As one of the states hardest hit by the housing crisis, California real estate is set to meet 2010 with another shot at market recovery. Experts are particularly keen on markets like Newport Beach, where home sales and median prices went from peak to rock bottom before leveling out toward the end of the year. One things for sure, though: Newport Beach real estate remains among the most coveted in the state, and the odds are certainly in its favor this coming year.
So what can home buyers and sellers expect from Newport Beach real estate in 2010? The California Association of Realtors (CAR) offers the following forecasts.
New normal
CAR president James Liptak isnt expecting a full market recoverythat is, we wont be seeing the sky-high figures from back in 2006. Rather, 2010 will see the birth of a new normal in sales and home prices. Sales will stream in more steadily, rather than in bursts of high and low as was the case last year, albeit with an expected decline of about 2.3%. Home prices, on the other hand, are expected to go around 3.3% higher. For Newport Beach real estate, upscale areas like Corona del Mar may take a little longer to even out.
Low and high end homes
The gap between low-end and high-end California housing will become even more pronounced, according to Liptak. Newport Beach real estate obviously falls under the latter, with its median home price of over $1 million. This means it will attract more investors and seasoned buyers rather than first-time homeowners. Sellers will continue to struggle as buyers face tight financing standards. Buyers have also become more wary of where prices might go, so many might decide to wait it out for another year or two.
More distressed sales
Distressed homes will account for almost one out of three sales in 2010. CAR vice-president and chief economist Leslie Appleton-Young says this makes the expected inventory quite lean, with a six-month supply during the off-season and a four-month supply during the peak. Newport Beach real estate is particularly known for its high share of distressed properties, which have caused weekly price drops of over 40%.
Economic pressures
Various economic forces will have an impact on the California and Newport Beach real estate markets in 2010. These include an oncoming wave of foreclosures, loan modifications and resets, the job market, and Californias current budget crisis. Foreclosures may be particularly high in upscale areas like Newport Beach, as a growing shadow inventory that accumulated in 2009 starts coming to the fore.
So what can home buyers and sellers expect from Newport Beach real estate in 2010? The California Association of Realtors (CAR) offers the following forecasts.
New normal
CAR president James Liptak isnt expecting a full market recoverythat is, we wont be seeing the sky-high figures from back in 2006. Rather, 2010 will see the birth of a new normal in sales and home prices. Sales will stream in more steadily, rather than in bursts of high and low as was the case last year, albeit with an expected decline of about 2.3%. Home prices, on the other hand, are expected to go around 3.3% higher. For Newport Beach real estate, upscale areas like Corona del Mar may take a little longer to even out.
Low and high end homes
The gap between low-end and high-end California housing will become even more pronounced, according to Liptak. Newport Beach real estate obviously falls under the latter, with its median home price of over $1 million. This means it will attract more investors and seasoned buyers rather than first-time homeowners. Sellers will continue to struggle as buyers face tight financing standards. Buyers have also become more wary of where prices might go, so many might decide to wait it out for another year or two.
More distressed sales
Distressed homes will account for almost one out of three sales in 2010. CAR vice-president and chief economist Leslie Appleton-Young says this makes the expected inventory quite lean, with a six-month supply during the off-season and a four-month supply during the peak. Newport Beach real estate is particularly known for its high share of distressed properties, which have caused weekly price drops of over 40%.
Economic pressures
Various economic forces will have an impact on the California and Newport Beach real estate markets in 2010. These include an oncoming wave of foreclosures, loan modifications and resets, the job market, and Californias current budget crisis. Foreclosures may be particularly high in upscale areas like Newport Beach, as a growing shadow inventory that accumulated in 2009 starts coming to the fore.
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