2013 Costa Mesa Real Estate Will Move Swiftly
As our local Costa Mesa real estate market continues to stabilize from the past few years of foreclosures and distressed housing, 2013 looks like it will shape up to be a great year for buyers and sellers.
If you read my
post yesterday about what I got right and wrong about my
2012 predictions for Costa Mesa, I feel like this year is going to be easier to predict (I’m sure I will look back next year and laugh at myself!) because everything is in much more balance at the beginning of this year.
Here we go 2013 Predictions for Costa Mesa Real Estate:
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Tight, tight inventory – Inventory for condos, single-family homes, and investment properties was at an all-time low at the end of 2012. The trend started in the spring of last year and marched right through the end of the year. Why? Not many REOs for sale, people who probably should have done short sales held out, and traditional sellers were not moving unless they had good reason to. Unfortunately, this trend will continue for much of 2013, I think well into the fall of the year.
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Continued low interest rates – The Fed is our friend. No doubt about it. The rates for mortgages are crazy, crazy low, and should continue for most of the year. Even if they were to rise into the low 4% range it would not slow our current market.REO/HUD Homes – Hopefully, the banks release more of what they have behind the scenes in their shadow inventory. If they were waiting for the presidential election to happen, that’s over. I think we will see more REOs, albeit they will be priced higher than most people would expect. Also, we should start to see a new wave of HUD homes locally in Costa Mesa, those that are defaulted FHA mortgages.
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Inflation In Check – One of the best indicators that our 2013 will continue to prosper is that inflation is in check at the moment and consumer confidence is solid. That should continue as we continue to add jobs to the local Orange County marketplace.
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New Builders – Building started again last year, and new home communities already have waiting lists again, so we will see a lot of stalled projects ramp back up to life here locally in Costa Mesa.
New building should resume in Costa Mesa this year
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Move up/Move Down – Last year there was a big move up/move downtrend. That will continue. People looking for a little more home, or conversely, looking to downsize from an empty nest will profit from this hot market and low interest rates.
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Flippers Paradise – As I posted a month ago, flippers are having an absolute feast for themselves locally in Costa Mesa. A lot of the would-be REO properties are being sold at the court house and flippers are gobbling them up. That trend will continue in a big way until the inventory and interest rates change in a big way.
Am I wrong?
What do you think? Am I crazy? Some of this market is crazy, and definitely tough for buyers, but overall good for those who own Costa Mesa real estate and enjoy seeing the values continue to rise again.
If you are interested in learning more about Costa Mesa, or Costa Mesa real estate for sale, please call local expert/Broker Colin Delaney at
(714) 743-9882 or
E-mail me.
