Newport Beach Real Estate: Buyers’ Prospects
Newport Beach has become a mainstay on lists of the country's most expensive home markets. Known for its stylish mansions and breathtaking ocean views, the city is the place to go if you're after luxury coastal properties. But like most of California, Newport Beach Real Estate has taken a beating from the recession, and the market isn't the same as it was five years ago. The question on most buyers' minds is whether it's safe to buy in a troubled market, especially given the city's hefty property prices. This guide offers a few ideas on what the market holds for buyers in the coming months.
Homes Getting Cheaper
The good news, especially for those shopping on a budget, is that realtors are reporting continuous drops in the housing market. Late 2010 has been particularly slow fo real estate, and its effect are still being felt several weeks into the new year. Over the month, prices have gone down by almost 6% in Newport Beach, sparking buyer interest just in time for spring buying season. Of course, we're still talking Southern California prices, so expect to shell out a bit more than average. As of February 2011, the median +price for Newport Beach real estate is $1.3 million, accoridng to real estate tracker Zillow.com.
Rates Going Up
Perhaps offsetting the price drop in Newport Beach real estate is the slight rise in mortgage rates. Interest is up across the board in California, with 30-year fixed-rate mortgages up 16% over the week and 15-year ones up 10%. Adjustable-rate mortgages are up by 1% to 3%, depending on the indexes used. Nevertheless, the market remains friendlier to buyers than to sellers, whether they're planning on settling in or selling for a profit. Most of the rates are still well below the 5% mark, a good figure even for those planning to finance their purchase long-term.
Distressed Homes Rising
Picking up where last year left off, the market has been seeing more and more distressed homes in recent weeks. In the first month of 2011, foreclosures rose by 3.2% with an average price of just over $1 million. Realtors are thus seeing more business and working harder to get more of these homes sold before they significantly affect market prices. This makes it a good time for buyers to look for good deals. With realtors more willing to sell for less, one can easily negotiate lower prices on Newport Beach real estate.
Homes Getting Cheaper
The good news, especially for those shopping on a budget, is that realtors are reporting continuous drops in the housing market. Late 2010 has been particularly slow fo real estate, and its effect are still being felt several weeks into the new year. Over the month, prices have gone down by almost 6% in Newport Beach, sparking buyer interest just in time for spring buying season. Of course, we're still talking Southern California prices, so expect to shell out a bit more than average. As of February 2011, the median +price for Newport Beach real estate is $1.3 million, accoridng to real estate tracker Zillow.com.
Rates Going Up
Perhaps offsetting the price drop in Newport Beach real estate is the slight rise in mortgage rates. Interest is up across the board in California, with 30-year fixed-rate mortgages up 16% over the week and 15-year ones up 10%. Adjustable-rate mortgages are up by 1% to 3%, depending on the indexes used. Nevertheless, the market remains friendlier to buyers than to sellers, whether they're planning on settling in or selling for a profit. Most of the rates are still well below the 5% mark, a good figure even for those planning to finance their purchase long-term.
Distressed Homes Rising
Picking up where last year left off, the market has been seeing more and more distressed homes in recent weeks. In the first month of 2011, foreclosures rose by 3.2% with an average price of just over $1 million. Realtors are thus seeing more business and working harder to get more of these homes sold before they significantly affect market prices. This makes it a good time for buyers to look for good deals. With realtors more willing to sell for less, one can easily negotiate lower prices on Newport Beach real estate.
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