A persistent shortage of homes for sale continues to define the market. With only a ~4.5-month supply (a balanced market is 6 months), competition remains high. This scarcity is driven by limited land for new construction, zoning restrictions, and the "lock-in effect," where current homeowners are hesitant to sell and give up their low-interest mortgages. This dynamic makes the market highly competitive, often resulting in bidding wars and quick sales for prime properties.

Buyers: The typical buyer in this market often needs a high income (estimated over $750,000 annually) or is making a cash purchase (around 35% of transactions). Pre-approval for a loan is essential to be competitive, and bidding wars are common for desirable properties.

Sellers: Sellers currently hold a strong position due to high demand and low supply. The spring and early summer months are traditionally the most active, providing an optimal window to list a property and achieve a premium price. Strategic pricing is still key, as even in a seller's market, overpriced homes may linger.

The luxury segment ($5M+) is a critical part of the Newport Beach market. These homes average 60 days on the market, slightly longer than the citywide average. Price per square foot can exceed $2,000, particularly for waterfront or new-construction properties. This segment is driven by a unique set of factors, including global wealth, discretion, and a focus on premium amenities and views.