Home prices do a slight dip

Paul Clinton

Coming off one of the hottest months for residential real estate, the

mid-level home in Orange County fell in value somewhat in May, a

regional real estate group reported Wednesday.

The value of a median home in the county came in at $389,000,

which was a 14.9% increase from a year ago, but a 13.2% drop from

April. The data is contained in a survey issued by the California

Realtors Assn. that analyzed home sales in May.

Home values could fall back to earth a bit, an economist with the

group said, as interest rates begin to rise and the number of home

sales falls.

“When rates start to go up, I do think you are going to see the

housing market pull back a bit,” said Leslie Appleton-Young, the

group’s chief economist and vice president. “You’ve had a housing

market that’s been [strong] for five years now.”

Locally, the median price of homes in Costa Mesa and Newport Beach

have fluctuated in the past two months. More affordable Costa Mesa

has retained its strength better that its affluent neighbor.

In May, the mid-level Costa Mesa rose to its highest level this

year, hitting $430,000 from $359,500 a year ago. That was a 19.6%

increase. The median home came in at $400,000 in April and $402,000

in March.

In Newport Beach, the median price in May fell back to its March

level, after a superlative April. The mid-level home hit $720,000

during the month, up 15.7% from the $622,500 of a year ago. However,

the mid-level home had risen to $816,250 in April after hitting

$715,000 in March.

Newport Beach mirrored a broader countywide trend in median

prices. In Orange County, the mid-level home hit $389,000 in May, a

14.9% increase from the $338,500 a year ago. Orange County’s

mid-level home rocketed in April to $448,410 from the $380,000 level

in March.

Orange County still retains a strong appeal because of its coastal

climes, affluence and, in some areas, value.

“Orange County has a lot going for it,” Appleton-Young said. “It

has a very high quality of life.”