2002 good year to sell a house

Paul Clinton

Brisk local housing sales driven by historically low interest rates

made 2002 a banner year for the real estate industry in Costa Mesa

and Newport Beach, providing a rare bright spot in a largely sluggish

regional economy.

More housing sold for higher prices in less time than in 2001,

according to a market survey provided by the Orange Coast Assn. of

Realtors.

“In both of these cities, I would say, we’re still in a good

market,” said Diane Ward, the group’s Multiple Listing Service

coordinator. “With the interest rates staying down, it looks great.”

The survey included homes, condos and residential income -- a

category that includes duplexes and four-plexes.

In ritzier Newport Beach, 1,696 properties sold during the year

for an average price of $946,381. The city is proving yet again that

demand for higher-end housing hasn’t slacked.

In 2001, 1,285 properties sold in the city. The average price for

the previous year was $833,559. The city saw a 13.5% increase in the

average sale.

Of the 15 price categories included in the survey, housing selling

for $1 million and above, in Newport Beach, far outpaced any other

price point. Of all the sales, 530 sold for $1 million or more.

In neighboring Costa Mesa, 990 properties sold for an average

$401,650 price tag for the year. For the previous year, 898 sales

clocked a $340,339 average price. Costa Mesa saw an 18.01%

appreciation in the average price.

The survey broke down the sales into $50,000 increments between

$200,000 and $900,000. Prices on the lower end were divided into

three categories -- $160,000 to $199,999, $120,000 to $159,999, and

$80,000 to $89,999.

In Costa Mesa, the most housing in the past year sold in the

$350,000 to $399,999 price bracket. There were 190 that sold in that

range.

Newport Beach’s more expensive housing also sat on the market

longer than in Costa Mesa. The average length of time between listing

and close of escrow, in Newport Beach, was 85 days. In Costa Mesa,

the average selling time of housing was 51 days.

More expensive homes tend to sit on the market longer because the

loans are more complex. Lenders want more time to line up those

loans, Ward said.

This issue is also a simple one of supply and demand, local

Realtor Rilena Barlevy said. There is less demand for expensive

properties because there are fewer wealthy buyers.

“There are less rich people around,” Barlevy said. “And there are

more first-time buyers.”

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

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

[email protected].