Newport home prices skyrocket

Paul Clinton

Local median home prices soared yet again, a regional real estate

trade group reported Monday.

The median, or middle, price for sales of all new and existing

homes in October jumped 27.58% in Costa Mesa and 34.39% in Newport

Beach compared to a year earlier, the California Assn. of Realtors

said.

Group economists attributed the growth spurt to attractively low

interest rates and an abnormally slow period after the terrorist

attacks last year. In addition, Newport-Mesa continues to be an

attractive area to live, they said.

“It’s a very desirable county to live in and, of course, the

coastal communities are even more desirable,” said Robert Kleinhenz,

a senior economist with the group. “The fact that the coast is built

out also helps the price appreciation.”

The group, in the monthly report, tracks all closed-escrow sales

recorded by county clerks statewide. The group factors in new and

existing homes, single-family homes, apartments and other

multi-family dwellings.

In Costa Mesa, the median sales price for homes came in at

$395,500, compared with $310,000 a year ago. In Newport Beach, a

middle-of-the-road home costs $845,000, compared to $628,750 during

October 2001.

Local Realtors warned against viewing the report too favorably.

Bob Chapman, the general manager with Prudential California Realty’s

Orange County division, said the sharp percentage gains reflect more

activity in the market, but shouldn’t be applied to every home.

“The median price indicates that there are more higher-priced

houses selling,” Chapman said. “People are willing to pay more.”

For percentage increase, Newport Beach finished third in Orange

County behind Laguna Beach (at 36.89%) and San Juan Capistrano

(35.27%).

Of the 31 county cities tracked in the report, Costa Mesa finished

fifth. Brea finished fourth at 30.21%.

Newport Beach also came in with the fifth highest median price

statewide. The top four were Beverly Hills, at $1.11 million, Pacific

Palisades, at $1.01 million, Laguna Beach, at $924,000, and Malibu,

at $875,000.

Statewide, median home prices rose 22.7% during the month. The

volume of sales also was 17% during the period than the year earlier.

* PAUL CLINTON covers the environment, business and politics. He

may be reached at (949) 764-4330 or by e-mail at

paul.clinton@latimes.com.