Mixed message on home prices

Costa Mesa values show upward trend, but only some areas of Newport Beach see an increase.Real estate statistics released Monday do not show an overall pattern for Newport-Mesa home prices, with some neighborhoods posting gains in home values in September and others dipping.

The numbers were released by DataQuick Information Systems, a La Jolla-based company that compiles real estate statistics. The company’s figures include sales prices of houses and condos.

Compared to the same month last year, Costa Mesa median home prices showed an upward trend, whereas Newport Beach’s results were mixed.

In Costa Mesa, there are about 140 homes on the market, said Valerie Torelli of Torelli Realty. That number, she said, is higher than the available supply of a few months ago. Still, she does not think a greater supply has had a downward influence on prices.

“It’s hard to find anything under $700,000,� Torelli said.

In Newport Beach, median home prices showed year-over-year increases in the ZIP Codes that include Corona del Mar, the eastern Balboa Peninsula and the neighborhoods east of the Upper Newport Bay. DataQuick figures showed declines in the ZIP Codes that include Balboa Island, Newport Coast and West Newport.

However, Bill Cote of the Cote Realty Group believes DataQuick’s figures are inaccurate. He said that since home sales can occur without the selling price being disclosed, high-value transactions can be made without influencing the figures.

“It ain’t the Bible,� Cote said, referring to the DataQuick figures.

Cote, who called himself “bullish� on the Newport Beach home market, quoted multiple listing service figures to assert his belief in a citywide trend toward higher home prices. Though he did not have September numbers available, he said that through August, 150 homes had been sold in Newport Beach for $3 million or more. Through August of last year, 119 homes had price tags of least $3 million.

Among the factors Cote believes are fueling the residential real estate market are transfers of wealth from the World War II generation to their children and a concentration of business, medical and legal professionals in Newport Beach.

“We just have a whole lot of wealth in this community,� Cote said.

* ANDREW EDWARDS covers business and the environment. He can be reached at (714) 966-4624 or by e-mail at [email protected].