Costa Mesa Real Estate Sales Strong
Resales in Costa Mesa are on fire, according to data published last week by local real estate information firm Dataquick. And Costa Mesa real estate continues hot sales trend with no doubt.
Resales in Costa Mesa real estate, including zip codes 92626 and 92627 were up. Total sales for February (most recent data) were 80 sales, an increase of 12 from January 2013, and more importantly an increase of 26 units from February of 2012.
What’s most noticeable about the 80 sales, is that it is in line with high sales activity in the 2004-2006 period, when the market was extremely active and booming. Costa Mesa real estate resales in the month of February 2004 were 87, in February 2005 they were 80, and in February 2006 they were 75. For the years 2007-2011, the highest number of resales in the month of February were 49. Most of those months sales were btween 42 and 49.
So the joint is hoppin! Costa Mesa Real Estate Continues Hot Sales Trend
As I posted previously, the activity has got to make you scratch your head a bit. What’s next? Prices are significantly higher than they were a year ago. We are far from record levels, but it is fair to say that we have put on about $100,000 to where values were about a year and a half ago in Costa Mesa real estate.
Why’s this happening? It is a pretty simple equation – Lack of Inventory + Low Interest Rates = High/Quick Sales.
Additionally, sellers are perceiving this as a time to wait- let the Costa Mesa real estate market heat up more, let prices return to historical highs, then sell out when the market is at a great price for their home or condo.
Well, market timing is difficult. Just ask Warren Buffet. Personally, I don’t see this market continuing. I think once the Fed fixes rates to be a bit higher, we are going to lose a significant amount of steam from this market. I think a lot of the buyers who are out there now can only afford what they are looking for because of the artificially low rates.
Let me know what you think. I’m going to post a defense of either side of this argument this week.
CostaMesaRealEstate.com’s Colin Delaney at 714-743-9882 or E-mail me to find out why you’ll love what we do for you!