Newport Beach Real Estate: Is it Still Buyer-Friendly?

Like much of Southern California, Newport Beach real estate has been in a deep buyer’s market for the past year or so. Home prices are down, mortgage rates are attractive, and the number of homes in the market gives buyers a pretty broad choice. But now that the market is stabilizing, do buyers still have an advantage?

On the one hand, buyer activity is picking up thanks to government support and the sheer number of homes available. On the other, neither the economy nor the Newport Beach real estate market are even close to their pre-recession rates. One should keep in mind not just the current prices, but where these prices will go in the next few years. If you’re looking to buy real estate Newport Beach, here are some pointers worth keeping in mind.

Distressed homes
One of the main reasons Newport Beach real estate prices are down is the number of distressed properties on the market. Foreclosures, short sales, and real estate owned (REO) homes make up a good deal of the city’s inventory, and with prices dropping as much as 40% below market standard, citywide figures obviously suffer. Of course, the savings come at a price: while you can get Newport Beach property for cheap, you’ll need to pay a specialized agent to make sure you don’t buy into any pitfalls (such as liens or title issues).

Long-term costs
Real estate Newport Beach prices are more than just the amount you pay upfront, or the numbers written on your mortgage statement. Living in Newport Beach has its own costs, and as one of the wealthiest cities in the U.S., it definitely doesn’t come cheap. Before investing in Newport Beach real estate, make sure you can afford not only the mortgage and utilities, but also local fees such as homeowners’ association dues, security and maintenance services, and daycare if you have young kids.

Financing options
Prices may be low, but will lenders want to take you on as a borrower? If you have good credit and a steady income, then this shouldn’t be a problem. But many of today’s buyers are first-timers who don’t have much credit history beyond credit cards—and with the jumbo mortgages Newport Beach homes often require, getting approved may take some time. Talk to a Newport Beach real estate agent to see what you can do to improve your chances, or get a better deal out of potential lenders.

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