2017 Costa Mesa Real Estate Predictions – Here they are! I know you have been patiently waiting to see what I think for the year ahead 🙂 I have to say, looking back on 2016 as I did this week, I was a bit surprised that things have not quite leveled out yet. I really did think this market’s legs would leave by the end of the year. So what’s in store for 2017? Here we go:
- Lack of Inventory – Again, the year starts off on the wrong foot for Costa Mesa housing. Just like the last few years, starting the year with less than 100 available homes and condos means that prices will jump early in the year, and consequently, there will be bidding wars on the best homes.
- Rising Rates – The Fed says they will raise rates three times this year; I think we get two. I believe they will raise an 1/8th of a point prior to April, and do it later in the year after June.
- Trump Bump – Well, who really saw that coming? I think most of us, Republican and Democrat alike, were surprised at Trump’s win. His initial policies will give the economy a shot in the arm, and those with situations who will benefit from a Republican government will want to make moves in housing. Expect housing to remain strong the first half of the year, and prices to rise with it.
- Feel Good Economy – Orange County is one of the brightest spots in the American west for jobs and employment. Expect that trend to continue well into 2019 and forward; consequently there will be strong demand for existing and new housing.
- New Housing – There was a lot of land or existing buildings purchased in the last three years. Expect to see new housing in Costa Mesa this year. The change in the City of Costa Mesa’s
- Rise of Millenials – It’s been predicted for years, but I think we start to see a great number of millennials in the market now. I am not sure what the numbers are in Costa Mesa, but I think it will eclipse 28% of buyers in the market this year.
- Sky High Rents – Rents continue to skyrocket, which should help sales along. Those renters will be forced into buying and finally understanding that buying a home, even with high prices, still makes better sense if you want to live in Costa Mesa.
- Creative Financing – With prices continuing to push their way up, lenders will be forced to “get creative” and offer new/better programs for buyers to help ease the sticker shock of higher payments. Programs have already crept into the market offering financing for self-employed and stated assets programs for those with issues.
- Flopped – There are a lot of what I call “Retail Flippers” in the market. Those who buy a run down house at retail prices, put some work and money into fixing it up, then try to flip for a profit. However, they get stuck and realize it is not as easy as it looks on TV. I think this year there will be more than a few “flops” out there in the Costa Mesa real estate market.
- Summer Swoon – It can’t go on forever, can it? I think the late summer in late July and August will be a fairly slow period on activity. I really have no idea if this market can go and go and go, as they predict it will. Predictions are for another 5% bump up, depending on who you read. I am sure we will put on another 3%. I guess ultimately, if President Trump doesn’t create too many waves in National and International waters, our economic and housing situation should be strong for some time in the future.
2017 Costa Mesa Real Estate predictions