Newport Beach is ranked as the second most expensive real estate market in the United States
After a constant dribble of good news almost every quarter of the past year, the Los Angeles real estate market is finally seeing some meaningful growth.
According to a recent article in the Los Angeles Times, LA-area homes are going under contract at pre-recession rates. The Daily Pilot reports that Newport Beach is currently No. 2 in the list of the most expensive real estate markets in the country and the New York Times recently published a special report on the sudden gust of economic vitality sweeping the region.
The driving factors behind the positive turn in the real estate market is difficult to pinpoint, but luxury real estate is one indicator that’s way up. The nation—or the top 1 percent of it—seems to have rediscovered just how desirable a 90210, or a 92660 zip code can be.
The vice-president of the Newport Beach Association of Realtors sees good omens in her city’s rise in home prices, comparing it to a school receiving a Blue Ribbon Award for excellence. For her Realtors, it’s a sign that Newport Beach is somewhere everyone wants to live, once again.
Of course, Newport Beach is only one small part of the enormous metro Los Angeles area, but as the New York Times confirms, it’s an important part of the overall story of SoCal’s rejuvenation. Newport Beach is just one of a number of LA-area towns that watched its numbers rise this year. In October, overall home sales went up 25 percent. Local inventory is in danger of becoming depleted, however, there are available homes in new communities.
Despite the good news, things get dicey the farther you are from the Hollywood sign. Coastal areas in Orange County and great Los Angeles seem to be at the forefront of the rebound, leaving inland areas behind. While watching its neighbors enjoy the higher home prices and an improved job market, the Inland Empire may have to wait for its own turnaround.
As for coastal Los Angeles, the upward trend in home ownership is bolstered by similar good news in the area of employment.
The New York Times theorized that the economic “gloom” is starting to lift, thanks to higher-than-average job growth and perhaps, depending on your political affiliations, increased tax revenues. October numbers show unemployment in California is at its lowest level since February 2009.
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