Newport-Mesa home prices rise

Paul Clinton

Median home prices continued to soar in April, a statewide real

estate trade group said Tuesday.

In Orange County, mid-level single-family home values hit $448,410

for the month, a 20.6% increase from last April, the California Assn.

of Realtors reported.

With condos and new homes included, the median value came in at

$329,000, the group reported.

Home prices in Newport-Mesa continue to spike, local real estate

agents said, mirroring the countywide trend. And while less are

selling, luxury homes have also remained at the heart of some of the

most robust increases, said Steve High, the president of Strada

Properties.

High’s company has closed five sales since April 1 that crossed

the $7-million tag, he said.

“Everything on the water right now is really outperforming the

marketplace,” High said. “It all comes down to our lack of

inventory.”

High and others said the historically low interest rates, sparse

supply of housing and desirable location have been fuelling the

home-value juggernaut in a generally weak economy.

A 30-year fixed rate mortgage, in the nation, rested at 5.03% on

Tuesday, according to Web site Bankrate.com. Rates haven’t been this

low locally since 1958, said Bill Sinclair, the president of the

Corona del Mar Chamber of Commerce.

“People continue to buy automobiles and houses,” Sinclair said.

Both median-price homes in Costa Mesa and Newport Beach registered

robust increases in April, when compared to a year ago, according to

the report, which counted single-family homes, as well as

condominiums, in the two cities.

The mid-level home in Newport Beach soared 22.3% to $816,250 from

$667,500 a year ago. In Costa Mesa, the median price hit $400,000, a

14% rise from $350,750 in April 2002.

“[Local home values are] playing precisely the way the county is

playing, albeit with higher stakes,” said Richard Luehrs, the

president of the Newport Beach Chamber of Commerce.

* 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.