Select Orange County coastal communities continued to see an increase in luxury home prices in the third quarter, as much as 39.43%, according to Villa Real Estate. Other coastal neighborhoods slowed in the third quarter, which is a typical pattern for fall home buying.
According to the recently released Q3 Villa Home Price Index™ (VHPI™), a quarterly index focused on tracking home prices in key coastal Orange County neighborhoods, the communities that saw an increase in sales prices were Laguna Beach (92651) with home prices up more than 39% over last year, Balboa Island (92662), which was up over 20% from last year, and 92660, which includes Big Canyon, One Ford Road, Eastbluff, the Port Streets, was up nearly 6% over last year. Eastside Costa Mesa (92627) also experienced a modest sales price increase of 2.43% over last year.
For the third quarter, the weighted average sales price for a home in Newport Beach, Newport Coast and Corona Del Mar was $3,252,779, which is down 9% from last year and 15% from last quarter.
In Newport Beach (92660, 92661, 92662 and 92663), the average sales price for a home was $2,939,886, down 3% from last year and down more than 13% from the previous quarter.
“These figures show a typical decrease for fall, when the popular summer homebuying season has ended,” said Dave Girling, a Villa agent and real estate economist who helped spearhead the VHPI with Villa founder and President Steve High. “Some of these home prices also reflect a correction or a levelling off in the rate of increases in the luxury market, as the rates of appreciation we’ve seen for the last few years have been unsustainable.”
The VHPI tracks single family detached housing prices since 1998 in select neighborhoods where Villa Real Estate is actively representing buyers and sellers of residential real estate properties. The index provides a look at real estate values on a micro level, focusing on Newport Beach, Newport Coast, Corona Del Mar, Laguna Beach and Eastside Costa Mesa.
“We created the VHPI as a tool that enables both buyers and sellers to better understand Orange County’s unique coastal real estate market, and to make more informed decisions,” says High. “Despite an overall levelling of prices, we continue to see a strong demand with savvy buyers who recognize that the local coastal market is a solid investment opportunity.”
The VHPI is released on a quarterly basis and is accessible on Villa’s website, www.villarealestate.com, as well as through Villa agents.