Costa Mesa Real Estate- Taking a Turn?
So how’s the market doing? Especially the Costa Mesa real estate market? It’s interesting, because it seems like it is cooling a bit. We’ve had a tremendous run the last couple of years, especially last spring when there was little to no inventory.
A recent Case-Shiller Index report says prices are slowing. Slowing, as in they have finally stopped their upward trend. Last month, according to the report, Los Angeles prices actually went down by .1%. Not a lot, obviously, but the report usually trails the real market activity by a couple months.
Then, on the other hand, we have a consumer confidence report that says consumers have never been so confident in 7 years!
Mortgage Rates: Still great! Low 4% range and holding, and should stay that way for the balance of the year.
S&P 500: Just past a record level of 2000 points. More good news.
How Does it Feel? Costa Mesa Real Estate Market Update August 2014
On the street, I would say it’s a very different feeling. Open house traffic has begun to slow, buyers are being much more picky, inventory has increased significantly since this time last year in Costa Mesa real estate, and price drops are becoming more normal.
August is always slow- so I can’t say if this is a trend, or a minor speed bump in the market. A lot of times, people think summer is the best time to sell in Costa Mesa real estate, but if you had to pick, spring is always a better market. Why? August is typically slow. Vacations, heat, beach, the last chance to fool around in summer, and the kids have to go back to schools. Most people with kids aren’t looking for a home in late August. I don’t know why, but it’s always a slower time in Costa Mesa real estate.
So Now What?
So that is all to say what? There is conflicting confidence being very positive, but home prices starting to turn the other way. That’s the first turn in prices in the last 7 years. We will see. I still think, going back to my 2014 predictions in January, that we will see prices start to go the other way (down) at the end of this year in Costa Mesa real estate. Too much run up, too fast.
Colin Delaney can be reached at 714-743-9882 or email him here.