Newport prices keep soaring

Paul Clinton

Home sale prices in the city during June were among the highest in

the state, a Realtors’ group announced Thursday. But local Realtors

suggest the city’s ranking should be much higher.

In a report released Thursday, the median price for all the new

and resale homes that closed escrow during the month was $727,000, an

increase of 2.6% compared with the previous year. That put the city

10th in the state, behind Palos Verdes Estates at $1.05 million,

Manhattan Beach at $900,000 and seven other cities.

Economists with the California Assn. of Realtors compiled the

report from filings with the county clerk-recorder and data supplied

by the Multiple Listing Service, the database Realtors use to track

listings.

Local Realtors quickly questioned the numbers, saying the

median-price number was much too low.

Strada Properties President Steve High said his company’s average

for June sales came in at $1.02 million.

“June proved to be a fantastic month,” High said. “It has been a

very strong market.”

Strada specializes in many of the homes in Newport Coast, newly

incorporated into the city, and Corona del Mar, High said.

One reason for the discrepancy is that the report didn’t include

Newport Coast, said Robert Kalenhenz, the group’s senior economist.

However, Kalenhenz stuck by the report.

“Certainly individual agents’ numbers may vary,” Kalenhenz said.

“That’s the data.”

Both High and Kalenhenz attributed the robust sales to the average

investor’s fear about buying stocks. People have been pulling money

out of equities and putting it in real estate, Kalenhenz said.

The city’s median house price -- the midpoint of all the sales,

not the average -- climbed from last year, the report said. In June

2001, the city’s median price came in at $708,250.

Despite placing in the top 10, Newport Beach was nowhere to be

found on the list of top growth rates across the state.

The value of homes in San Juan Capistrano grew 65.4% over the past

year. Huntington Beach came in fifth on that list, with a 36% growth

rate.

* PAUL CLINTON covers the environment and politics. He may be

reached at (949) 764-4330 or by e-mail at [email protected].