City among most pricey

A new report by Forbes magazine solidifies what many residents have known for a long time ? Newport Beach is a very expensive place to live.

In fact, the peninsula and harbor area is the third most expensive ZIP Code in the country, according to the magazine report. The 92662 ZIP Code comes in right behind Rancho Santa Fe in San Diego County and the old money enclave Sagaponack, N.Y., most commonly referred to as the Hamptons.

The average listed property on the peninsula is just under $2.4 million, driven largely by the area’s luxury properties with prices continually on the rise, real estate agent Mark Whitehead said.

“I don’t think we’ve reached near the potential,” he said.

“Today a house came on the market for $19 million, yesterday one came on for $15 million. I’m going to bring one on for $14 million,” he added.

Realtor Dan Lloyd said three factors drive the high prices of Newport Beach homes: location, location, location.

“Bottom line, it’s the dirt value,” he said. “It’s the land.”

Besides its proximity to the ocean and moderate climate, the area’s real estate boom was accelerated by a migration of mega-rich descending on Newport Beach to escape traffic and overcrowding in Los Angeles, Whitehead added.

“The first thing a lot of people ask me is, ‘How close is the airport?’ ” he said, explaining that many want to be near a place to house their private jets. “They want to be able say, ‘Let’s go to Vegas for breakfast’ and be on the plane in 10 minutes.”

The peninsula wasn’t the only ZIP Code to get a nod from Forbes. Neighboring ZIP Code 92661 earned a top nine spot, and Newport Coast ranked 14th on the list. Corona del Mar was ranked the 24th most expensive place to live in the country.

Whitehead said he expects homes in the $1-million to $2-million range to taper off, but luxury home prices will keep rising. As for good finds on the market, Whitehead said there are still bargains to be found if one looks hard enough.

“Just the other a day I saw a home listed for $9 million that was only two doors down from a house that went for $17 million,” he said. “What a deal.”

SELLING POINT

Forbes magazine on Monday released a report on the most expensive ZIP Codes in the U.S. Here’s how Newport Beach stacked up.