Costa Mesa Real Estate Trends May 2014

Costa Mesa Prices Slowing?

Here we are, and just about a third of the year has passed. Until now, the Costa Mesa real estate market has been humming along with prices rising quickly in the last 12-24 months. Is that still the case in Costa Mesa real estate circles?

Let’s take a look at countywide numbers year to date first:

Prices

Resale Homes +7.7%, Resale Condos +10.3% and New Home Sales +18.7%

Sales Volume

Resale Homes -16.4%, Resale Condos -12.4% and New Home Sales +35.5%

Facts

Medium Price is $570,000 up from $529,000 a year ago
Sales Volume is down to 3,042 versus 3,420 a year ago
Inventory is up 6,369 up from 5,852 just one month ago
Mortgage Defaults, 422, up 19.5% versus one year ago
Foreclosures, 108, down 38.6% versus one year ago
Average Days on Market 2.31 months (70 days)

Interest Rates

30 year fixed Mortgage rate is currently 4.21% down slightly from last week (Rates)
15 year fixed rate is 3.32% down slightly versus one week ago
Average loan costs $188 more a month than one year ago
Mortgage lending declined to its lowest level in 14 years (Q1 2014)

Trends

Million dollar inventory is 28.1% of all OC listings
Home ownership at its lowest point in 19 years (64.8%)
Highest price increase; Foothill Ranch, 92610, +64.7% VLY
2nd Highest price increase; Dana Point, 92629, +57.9% VLY
3rd Highest price increase; Villa Park, 92861, +49.2% VLY
New home pricing and volume are rising
NAR (National Association of Realtors) reports the West is down 8.1% in sales due to low inventory
NAR reports the Northeast +7.1, Midwest +2% and the South +3.6%
Costa Mesa Real Estate Trends May 2014

So the obvious thing to me, because these numbers are exactly similar in Costa Mesa real estate, is that sales are slowing down. Prices went up, but sales are slowing. And that is a bit concerning because interest rates dipped and are at a very reasonable rate right now.

What are you seeing? Thinking? Is it a good time to buy with low rates, or do you wait?

Colin Delaney – (714) 743-9882 – e-mail me