Hot Market Continues
Costa Mesa continues it’s hot market trend through the first month of the year. As I mentioned in my last post, there is a lot of belief that the ugly market is behind us. Let’s look at the factors influencing the local Costa Mesa rea estate market for the month of January:
Costa Mesa Real Estate January 2013 Market Report :Rates
Rates were still between 3.25% and 3.5% for all mortgage products, including jumbo loans in our area. That is only adding fuel to the fire, allowing buyers to buy Costa Mesa real estate at extremely affordable monthly payments. Personally, I have seen Costa Mesa real estate buyers that have been able to add $50,000 to their price range in the last year since rates have come down so far. Affordability is as good as it is going to get. The Fed seems content to leave rates where they are currently for some time, although local mortgage brokers seem to think rates will rise by the end of the year.
As of this writing, there were only 57 condos and single family homes on the market without an accepted offer on them (active status) according to our local MLS. That is about 1/4 of what a healthy inventory number should be at this time of year for Costa Mesa real estate. Now it’s not fair of me to call it empty, but it’s super low. If you as a seller would put your home on the market on a Friday, I guarantee you would have no less than 20 visits from prospective buyers by the end of the weekend.
Prices are up. Way up. Right now Costa Mesa real estate prices, while not back to their inflated 2006-2007 peak, are significantly higher. There have been sales for more than $50,000 -$100,000 higher in Costa Mesa real estate neighborhoods than the same time last year. That’s significant.
Investment properties in Costa Mesa, such as duplexes, triplexes, and fourplexes (and larger units) are super hot now. Investors finally believe that the real estate market has turned the corner, and this investment property is super hot. Multiple offers and asking prices that seem nearly inflated to prices like at the peak of the market.
More of the same. Fortunate for those thinking of selling, but probably pretty frustrating for buyers. My next post will talk about a category of buyers who can benefit from this market.
Need help? Think differently? If you are interested in learning more about Costa Mesa, please call local expert/Broker Colin Delaney at 714-743-9882 or E-mail me.