As we head into the final quarter of 2024, the real estate markets in coastal Orange County continue to show signs of resilience. Despite a shifting economic landscape and higher interest rates, we’re seeing significant price appreciation in some areas, though transaction volume in certain neighborhoods has been softer. Let’s dive into the latest numbers for Newport Beach, Costa Mesa, and Corona del Mar.
Newport Beach
– Closed Homes: 52 (down 7.6% from last year)
– Median Home Price: $4,047,000 (up 18% year-over-year)
Newport Beach remains one of the most desirable locations in Orange County, though the overall number of closed sales has decreased slightly this October compared to last year. A drop of 7.6% in the number of homes closed could be attributed to a variety of factors, including the challenges presented by rising mortgage rates, a more limited inventory, and a general slowdown in the luxury market.
However, what stands out in Newport Beach is the strong price growth. The median home price has soared by 18%, reaching over $4 million, a clear sign of the continued demand for high-end homes in this prime location. Whether you’re looking at waterfront properties, iconic mid-century modern homes, or sprawling estates, the premium market in Newport Beach continues to show significant appreciation, making it one of the hottest spots for luxury real estate in Southern California.
Costa Mesa
Closed Homes: 62 (up 29% from last year)
Median Home Price: $1,385,000 (up 21% year-over-year)
Costa Mesa is one of the more vibrant and dynamic real estate markets in Orange County right now. With a 29% jump in closed sales from October 2023, this city has seen a significant increase in both activity and demand. Costa Mesa’s market has been buoyed by its central location, proximity to major freeways, and a growing reputation for its trendy neighborhoods, like Eastside Costa Mesa and the bustling downtown area.
The median home price in Costa Mesa has also seen an impressive 21% increase, bringing the price tag to nearly $1.4 million. This surge is driven by demand for single-family homes and the growing popularity of newer developments and modern remodels. Costa Mesa continues to be an appealing option for buyers seeking a balance of affordability and proximity to the beach, offering various housing options ranging from charming mid-century homes to newly built contemporary designs.
Corona del Mar
– Closed Homes: 15 (down 6% from last year)
– Median Home Price: $4,962,000 (up 16% year-over-year)
In the exclusive community of Corona del Mar, which remains one of the most prestigious neighborhoods in Newport Beach, the market has been more subdued in terms of transaction volume. With only 15 homes closed this October, down 6% from the same time last year, it’s clear that the luxury market here has been experiencing some cooling. This may be reflective of higher interest rates and potential sellers holding off on listing their properties, anticipating further price appreciation or waiting for more favorable market conditions.
Nevertheless, the median home price in Corona del Mar continues to rise, up 16% year-over-year to nearly $5 million. This upward trajectory is likely driven by limited inventory and continued demand for luxury properties near the beach, with buyers willing to pay a premium for homes with ocean views, expansive lots, and close proximity to the village and local amenities.
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Market Outlook for the Remainder of 2024
As we look toward the end of the year, it’s clear that some trends are solidifying while others show signs of change. In Newport Beach and Corona del Mar, luxury homes continue to see price appreciation despite a slight dip in the number of homes sold. Buyers in these areas are still willing to invest in premium properties, albeit with more caution in terms of transaction volume.
On the other hand, Costa Mesa has emerged as a standout performer, with a noticeable uptick in both sales and prices. The city’s combination of location, affordability compared to its neighboring beach cities, and overall appeal to both first-time buyers and investors has helped propel its market to new heights.
Higher interest rates and a potential recession could weigh on the market in 2025, but for now, the demand for homes in these sought-after coastal communities remains strong, and price growth continues to impress. Buyers and sellers alike should stay informed and work closely with experienced real estate professionals to navigate the evolving market conditions in the months ahead.