, the market for Newport Beach luxury homes isn't perfect--there are always a few bad deals to watch out for. Distressed properties such as short sales and bank-owned homes are fairly common as a result of the housing crash, and these tend to come with title or financing problems. While some are definitely promising, it's important to weigh one's options and work with an experienced Newport Beach realtor to ensure a fair deal.

Among the most common problems for Newport Beach buyers is financing. Because the prices are higher than average, lenders tend to be stricter when assessing applications for Newport Beach luxury properties. To avoid any problems, buyers should get all their documents ready and get pre-approved by the lender before shopping around. Most realtors can help clients apply for pre-approval as part of their service.

Finally, buyers should keep in mind the cost of home ownership in Newport Beach. Recent studies rate the city "very high" in terms of cost of living; families need an income of over $150,000 to be able to afford Newport Beach luxury properties and still maintain decent living conditions. A Newport Beach realtor can provide more detailed information on Newport Beach, from home buying and selling to getting settled.