Although the overall Newport Beach real estate market was an Extreme Seller’s Market in February 2019, there are a few signs pointing to a swing toward favoring buyers, which was also seen in Laguna Beach in February.
#1 Newport Beach Real Estate Inventory is Increasing
Particularly in the luxury market, inventory has increased.
In the $3-$3.5MM price band, inventory increased 600% to 9 months, creating a Balanced Market.
In the $3.5-$4MM range, inventory increased 46% to 5 months of inventory.
In the $4-$4.5MM range, inventory increased 33% to 4 months of inventory.
#2 Newport Beach Real Estate Prices are Falling
In the past several months, most homes in Newport Beach have been selling below asking price, and the prices are falling month over month (likely correlated to increased inventory).
In February, the average home price in Newport Beach dropped 3.6% to $2,079,460.
The median home price fell 10% to $1,595,000.
#3 Lowest Year-to-Date Sales in Newport Beach Since 2009
Year-to-date sales (January – February 2019) have been the lowest in nearly a decade, at 83 home sales so far this year in Newport Beach.
2010 year-to-date sales were 87 homes, and in 2009 there were only 53 homes sold year-to-date.
I believe the slow home sales at the beginning of this year indicate a rapidly shifting Newport Beach real estate market. Despite low home sales, the number of active properties in February nearly doubled from January’s number.
This may signal even greater price drops in the near future to correct what has been a longstanding seller’s market.
Curious about buying real estate in Newport Beach? Contact me below and let’s make a plan to help you realize that goal.
A second generation real estate broker living in Laguna Beach, CA. Need help with Orange County real estate? Call/ text 949-973-6478. Follow: @diglagunabeach