Balboa Island, California, is technically a neighborhood in Newport Beach in Southern California. The community consists of three artificial islands in Newport Harbor, so it is distinct from the rest of the city of Newport Beach. Being situated on three small islands, the Balboa Island real estate market is rather small with only limited space for building new homes. Due to this constraint on the supply of Balboa island homes for sale, the demand for homes here is very high, which has driven prices high. And like it many neighboring Orange County communities, these islands have seen the real estate market sputter over the past couple of years as the effects of the greater economic slowdown spread to the housing market here. Home prices, once at or near all-time highs, plunged once the market was hit by the wave of homeowners unable to pay their mortgages and foreclosures on Balboa Island.
According to biweekly statistics compiled on the Balboa Island housing market by Balboa Island Real Estate, in the period ended Sept. 13, Balboa Island stood with a six-month supply of homes for sale. It had one home listed for $750,000 to $1 million, 14 homes for $1 million to $2.5 million, 16 homes for $2.5 million to $6 million and two homes for sale listed at more than $6 million, showing that although prices here may have fallen from highs, they are still some of the highest in the region. Nonetheless, there are deals to be had and many investors are closely watching the market for the right opportunity to jump in. In the period ending Sept. 13, there were four active short sales listed but no foreclosed homes and five homes in escrow.
According to the Orange Coast real estate, the Newport Beach zip code that includes Balboa Island for a three-week period ended Sept. 8 saw a median sales price of $4.08 million, up more than 184% from a year earlier. However, these statistics must be carefully examined because there were only two homes sold during the period, a small sample number on which to base statistics. According to the OC Register's monthly chart, the month of August saw just a single home sold in the Newport Beach zip code that includes Balboa Island at a price of $1.15 million.
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