Looking Back on 2012 Predictions

Colin Delaney January 17, 2013

Costa Mesa Real Estate Predictions Hit Home

We finished off 2012 on a high note, with appreciation across the board, fewer foreclosures and distressed homes weighting the market, and unfortunately a highly reduced inventory of homes for buyers.

Where will 2013 take us in Costa Mesa? I will give you my opinion tomorrow, but safe to say we are looking at a great Costa Mesa market for another year here locally.

_{Looking Back on 2012 Predictions}

Let’s look back at my 2012 predictions to see if I hit the mark. Here is a quick snapshot of what I predicted:

3 years until a normal market, one made of mostly standard sales
Pending home sales will continue an upswing, and buyers will continue to buy
We will see a much greater share of REO inventory from the banks
Rents will Rise
Prices will continue to stabilize
Mortgage rates will inch up

I think my first prediction is fair for Costa Mesa real estate….I think we are closer to that mark, but it might be a little longer than I originally thought. I would love it if we were at the normal, stabilized market in 2015 as I thought we would be. We’re closer though!

Pending home sales are through the roof! Because of a lack of available inventory and low rates, homes are selling like hotcakes.

REO share – surprisingly, we did not see an increase in the number of REOs to hit the market locally in Costa Mesa. Not sure why. Will we see more once Obama starts his second term? I would think so.

Rents will rise - This without a doubt happened. Rents practically went through the proverbial roof, and the tables turned where it was finally cheaper to own a home than it was to rent one on a month-to-month basis.