For the past several months clients have been coming through my frequent open houses in the Newport Heights community of Newport Beach asking the same question- how is the housing market doing in this area? I have been telling them that the premium properties along the coast have been holding their values far better than their inland counterparts. Here is an article from the California Real Estate Journal ( by Chris Hawkins, a bankruptcy attorney ) which outlines several reasons for the stability of this isolated market segment.
But I believe another factor is that the Southern California economy is doing better than many other regional economies around the country. Here are the reasons why I believe that to be the case.
Construction and real estate are hurting here, obviously (and my colleagues and I do see a lot of clients in these fields under financial stress). But other prominent sectors of the regional economy are picking up the slack and softening the blow.
Domestic tourism, although slightly down, is still holding steady in Southern California. Many Americans who used to fly overseas for vacation are staying home due to airline prices, currency valuations and security reasons – and they are now staying domestic, and California has a lot to offer.
Many Californians who used to leave the state for vacation are staying close to home – planning “stay-cations” and taking advantage of what their own cities have to offer. Both trends are good for the local economy, as the tourism dollars continue to pour in here, providing business income, jobs and tax revenue.
International tourism is doing well. Many foreign economies have been growing mightily this decade, with China, India, Russia and Brazil leading the way. Their citizens have money and like to travel; many come to Southern California; and the currency exchange rates make our corner of the world seem downright affordable.[read more …]
With the considerable inventory to choose from, it might now be a good time to revisit the idea of purchasing a home in the Orange County California coastal areas.