A Look Back: 2019 Costa Mesa Real Estate Predictions

No inventory is the New Norm – A+ here. Inventory levels were low, low, low and it went all year long, even into the traditionally slower months of October, November and December.

Stock Market Bouncing Ball? Another A for this category. The stock market went up to record levels by the end of the year, then slightly gave back a bit. Costa Mesa real estate is enjoying the fruits of the market's rise with real estate prices following the stock market up.

OC Economy Chugs Along – The local economy is on fire. Lowest records of local unemployment and far lower than other metro areas around the country. A for the writer again.

Interest Rates Rise Slightly – They did rise a bit, but they have remained stable over 2019 and did not have a great effect on the market as a whole. B-

Sky High Rents Continue – Yes, rents are maintained and getting higher! If you can even find a rental property that is. People aren’t moving once they lock down a rental. A

Sellers Exiting California at All-Time Highs – Yes, lots of activity of people moving out of state to take advantage of lower prices in other states. If they moved out in early 2019, they missed a big run of prices in Costa Mesa real estate actually pushing higher at the tail end of 2019. 

Mortgage Creativity – Yes, lenders continue to be more relaxed and more interest only and 7/1 Arms are being pushed as prices continue to skyrocket. But lenders don’t get their wish and not as many creative types of financing programs become available. C

Late Summer is the New Fall – Nope! I swung and missed on this one. I expected a late summer slowdown in August but that just was not the case. Because of a significant lack of inventory, sales kept chugging along with little change. C-

Shocking Prices – Yup! A+. Some of the prices in Eastside Costa Mesa are over $2,000,000, and some ordinary homes in Mesa Verde for more than $1,600,000 pushed the Costa Mesa real estate market to places never seen before.

Level and Cool – I got it wrong. C-. The market just continued to crush it all the way through early December. Rates stayed lower than I expected which continued to fuel an already hot market. Who knows? Maybe next year we finally see a bit of a slowdown. I would give myself a B+ overall, I got a lot of my predictions correct, but I don’t think I could have seen the longevity of this market.