Newport makes pricey list

Newport Beach is not the most expensive place to buy a home in the

country, but it’s pretty close.

Newport Beach took sixth place in Coldwell Banker’s Home Price

Comparison Index with an average 2005 home value of $1,499,000. All

but one of the 10 most expensive markets in the United States, Canada

and Puerto Rico were California cities.

The report only surveyed prices of four-bedroom homes with about

2,200 square feet of space, 2 1/2 bathrooms, a family room and

two-car garage.

Those requirements affected which cities wound up in the top 10

most expensive markets, said Steve High, an executive vice president

for Coldwell Banker Previews International. For example, nearby

Laguna Beach has plenty of high-priced real estate, but its streets

are not laid out like a typical suburb.

To the south, La Jolla was ranked as the most expensive city in

the survey. The coastal city was followed in the top 10 by Santa

Monica, Beverly Hills, Santa Barbara, Palo Alto, Newport Beach, San

Mateo, San Francisco, San Jose and Greenwich, Conn.

High was not surprised to see California cities dominate the price

rankings.

“Almost everything that we see pricing-wise, California tends to

be the leader,” he said. “If you look at technology and jobs and

where people are making money, it tends to be on the West Coast.”

Coldwell Banker’s report stated a diminished supply of homes --

40% fewer than in 2004 -- has caused local home prices to stay high.

Peter Hernandez, president of Coldwell Banker Orange County, said he

thinks low supply and comparatively low mortgage rates will sustain

the residential market.

“Inventory is extremely low. Everyone’s nervous because interest

rates are climbing toward 6%, and we have to laugh because that is so

low,” he said.

As of Thursday, the average rate for a 30-year, fixed-rate

mortgage in the western United States was 5.9% plus 0.7 of a point,

according to mortgage investors Freddie Mac.

The most affordable city listed in the survey was Killeen, Texas.

The average home price in the city near Fort Hood was $131,328.